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Where To Get A 1040x Form

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Where To Get A 1040x Form

Where to get a 1040x form Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. Where to get a 1040x form More information. Where to get a 1040x form Exception—Community Income. Where to get a 1040x form Exception—Qualified joint venture. Where to get a 1040x form More information. Where to get a 1040x form More information. Where to get a 1040x form 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 to get a 1040x form 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 to get a 1040x form Table 1 can help you learn what those responsibilities are. Where to get a 1040x form Ask yourself each question listed in the table, then see the related discussion to find the answer. Where to get a 1040x form In addition to knowing about federal taxes, you need to make some basic business decisions. Where to get a 1040x form 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 to get a 1040x form For information on how to contact the SBA, see How to Get More Information, later. Where to get a 1040x form Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. Where to get a 1040x form When beginning a business, you must decide which form of business to use. Where to get a 1040x form Legal and tax considerations enter into this decision. Where to get a 1040x form Only tax considerations are discussed in this publication. Where to get a 1040x form Your form of business determines which income tax return form you have to file. Where to get a 1040x form See Table 2 to find out which form you have to file. Where to get a 1040x form Sole proprietorships. Where to get a 1040x form   A sole proprietorship is an unincorporated business that is owned by one individual. 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Where to get a 1040x form Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. Where to get a 1040x form   A partnership must file an annual information return to report the income, deductions, gains, losses, etc. Where to get a 1040x form , from its operations, but it does not pay income tax. Where to get a 1040x form Instead, it “passes through” any profits or losses to its partners. Where to get a 1040x form Each partner includes his or her share of the partnership's items on his or her tax return. Where to get a 1040x form More information. Where to get a 1040x form   For more information on partnerships, see Publication 541, Partnerships. Where to get a 1040x form Husband and wife business. Where to get a 1040x form   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 to get a 1040x form Do not use Schedule C or C-EZ. Where to get a 1040x form Instead, file Form 1065, U. Where to get a 1040x form S. Where to get a 1040x form Return of Partnership Income. Where to get a 1040x form For more information, see Publication 541, Partnerships. Where to get a 1040x form Exception—Community Income. Where to get a 1040x form   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 to get a 1040x form S. Where to get a 1040x form possession, you can treat the business either as a sole proprietorship or a partnership. 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Where to get a 1040x form 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 to get a 1040x form 7701-3. Where to get a 1040x form For more information, see the instructions for Form 8832, Entity Classification Election. Where to get a 1040x form Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. Where to get a 1040x form The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). Where to get a 1040x form An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. Where to get a 1040x form 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 to get a 1040x form You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. Where to get a 1040x form 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 to get a 1040x form This includes returns or documents filed to report the following information. Where to get a 1040x form Interest, dividends, royalties, etc. Where to get a 1040x form , paid to you. Where to get a 1040x form Any amount paid to you as a dependent care provider. Where to get a 1040x form Certain other amounts paid to you that total $600 or more for the year. Where to get a 1040x form If you do not furnish your identification number as required, you may be subject to penalties. Where to get a 1040x form See Penalties, later. Where to get a 1040x form 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 to get a 1040x form 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 to get a 1040x form Applying for an EIN. Where to get a 1040x form   You may apply for an EIN: Online—Click on the EIN link at www. Where to get a 1040x form irs. Where to get a 1040x form gov/businesses/small. Where to get a 1040x form The EIN is issued immediately once the application information is validated. Where to get a 1040x form By telephone at 1-800-829-4933. Where to get a 1040x form By mailing or faxing Form SS-4, Application for Employer Identification Number. Where to get a 1040x form When to apply. Where to get a 1040x form   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 to get a 1040x form If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. Where to get a 1040x form If you apply by telephone or through the IRS website, you can get an EIN immediately. Where to get a 1040x form If you apply by fax, you can get an EIN within 4 business days. Where to get a 1040x form   If you do not receive your EIN by the time a return is due, file your return anyway. Where to get a 1040x form Write “Applied for” and the date you applied for the number in the space for the EIN. Where to get a 1040x form Do not use your social security number as a substitute for an EIN on your tax returns. Where to get a 1040x form More than one EIN. Where to get a 1040x form   You should have only one EIN. Where to get a 1040x form 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 to get a 1040x form Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. Where to get a 1040x form The IRS will tell you which number to use. Where to get a 1040x form More information. Where to get a 1040x form   For more information about EINs, see Publication 1635, Understanding Your EIN. Where to get a 1040x form 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 to get a 1040x form The forms used to report these payments must include the payee's identification number. Where to get a 1040x form Employee. Where to get a 1040x form   If you have employees, you must get an SSN from each of them. Where to get a 1040x form Record the name and SSN of each employee exactly as they are shown on the employee's social security card. Where to get a 1040x form If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. Where to get a 1040x form This may occur, for example, if the employee's name has changed due to marriage or divorce. Where to get a 1040x form   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 to get a 1040x form This form is available at SSA offices or by calling 1-800-772-1213. Where to get a 1040x form It is also available from the SSA website at www. Where to get a 1040x form ssa. Where to get a 1040x form gov. Where to get a 1040x form Other payee. Where to get a 1040x form   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. 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Where to get a 1040x form A tax year is usually 12 consecutive months. Where to get a 1040x form There are two kinds of tax years. Where to get a 1040x form Calendar tax year. Where to get a 1040x form A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. Where to get a 1040x form Fiscal tax year. Where to get a 1040x form A fiscal tax year is 12 consecutive months ending on the last day of any month except December. Where to get a 1040x form 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 to get a 1040x form 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 to get a 1040x form You must use a calendar tax year if: You keep no books. Where to get a 1040x form You have no annual accounting period. Where to get a 1040x form Your present tax year does not qualify as a fiscal year. Where to get a 1040x form You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. Where to get a 1040x form For more information, see Publication 538, Accounting Periods and Methods. Where to get a 1040x form First-time filer. Where to get a 1040x form   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. Where to get a 1040x form You adopt a tax year by filing your first income tax return using that tax year. Where to get a 1040x form You have not adopted a tax year if you merely did any of the following. Where to get a 1040x form Filed an application for an extension of time to file an income tax return. Where to get a 1040x form Filed an application for an employer identification number. Where to get a 1040x form Paid estimated taxes for that tax year. Where to get a 1040x form Changing your tax year. Where to get a 1040x form   Once you have adopted your tax year, you may have to get IRS approval to change it. Where to get a 1040x form To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. Where to get a 1040x form You may have to pay a fee. Where to get a 1040x form For more information, see Publication 538. Where to get a 1040x form Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. Where to get a 1040x form You choose an accounting method for your business when you file your first income tax return. Where to get a 1040x form There are two basic accounting methods. Where to get a 1040x form Cash method. 