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Where Can I File My 2012 Taxes Online

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Where Can I File My 2012 Taxes Online

Where can i file my 2012 taxes online Part Four -   Adjustments to Income The three chapters in this part discuss some of the adjustments to income that you can deduct in figuring your adjusted gross income. Where can i file my 2012 taxes online These chapters cover: Contributions you make to traditional individual retirement arrangements (IRAs) — chapter 17, Alimony you pay — chapter 18, and Student loan interest you pay — chapter 19. Where can i file my 2012 taxes online Other adjustments to income are discussed elsewhere. Where can i file my 2012 taxes online See Table V below. Where can i file my 2012 taxes online Table V. Where can i file my 2012 taxes online Other Adjustments to Income  Use this table to find information about other adjustments to income not covered in this part of the publication. Where can i file my 2012 taxes online IF you are looking for more information about the deduction for. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online THEN see. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online Certain business expenses of reservists, performing artists, and fee-basis officials Chapter 26. Where can i file my 2012 taxes online Contributions to a health savings account Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Where can i file my 2012 taxes online Moving expenses Publication 521, Moving Expenses. Where can i file my 2012 taxes online Part of your self-employment tax Chapter 22. Where can i file my 2012 taxes online Self-employed health insurance Chapter 21. Where can i file my 2012 taxes online Payments to self-employed SEP, SIMPLE, and qualified plans Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Where can i file my 2012 taxes online Penalty on the early withdrawal of savings Chapter 7. Where can i file my 2012 taxes online Contributions to an Archer MSA Publication 969. Where can i file my 2012 taxes online Reforestation amortization or expense Chapters 7 and 8 of Publication 535, Business Expenses. Where can i file my 2012 taxes online Contributions to Internal Revenue Code section 501(c)(18)(D) pension plans Publication 525, Taxable and Nontaxable Income. Where can i file my 2012 taxes online Expenses from the rental of personal property Chapter 12. Where can i file my 2012 taxes online Certain required repayments of supplemental unemployment benefits (sub-pay) Chapter 12. Where can i file my 2012 taxes online Foreign housing costs Chapter 4 of Publication 54, Tax Guide for U. Where can i file my 2012 taxes online S. Where can i file my 2012 taxes online Citizens and Resident Aliens Abroad. Where can i file my 2012 taxes online Jury duty pay given to your employer Chapter 12. Where can i file my 2012 taxes online Contributions by certain chaplains to Internal Revenue Code section 403(b) plans Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Where can i file my 2012 taxes online Attorney fees and certain costs for actions involving certain unlawful discrimination claims or awards to whistleblowers Publication 525. Where can i file my 2012 taxes online Domestic production activities deduction Form 8903, Domestic Production Activities Deduction. Where can i file my 2012 taxes online Table of Contents 17. Where can i file my 2012 taxes online   Individual Retirement Arrangements (IRAs)What's New Reminders Introduction Useful Items - You may want to see: Traditional IRAsWho Can Open a Traditional IRA? When and How Can a Traditional IRA Be Opened? How Much Can Be Contributed? When Can Contributions Be Made? How Much Can You Deduct? Nondeductible Contributions Inherited IRAs Can You Move Retirement Plan Assets? When Can You Withdraw or Use IRA Assets? When Must You Withdraw IRA Assets? (Required Minimum Distributions) Are Distributions Taxable? What Acts Result in Penalties or Additional Taxes? Roth IRAsWhat Is a Roth IRA? When Can a Roth IRA Be Opened? Can You Contribute to a Roth IRA? Can You Move Amounts Into a Roth IRA? Are Distributions Taxable? 18. Where can i file my 2012 taxes online   AlimonyIntroductionSpouse or former spouse. Where can i file my 2012 taxes online Divorce or separation instrument. Where can i file my 2012 taxes online Useful Items - You may want to see: General RulesMortgage payments. Where can i file my 2012 taxes online Taxes and insurance. Where can i file my 2012 taxes online Other payments to a third party. Where can i file my 2012 taxes online Instruments Executed After 1984Payments to a third party. Where can i file my 2012 taxes online Exception. Where can i file my 2012 taxes online Substitute payments. Where can i file my 2012 taxes online Specifically designated as child support. Where can i file my 2012 taxes online Contingency relating to your child. Where can i file my 2012 taxes online Clearly associated with a contingency. Where can i file my 2012 taxes online How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule 19. Where can i file my 2012 taxes online   Education- Related AdjustmentsIntroduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Prev  Up  Next   Home   More Online Publications
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Understanding your CP24E Notice

We made changes to your return because we found a difference between the amount of estimated tax payments on your tax return and the amount we posted to your account. You have a potential overpayment credit because of these changes.

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How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully — it will explain the changes we made to your return.
  • Check the list of payments we applied to your account to see if we applied all the payments you made.
  • Correct the copy of your tax return that you kept for your records.
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Answers to Common Questions

Is an overpayment credit different from a refund?
You get an overpayment credit when your tax payments exceed what you owe. You will receive the overpayment credit as a refund automatically. You also, however, can ask us to apply the credit as an advance payment towards your next year's taxes instead of sending it to you as a refund.

When can I expect to receive my refund?
You will receive it in four to six weeks if you owe no other taxes or debts we're required to collect.

What can I do if I don't receive my refund in four to six weeks?
Call us at the toll-free number listed on the top right-hand corner of your notice.

How can I find out what caused my tax return to change?
Please contact us at the number listed on your notice for specific information concerning your tax return.

What should I do if I find you misapplied a payment or haven't credited a payment that I made?
Contact us with your information at the toll-free number listed on your notice. Please have your documentation (such as cancelled checks, amended return, etc.) ready when you call. Our representative will discuss the issue with you and give you further instructions.

What should I do if I disagree with the changes you made?
Contact us at the toll free number listed on the top right-hand corner of your notice.

How do I adjust my estimated tax payments?
You can adjust your estimated tax payments by completing a Form 1040-ES, Estimated Tax for Individuals. See Publication 505, Tax Withholding and Estimated Tax for more information.

What should I do if I need to make another correction to my tax return?
You'll need to file Form 1040X, Amended U.S. Individual Income Tax Return.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

You can receive your refund quickly with a direct deposit to your bank account by completing the banking information in the refund section of your tax return.

