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Www freetax com 17. Www freetax com   How To Get Tax Help Table of Contents Go online, use a smart phone, call or walk in to an office near you. Www freetax com Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Www freetax com Free help with your tax return. Www freetax com   Free help in preparing your return is available nationwide from IRS-certified volunteers. Www freetax com The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Www freetax com The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Www freetax com Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Www freetax com Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Www freetax com To find the nearest VITA or TCE site, visit IRS. Www freetax com gov or call 1-800-906-9887. Www freetax com   As part of the TCE program, AARP offers the Tax-Aide counseling program. Www freetax com To find the nearest AARP Tax-Aide site, visit AARP's website at www. Www freetax com aarp. Www freetax com org/money/taxaide or call 1-888-227-7669. Www freetax com   For more information on these programs, go to IRS. Www freetax com gov and enter “VITA” in the search box. Www freetax com Internet. Www freetax com IRS. Www freetax com gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Www freetax com Apply for an Employer Identification Number (EIN). Www freetax com Go to IRS. Www freetax com gov and enter Apply for an EIN in the search box. Www freetax com Request an Electronic Filing PIN by going to IRS. Www freetax com gov and entering Electronic Filing PIN in the search box. Www freetax com Download forms, instructions, and publications, including some accessible versions. Www freetax com Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Www freetax com gov or IRS2Go. Www freetax com Tax return and tax account transcripts are generally available for the current year and past three years. Www freetax com Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Www freetax com gov or IRS2Go. Www freetax com Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Www freetax com An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Www freetax com Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Www freetax com If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Www freetax com Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Www freetax com Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Www freetax com gov. Www freetax com Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Www freetax com The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Www freetax com Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Www freetax com AARP offers the Tax-Aide counseling program as part of the TCE program. Www freetax com Visit AARP's website to find the nearest Tax-Aide location. Www freetax com Research your tax questions. Www freetax com Search publications and instructions by topic or keyword. Www freetax com Read the Internal Revenue Code, regulations, or other official guidance. Www freetax com Read Internal Revenue Bulletins. Www freetax com Sign up to receive local and national tax news by email. Www freetax com Phone. Www freetax com You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Www freetax com   Call the Business and Specialty Tax line for questions at 1-800-829-4933. Www freetax com Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Www freetax com Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Www freetax com Call to locate the nearest volunteer help site, 1-800-906-9887. Www freetax com Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Www freetax com The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Www freetax com Most VITA and TCE sites offer free electronic filing. Www freetax com Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Www freetax com Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Www freetax com Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Www freetax com You should receive your order within 10 business days. Www freetax com Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Www freetax com Follow the prompts to provide your Employer Identification Number, street address and ZIP code. Www freetax com Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Www freetax com Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Www freetax com The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Www freetax com These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Www freetax com gsa. Www freetax com gov/fedrelay. Www freetax com Walk-in. Www freetax com You can find a selection of forms, publications and services — in-person, face-to-face. Www freetax com   Products. Www freetax com You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Www freetax com Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Www freetax com Services. Www freetax com You can walk in to your local TAC most business days for personal, face-to-face tax help. Www freetax com An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Www freetax com If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Www freetax com No appointment is necessary—just walk in. Www freetax com Before visiting, check www. Www freetax com irs. Www freetax com gov/localcontacts for hours of operation and services provided. Www freetax com Mail. Www freetax com You can send your order for forms, instructions, and publications to the address below. Www freetax com You should receive a response within 10 days after your request is received. Www freetax com  Internal Revenue Service 1201 N. Www freetax com Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Www freetax com   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Www freetax com Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Www freetax com What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Www freetax com We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Www freetax com You face (or your business is facing) an immediate threat of adverse action. Www freetax com You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Www freetax com   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Www freetax com Here's why we can help: TAS is an independent organization within the IRS. Www freetax com Our advocates know how to work with the IRS. Www freetax com Our services are free and tailored to meet your needs. Www freetax com We have offices in every state, the District of Columbia, and Puerto Rico. Www freetax com How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Www freetax com irs. Www freetax com gov/advocate, or call us toll-free at 1-877-777-4778. Www freetax com How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Www freetax com If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Www freetax com irs. Www freetax com gov/sams. Www freetax com Low Income Taxpayer Clinics. Www freetax com   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Www freetax com Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Www freetax com Visit www. Www freetax com TaxpayerAdvocate. Www freetax com irs. Www freetax com gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Www freetax com Small Business and Self-Employed Tax Center. Www freetax com This online guide is a must for every small business owner or any taxpayer about to start a business. Www freetax com  The information is updated during the year. Www freetax com Visit www. Www freetax com irs. Www freetax com gov/Businesses/Small-Businesses-&-Self-Employed. Www freetax com Prev  Up  Next   Home   More Online Publications
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Resolve Banking Problems

Beware: Fake Check Scams

Fake checks, including cashiers checks, can look so real even bank tellers can be fooled. However, just because you can withdraw the money, doesn't mean the check is good. Forgeries can take weeks to discover. You are responsible for the checks you deposit. If a check bounces, you owe the bank any money you withdrew. If someone wants to send you a check, insist on a cashier's check for the exact amount, preferably from a local bank or one with a branch in your area. Never accept a check and then agree to send a portion of the money back to the sender. For information or to report a scam, visit Federal Trade Commission.