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Where to get a 1040x form   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 to get a 1040x form You must keep a complete and separate set of books and records for each business. Where to get a 1040x form Changing your method of accounting. Where to get a 1040x form   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. Where to get a 1040x form 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 to get a 1040x form For examples of changes that require approval and information on how to get approval for the change, see Publication 538. Where to get a 1040x form Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. Where to get a 1040x form The following are the four general kinds of business taxes. Where to get a 1040x form Income tax. Where to get a 1040x form Self-employment tax. Where to get a 1040x form Employment taxes. Where to get a 1040x form Excise taxes. Where to get a 1040x form See Table 2 for the forms you file to report these taxes. Where to get a 1040x form You may want to get Publication 509. Where to get a 1040x form It has tax calendars that tell you when to file returns and make tax payments. Where to get a 1040x form Income Tax All businesses except partnerships must file an annual income tax return. Where to get a 1040x form Partnerships file an information return. Where to get a 1040x form Which form you use depends on how your business is organized. Where to get a 1040x form See Table 2 to find out which return you have to file. Where to get a 1040x form The federal income tax is a pay-as-you-go tax. Where to get a 1040x form You must pay the tax as you earn or receive income during the year. Where to get a 1040x form An employee usually has income tax withheld from his or her pay. Where to get a 1040x form 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 to get a 1040x form If you are not required to make estimated tax payments, you may pay any tax due when you file your return. Where to get a 1040x form Table 2. Where to get a 1040x form Which Forms Must I File? IF you are a. Where to get a 1040x form . Where to get a 1040x form . Where to get a 1040x form   THEN you may be liable for. Where to get a 1040x form . Where to get a 1040x form . Where to get a 1040x form   Use Form. Where to get a 1040x form . Where to get a 1040x form . Where to get a 1040x form 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 to get a 1040x form 2 Various other schedules may be needed. Where to get a 1040x form Estimated tax. Where to get a 1040x form   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. Where to get a 1040x form Sole proprietors, partners, and S corporation shareholders. Where to get a 1040x form   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 to get a 1040x form Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. Where to get a 1040x form For more information, see Publication 505, Tax Withholding and Estimated Tax. Where to get a 1040x form Corporations. Where to get a 1040x form   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 to get a 1040x form Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. Where to get a 1040x form You must deposit the payments as explained later under Depositing Taxes. Where to get a 1040x form For more information, see Publication 542. Where to get a 1040x form Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Where to get a 1040x form Your payments of SE tax contribute to your coverage under the social security system. Where to get a 1040x form Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Where to get a 1040x form You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. Where to get a 1040x form Your net earnings from self-employment were $400 or more. Where to get a 1040x form You had church employee income of $108. Where to get a 1040x form 28 or more. Where to get a 1040x form Use Schedule SE (Form 1040) to figure your SE tax. Where to get a 1040x form For more information, see Publication 334, Tax Guide for Small Business. Where to get a 1040x form You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. Where to get a 1040x form The Social Security Administration (SSA) time limit for posting self-employment income. Where to get a 1040x form   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 to get a 1040x form 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 to get a 1040x form The SSA will not change its records to increase your self-employment income. Where to get a 1040x form 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 to get a 1040x form Employment taxes include the following. Where to get a 1040x form Social security and Medicare taxes. Where to get a 1040x form Federal income tax withholding. Where to get a 1040x form Federal unemployment (FUTA) tax. Where to get a 1040x form If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. Where to get a 1040x form If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. Where to get a 1040x form These publications explain your tax responsibilities as an employer. Where to get a 1040x form If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. Where to get a 1040x form That publication has information to help you determine whether an individual is an employee or an independent contractor. Where to get a 1040x form If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. Where to get a 1040x form An independent contractor is someone who is self-employed. Where to get a 1040x form Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. Where to get a 1040x form Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. Where to get a 1040x form 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 to get a 1040x form Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). Where to get a 1040x form Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. Where to get a 1040x form Medicare tax pays for benefits under the hospital insurance part of FICA. Where to get a 1040x form You withhold part of these taxes from your employee's wages and you pay a part yourself. Where to get a 1040x form To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. Where to get a 1040x form 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 to get a 1040x form (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. Where to get a 1040x form ) 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 to get a 1040x form You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. Where to get a 1040x form You pay FUTA tax only from your own funds. Where to get a 1040x form Employees do not pay this tax or have it withheld from their pay. Where to get a 1040x form Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Where to get a 1040x form See Publication 15 to find out if you can use this form. Where to get a 1040x form Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. Where to get a 1040x form Form I-9. 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Where to get a 1040x form For more information, see Publication 15. Where to get a 1040x form Employees claiming more than 10 withholding allowances. Where to get a 1040x form   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. Where to get a 1040x form See section 16 of Publication 15. Where to get a 1040x form 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 to get a 1040x form You must also send copies to the Social Security Administration. Where to get a 1040x form See Information Returns, later, for more information on Form W-2. Where to get a 1040x form 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 to get a 1040x form Manufacture or sell certain products. Where to get a 1040x form Operate certain kinds of businesses. Where to get a 1040x form Use various kinds of equipment, facilities, or products. Where to get a 1040x form Receive payment for certain services. Where to get a 1040x form For more information on excise taxes, see Publication 510, Excise Taxes. Where to get a 1040x form Form 720. Where to get a 1040x form   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. Where to get a 1040x form Environmental taxes. Where to get a 1040x form Communications and air transportation taxes. Where to get a 1040x form Fuel taxes. Where to get a 1040x form Tax on the first retail sale of heavy trucks, trailers, and tractors. Where to get a 1040x form Manufacturers taxes on the sale or use of a variety of different articles. Where to get a 1040x form Form 2290. 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Where to get a 1040x form 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 to get a 1040x form Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). Where to get a 1040x form Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. Where to get a 1040x form Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. Where to get a 1040x form Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. Where to get a 1040x form 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 to get a 1040x form You must give a copy of each information return you are required to file to the recipient or payer. Where to get a 1040x form In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. Where to get a 1040x form For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. Where to get a 1040x form Form 1099-MISC. Where to get a 1040x form   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. Where to get a 1040x form These payments include the following items. Where to get a 1040x form 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 to get a 1040x form Rent payments of $600 or more, other than rents paid to real estate agents. Where to get a 1040x form Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. Where to get a 1040x form Royalty payments of $10 or more. Where to get a 1040x form Payments to certain crew members by operators of fishing boats. Where to get a 1040x form 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 to get a 1040x form Form W-2. Where to get a 1040x form   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 to get a 1040x form For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. Where to get a 1040x form Form 8300. Where to get a 1040x form   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 to get a 1040x form Cash includes U. Where to get a 1040x form S. Where to get a 1040x form and foreign coin and currency. Where to get a 1040x form It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. Where to get a 1040x form For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). Where to get a 1040x form Penalties The law provides penalties for not filing returns or paying taxes as required. Where to get a 1040x form Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. Where