Page Last Reviewed or Updated: 03-Mar-2014

The Where Can I File My 2012 Taxes Online

Where can i file my 2012 taxes online Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online Exception—Community Income. Where can i file my 2012 taxes online Exception—Qualified joint venture. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online Identification NumbersEmployer Identification Number (EIN) Payee's Identification Number Tax Year Accounting Method Business TaxesIncome Tax Self-Employment Tax Employment Taxes Excise Taxes Depositing Taxes Information Returns PenaltiesWaiver of penalty. Where can i file my 2012 taxes online Business ExpensesBusiness Start-Up Costs Depreciation Business Use of Your Home Car and Truck Expenses RecordkeepingWhy Keep Records? Kinds of Records To Keep How Long To Keep Records Sample Record System How to Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What New Business Owners Need To Know As a new business owner, you need to know your federal tax responsibilities. Where can i file my 2012 taxes online Table 1 can help you learn what those responsibilities are. Where can i file my 2012 taxes online Ask yourself each question listed in the table, then see the related discussion to find the answer. Where can i file my 2012 taxes online In addition to knowing about federal taxes, you need to make some basic business decisions. Where can i file my 2012 taxes online Ask yourself: What are my financial resources? What products and services will I sell? How will I market my products and services? How will I develop a strategic business plan? How will I manage my business on a day-to-day basis? How will I recruit employees? The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. Where can i file my 2012 taxes online For information on how to contact the SBA, see How to Get More Information, later. Where can i file my 2012 taxes online Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. Where can i file my 2012 taxes online When beginning a business, you must decide which form of business to use. Where can i file my 2012 taxes online Legal and tax considerations enter into this decision. Where can i file my 2012 taxes online Only tax considerations are discussed in this publication. Where can i file my 2012 taxes online Your form of business determines which income tax return form you have to file. Where can i file my 2012 taxes online See Table 2 to find out which form you have to file. Where can i file my 2012 taxes online Sole proprietorships. Where can i file my 2012 taxes online   A sole proprietorship is an unincorporated business that is owned by one individual. Where can i file my 2012 taxes online It is the simplest form of business organization to start and maintain. Where can i file my 2012 taxes online The business has no existence apart from you, the owner. Where can i file my 2012 taxes online Its liabilities are your personal liabilities. Where can i file my 2012 taxes online You undertake the risks of the business for all assets owned, whether or not used in the business. Where can i file my 2012 taxes online You include the income and expenses of the business on your personal tax return. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online   For more information on sole proprietorships, see Publication 334, Tax Guide for Small Business. Where can i file my 2012 taxes online If you are a farmer, see Publication 225, Farmer's Tax Guide. 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Where can i file my 2012 taxes online   For more information on partnerships, see Publication 541, Partnerships. Where can i file my 2012 taxes online Husband and wife business. Where can i file my 2012 taxes online   If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Where can i file my 2012 taxes online Do not use Schedule C or C-EZ. Where can i file my 2012 taxes online Instead, file Form 1065, U. Where can i file my 2012 taxes online S. Where can i file my 2012 taxes online Return of Partnership Income. Where can i file my 2012 taxes online For more information, see Publication 541, Partnerships. Where can i file my 2012 taxes online Exception—Community Income. Where can i file my 2012 taxes online   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. Where can i file my 2012 taxes online S. Where can i file my 2012 taxes online possession, you can treat the business either as a sole proprietorship or a partnership. Where can i file my 2012 taxes online The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Where can i file my 2012 taxes online A change in your reporting position will be treated as a conversion of the entity. Where can i file my 2012 taxes online Exception—Qualified joint venture. Where can i file my 2012 taxes online   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Where can i file my 2012 taxes online Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Where can i file my 2012 taxes online For an explanation of "material participation," see the Instructions for Schedule C, line G. Where can i file my 2012 taxes online   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Where can i file my 2012 taxes online Each of you must file a separate Schedule C or C-EZ and a separate Schedule SE. Where can i file my 2012 taxes online For more information, see Qualified Joint Venture in the Instructions for Schedule SE. Where can i file my 2012 taxes online Corporations. Where can i file my 2012 taxes online   In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. Where can i file my 2012 taxes online A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. Where can i file my 2012 taxes online A corporation can also take special deductions. Where can i file my 2012 taxes online   The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. Where can i file my 2012 taxes online However, shareholders cannot deduct any loss of the corporation. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online   For more information on corporations, see Publication 542, Corporations. Where can i file my 2012 taxes online S corporations. Where can i file my 2012 taxes online   An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation. Where can i file my 2012 taxes online Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. Where can i file my 2012 taxes online On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online   For more information on S corporations, see the instructions for Form 2553, Election by a Small Business Corporation, and Form 1120S, U. Where can i file my 2012 taxes online S. Where can i file my 2012 taxes online Income Tax Return for an S Corporation. Where can i file my 2012 taxes online Limited liability company. Where can i file my 2012 taxes online   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. Where can i file my 2012 taxes online The members of an LLC are not personally liable for its debts. Where can i file my 2012 taxes online An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in regulations section 301. Where can i file my 2012 taxes online 7701-3. Where can i file my 2012 taxes online For more information, see the instructions for Form 8832, Entity Classification Election. Where can i file my 2012 taxes online Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. Where can i file my 2012 taxes online The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). Where can i file my 2012 taxes online An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. Where can i file my 2012 taxes online An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000. Where can i file my 2012 taxes online You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. Where can i file my 2012 taxes online You must also furnish your number to other persons who use your identification number on any returns or documents they send to the IRS. Where can i file my 2012 taxes online This includes returns or documents filed to report the following information. Where can i file my 2012 taxes online Interest, dividends, royalties, etc. Where can i file my 2012 taxes online , paid to you. Where can i file my 2012 taxes online Any amount paid to you as a dependent care provider. Where can i file my 2012 taxes online Certain other amounts paid to you that total $600 or more for the year. Where can i file my 2012 taxes online If you do not furnish your identification number as required, you may be subject to penalties. Where can i file my 2012 taxes online See Penalties, later. Where can i file my 2012 taxes online Employer Identification Number (EIN) EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities. Where can i file my 2012 taxes online If you don't already have an EIN, you need to get one if you: Have employees, Have a qualified retirement plan, Operate your business as a corporation or partnership, or File returns for: Employment taxes, or Excise taxes. Where can i file my 2012 taxes online Applying for an EIN. Where can i file my 2012 taxes online   You may apply for an EIN: Online—Click on the EIN link at www. Where can i file my 2012 taxes online irs. Where can i file my 2012 taxes online gov/businesses/small. Where can i file my 2012 taxes online The EIN is issued immediately once the application information is validated. Where can i file my 2012 taxes online By telephone at 1-800-829-4933. Where can i file my 2012 taxes online By mailing or faxing Form SS-4, Application for Employer Identification Number. Where can i file my 2012 taxes online When to apply. Where can i file my 2012 taxes online   You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. Where can i file my 2012 taxes online If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. Where can i file my 2012 taxes online If you apply by telephone or through the IRS website, you can get an EIN immediately. Where can i file my 2012 taxes online If you apply by fax, you can get an EIN within 4 business days. Where can i file my 2012 taxes online   If you do not receive your EIN by the time a return is due, file your return anyway. Where can i file my 2012 taxes online Write “Applied for” and the date you applied for the number in the space for the EIN. Where can i file my 2012 taxes online Do not use your social security number as a substitute for an EIN on your tax returns. Where can i file my 2012 taxes online More than one EIN. Where can i file my 2012 taxes online   You should have only one EIN. Where can i file my 2012 taxes online If you have more than one EIN and are not sure which to use, contact the Internal Revenue Service Center where you file your return. Where can i file my 2012 taxes online Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Where can i file my 2012 taxes online The IRS will tell you which number to use. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online   For more information about EINs, see Publication 1635, Understanding Your EIN. Where can i file my 2012 taxes online Payee's Identification Number In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns). Where can i file my 2012 taxes online The forms used to report these payments must include the payee's identification number. Where can i file my 2012 taxes online Employee. Where can i file my 2012 taxes online   If you have employees, you must get an SSN from each of them. Where can i file my 2012 taxes online Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Where can i file my 2012 taxes online If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Where can i file my 2012 taxes online This may occur, for example, if the employee's name has changed due to marriage or divorce. Where can i file my 2012 taxes online   If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. Where can i file my 2012 taxes online This form is available at SSA offices or by calling 1-800-772-1213. Where can i file my 2012 taxes online It is also available from the SSA website at www. Where can i file my 2012 taxes online ssa. Where can i file my 2012 taxes online gov. Where can i file my 2012 taxes online Other payee. Where can i file my 2012 taxes online   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. Where can i file my 2012 taxes online If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN. Where can i file my 2012 taxes online   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. Where can i file my 2012 taxes online This form is available from IRS offices or by calling 1-800-829-3676. Where can i file my 2012 taxes online It is also available from the IRS website at IRS. Where can i file my 2012 taxes online gov. Where can i file my 2012 taxes online    If the payee does not provide you with an identification number, you may have to withhold part of the payments as backup withholding. Where can i file my 2012 taxes online For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. Where can i file my 2012 taxes online Tax Year You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. Where can i file my 2012 taxes online A tax year is usually 12 consecutive months. Where can i file my 2012 taxes online There are two kinds of tax years. Where can i file my 2012 taxes online Calendar tax year. Where can i file my 2012 taxes online A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. Where can i file my 2012 taxes online Fiscal tax year. Where can i file my 2012 taxes online A fiscal tax year is 12 consecutive months ending on the last day of any month except December. Where can i file my 2012 taxes online A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. Where can i file my 2012 taxes online If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. Where can i file my 2012 taxes online You must use a calendar tax year if: You keep no books. Where can i file my 2012 taxes online You have no annual accounting period. Where can i file my 2012 taxes online Your present tax year does not qualify as a fiscal year. Where can i file my 2012 taxes online You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. Where can i file my 2012 taxes online For more information, see Publication 538, Accounting Periods and Methods. Where can i file my 2012 taxes online First-time filer. Where can i file my 2012 taxes online   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. Where can i file my 2012 taxes online You adopt a tax year by filing your first income tax return using that tax year. Where can i file my 2012 taxes online You have not adopted a tax year if you merely did any of the following. Where can i file my 2012 taxes online Filed an application for an extension of time to file an income tax return. Where can i file my 2012 taxes online Filed an application for an employer identification number. Where can i file my 2012 taxes online Paid estimated taxes for that tax year. Where can i file my 2012 taxes online Changing your tax year. Where can i file my 2012 taxes online   Once you have adopted your tax year, you may have to get IRS approval to change it. Where can i file my 2012 taxes online To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. Where can i file my 2012 taxes online You may have to pay a fee. Where can i file my 2012 taxes online For more information, see Publication 538. Where can i file my 2012 taxes online Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. Where can i file my 2012 taxes online You choose an accounting method for your business when you file your first income tax return. Where can i file my 2012 taxes online There are two basic accounting methods. Where can i file my 2012 taxes online Cash method. Where can i file my 2012 taxes online Under the cash method, you report income in the tax year you receive it. Where can i file my 2012 taxes online You usually deduct or capitalize expenses in the tax year you pay them. Where can i file my 2012 taxes online Accrual method. Where can i file my 2012 taxes online Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. Where can i file my 2012 taxes online You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year. Where can i file my 2012 taxes online For other methods, see Publication 538. Where can i file my 2012 taxes online If you need inventories to show income correctly, you must generally use an accrual method of accounting for purchases and sales. Where can i file my 2012 taxes online Inventories include goods held for sale in the normal course of business. Where can i file my 2012 taxes online They also include raw materials and supplies that will physically become a part of merchandise intended for sale. Where can i file my 2012 taxes online Inventories are explained in Publication 538. Where can i file my 2012 taxes online Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. Where can i file my 2012 taxes online For more information, see Publication 538. Where can i file my 2012 taxes online You must use the same accounting method to figure your taxable income and to keep your books. Where can i file my 2012 taxes online Also, you must use an accounting method that clearly shows your income. Where can i file my 2012 taxes online In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. Where can i file my 2012 taxes online An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year. Where can i file my 2012 taxes online More than one business. Where can i file my 2012 taxes online   When you own more than one business, you can use a different accounting method for each business if the method you use for each clearly shows your income. Where can i file my 2012 taxes online You must keep a complete and separate set of books and records for each business. Where can i file my 2012 taxes online Changing your method of accounting. Where can i file my 2012 taxes online   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. Where can i file my 2012 taxes online A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item. Where can i file my 2012 taxes online For examples of changes that require approval and information on how to get approval for the change, see Publication 538. Where can i file my 2012 taxes online Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. Where can i file my 2012 taxes online The following are the four general kinds of business taxes. Where can i file my 2012 taxes online Income tax. Where can i file my 2012 taxes online Self-employment tax. Where can i file my 2012 taxes online Employment taxes. Where can i file my 2012 taxes online Excise taxes. Where can i file my 2012 taxes online See Table 2 for the forms you file to report these taxes. Where can i file my 2012 taxes online You may want to get Publication 509. Where can i file my 2012 taxes online It has tax calendars that tell you when to file returns and make tax payments. Where can i file my 2012 taxes online Income Tax All businesses except partnerships must file an annual income tax return. Where can i file my 2012 taxes online Partnerships file an information return. Where can i file my 2012 taxes online Which form you use depends on how your business is organized. Where can i file my 2012 taxes online See Table 2 to find out which return you have to file. Where can i file my 2012 taxes online The federal income tax is a pay-as-you-go tax. Where can i file my 2012 taxes online You must pay the tax as you earn or receive income during the year. Where can i file my 2012 taxes online An employee usually has income tax withheld from his or her pay. Where can i file my 2012 taxes online If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Where can i file my 2012 taxes online If you are not required to make estimated tax payments, you may pay any tax due when you file your return. Where can i file my 2012 taxes online Table 2. Where can i file my 2012 taxes online Which Forms Must I File? IF you are a. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online   THEN you may be liable for. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online   Use Form. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online Sole proprietor   Income tax   1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES     Employment taxes:         • Social security and Medicare   taxes and income tax   withholding   941 or 944 (943 for farm employees)     • Federal unemployment (FUTA)   tax   940     Excise taxes   See Excise Taxes Partnership   Annual return of income   1065     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes Partner in a partnership (individual)   Income tax   1040 and Schedule E 2     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES Corporation or S corporation   Income tax   1120 (corporation) 2  1120S (S corporation) 2     Estimated tax   1120-W (corporation only)     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes S corporation shareholder   Income tax   1040 and Schedule E 2     Estimated tax   1040-ES 1 File a separate schedule for each business. Where can i file my 2012 taxes online 2 Various other schedules may be needed. Where can i file my 2012 taxes online Estimated tax. Where can i file my 2012 taxes online   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. Where can i file my 2012 taxes online Sole proprietors, partners, and S corporation shareholders. Where can i file my 2012 taxes online   You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. Where can i file my 2012 taxes online Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. Where can i file my 2012 taxes online For more information, see Publication 505, Tax Withholding and Estimated Tax. Where can i file my 2012 taxes online Corporations. Where can i file my 2012 taxes online   You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. Where can i file my 2012 taxes online Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. Where can i file my 2012 taxes online You must deposit the payments as explained later under Depositing Taxes. Where can i file my 2012 taxes online For more information, see