Unsolicited Checks And Credit Offers

If you cash an unsolicited check you've received in the mail, you could be agreeing to pay for products or services you don't want or need, such as Internet access or membership in a web directory. In addition, those "guarantees" for credit cards or loans, regardless of credit history, are probably a scam. Legitimate lenders never guarantee credit. For information on how to identify fraudulent solicitations, contact the Federal Trade Commission.

Legitimate offers of credit often come in the form of "convenience checks", which credit card companies enclose with your monthly statement. However, these convenience checks may carry higher fees, a higher interest rate, and other restrictions. If you don't want the checks, be sure to shred them to protect yourself from dumpster divers and identity thieves.

Watch out for checks from someone in a foreign country claiming that you won a lottery, for an investment, or to pay for an item you sold online. This could be a scam. Even if you deposit the check, the check may not be legal. Don't rely on money from a check, especially foreign or unsolicited, until your bank says the check has cleared or if you know and trust the person who sent it to you.

Contact these Agencies to Solve Your Banking Problems 

 

Type of Institution Regulatory Agency
State chartered banks and trust companies that are NOT member of the Federal Reserve System Federal Deposit Insurance Corporation
State chartered banks and trust companies that are members of the Federal Reserve System Federal Reserve System
State chartered banks State Banking Authorities
Banks with National in the name or N.A. after the name Comptroller of the Currency, U.S. Department of the Treasury
Federal savings and loans and federal savings banks Comptroller of the Currency, U.S. Department of the Treasury
Federally chartered credit unions National Credit Union Administration