to get a 1040x form Failure to file tax returns. Where to get a 1040x form   If you do not file your tax return by the due date, you may have to pay a penalty. Where to get a 1040x form The penalty is based on the tax not paid by the due date. Where to get a 1040x form See your tax return instructions for more information about this penalty. Where to get a 1040x form Failure to pay tax. Where to get a 1040x form   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 to get a 1040x form For more information, see your tax return instructions. Where to get a 1040x form Failure to withhold, deposit, or pay taxes. Where to get a 1040x form   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 to get a 1040x form You may also be subject to penalties if you deposit the taxes late. Where to get a 1040x form For more information, see Publication 15. Where to get a 1040x form Failure to follow information reporting requirements. Where to get a 1040x form   The following penalties apply if you are required to file information returns. Where to get a 1040x form For more information, see the General Instructions for Certain Information Returns. Where to get a 1040x form Failure to file information returns. Where to get a 1040x form 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 to get a 1040x form Failure to furnish correct payee statements. Where to get a 1040x form 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 to get a 1040x form Waiver of penalty. Where to get a 1040x form   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. Where to get a 1040x form   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 to get a 1040x form (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 to get a 1040x form ) Failure to supply taxpayer identification number. Where to get a 1040x form   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 to get a 1040x form 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 to get a 1040x form Business Expenses You can deduct business expenses on your income tax return. Where to get a 1040x form These are the current operating costs of running your business. Where to get a 1040x form To be deductible, a business expense must be both ordinary and necessary. Where to get a 1040x form An ordinary expense is one that is common and accepted in your field of business, trade, or profession. 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Where to get a 1040x form You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). Where to get a 1040x form 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 to get a 1040x form The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Where to get a 1040x form Any remaining cost must be amortized. Where to get a 1040x form For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. Where to get a 1040x form 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 to get a 1040x form You must spread the cost over more than one tax year and deduct part of it each year. Where to get a 1040x form This method of deducting the cost of business property is called depreciation. Where to get a 1040x form Business property you must depreciate includes the following items. Where to get a 1040x form Office furniture. Where to get a 1040x form Buildings. Where to get a 1040x form Machinery and equipment. Where to get a 1040x form 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 to get a 1040x form This deduction is known as the “section 179 deduction. Where to get a 1040x form ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. Where to get a 1040x form Depreciation must be taken in the year it is allowable. Where to get a 1040x form Allowable depreciation not taken in a prior year cannot be taken in the current year. Where to get a 1040x form If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. Where to get a 1040x form S. Where to get a 1040x form Individual Income Tax Return, or by changing your accounting method. Where to get a 1040x form For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. Where to get a 1040x form Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. Where to get a 1040x form Even then, your deduction may be limited. Where to get a 1040x form To qualify to claim expenses for business use of your home, you must meet both the following tests. Where to get a 1040x form 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 to get a 1040x form Exclusive use. Where to get a 1040x form   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Where to get a 1040x form The area used for business can be a room or other separately identifiable space. Where to get a 1040x form The space does not need to be marked off by a permanent partition. Where to get a 1040x form   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 to get a 1040x form Exceptions to exclusive use. Where to get a 1040x form   You do not have to meet the exclusive use test if either of the following applies. Where to get a 1040x form You use part of your home for the storage of inventory or product samples. Where to get a 1040x form You use part of your home as a daycare facility. Where to get a 1040x form For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Where to get a 1040x form Principal place of business. Where to get a 1040x form   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Where to get a 1040x form You use it exclusively and regularly for administrative or management activities of your trade or business. Where to get a 1040x form You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Where to get a 1040x form   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 to get a 1040x form The relative importance of the activities performed at each location. Where to get a 1040x form If the relative importance factor does not determine your principal place of business, the time spent at each location. Where to get a 1040x form    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Where to get a 1040x form However, for other ways to qualify to deduct home office expenses, see Publication 587. Where to get a 1040x form 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 to get a 1040x form If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. Where to get a 1040x form More information. Where to get a 1040x form   For more information about business use of your home, see Publication 587. Where to get a 1040x form 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 to get a 1040x form You generally can deduct either your actual expenses or the standard mileage rate. Where to get a 1040x form Actual expenses. Where to get a 1040x form   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 to get a 1040x form You can divide your expenses based on the miles driven for each purpose. Where to get a 1040x form Example. Where to get a 1040x form You are the sole proprietor of a flower shop. Where to get a 1040x form You drove your van 20,000 miles during the year. Where to get a 1040x form 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. Where to get a 1040x form You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Where to get a 1040x form Standard mileage rate. Where to get a 1040x form   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 to get a 1040x form You can use the standard mileage rate for a vehicle you own or lease. Where to get a 1040x form The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. Where to get a 1040x form It is announced annually by the IRS. Where to get a 1040x form To figure your deduction, multiply your business miles by the standard mileage rate for the year. Where to get a 1040x form    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. Where to get a 1040x form However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. Where to get a 1040x form Choosing the standard mileage rate. Where to get a 1040x form   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 to get a 1040x form In later years, you can choose to use either the standard mileage rate or actual expenses. Where to get a 1040x form   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 to get a 1040x form Additional information. Where to get a 1040x form   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Where to get a 1040x form Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. Where to get a 1040x form It also explains how long you must keep your records for federal tax purposes. Where to get a 1040x form A sample recordkeeping system is illustrated at the end of this part. Where to get a 1040x form Why Keep Records? Everyone in business must keep records. Where to get a 1040x form Good records will help you do the following. Where to get a 1040x form Monitor the progress of your business. Where to get a 1040x form   You need good records to monitor the progress of your business. Where to get a 1040x form Records can show whether your business is improving, which items are selling, or what changes you need to make. Where to get a 1040x form Good records can increase the likelihood of business success. Where to get a 1040x form Prepare your financial statements. 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Where to get a 1040x form   You may forget expenses when you prepare your tax return unless you record them when they occur. Where to get a 1040x form Prepare your tax returns. Where to get a 1040x form   You need good records to prepare your tax returns. Where to get a 1040x form These records must support the income, expenses, and credits you report. Where to get a 1040x form Generally, these are the same records you use to monitor your business and prepare your financial statements. Where to get a 1040x form Support items reported on tax returns. Where to get a 1040x form   You must keep your business records available at all times for inspection by the IRS. Where to get a 1040x form If the IRS examines any of your tax returns, you may be asked to explain the items reported. Where to get a 1040x form A complete set of records will speed up the examination. Where to get a 1040x form Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. Where to get a 1040x form You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. Where to get a 1040x form The business you are in affects the type of records you need to keep for federal tax purposes. Where to get a 1040x form You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. Where to get a 1040x form See Accounting Method, earlier. Where to get a 1040x form If you are in more than one business, you should keep a complete and separate set of records for each business. Where to get a 1040x form A corporation should keep minutes of board of directors' meetings. Where to get a 1040x form Your recordkeeping system should include a summary of your business transactions. 