Publication 542. Where can i file my 2012 taxes online Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Where can i file my 2012 taxes online Your payments of SE tax contribute to your coverage under the social security system. Where can i file my 2012 taxes online Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Where can i file my 2012 taxes online You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Where can i file my 2012 taxes online Your net earnings from self-employment were $400 or more. Where can i file my 2012 taxes online You had church employee income of $108. Where can i file my 2012 taxes online 28 or more. Where can i file my 2012 taxes online Use Schedule SE (Form 1040) to figure your SE tax. Where can i file my 2012 taxes online For more information, see Publication 334, Tax Guide for Small Business. Where can i file my 2012 taxes online You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. Where can i file my 2012 taxes online The Social Security Administration (SSA) time limit for posting self-employment income. Where can i file my 2012 taxes online   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Where can i file my 2012 taxes online If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. Where can i file my 2012 taxes online The SSA will not change its records to increase your self-employment income. Where can i file my 2012 taxes online Employment Taxes This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees. Where can i file my 2012 taxes online Employment taxes include the following. Where can i file my 2012 taxes online Social security and Medicare taxes. Where can i file my 2012 taxes online Federal income tax withholding. Where can i file my 2012 taxes online Federal unemployment (FUTA) tax. Where can i file my 2012 taxes online If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. Where can i file my 2012 taxes online If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. Where can i file my 2012 taxes online These publications explain your tax responsibilities as an employer. Where can i file my 2012 taxes online If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Where can i file my 2012 taxes online That publication has information to help you determine whether an individual is an employee or an independent contractor. Where can i file my 2012 taxes online If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. Where can i file my 2012 taxes online An independent contractor is someone who is self-employed. Where can i file my 2012 taxes online Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. Where can i file my 2012 taxes online Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. Where can i file my 2012 taxes online To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees) and the methods described in Publication 15. Where can i file my 2012 taxes online Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). Where can i file my 2012 taxes online Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. Where can i file my 2012 taxes online Medicare tax pays for benefits under the hospital insurance part of FICA. Where can i file my 2012 taxes online You withhold part of these taxes from your employee's wages and you pay a part yourself. Where can i file my 2012 taxes online To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. Where can i file my 2012 taxes online Which form do I file?   Report these taxes on Form 941, Employer's QUARTERLY Federal Tax Return, or Form 944, Employer's ANNUAL Federal Tax Return. Where can i file my 2012 taxes online (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Where can i file my 2012 taxes online ) Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. Where can i file my 2012 taxes online You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. Where can i file my 2012 taxes online You pay FUTA tax only from your own funds. Where can i file my 2012 taxes online Employees do not pay this tax or have it withheld from their pay. Where can i file my 2012 taxes online Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Where can i file my 2012 taxes online See Publication 15 to find out if you can use this form. Where can i file my 2012 taxes online Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. Where can i file my 2012 taxes online Form I-9. Where can i file my 2012 taxes online   You must verify that each new employee is legally eligible to work in the United States. Where can i file my 2012 taxes online Both you and the employee must complete the U. Where can i file my 2012 taxes online S. Where can i file my 2012 taxes online Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. Where can i file my 2012 taxes online You can get the form from USCIS offices or from the USCIS website at www. Where can i file my 2012 taxes online uscis. Where can i file my 2012 taxes online gov. Where can i file my 2012 taxes online Call the USCIS at 1-800-375-5283 for more information about your responsibilities. Where can i file my 2012 taxes online Form W-4. Where can i file my 2012 taxes online   Each employee must fill out Form W-4, Employee's Withholding Allowance Certificate. Where can i file my 2012 taxes online You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. Where can i file my 2012 taxes online For more information, see Publication 15. Where can i file my 2012 taxes online Employees claiming more than 10 withholding allowances. Where can i file my 2012 taxes online   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. Where can i file my 2012 taxes online See section 16 of Publication 15. Where can i file my 2012 taxes online Form W-2 Wage Reporting After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. Where can i file my 2012 taxes online You must also send copies to the Social Security Administration. Where can i file my 2012 taxes online See Information Returns, later, for more information on Form W-2. Where can i file my 2012 taxes online Excise Taxes This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following. Where can i file my 2012 taxes online Manufacture or sell certain products. Where can i file my 2012 taxes online Operate certain kinds of businesses. Where can i file my 2012 taxes online Use various kinds of equipment, facilities, or products. Where can i file my 2012 taxes online Receive payment for certain services. Where can i file my 2012 taxes online For more information on excise taxes, see Publication 510, Excise Taxes. Where can i file my 2012 taxes online Form 720. Where can i file my 2012 taxes online   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Where can i file my 2012 taxes online Environmental taxes. Where can i file my 2012 taxes online Communications and air transportation taxes. Where can i file my 2012 taxes online Fuel taxes. Where can i file my 2012 taxes online Tax on the first retail sale of heavy trucks, trailers, and tractors. Where can i file my 2012 taxes online Manufacturers taxes on the sale or use of a variety of different articles. Where can i file my 2012 taxes online Form 2290. Where can i file my 2012 taxes online   There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. Where can i file my 2012 taxes online The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Where can i file my 2012 taxes online Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. Where can i file my 2012 taxes online For more information, see the instructions for Form 2290. Where can i file my 2012 taxes online Form 730. Where can i file my 2012 taxes online   If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. Where can i file my 2012 taxes online Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the wagers you receive. Where can i file my 2012 taxes online Form 11-C. Where can i file my 2012 taxes online   Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering. Where can i file my 2012 taxes online Depositing Taxes You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return. Where can i file my 2012 taxes online Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). Where can i file my 2012 taxes online Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. Where can i file my 2012 taxes online Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. Where can i file my 2012 taxes online Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Where can i file my 2012 taxes online The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. Where can i file my 2012 taxes online You must give a copy of each information return you are required to file to the recipient or payer. Where can i file my 2012 taxes online In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Where can i file my 2012 taxes online For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Where can i file my 2012 taxes online Form 1099-MISC. Where can i file my 2012 taxes online   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. Where can i file my 2012 taxes online These payments include the following items. Where can i file my 2012 taxes online Payments of $600 or more for services performed for your business by people not treated as your employees, such as subcontractors, attorneys, accountants, or directors. Where can i file my 2012 taxes online Rent payments of $600 or more, other than rents paid to real estate agents. Where can i file my 2012 taxes online Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Where can i file my 2012 taxes online Royalty payments of $10 or more. Where can i file my 2012 taxes online Payments to certain crew members by operators of fishing boats. Where can i file my 2012 taxes online You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. Where can i file my 2012 taxes online Form W-2. Where can i file my 2012 taxes online   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. Where can i file my 2012 taxes online For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. Where can i file my 2012 taxes online Form 8300. Where can i file my 2012 taxes online   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. Where can i file my 2012 taxes online Cash includes U. Where can i file my 2012 taxes online S. Where can i file my 2012 taxes online and foreign coin and currency. Where can i file my 2012 taxes online It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Where can i file my 2012 taxes online For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Where can i file my 2012 taxes online Penalties The law provides penalties for not filing returns or paying taxes as required. Where can i file my 2012 taxes online Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. Where can i file my 2012 taxes online Failure to file tax returns. Where can i file my 2012 taxes online   If you do not file your tax return by the due date, you may have to pay a penalty. Where can i file my 2012 taxes online The penalty is based on the tax not paid by the due date. Where can i