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Www freetax com 5. Www freetax com   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. Www freetax com Making the election. Www freetax com Form 3115. Www freetax com Income TaxesAccrual of contested income taxes. Www freetax com Employment Taxes Other TaxesAdditional Medicare Tax. Www freetax com What's New Additional Medicare Tax. Www freetax com  Beginning in 2013, you must withhold a 0. Www freetax com 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Www freetax com Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. Www freetax com See Employment Taxes , and Self-employment tax , later. Www freetax com Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. Www freetax com You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. Www freetax com Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. Www freetax com When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. Www freetax com This applies whether you use the cash method or an accrual method of accounting. Www freetax com Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. Www freetax com You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . Www freetax com Limit on accrual of taxes. Www freetax com   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. Www freetax com However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. Www freetax com Example. Www freetax com Your state imposes a tax on personal property used in a trade or business conducted in the state. Www freetax com This tax is assessed and becomes a lien as of July 1 (accrual date). Www freetax com In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. Www freetax com Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. Www freetax com You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. Www freetax com Uniform capitalization rules. Www freetax com   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. Www freetax com They also apply to certain taxpayers who acquire property for resale. Www freetax com Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. Www freetax com For more information, see chapter 1. Www freetax com Carrying charges. Www freetax com   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. Www freetax com You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. Www freetax com For more information, see chapter 7. Www freetax com Refunds of taxes. Www freetax com   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. Www freetax com For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. Www freetax com    You must include in income any interest you receive on tax refunds. Www freetax com Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Www freetax com The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Www freetax com Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Www freetax com See Taxes for local benefits , later. Www freetax com If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. Www freetax com However, you can elect to ratably accrue the taxes during the year. Www freetax com See Electing to ratably accrue , later. Www freetax com Taxes for local benefits. Www freetax com   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. Www freetax com These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. Www freetax com You should increase the basis of your property by the amount of the assessment. Www freetax com   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. Www freetax com If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. Www freetax com Example. Www freetax com To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. Www freetax com The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. Www freetax com The city is paying the principal and interest with the annual payments made by the property owners. Www freetax com The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. Www freetax com The part of the payments used to pay the interest charges on the bonds is deductible as taxes. Www freetax com Charges for services. Www freetax com   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. Www freetax com Purchase or sale of real estate. Www freetax com   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. Www freetax com   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. Www freetax com Treat the seller as paying the taxes up to but not including the date of sale. Www freetax com Treat the buyer as paying the taxes beginning with the date of sale. Www freetax com You can usually find this information on the settlement statement you received at closing. Www freetax com   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. Www freetax com Example. Www freetax com Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. Www freetax com He has not elected to ratably accrue property taxes. Www freetax com November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. Www freetax com He sold the property on June 30, 2013. Www freetax com Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. Www freetax com He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. Www freetax com Electing to ratably accrue. Www freetax com   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. Www freetax com Example. Www freetax com Juan Sanchez is a calendar year taxpayer who uses an accrual method. Www freetax com His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. Www freetax com July 1 is the assessment and lien date. Www freetax com If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. Www freetax com Separate elections. Www freetax com   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. Www freetax com Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. Www freetax com See Form 3115 , later. Www freetax com Making the election. Www freetax com   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. Www freetax com The statement should show all the following items. Www freetax com The trades or businesses to which the election applies and the accounting method or methods used. Www freetax com The period to which the taxes relate. Www freetax com The computation of the real estate tax deduction for that first year. Www freetax com   Generally, you must file your return by the due date (including extensions). Www freetax com However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Www freetax com Attach the statement to the amended return and write “Filed pursuant to section 301. Www freetax com 9100-2” on the statement. Www freetax com File the amended return at the same address where you filed the original return. Www freetax com Form 3115. Www freetax com    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. Www freetax com For more information, including applicable time frames for filing, see the Instructions for Form 3115. Www freetax com Note. Www freetax com If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. Www freetax com R. Www freetax com B. Www freetax com 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. Www freetax com R. Www freetax com B. Www freetax com 689, and Revenue Procedure 2012-20, 2012-14 I. Www freetax com R. Www freetax com B. Www freetax com 700, or any successor. Www freetax com Revenue Procedure 2011-14 is available at  www. Www freetax com irs. Www freetax com gov/irb/2011-04IRB/ar08. Www freetax com html. Www freetax com Income Taxes This section discusses federal, state, local, and foreign income taxes. Www freetax com Federal income taxes. Www freetax com   You cannot deduct federal income taxes. Www freetax com State and local income taxes. Www freetax com   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. Www freetax com An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). Www freetax com   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. Www freetax com Accrual of contested income taxes. Www freetax com   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. Www freetax com   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. Www freetax com You cannot deduct them in the year in which the liability is finally determined. Www freetax com    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. Www freetax com Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. Www freetax com   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. Www freetax com You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. Www freetax com For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. Www freetax com Foreign income taxes. Www freetax com   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Www freetax com S. Www freetax com possession. Www freetax com However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Www freetax com S. Www freetax com tax under the foreign earned income exclusion or the foreign housing exclusion. Www freetax com For information on these exclusions, see Publication 54, Tax Guide for U. Www freetax com S. Www freetax com Citizens and Resident Aliens Abroad. Www freetax com For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. Www freetax com Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. Www freetax com Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. Www freetax com You may also need to pay certain employment taxes from your own funds. Www freetax com These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. Www freetax com Note. Www freetax com Additional Medicare Tax is only imposed on the employee. Www freetax com There is no employer share of Additional Medicare Tax. Www freetax com Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. Www freetax com You can deduct the employment taxes you must pay from your own funds as taxes. Www freetax com Example. Www freetax com You pay your employee $18,000 a year. Www freetax com However, after you withhold various taxes, your employee receives $14,500. Www freetax com You also pay an additional $1,500 in employment taxes. Www freetax com You should deduct the full $18,000 as wages. Www freetax com You can deduct the $1,500 you pay from your own funds as taxes. Www freetax com For more information on employment taxes, see Publication 15 (Circular E). Www freetax com Unemployment fund taxes. Www freetax com   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. Www freetax com Deduct these payments as taxes. Www freetax com Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. Www freetax com Excise taxes. Www freetax com   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. Www freetax com However, see Fuel taxes , later. Www freetax com   For more information on excise taxes, see Publication 510. Www freetax com Franchise taxes. Www freetax com   You can deduct corporate franchise taxes as a business expense. Www freetax com Fuel taxes. Www freetax com   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. Www freetax com Do not deduct these taxes as a separate item. Www freetax com   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Www freetax com For more information, see Publication 510. Www freetax com Occupational taxes. Www freetax com   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Www freetax com Personal property tax. Www freetax com   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. Www freetax com Sales tax. Www freetax com   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Www freetax com If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Www freetax com If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Www freetax com If the property is depreciable, add the sales tax to the basis for depreciation. Www freetax com For more information on basis, see Publication 551. Www freetax com    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Www freetax com Also, do not include these taxes in gross receipts or sales. Www freetax com Self-employment tax. Www freetax com   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. Www freetax com This deduction only affects your income tax. Www freetax com It does not affect your net earnings from self-employment or your self-employment tax. Www freetax com   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). Www freetax com   For more information on self-employment tax, see Publication 334. Www freetax com Additional Medicare Tax. Www freetax com   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. Www freetax com See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. Www freetax com Prev  Up  Next   Home   More Online Publications