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Where to get a 1040x form 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 to get a 1040x form The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. Where to get a 1040x form All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. Where to get a 1040x form 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 to get a 1040x form   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 to get a 1040x form You still have the responsibility of retaining any other books and records that are required to be retained. Where to get a 1040x form   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. Where to get a 1040x form This test is not considered an examination and the results must be shared with you. Where to get a 1040x form If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. Where to get a 1040x form 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 to get a 1040x form For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. Where to get a 1040x form Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. Where to get a 1040x form Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. Where to get a 1040x form These documents contain information you need to record in your books. Where to get a 1040x form It is important to keep these documents because they support the entries in your books and on your tax return. Where to get a 1040x form Keep them in an orderly fashion and in a safe place. Where to get a 1040x form For instance, organize them by year and type of income or expense. Where to get a 1040x form Gross receipts. Where to get a 1040x form   Gross receipts are the income you receive from your business. Where to get a 1040x form You should keep supporting documents that show the amounts and sources of your gross receipts. Where to get a 1040x form Documents that show gross receipts include the following. Where to get a 1040x form Cash register tapes. Where to get a 1040x form Bank deposit slips. Where to get a 1040x form Receipt books. Where to get a 1040x form Invoices. Where to get a 1040x form Credit card charge slips. Where to get a 1040x form Forms 1099-MISC. Where to get a 1040x form Purchases. Where to get a 1040x form   Purchases are the items you buy and resell to customers. Where to get a 1040x form If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. 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Where to get a 1040x form Cash register tapes. Where to get a 1040x form Account statements. Where to get a 1040x form Credit card sales slips. Where to get a 1040x form Invoices. Where to get a 1040x form Petty cash slips for small cash payments. Where to get a 1040x form    A petty cash fund allows you to make small payments without having to write checks for small amounts. Where to get a 1040x form 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 to get a 1040x form Travel, transportation, entertainment, and gift expenses. Where to get a 1040x form   Specific recordkeeping rules apply to these expenses. Where to get a 1040x form For more information, see Publication 463. Where to get a 1040x form Employment taxes. Where to get a 1040x form   There are specific employment tax records you must keep. Where to get a 1040x form For a list, see Publication 15. Where to get a 1040x form Assets. Where to get a 1040x form   Assets are the property, such as machinery and furniture you own and use in your business. Where to get a 1040x form You must keep records to verify certain information about your business assets. Where to get a 1040x form You need records to figure the annual depreciation and the gain or loss when you sell the assets. Where to get a 1040x form Your records should show the following information. Where to get a 1040x form When and how you acquired the asset. Where to get a 1040x form Purchase price. Where to get a 1040x form Cost of any improvements. Where to get a 1040x form Section 179 deduction taken. Where to get a 1040x form Deductions taken for depreciation. Where to get a 1040x form Deductions taken for casualty losses, such as losses resulting from fires or storms. Where to get a 1040x form How you used the asset. Where to get a 1040x form When and how you disposed of the asset. Where to get a 1040x form Selling price. 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Where to get a 1040x form Check Check number. Where to get a 1040x form Amount. Where to get a 1040x form Payee's name. Where to get a 1040x form Date the check amount was posted to the account by the financial institution. Where to get a 1040x form Electronic funds transfer Amount transferred. Where to get a 1040x form Payee's name. Where to get a 1040x form Date the transfer was posted to the account by the financial institution. Where to get a 1040x form Credit card Amount charged. Where to get a 1040x form Payee's name. Where to get a 1040x form Transaction date. Where to get a 1040x form    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. Where to get a 1040x form You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. Where to get a 1040x form Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. Where to get a 1040x form (Your business transactions are shown on the supporting documents just discussed. Where to get a 1040x form ) Business transactions are ordinarily summarized in books called journals and ledgers. Where to get a 1040x form You can buy them at your local stationery or office supply store. Where to get a 1040x form A journal is a book where you record each business transaction shown on your supporting documents. Where to get a 1040x form You may have to keep separate journals for transactions that occur frequently. Where to get a 1040x form A ledger is a book that contains the totals from all of your journals. Where to get a 1040x form It is organized into different accounts. Where to get a 1040x form Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. Where to get a 1040x form For example, a recordkeeping system for a small business might include the following items. Where to get a 1040x form Business checkbook. Where to get a 1040x form Daily summary of cash receipts. Where to get a 1040x form Monthly summary of cash receipts. Where to get a 1040x form Check disbursements journal. Where to get a 1040x form Depreciation worksheet. Where to get a 1040x form Employee compensation record. Where to get a 1040x form The business checkbook is explained next. Where to get a 1040x form The other items are illustrated later under Sample Record System. Where to get a 1040x form The system you use to record business transactions will be more effective if you follow good recordkeeping practices. Where to get a 1040x form For example, record expenses when they occur, and identify the source of recorded receipts. Where to get a 1040x form Generally, it is best to record transactions on a daily basis. Where to get a 1040x form Business checkbook. Where to get a 1040x form   One of the first things you should do when you start a business is open a business checking account. Where to get a 1040x form You should keep your business account separate from your personal checking account. Where to get a 1040x form   The business checkbook is your basic source of information for recording your business expenses. Where to get a 1040x form You should deposit all daily receipts in your business checking account. Where to get a 1040x form You should check your account for errors by reconciling it. Where to get a 1040x form See Reconciling the checking account, later. Where to get a 1040x form   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. Where to get a 1040x form You should also note on the deposit slip the source of the deposit and keep copies of all slips. Where to get a 1040x form   You should make all payments by check to document business expenses. Where to get a 1040x form Write checks payable to yourself only when making withdrawals from your business for personal use. Where to get a 1040x form Avoid writing checks payable to cash. Where to get a 1040x form If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. Where to get a 1040x form 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 to get a 1040x form    Use the business account for business purposes only. Where to get a 1040x form Indicate the source of deposits and the type of expense in the checkbook. Where to get a 1040x form Reconciling the checking account. Where to get a 1040x form   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. Where to get a 1040x form 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 to get a 1040x form   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 to get a 1040x form    You should reconcile your checking account each month. Where to get a 1040x form     Before you reconcile your monthly bank statement, check your own figures. Where to get a 1040x form Begin with the balance shown in your checkbook at the end of the previous month. Where to get a 1040x form To this balance, add the total cash deposited during the month and subtract the total cash disbursements. Where to get a 1040x form   After checking your figures, the result should agree with your checkbook balance at the end of the month. Where to get a 1040x form If the result does not agree, you may have made an error in recording a check or deposit. Where to get a 1040x form You can find the error by doing the following. Where to get a 1040x form 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 to get a 1040x form 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 to get a 1040x form Adding the deposit amounts in your checkbook. Where to get a 