file my 2012 taxes online See your tax return instructions for more information about this penalty. Where can i file my 2012 taxes online Failure to pay tax. Where can i file my 2012 taxes online   If you do not pay your taxes by the due date, you will have to pay a penalty for each month, or part of a month, that your taxes are not paid. Where can i file my 2012 taxes online For more information, see your tax return instructions. Where can i file my 2012 taxes online Failure to withhold, deposit, or pay taxes. Where can i file my 2012 taxes online   If you do not withhold income, social security, or Medicare taxes from employees, or if you withhold taxes but do not deposit them or pay them to the IRS, you may be subject to a penalty of the unpaid tax, plus interest. Where can i file my 2012 taxes online You may also be subject to penalties if you deposit the taxes late. Where can i file my 2012 taxes online For more information, see Publication 15. Where can i file my 2012 taxes online Failure to follow information reporting requirements. Where can i file my 2012 taxes online   The following penalties apply if you are required to file information returns. Where can i file my 2012 taxes online For more information, see the General Instructions for Certain Information Returns. Where can i file my 2012 taxes online Failure to file information returns. Where can i file my 2012 taxes online A penalty applies if you do not file information returns by the due date, if you do not include all required information, or if you report incorrect information. Where can i file my 2012 taxes online Failure to furnish correct payee statements. Where can i file my 2012 taxes online A penalty applies if you do not furnish a required statement to a payee by the due date, if you do not include all required information, or if you report incorrect information. Where can i file my 2012 taxes online Waiver of penalty. Where can i file my 2012 taxes online   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. Where can i file my 2012 taxes online   In addition, there is no penalty for failure to include all the required information, or for including incorrect information, on a de minimis number of information returns if you correct the errors by August 1 of the year the returns are due. Where can i file my 2012 taxes online (To be considered de minimis, the number of returns cannot exceed the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. Where can i file my 2012 taxes online ) Failure to supply taxpayer identification number. Where can i file my 2012 taxes online   If you do not include your taxpayer identification number (SSN or EIN) or the taxpayer identification number of another person where required on a return, statement, or other document, you may be subject to a penalty of $50 for each failure. Where can i file my 2012 taxes online You may also be subject to the $50 penalty if you do not give your taxpayer identification number to another person when it is required on a return, statement, or other document. Where can i file my 2012 taxes online Business Expenses You can deduct business expenses on your income tax return. Where can i file my 2012 taxes online These are the current operating costs of running your business. Where can i file my 2012 taxes online To be deductible, a business expense must be both ordinary and necessary. Where can i file my 2012 taxes online An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Where can i file my 2012 taxes online A necessary expense is one that is helpful and appropriate for your business, trade, or profession. Where can i file my 2012 taxes online An expense does not have to be indispensable to be considered necessary. Where can i file my 2012 taxes online The following are brief explanations of some expenses that are of interest to people starting a business. Where can i file my 2012 taxes online There are many other expenses that you may be able to deduct. Where can i file my 2012 taxes online See your form instructions and Publication 535, Business Expenses. Where can i file my 2012 taxes online Business Start-Up Costs Business start-up costs are the expenses you incur before you actually begin business operations. Where can i file my 2012 taxes online Your business start-up costs will depend on the type of business you are starting. Where can i file my 2012 taxes online They may include costs for advertising, travel, surveys, and training. Where can i file my 2012 taxes online These costs are generally capital expenses. Where can i file my 2012 taxes online You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). Where can i file my 2012 taxes online You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. Where can i file my 2012 taxes online The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Where can i file my 2012 taxes online Any remaining cost must be amortized. Where can i file my 2012 taxes online For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. Where can i file my 2012 taxes online Depreciation If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Where can i file my 2012 taxes online You must spread the cost over more than one tax year and deduct part of it each year. Where can i file my 2012 taxes online This method of deducting the cost of business property is called depreciation. Where can i file my 2012 taxes online Business property you must depreciate includes the following items. Where can i file my 2012 taxes online Office furniture. Where can i file my 2012 taxes online Buildings. Where can i file my 2012 taxes online Machinery and equipment. Where can i file my 2012 taxes online You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Where can i file my 2012 taxes online This deduction is known as the “section 179 deduction. Where can i file my 2012 taxes online ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. Where can i file my 2012 taxes online Depreciation must be taken in the year it is allowable. Where can i file my 2012 taxes online Allowable depreciation not taken in a prior year cannot be taken in the current year. Where can i file my 2012 taxes online If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. Where can i file my 2012 taxes online S. Where can i file my 2012 taxes online Individual Income Tax Return, or by changing your accounting method. Where can i file my 2012 taxes online For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. Where can i file my 2012 taxes online Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. Where can i file my 2012 taxes online Even then, your deduction may be limited. Where can i file my 2012 taxes online To qualify to claim expenses for business use of your home, you must meet both the following tests. Where can i file my 2012 taxes online Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use, later), Regular, For your trade or business, AND The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or A separate structure (not attached to your home) you use in connection with your trade or business. Where can i file my 2012 taxes online Exclusive use. Where can i file my 2012 taxes online   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Where can i file my 2012 taxes online The area used for business can be a room or other separately identifiable space. Where can i file my 2012 taxes online The space does not need to be marked off by a permanent partition. Where can i file my 2012 taxes online   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Where can i file my 2012 taxes online Exceptions to exclusive use. Where can i file my 2012 taxes online   You do not have to meet the exclusive use test if either of the following applies. Where can i file my 2012 taxes online You use part of your home for the storage of inventory or product samples. Where can i file my 2012 taxes online You use part of your home as a daycare facility. Where can i file my 2012 taxes online For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Where can i file my 2012 taxes online Principal place of business. Where can i file my 2012 taxes online   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Where can i file my 2012 taxes online You use it exclusively and regularly for administrative or management activities of your trade or business. Where can i file my 2012 taxes online You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Where can i file my 2012 taxes online   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Where can i file my 2012 taxes online The relative importance of the activities performed at each location. Where can i file my 2012 taxes online If the relative importance factor does not determine your principal place of business, the time spent at each location. Where can i file my 2012 taxes online    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Where can i file my 2012 taxes online However, for other ways to qualify to deduct home office expenses, see Publication 587. Where can i file my 2012 taxes online Which form do I file?   If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Where can i file my 2012 taxes online If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. Where can i file my 2012 taxes online More information. Where can i file my 2012 taxes online   For more information about business use of your home, see Publication 587. Where can i file my 2012 taxes online Car and Truck Expenses If you use your car or truck in your business, you can deduct the costs of operating and maintaining it. Where can i file my 2012 taxes online You generally can deduct either your actual expenses or the standard mileage rate. Where can i file my 2012 taxes online Actual expenses. Where can i file my 2012 taxes online   If you deduct actual expenses, you can deduct the cost of the following items: Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Where can i file my 2012 taxes online You can divide your expenses based on the miles driven for each purpose. Where can i file my 2012 taxes online Example. Where can i file my 2012 taxes online You are the sole proprietor of a flower shop. Where can i file my 2012 taxes online You drove your van 20,000 miles during the year. Where can i file my 2012 taxes online 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. Where can i file my 2012 taxes online You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Where can i file my 2012 taxes online Standard mileage rate. Where can i file my 2012 taxes online   Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Where can i file my 2012 taxes online You can use the standard mileage rate for a vehicle you own or lease. Where can i file my 2012 taxes online The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. Where can i file my 2012 taxes online It is announced annually by the IRS. Where can i file my 2012 taxes online To figure your deduction, multiply your business miles by the standard mileage rate for the year. Where can i file my 2012 taxes online    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. Where can i file my 2012 taxes online However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. Where can i file my 2012 taxes online Choosing the standard mileage rate. Where can i file my 2012 taxes online   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Where can i file my 2012 taxes online In later years, you can choose to use either the standard mileage rate or actual expenses. Where can i file my 2012 taxes online   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Where can i file my 2012 taxes online Additional information. Where can i file my 2012 taxes online   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Where can i file my 2012 taxes online Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. Where can i file my 2012 taxes online It also explains how long you must keep your records for federal tax purposes. Where can i file my 2012 taxes online A sample recordkeeping system is illustrated at the end of this part. Where can i file my 2012 taxes online Why Keep Records? Everyone in business must keep records. Where can i file my 2012 taxes online Good records will help you do the following. Where can i file my 2012 taxes online Monitor the progress of your business. Where can i file my 2012 taxes online   You need good records to monitor the progress of your business. Where can i file my 2012 taxes online Records can show whether your business is improving, which items are selling, or what changes you need to make. Where can i file my 2012 taxes online Good records can increase the likelihood of business success. Where can i file my 2012 taxes online Prepare your financial statements. Where can i file my 2012 taxes online   You need good records to prepare accurate financial statements. Where can i file my 2012 taxes online These include income (profit and loss) statements and balance sheets. Where can i file my 2012 taxes online These statements can help you in dealing with your bank or creditors and help you manage your business. Where can i file my 2012 taxes online An income statement shows the income and expenses of the business for a given period of time. Where can i file my 2012 taxes online A balance sheet shows the assets, liabilities, and your equity in the business on a given date. Where can i file my 2012 taxes online Identify source of receipts. Where can i file my 2012 taxes online   You will receive money or property from many sources. Where can i file my 2012 taxes online Your records can identify the source of your receipts. Where can i file my 2012 taxes online You need this information to separate business from nonbusiness receipts and taxable from nontaxable income. Where can i file my 2012 taxes online Keep track of deductible expenses. Where can i file my 2012 taxes online   You may forget expenses when you prepare your tax return unless you record them when they occur. Where can i file my 2012 taxes online Prepare your tax returns. Where can i file my 2012 taxes online   You need good records to prepare your tax returns. Where can i file my 2012 taxes online These records must support the income, expenses, and credits you report. Where can i file my 2012 taxes online Generally, these are the same records you use to monitor your business and prepare your financial statements. Where can i file my 2012 taxes online Support items reported on tax returns. Where can i file my 2012 taxes online   You must keep your business records available at all times for inspection by the IRS. Where can i file my 2012 taxes online If the IRS examines any of your tax returns, you may be asked to explain the items reported. Where can i file my 2012 taxes online A complete set of records will speed up the examination. Where can i file my 2012 taxes online Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. Where can i file my 2012 taxes online You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. Where can i file my 2012 taxes online The business you are in affects the type of records you need to keep for federal tax purposes. Where can i file my 2012 taxes online You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. Where can i file my 2012 taxes online See Accounting Method, earlier. Where can i file my 2012 taxes online If you are in more than one business, you should keep a complete and separate set of records for each business. Where can i file my 2012 taxes online A corporation should keep minutes of board of directors' meetings. Where can i file my 2012 taxes online Your recordkeeping system should include a summary of your business transactions. Where can i file my 2012 taxes online This summary is ordinarily made in your books (for example, accounting journals and ledgers). Where can i file my 2012 taxes online Your books must show your gross income, as well as your deductions and credits. Where can i file my 2012 taxes online For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. Where can i file my 2012 taxes online In addition, you must keep supporting documents, explained later. Where can i file my 2012 taxes online Electronic records. Where can i file my 2012 taxes online   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. Where can i file my 2012 taxes online When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. Where can i file my 2012 taxes online An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. Where can i file my 2012 taxes online The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. Where can i file my 2012 taxes online All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. Where can i file my 2012 taxes online Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. Where can i file my 2012 taxes online   The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. Where can i file my 2012 taxes online You still have the responsibility of retaining any other books and records that are required to be retained. Where can i file my 2012 taxes online   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. Where can i file my 2012 taxes online This test is not considered an examination and the results must be shared with you. Where can i file my 2012 taxes online If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. Where can i file my 2012 taxes online If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copy books and records in a manner that allows you and the IRS to determine your correct tax. Where can i file my 2012 taxes online For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. Where can i file my 2012 taxes online Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. Where can i file my 2012 taxes online Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. Where can i file my 2012 taxes online These documents contain information you need to record in your books. Where can i file my 2012 taxes online It is important to keep these documents because they support the entries in your books and on your tax return. Where can i file my 2012 taxes online Keep them in an orderly fashion and in a safe place. Where can i file my 2012 taxes online For instance, organize them by year and type of income or expense. Where can i file my 2012 taxes online Gross receipts. Where can i file my 2012 taxes online   Gross receipts are the income you receive from your business. Where can i file my 2012 taxes online You should keep supporting documents that show the amounts and sources of your gross receipts. Where can i file my 2012 taxes online Documents that show gross receipts include the following. Where can i file my 2012 taxes online Cash register tapes. Where can i file my 2012 taxes online Bank deposit slips. Where can i file my 2012 taxes online Receipt books. Where can i file my 2012 taxes online Invoices. Where can i file my 2012 taxes online Credit card charge slips. Where can i file my 2012 taxes online Forms 1099-MISC. Where can i file my 2012 taxes online Purchases. Where can i file my 2012 taxes online   Purchases are the items you buy and resell to customers. Where can i file my 2012 taxes online If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. Where can i file my 2012 taxes online Your supporting documents should show the amount paid and that the amount was for purchases. Where can i file my 2012 taxes online Documents for purchases include the following. Where can i file my 2012 taxes online Canceled checks. Where can i file my 2012 taxes online Cash register tape receipts. Where can i file my 2012 taxes online Credit card sales slips. Where can i file my 2012 taxes online Invoices. Where can i file my 2012 taxes online These records will help you determine the value of your inventory at the end of the year. Where can i file my 2012 taxes online See Publication 538 for information on methods for valuing inventory. Where can i file my 2012 taxes online Expenses. Where can i file my 2012 taxes online   Expenses are the costs you incur (other than purchases) to carry on your business. Where can i file my 2012 taxes online Your supporting documents should show the amount paid and that the amount was for a business expense. Where can i file my 2012 taxes online Documents for expenses include the following. Where can i file my 2012 taxes online Canceled checks. Where can i file my 2012 taxes online Cash register tapes. Where can i file my 2012 taxes online Account statements. Where can i file my 2012 taxes online Credit card sales slips. Where can i file my 2012 taxes online Invoices. Where can i file my 2012 taxes online Petty cash slips for small cash payments. Where can i file my 2012 taxes online    A petty cash fund allows you to make small payments without having to write checks for small amounts. Where can i file my 2012 taxes online Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. Where can i file my 2012 taxes online Travel, transportation, entertainment, and gift expenses. Where can i file my 2012 taxes online   Specific recordkeeping rules apply to these expenses. Where can i file my 2012 taxes online For more information, see Publication 463. Where can i file my 2012 taxes online Employment taxes. Where can i file my 2012 taxes online   There are specific employment tax records you must keep. Where can i file my 2012 taxes online For a list, see Publication 15. Where can i file my 2012 taxes online Assets. Where can i file my 2012 taxes online   Assets are the property, such as machinery and furniture you own and use in your business. Where can i file my 2012 taxes online You must keep records to verify certain information about your business assets. Where can i file my 2012 taxes online You need records to figure the annual depreciation and the gain or loss when you sell the assets. Where can i file my 2012 taxes online Your records should show the following information. Where can i file my 2012 taxes online When and how you acquired the asset. Where can i file my 2012 taxes online Purchase price. Where can i file my 2012 taxes online Cost of any improvements. Where can i file my 2012 taxes online Section 179 deduction taken. Where can i file my 2012 taxes online Deductions taken for depreciation. Where can i file my 2012 taxes online Deductions taken for casualty losses, such as losses resulting from fires or storms. Where can i file my 2012 taxes online How you used the asset. Where can i file my 2012 taxes online When and how you disposed of the asset. Where can i file my 2012 taxes online Selling price. Where can i file my 2012 taxes online Expenses of sale. Where can i file my 2012 taxes online   The following documents may show this information. Where can i file my 2012 taxes online Purchase and sales invoices. Where can i file my 2012 taxes online Real estate closing statements. Where can i file my 2012 taxes online Canceled checks. Where can i file my 2012 taxes online What if I don't have a canceled check?   