1040x form Compare that total with the monthly total in your cash receipt book, if you have one. Where to get a 1040x form If the totals do not agree, check the individual amounts to find any errors. Where to get a 1040x form   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 to get a 1040x form   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. Where to get a 1040x form Many banks print a reconciliation worksheet on the back of the statement. Where to get a 1040x form   To reconcile your account, follow these steps. Where to get a 1040x form Compare the deposits listed on the bank statement with the deposits shown in your checkbook. Where to get a 1040x form Note all differences in the dollar amounts. Where to get a 1040x form Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. Where to get a 1040x form Note all differences in the dollar amounts. Where to get a 1040x form Mark the check number in the checkbook as having cleared the bank. Where to get a 1040x form After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. Where to get a 1040x form Prepare a bank reconciliation. Where to get a 1040x form One is illustrated later under Sample Record System. Where to get a 1040x form Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. Where to get a 1040x form At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. Where to get a 1040x form If you still have differences, check the previous steps to find the errors. Where to get a 1040x form   Table 3. Where to get a 1040x form Period of Limitations IF you. Where to get a 1040x form . Where to get a 1040x form . Where to get a 1040x form   THEN the period is. Where to get a 1040x form . Where to get a 1040x form . Where to get a 1040x form 1. Where to get a 1040x form Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. Where to get a 1040x form 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 to get a 1040x form File a fraudulent return   Not limited 4. Where to get a 1040x form Do not file a return   Not limited 5. Where to get a 1040x form 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 to get a 1040x form 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 to get a 1040x form The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. Where to get a 1040x form You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. Where to get a 1040x form Single-entry. Where to get a 1040x form   A single-entry system is based on the income statement (profit or loss statement). Where to get a 1040x form It can be a simple and practical system if you are starting a small business. Where to get a 1040x form 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 to get a 1040x form Double-entry. Where to get a 1040x form   A double-entry bookkeeping system uses journals and ledgers. Where to get a 1040x form Transactions are first entered in a journal and then posted to ledger accounts. Where to get a 1040x form These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). Where to get a 1040x form You close income and expense accounts at the end of each tax year. Where to get a 1040x form You keep asset, liability, and net worth accounts open on a permanent basis. Where to get a 1040x form   In the double-entry system, each account has a left side for debits and a right side for credits. Where to get a 1040x form It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. Where to get a 1040x form   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. Where to get a 1040x form If the amounts do not balance, you have made an error and you must find and correct it. Where to get a 1040x form   An example of a journal entry exhibiting a payment of rent in October is shown next. Where to get a 1040x form General Journal Date Description of Entry Debit  Credit Oct. Where to get a 1040x form 5 Rent expense 780. Where to get a 1040x form 00     Cash   780. Where to get a 1040x form 00                 Computerized System There are computer software packages you can use for recordkeeping. Where to get a 1040x form They can be purchased in many retail stores. Where to get a 1040x form These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. Where to get a 1040x form 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 to get a 1040x form To meet this qualification, the machine-sensible records must reconcile with your books and return. Where to get a 1040x form These records must provide enough detail to identify the underlying source documents. Where to get a 1040x form You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. Where to get a 1040x form This documentation must be sufficiently detailed to show all of the following items. Where to get a 1040x form Functions being performed as the data flows through the system. Where to get a 1040x form Controls used to ensure accurate and reliable processing. Where to get a 1040x form Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. Where to get a 1040x form Charts of accounts and detailed account descriptions. Where to get a 1040x form See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. Where to get a 1040x form 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 to get a 1040x form 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 to get a 1040x form 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 to get a 1040x form Table 3 contains the periods of limitations that apply to income tax returns. Where to get a 1040x form Unless otherwise stated, the years refer to the period after the return was filed. Where to get a 1040x form Returns filed before the due date are treated as filed on the due date. Where to get a 1040x form Keep copies of your filed tax returns. Where to get a 1040x form They help in preparing future tax returns and making computations if you file an amended return. Where to get a 1040x form Employment taxes. Where to get a 1040x form   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 to get a 1040x form For more information about recordkeeping for employment taxes, see Publication 15. Where to get a 1040x form Assets. Where to get a 1040x form   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 to get a 1040x form 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 to get a 1040x form   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 to get a 1040x form 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 to get a 1040x form Records for nontax purposes. Where to get a 1040x form   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 to get a 1040x form For example, your insurance company or creditors may require you to keep them longer than the IRS does. Where to get a 1040x form 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 to get a 1040x form Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. Where to get a 1040x form These sample records should not be viewed as a recommendation of how to keep your records. Where to get a 1040x form They are intended only to show how one business keeps its records. Where to get a 1040x form 1. Where to get a 1040x form Daily Summary of Cash Receipts This summary is a record of cash sales for the day. Where to get a 1040x form 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 to get a 1040x form Henry takes the cash sales entry from his cash register tape. Where to get a 1040x form If he had no cash register, he would simply total his cash sale slips and any other cash received that day. Where to get a 1040x form He carries the total receipts shown in this summary for January 3 ($267. Where to get a 1040x form 80), including cash sales ($263. Where to get a 1040x form 60) and sales tax ($4. Where to get a 1040x form 20), to the Monthly Summary of Cash Receipts. Where to get a 1040x form Petty cash fund. Where to get a 1040x form   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. Where to get a 1040x form 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 to get a 1040x form He sets up a fixed amount ($50) in his petty cash fund. Where to get a 1040x form The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. Where to get a 1040x form 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 to get a 1040x form (See the Check Disbursements Journal entry for check number 92. Where to get a 1040x form ) This restores the fund to its fixed amount of $50. Where to get a 1040x form He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. Where to get a 1040x form 2. Where to get a 1040x form Monthly Summary of Cash Receipts This shows the income activity for the month. Where to get a 1040x form Henry carries the total monthly net sales shown in this summary for January ($4,865. Where to get a 1040x form 05) to his Annual Summary. Where to get a 1040x form 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 to get a 1040x form He cannot take a deduction for sales tax turned over to the state because he only collected the tax. Where to get a 1040x form He does not include the tax in his income. Where to get a 1040x form 3. Where to get a 1040x form Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. Where to get a 1040x form All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. Where to get a 1040x form Frequent expenses have their own headings across the sheet. Where to get a 1040x form He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. Where to get a 1040x form Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. Where to get a 1040x form Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. Where to get a 1040x form If he did, he would record them in the journal, even though he could not deduct them as business expenses. Where to get a 1040x form Henry carries the January total of expenses for materials ($1,083. Where to get a 1040x form 50) to the Annual Summary. Where to get a 1040x form Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. Where to get a 1040x form , in the appropriate columns of that summary. Where to get a 1040x form 4. Where to get a 1040x form Employee Compensation Record This record shows the following information. Where to get a 1040x form The number of hours Henry's employee worked in a pay period. Where to get a 1040x form The employee's total pay for the period. Where to get a 1040x form The deductions Henry withheld in figuring the employee's net pay. Where to get a 1040x form The monthly gross payroll. Where to get a 1040x form Henry carries the January gross payroll ($520) to the Annual Summary. Where to get a 1040x form 5. Where to get a 1040x form Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. Where to get a 1040x form He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. Where to get a 1040x form He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. Where to get a 1040x form As in the journal, he keeps each major expense in a separate column. Where to get a 1040x form Henry carries the cash receipts total shown in the annual summary ($47,440. Where to get a 1040x form 9
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The Where To Get A 1040x Form

Where to get a 1040x form 11. Where to get a 1040x form   Social Security and Equivalent Railroad Retirement Benefits Table of Contents Introduction Useful Items - You may want to see: Are Any of Your Benefits Taxable? How To Report Your BenefitsHow Much Is Taxable? Examples Deductions Related to Your BenefitsRepayments More Than Gross Benefits Introduction This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Where to get a 1040x form It explains the following topics. Where to get a 1040x form How to figure whether your benefits are taxable. Where to get a 1040x form How to use the social security benefits worksheet (with examples). Where to get a 1040x form How to report your taxable benefits. Where to get a 1040x form How to treat repayments that are more than the benefits you received during the year. Where to get a 1040x form Social security benefits include monthly retirement, survivor, and disability benefits. Where to get a 1040x form They do not include supplemental security income (SSI) payments, which are not taxable. Where to get a 1040x form Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Where to get a 1040x form They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Where to get a 1040x form If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board. Where to get a 1040x form These forms show the amounts received and repaid, and taxes withheld for the year. Where to get a 1040x form You may receive more than one of these forms for the same year. Where to get a 1040x form You should add the amounts shown on all the Forms SSA-1099 and Forms RRB-1099 you receive for the year to determine the total amounts received and repaid, and taxes withheld for that year. Where to get a 1040x form See the Appendix at the end of Publication 915 for more information. Where to get a 1040x form Note. Where to get a 1040x form When the term “benefits” is used in this chapter, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Where to get a 1040x form What is not covered in this chapter. Where to get a 1040x form   This chapter does not cover the tax rules for the following railroad retirement benefits. Where to get a 1040x form Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. Where to get a 1040x form Tier 2 benefits. Where to get a 1040x form Vested dual benefits. Where to get a 1040x form Supplemental annuity benefits. Where to get a 1040x form For information on these benefits, see Publication 575, Pension and Annuity Income. Where to get a 1040x form   This chapter does not cover the tax rules for social security benefits reported on Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. Where to get a 1040x form For information about these benefits, see Publication 519, U. Where to get a 1040x form S. Where to get a 1040x form Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Where to get a 1040x form   This chapter also does not cover the tax rules for foreign social security benefits. Where to get a 1040x form These benefits are taxable as annuities, unless they are exempt from U. Where to get a 1040x form S. Where to get a 1040x form tax or treated as a U. Where to get a 1040x form S. Where to get a 1040x form social security benefit under a tax treaty. Where to get a 1040x form Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 915 Social Security and Equivalent Railroad Retirement Benefits Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request Are Any of Your Benefits Taxable? To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Where to get a 1040x form When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Where to get a 1040x form S. Where to get a 1040x form savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned by bona fide residents of American Samoa or Puerto Rico. Where to get a 1040x form Children's benefits. Where to get a 1040x form   The rules in this chapter apply to benefits received by children. Where to get a 1040x form See Who is taxed , later. Where to get a 1040x form Figuring total income. Where to get a 1040x form   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. Where to get a 1040x form If the total is more than your base amount, part of your benefits may be taxable. Where to get a 1040x form    If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Where to get a 1040x form Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Where to get a 1040x form    If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Where to get a 1040x form If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Where to get a 1040x form Base amount. Where to get a 1040x form   Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Where to get a 1040x form Worksheet 11-1. Where to get a 1040x form   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. Where to get a 1040x form This is a quick way to check whether some of your benefits may be taxable. Where to get a 1040x form Worksheet 11-1. Where to get a 1040x form A Quick Way To Check if Your Benefits May Be Taxable A. Where to get a 1040x form Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Where to get a 1040x form Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Where to get a 1040x form (If you received more than one form, combine the amounts from box 5 and enter the total. Where to get a 1040x form ) A. Where to get a 1040x form   Note. Where to get a 1040x form If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Where to get a 1040x form B. Where to get a 1040x form Enter one-half of the amount on line A B. Where to get a 1040x form   C. Where to get a 1040x form Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Where to get a 1040x form   D. Where to get a 1040x form Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Where to get a 1040x form   E. Where to get a 1040x form Add lines B, C, and D E. Where to get a 1040x form   Note. Where to get a 1040x form Compare the amount on line E to your base amount for your filing status. Where to get a 1040x form If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Where to get a 1040x form If the amount on line E is more than your base amount, some of your benefits may be taxable. Where to get a 1040x form You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Where to get a 1040x form If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. Where to get a 1040x form Example. Where to get a 1040x form You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Where to get a 1040x form In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Where to get a 1040x form Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Where to get a 1040x form You also received a taxable pension of $22,800 and interest income of $500. Where to get a 1040x form You did not have any tax-exempt interest income. Where to get a 1040x form Your benefits are not taxable for 2013 because your income, as figured in Worksheet 11-1, is not more than your base amount ($32,000) for married filing jointly. Where to get a 1040x form Even though none of your benefits are taxable, you must file a return for 2013 because your taxable gross income ($23,300) exceeds the minimum filing requirement amount for your filing status. Where to get a 1040x form Filled-in Worksheet 11-1. Where to get a 1040x form A Quick Way To Check if Your Benefits May Be Taxable A. Where to get a 1040x form Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Where to get a 1040x form Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Where to get a 1040x form (If you received more than one form, combine the amounts from box 5 and enter the total. Where to get a 1040x form ) A. Where to get a 1040x form $11,000 Note. Where to get a 1040x form If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Where to get a 1040x form B. Where to get a 1040x form Enter one-half of the amount on line A B. Where to get a 1040x form 5,500 C. Where to get a 1040x form Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Where to get a 1040x form 23,300 D. Where to get a 1040x form Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Where to get a 1040x form -0- E. Where to get a 1040x form Add lines B, C, and D E. Where to get a 1040x form $28,800 Note. Where to get a 1040x form Compare the amount on line E to your base amount for your filing status. Where to get a 1040x form If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Where to get a 1040x form If the amount on line E is more than your base amount, some of your benefits may be taxable. Where to get a 1040x form You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Where to get a 1040x form If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. Where to get a 1040x form Who is taxed. Where to get a 1040x form   Benefits are included in the taxable income (to the extent they are taxable) of the person who has the legal right to receive the benefits. Where to get a 1040x form For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxable to you. Where to get a 1040x form One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child. Where to get a 1040x form Repayment of benefits. Where to get a 1040x form   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Where to get a 1040x form It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Where to get a 1040x form If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Where to get a 1040x form   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. Where to get a 1040x form Your repayments are shown in box 4. Where to get a 1040x form