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. Where can i file my 2012 taxes online These include account statements prepared for the financial institution by a third party. Where can i file my 2012 taxes online These account statements must be highly legible. Where can i file my 2012 taxes online The following table lists acceptable account statements. Where can i file my 2012 taxes online  IF payment is by. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online THEN the statement must show the. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online Check Check number. Where can i file my 2012 taxes online Amount. Where can i file my 2012 taxes online Payee's name. Where can i file my 2012 taxes online Date the check amount was posted to the account by the financial institution. Where can i file my 2012 taxes online Electronic funds transfer Amount transferred. Where can i file my 2012 taxes online Payee's name. Where can i file my 2012 taxes online Date the transfer was posted to the account by the financial institution. Where can i file my 2012 taxes online Credit card Amount charged. Where can i file my 2012 taxes online Payee's name. Where can i file my 2012 taxes online Transaction date. Where can i file my 2012 taxes online    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. Where can i file my 2012 taxes online You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. Where can i file my 2012 taxes online Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. Where can i file my 2012 taxes online (Your business transactions are shown on the supporting documents just discussed. Where can i file my 2012 taxes online ) Business transactions are ordinarily summarized in books called journals and ledgers. Where can i file my 2012 taxes online You can buy them at your local stationery or office supply store. Where can i file my 2012 taxes online A journal is a book where you record each business transaction shown on your supporting documents. Where can i file my 2012 taxes online You may have to keep separate journals for transactions that occur frequently. Where can i file my 2012 taxes online A ledger is a book that contains the totals from all of your journals. Where can i file my 2012 taxes online It is organized into different accounts. Where can i file my 2012 taxes online Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. Where can i file my 2012 taxes online For example, a recordkeeping system for a small business might include the following items. Where can i file my 2012 taxes online Business checkbook. Where can i file my 2012 taxes online Daily summary of cash receipts. Where can i file my 2012 taxes online Monthly summary of cash receipts. Where can i file my 2012 taxes online Check disbursements journal. Where can i file my 2012 taxes online Depreciation worksheet. Where can i file my 2012 taxes online Employee compensation record. Where can i file my 2012 taxes online The business checkbook is explained next. Where can i file my 2012 taxes online The other items are illustrated later under Sample Record System. Where can i file my 2012 taxes online The system you use to record business transactions will be more effective if you follow good recordkeeping practices. Where can i file my 2012 taxes online For example, record expenses when they occur, and identify the source of recorded receipts. Where can i file my 2012 taxes online Generally, it is best to record transactions on a daily basis. Where can i file my 2012 taxes online Business checkbook. Where can i file my 2012 taxes online   One of the first things you should do when you start a business is open a business checking account. Where can i file my 2012 taxes online You should keep your business account separate from your personal checking account. Where can i file my 2012 taxes online   The business checkbook is your basic source of information for recording your business expenses. Where can i file my 2012 taxes online You should deposit all daily receipts in your business checking account. Where can i file my 2012 taxes online You should check your account for errors by reconciling it. Where can i file my 2012 taxes online See Reconciling the checking account, later. Where can i file my 2012 taxes online   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. Where can i file my 2012 taxes online You should also note on the deposit slip the source of the deposit and keep copies of all slips. Where can i file my 2012 taxes online   You should make all payments by check to document business expenses. Where can i file my 2012 taxes online Write checks payable to yourself only when making withdrawals from your business for personal use. Where can i file my 2012 taxes online Avoid writing checks payable to cash. Where can i file my 2012 taxes online If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. Where can i file my 2012 taxes online If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. Where can i file my 2012 taxes online    Use the business account for business purposes only. Where can i file my 2012 taxes online Indicate the source of deposits and the type of expense in the checkbook. Where can i file my 2012 taxes online Reconciling the checking account. Where can i file my 2012 taxes online   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. Where can i file my 2012 taxes online The statement balance may not agree with the balance in your checkbook and books if the statement: Includes bank charges you did not enter in your books and subtract from your checkbook balance, or Does not include deposits made after the statement date or checks that did not clear your account before the statement date. Where can i file my 2012 taxes online   By reconciling your checking account, you will: Verify how much money you have in the account, Make sure that your checkbook and books reflect all bank charges and the correct balance in the checking account, and Correct any errors in your bank statement, checkbook, and books. Where can i file my 2012 taxes online    You should reconcile your checking account each month. Where can i file my 2012 taxes online     Before you reconcile your monthly bank statement, check your own figures. Where can i file my 2012 taxes online Begin with the balance shown in your checkbook at the end of the previous month. Where can i file my 2012 taxes online To this balance, add the total cash deposited during the month and subtract the total cash disbursements. Where can i file my 2012 taxes online   After checking your figures, the result should agree with your checkbook balance at the end of the month. Where can i file my 2012 taxes online If the result does not agree, you may have made an error in recording a check or deposit. Where can i file my 2012 taxes online You can find the error by doing the following. Where can i file my 2012 taxes online Adding the amounts on your check stubs and comparing that total with the total in the “amount of check” column in your check disbursements journal. Where can i file my 2012 taxes online If the totals do not agree, check the individual amounts to see if an error was made in your check stub record or in the related entry in your check disbursements journal. Where can i file my 2012 taxes online Adding the deposit amounts in your checkbook. Where can i file my 2012 taxes online Compare that total with the monthly total in your cash receipt book, if you have one. Where can i file my 2012 taxes online If the totals do not agree, check the individual amounts to find any errors. Where can i file my 2012 taxes online   If your checkbook and journal entries still disagree, then refigure the running balance in your checkbook to make sure additions and subtractions are correct. Where can i file my 2012 taxes online   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. Where can i file my 2012 taxes online Many banks print a reconciliation worksheet on the back of the statement. Where can i file my 2012 taxes online   To reconcile your account, follow these steps. Where can i file my 2012 taxes online Compare the deposits listed on the bank statement with the deposits shown in your checkbook. Where can i file my 2012 taxes online Note all differences in the dollar amounts. Where can i file my 2012 taxes online Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. Where can i file my 2012 taxes online Note all differences in the dollar amounts. Where can i file my 2012 taxes online Mark the check number in the checkbook as having cleared the bank. Where can i file my 2012 taxes online After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. Where can i file my 2012 taxes online Prepare a bank reconciliation. Where can i file my 2012 taxes online One is illustrated later under Sample Record System. Where can i file my 2012 taxes online Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. Where can i file my 2012 taxes online At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. Where can i file my 2012 taxes online If you still have differences, check the previous steps to find the errors. Where can i file my 2012 taxes online   Table 3. Where can i file my 2012 taxes online Period of Limitations IF you. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online   THEN the period is. Where can i file my 2012 taxes online . Where can i file my 2012 taxes online . Where can i file my 2012 taxes online 1. Where can i file my 2012 taxes online Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. Where can i file my 2012 taxes online Do not report income that you should report and it is more than 25% of the gross income shown on the return   6 years 3. Where can i file my 2012 taxes online File a fraudulent return   Not limited 4. Where can i file my 2012 taxes online Do not file a return   Not limited 5. Where can i file my 2012 taxes online File a claim for credit or refund after you filed your return   Later of: 3 years or  2 years after tax   was paid 6. Where can i file my 2012 taxes online File a claim for a loss from worthless securities or a bad debt deduction   7 years Bookkeeping System You must decide whether to use a single-entry or a double-entry bookkeeping system. Where can i file my 2012 taxes online The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. Where can i file my 2012 taxes online You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. Where can i file my 2012 taxes online Single-entry. Where can i file my 2012 taxes online   A single-entry system is based on the income statement (profit or loss statement). Where can i file my 2012 taxes online It can be a simple and practical system if you are starting a small business. Where can i file my 2012 taxes online The system records the flow of income and expenses through the use of: A daily summary of cash receipts, and Monthly summaries of cash receipts and disbursements. Where can i file my 2012 taxes online Double-entry. Where can i file my 2012 taxes online   A double-entry bookkeeping system uses journals and ledgers. Where can i file my 2012 taxes online Transactions are first entered in a journal and then posted to ledger accounts. Where can i file my 2012 taxes online These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). Where can i file my 2012 taxes online You close income and expense accounts at the end of each tax year. Where can i file my 2012 taxes online You keep asset, liability, and net worth accounts open on a permanent basis. Where can i file my 2012 taxes online   In the double-entry system, each account has a left side for debits and a right side for credits. Where can i file my 2012 taxes online It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. Where can i file my 2012 taxes online   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. Where can i file my 2012 taxes online If the amounts do not balance, you have made an error and you must find and correct it. Where can i file my 2012 taxes online   An example of a journal entry exhibiting a payment of rent in October is shown next. Where can i file my 2012 taxes online General Journal Date Description of Entry Debit  Credit Oct. Where can i file my 2012 taxes online 5 Rent expense 780. Where can i file my 2012 taxes online 00     Cash   780. Where can i file my 2012 taxes online 00                 Computerized System There are computer software packages you can use for recordkeeping. Where can i file my 2012 taxes online They can be purchased in many retail stores. Where can i file my 2012 taxes online These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. Where can i file my 2012 taxes online If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. Where can i file my 2012 taxes online To meet this qualification, the machine-sensible records must reconcile with your books and return. Where can i file my 2012 taxes online These records must provide enough detail to identify the underlying source documents. Where can i file my 2012 taxes online You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. Where can i file my 2012 taxes online This documentation must be sufficiently detailed to show all of the following items. Where can i file my 2012 taxes online Functions being performed as the data flows through the system. Where can i file my 2012 taxes online Controls used to ensure accurate and reliable processing. Where can i file my 2012 taxes online Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. Where can i file my 2012 taxes online Charts of accounts and detailed account descriptions. Where can i file my 2012 taxes online See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. Where can i file my 2012 taxes online How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Where can i file my 2012 taxes online Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. Where can i file my 2012 taxes online The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. Where can i file my 2012 taxes online Table 3 contains the periods of limitations that apply to income tax returns. Where can i file my 2012 taxes online Unless otherwise stated, the years refer to the period after the return was filed. Where can i file my 2012 taxes online Returns filed before the due date are treated as filed on the due date. Where can i file my 2012 taxes online Keep copies of your filed tax returns. Where can i file my 2012 taxes online They help in preparing future tax returns and making computations if you file an amended return. Where can i file my 2012 taxes online Employment taxes. Where can i file my 2012 taxes online   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. Where can i file my 2012 taxes online For more information about recordkeeping for employment taxes, see Publication 15. Where can i file my 2012 taxes online Assets. Where can i file my 2012 taxes online   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. Where can i file my 2012 taxes online You must keep these records to figure any depreciation, amortization, or depletion deduction, and to figure your basis for computing gain or loss when you sell or otherwise dispose of the property. Where can i file my 2012 taxes online   Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. Where can i file my 2012 taxes online You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. Where can i file my 2012 taxes online Records for nontax purposes. Where can i file my 2012 taxes online   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. Where can i file my 2012 taxes online For example, your insurance company or creditors may require you to keep them longer than the IRS does. Where can i file my 2012 taxes online Sample Record System This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. Where can i file my 2012 taxes online Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. Where can i file my 2012 taxes online These sample records should not be viewed as a recommendation of how to keep your records. Where can i file my 2012 taxes online They are intended only to show how one business keeps its records. Where can i file my 2012 taxes online 1. Where can i file my 2012 taxes online Daily Summary of Cash Receipts This summary is a record of cash sales for the day. Where can i file my 2012 taxes online It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day. Where can i file my 2012 taxes online Henry takes the cash sales entry from his cash register tape. Where can i file my 2012 taxes online If he had no cash register, he would simply total his cash sale slips and any other cash received that day. Where can i file my 2012 taxes online He carries the total receipts shown in this summary for January 3 ($267. Where can i file my 2012 taxes online 80), including cash sales ($263. Where can i file my 2012 taxes online 60) and sales tax ($4. Where can i file my 2012 taxes online 20), to the Monthly Summary of Cash Receipts. Where can i file my 2012 taxes online Petty cash fund. Where can i file my 2012 taxes online   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. Where can i file my 2012 taxes online Each time he makes a payment from this fund, he makes out a petty cash slip and attaches it to his receipt as proof of payment. Where can i file my 2012 taxes online He sets up a fixed amount ($50) in his petty cash fund. Where can i file my 2012 taxes online The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. Where can i file my 2012 taxes online When the totals on the petty cash slips approach the fixed amount, he brings the cash in the fund back to the fixed amount by writing a check to “Petty Cash” for the total of the outstanding slips. Where can i file my 2012 taxes online (See the Check Disbursements Journal entry for check number 92. Where can i file my 2012 taxes online ) This restores the fund to its fixed amount of $50. Where can i file my 2012 taxes online He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. Where can i file my 2012 taxes online 2. Where can i file my 2012 taxes online Monthly Summary of Cash Receipts This shows the income activity for the month. Where can i file my 2012 taxes online Henry carries the total monthly net sales shown in this summary for January ($4,865. Where can i file my 2012 taxes online 05) to his Annual Summary. Where can i file my 2012 taxes online To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. Where can i file my 2012 taxes online He cannot take a deduction for sales tax turned over to the state because he only collected the tax. Where can i file my 2012 taxes online He does not include the tax in his income. Where can i file my 2012 taxes online 3. Where can i file my 2012 taxes online Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. Where can i file my 2012 taxes online All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. Where can i file my 2012 taxes online Frequent expenses have their own headings across the sheet. Where can i file my 2012 taxes online He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. Where can i file my 2012 taxes online Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. Where can i file my 2012 taxes online Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. Where can i file my 2012 taxes online If he did, he would record them in the journal, even though he could not deduct them as business expenses. Where can i file my 2012 taxes online Henry carries the January total of expenses for materials ($1,083. Where can i file my 2012 taxes online 50) to the Annual Summary. Where can i file my 2012 taxes online Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. Where can i file my 2012 taxes online , in the appropriate columns of that summary. Where can i file my 2012 taxes online 4. Where can i file my 2012 taxes online Employee Compensation Record This record shows the following information. Where can i file my 2012 taxes online The number of hours Henry's employee worked in a pay period. Where can i file my 2012 taxes online The employee's total pay for the period. Where can i file my 2012 taxes online The deductions Henry withheld in figuring the employee's net pay. Where can i file my 2012 taxes online The monthly gross payroll. Where can i file my 2012 taxes online Henry carries the January gross payroll ($520) to the Annual Summary. Where can i file my 2012 taxes online 5. Where can i file my 2012 taxes online Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. Where can i file my 2012 taxes online He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. Where can i file my 2012 taxes online He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. Where can i file my 2012 taxes online As in the journal, he keeps each major expense in a separate column. Where can i file my 2012 taxes online Henry carries the cash receipts total shown in the annual summary ($47,440. Where can i file my 2012 taxes online 9