The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Where to get a 1040x form Use the amount in box 5 to figure whether any of your benefits are taxable. Where to get a 1040x form Tax withholding and estimated tax. Where to get a 1040x form   You can choose to have federal income tax withheld from your social security benefits and/or the SSEB portion of your tier 1 railroad retirement benefits. Where to get a 1040x form If you choose to do this, you must complete a Form W-4V. Where to get a 1040x form   If you do not choose to have income tax withheld, you may have to request additional withholding from other income or pay estimated tax during the year. Where to get a 1040x form For details, see Publication 505 or the instructions for Form 1040-ES. Where to get a 1040x form How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Where to get a 1040x form You cannot use Form 1040EZ. Where to get a 1040x form Reporting on Form 1040. Where to get a 1040x form   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 20a and the taxable part on line 20b. Where to get a 1040x form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Where to get a 1040x form Reporting on Form 1040A. Where to get a 1040x form   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 14a and the taxable part on line 14b. Where to get a 1040x form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Where to get a 1040x form Benefits not taxable. Where to get a 1040x form   If you are filing Form 1040EZ, do not report any benefits on your tax return. Where to get a 1040x form If you are filing Form 1040 or Form 1040A, report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Where to get a 1040x form Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Where to get a 1040x form If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Where to get a 1040x form How Much Is Taxable? If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits and other income. Where to get a 1040x form Generally, the higher that total amount, the greater the taxable part of your benefits. Where to get a 1040x form Maximum taxable part. Where to get a 1040x form   Generally, up to 50% of your benefits will be taxable. Where to get a 1040x form However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Where to get a 1040x form The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Where to get a 1040x form You are married filing separately and lived with your spouse at any time during 2013. Where to get a 1040x form Which worksheet to use. Where to get a 1040x form   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. Where to get a 1040x form You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. Where to get a 1040x form You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Where to get a 1040x form In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Where to get a 1040x form Situation (1) does not apply and you take an exclusion for interest from qualified U. Where to get a 1040x form S. Where to get a 1040x form savings bonds (Form 8815), for adoption benefits (Form 8839), for foreign earned income or housing (Form 2555 or Form 2555-EZ), or for income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Where to get a 1040x form In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. Where to get a 1040x form You received a lump-sum payment for an earlier year. Where to get a 1040x form In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Where to get a 1040x form See Lump-sum election next. Where to get a 1040x form Lump-sum election. Where to get a 1040x form   You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Where to get a 1040x form    This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Where to get a 1040x form No part of the lump-sum death benefit is subject to tax. Where to get a 1040x form   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Where to get a 1040x form However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Where to get a 1040x form You can elect this method if it lowers your taxable benefits. Where to get a 1040x form Making the election. Where to get a 1040x form   If you received a lump-sum benefit payment in 2013 that includes benefits for one or more earlier years, follow the instructions in Publication 915 under Lump-Sum Election to see whether making the election will lower your taxable benefits. Where to get a 1040x form That discussion also explains how to make the election. Where to get a 1040x form    Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Where to get a 1040x form Do not file an amended return for the earlier year. Where to get a 1040x form Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. Where to get a 1040x form Example 1. Where to get a 1040x form George White is single and files Form 1040 for 2013. Where to get a 1040x form He received the following income in 2013: Fully taxable pension $18,600 Wages from part-time job 9,400 Taxable interest income 990 Total $28,990 George also received social security benefits during 2013. Where to get a 1040x form The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. Where to get a 1040x form To figure his taxable benefits, George completes the worksheet shown here. Where to get a 1040x form Filled-in Worksheet 1. Where to get a 1040x form Figuring Your Taxable Benefits 1. Where to get a 1040x form Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Where to get a 1040x form Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. Where to get a 1040x form Enter one-half of line 1 2,990 3. Where to get a 1040x form Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Where to get a 1040x form     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. Where to get a 1040x form Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Where to get a 1040x form Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Where to get a 1040x form Combine lines 2, 3, 4, and 5 31,980 7. Where to get a 1040x form Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Where to get a 1040x form     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Where to get a 1040x form Is the amount on line 7 less than the amount on line 6?     No. Where to get a 1040x form None of your social security benefits are taxable. Where to get a 1040x form Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Where to get a 1040x form   Yes. Where to get a 1040x form Subtract line 7 from line 6 31,980 9. Where to get a 1040x form If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 25,000   Note. Where to get a 1040x form If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Where to get a 1040x form 85) and enter the result on line 17. Where to get a 1040x form Then go to line 18. Where to get a 1040x form   10. Where to get a 1040x form Is the amount on line 9 less than the amount on line 8?     No. Where to get a 1040x form None of your benefits are taxable. Where to get a 1040x form Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Where to get a 1040x form If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Where to get a 1040x form     Yes. Where to get a 1040x form Subtract line 9 from line 8 6,980 11. Where to get a 1040x form Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 9,000 12. Where to get a 1040x form Subtract line 11 from line 10. Where to get a 1040x form If zero or less, enter -0- -0- 13. Where to get a 1040x form Enter the smaller of line 10 or line 11 6,980 14. Where to get a 1040x form Enter one-half of line 13 3,490 15. Where to get a 1040x form Enter the smaller of line 2 or line 14 2,990 16. Where to get a 1040x form Multiply line 12 by 85% (. Where to get a 1040x form 85). Where to get a 1040x form If line 12 is zero, enter -0- -0- 17. Where to get a 1040x form Add lines 15 and 16 2,990 18. Where to get a 1040x form Multiply line 1 by 85% (. Where to get a 1040x form 85) 5,083 19. Where to get a 1040x form Taxable benefits. Where to get a 1040x form Enter the smaller of line 17 or line 18. Where to get a 1040x form Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $2,990 The amount on line 19 of George's worksheet shows that $2,990 of his social security benefits is taxable. Where to get a 1040x form On line 20a of his Form 1040, George enters his net benefits of $5,980. Where to get a 1040x form On line 20b, he enters his taxable benefits of $2,990. Where to get a 1040x form Example 2. Where to get a 1040x form Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Where to get a 1040x form Ray is retired and received a fully taxable pension of $15,500. Where to get a 1040x form He also received social security benefits, and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Where to get a 1040x form Alice worked during the year and had wages of $14,000. Where to get a 1040x form She made a deductible payment to her IRA account of $1,000. Where to get a 1040x form Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Where to get a 1040x form They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Where to get a 1040x form They find none of Ray's social security benefits are taxable. Where to get a 1040x form On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Where to get a 1040x form Filled-in Worksheet 1. Where to get a 1040x form Figuring Your Taxable Benefits 1. Where to get a 1040x form Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Where to get a 1040x form Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. Where to get a 1040x form Enter one-half of line 1 2,800 3. Where to get a 1040x form Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Where to get a 1040x form     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. Where to get a 1040x form Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Where to get a 1040x form Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Where to get a 1040x form Combine lines 2, 3, 4, and 5 32,550 7. Where to get a 1040x form Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Where to get a 1040x form     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. Where to get a 1040x form Is the amount on line 7 less than the amount on line 6?     No. Where to get a 1040x form None of your social security benefits are taxable. Where to get a 1040x form Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Where to get a 1040x form   Yes. Where to get a 1040x form Subtract line 7 from line 6 31,550 9. Where to get a 1040x form If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 32,000   Note. Where to get a 1040x form If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Where to get a 1040x form 85) and enter the result on line 17. Where to get a 1040x form Then go to line 18. Where to get a 1040x form   10. Where to get a 1040x form Is the amount on line 9 less than the amount on line 8?     No. Where to get a 1040x form None of your benefits are taxable. Where to get a 1040x form Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Where to get a 1040x form If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Where to get a 1040x form     Yes. Where to get a 1040x form Subtract line 9 from line 8   11. Where to get a 1040x form Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013   12. Where to get a 1040x form Subtract line 11 from line 10. Where to get a 1040x form If zero or less, enter -0-   13. Where to get a 1040x form Enter the smaller of line 10 or line 11   14. Where to get a 1040x form Enter one-half of line 13   15. Where to get a 1040x form Enter the smaller of line 2 or line 14   16. Where to get a 1040x form Multiply line 12 by 85% (. Where to get a 1040x form 85). Where to get a 1040x form If line 12 is zero, enter -0-   17. Where to get a 1040x form Add lines 15 and 16   18. Where to get a 1040x form Multiply line 1 by 85% (. Where to get a 1040x form 85)   19. Where to get a 1040x form Taxable benefits. Where to get a 1040x form Enter the smaller of line 17 or line 18. Where to get a 1040x form Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. Where to get a 1040x form Joe and Betty Johnson file a joint return on Form 1040 for 2013. Where to get a 1040x form Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Where to get a 1040x form Joe's Form RRB-1099 shows $10,000 in box 5. Where to get a 1040x form Betty is a retired government worker and receives a fully taxable pension of $38,000. Where to get a 1040x form They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Where to get a 1040x form S. Where to get a 1040x form savings bond. Where to get a 1040x form The savings bond interest qualified for the exclusion. Where to get a 1040x form They figure their taxable benefits by completing Worksheet 1. Where to get a 1040x form Because they have qualified U. Where to get a 1040x form S. Where to get a 1040x form savings bond interest, they follow the note at the beginning of the worksheet and use the amount from line 2 of their Schedule B (Form 1040A or 1040) on line 3 of the worksheet instead of the amount from line 8a of their Form 1040. Where to get a 1040x form On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Where to get a 1040x form Filled-in Worksheet 1. Where to get a 1040x form Figuring Your Taxable Benefits Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Where to get a 1040x form • Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Where to get a 1040x form None of your benefits are taxable for 2013. Where to get a 1040x form For more information, see Repayments More Than Gross Benefits. Where to get a 1040x form • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Where to get a 1040x form S. Where to get a 1040x form Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Where to get a 1040x form Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Where to get a 1040x form 1. Where to get a 1040x form Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Where to get a 1040x form Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. Where to get a 1040x form Enter one-half of line 1 5,000 3. Where to get a 1040x form Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Where to get a 1040x form     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. Where to get a 1040x form Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Where to get a 1040x form Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Where to get a 1040x form Combine lines 2, 3, 4, and 5 45,500 7. Where to get a 1040x form Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Where to get a 1040x form     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Where to get a 1040x form Is the amount on line 7 less than the amount on line 6?     No. Where to get a 1040x form None of your social security benefits are taxable. Where to get a 1040x form Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Where to get a 1040x form   Yes. Where to get a 1040x form Subtract line 7 from line 6 45,500 9. Where to get a 1040x form If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 32,000   Note. Where to get a 1040x form If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Where to get a 1040x form 85) and enter the result on line 17. Where to get a 1040x form Then go to line 18. Where to get a 1040x form   10. Where to get a 1040x form Is the amount on line 9 less than the amount on line 8?     No. Where to get a 1040x form None of your benefits are taxable. Where to get a 1040x form Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Where to get a 1040x form If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Where to get a 1040x form     Yes. Where to get a 1040x form Subtract line 9 from line 8 13,500 11. Where to get a 1040x form Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 12,000 12. Where to get a 1040x form Subtract line 11 from line 10. Where to get a 1040x form If zero or less, enter -0- 1,500 13. Where to get a 1040x form Enter the smaller of line 10 or line 11 12,000 14. Where to get a 1040x form Enter one-half of line 13 6,000 15. Where to get a 1040x form Enter the smaller of line 2 or line 14 5,000 16. Where to get a 1040x form Multiply line 12 by 85% (. Where to get a 1040x form 85). Where to get a 1040x form If line 12 is zero, enter -0- 1,275 17. Where to get a 1040x form Add lines 15 and 16 6,275 18. Where to get a 1040x form Multiply line 1 by 85% (. Where to get a 1040x form 85) 8,500 19. Where to get a 1040x form Taxable benefits. Where to get a 1040x form Enter the smaller of line 17 or line 18. Where to get a 1040x form Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $6,275 More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. Where to get a 1040x form Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Where to get a 1040x form Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Where to get a 1040x form Disability payments. Where to get a 1040x form   You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. Where to get a 1040x form If you received a lump-sum payment from SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. Where to get a 1040x form If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Where to get a 1040x form Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. Where to get a 1040x form Legal expenses. Where to get a 1040x form   You can usually deduct legal expenses that you pay or incur to produce or collect taxable income or in connection with the determination, collection, or refund of any tax. Where to get a 1040x form   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Where to get a 1040x form Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Where to get a 1040x form If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Where to get a 1040x form Do not use a worksheet in this case. Where to get a 1040x form If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Where to get a 1040x form If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Where to get a 1040x form Joint return. Where to get a 1040x form   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5, but your spouse's does not, subtract the amount in box 5 of your form from the amount in box 5 of your spouse's form. Where to get a 1040x form You do this to get your net benefits when figuring if your combined benefits are taxable. Where to get a 1040x form Example. Where to get a 1040x form John and Mary file a joint return for 2013. Where to get a 1040x form John received Form SSA-1099 showing $3,000 in box 5. Where to get a 1040x form Mary also received Form SSA-1099 and the amount in box 5 was ($500). Where to get a 1040x form John and Mary will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable. Where to get a 1040x form Repayment of benefits received in an earlier year. Where to get a 1040x form   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Where to get a 1040x form Deduction $3,000 or less. Where to get a 1040x form   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Where to get a 1040x form Claim it on Schedule A (Form 1040), line 23. Where to get a 1040x form Deduction more than $3,000. Where to get a 1040x form    If this deduction is more than $3,000, you should figure your tax two ways: Figure your tax for 2013 with the itemized deduction included on Schedule A, line 28. Where to get a 1040x form Figure your tax for 2013 in the following steps. Where to get a 1040x form Figure the tax without the itemized deduction included on Schedule A, line 28. Where to get a 1040x form For each year after 1983 for which part of the negative figure represents a repayment of benefits, refigure your taxable benefits as if your total benefits for the year were reduced by that part of the negative figure. Where to get a 1040x form Then refigure the tax for that year. Where to get a 1040x form Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Where to get a 1040x form Subtract the result in (c) from the result in (a). Where to get a 1040x form Compare the tax figured in methods (1) and (2). Where to get a 1040x form Your tax for 2013 is the smaller of the two amounts. Where to get a 1040x form If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Where to get a 1040x form If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Where to get a 1040x form Check box d and enter “I. Where to get a 1040x form R. Where to get a 1040x form C. Where to get a 1040x form 1341” in the space next to that box. Where to get a 1040x form If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Where to get a 1040x form Prev  Up  Next   Home   More Online Publications