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Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Higher income taxpayers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Minimum required for higher income taxpayers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Estate or trust payments of estimated tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Lowering or eliminating the penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ExceptionsLess Than $1,000 Due No Tax Liability Last Year Figuring Your Required Annual Payment (Part I) Short Method for Figuring the Penalty (Part III) Regular Method for Figuring the Penalty (Part IV)Figuring Your Underpayment (Part IV, Section A) Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Annualized Income Installment Method (Schedule AI) Farmers and Fishermen Waiver of PenaltyFarmers and fishermen. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Introduction If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have underpaid your estimated tax and may have to pay a penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You may understand this chapter better if you can refer to a copy of your latest federal income tax return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm No penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Generally, you will not have to pay a penalty for 2013 if any of the following apply. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ) The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Your total tax for 2013 (defined later) minus your withholding is less than $1,000. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You did not have a tax liability for 2012. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm IRS can figure the penalty for you. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you think you owe the penalty, but you do not want to figure it yourself when you file your tax return, you may not have to. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Generally, the IRS will figure the penalty for you and send you a bill. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   You only need to figure your penalty in the following three situations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You are requesting a waiver of part, but not all, of the penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You are using the annualized income installment method to figure the penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You are treating the federal income tax withheld from your income as paid on the dates actually withheld. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, if these situations do not apply to you, and you think you can lower or eliminate your penalty, complete Form 2210 or Form 2210-F and attach it to your return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Form 2210 , later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Topics - This chapter discusses: The general rule for the underpayment penalty, Special rules for certain individuals, Exceptions to the underpayment penalty, How to figure your underpayment and the amount of your penalty on Form 2210, and How to ask the IRS to waive the penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Useful Items - You may want to see: Form (and Instructions) 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 5 for information about getting these forms. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm General Rule In general, you may owe a penalty for 2013 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 90% of your 2013 tax, or 100% of your 2012 tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm (Your 2012 tax return must cover a 12-month period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Special rules for certain individuals. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   There are special rules for farmers and fishermen and certain higher income taxpayers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Farmers and fishermen. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If at least two-thirds of your gross income for 2012 or 2013 is from farming or fishing, substitute  662/3% for 90% in (1) above. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   See Farmers and Fishermen , later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Higher income taxpayers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If your AGI for 2012 was more than $150,000 ($75,000 if your 2013 filing status is married filing a separate return), substitute 110% for 100% in (2) under General Rule . Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This rule does not apply to farmers or fishermen. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Penalty figured separately for each period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Because the penalty is figured separately for each payment period, you may owe a penalty for an earlier payment period even if you later paid enough to make up the underpayment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This is true even if you are due a refund when you file your income tax return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Example. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Early in January 2014, you made an estimate of your total 2013 tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm On January 10, you made an estimated tax payment of $3,000, which is the difference between your withholding and your estimate of your total tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You do not owe a penalty for your payment due January 15, 2014. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, you may owe a penalty through January 10, 2014, the day you made the $3,000 payment, for your underpayments for the earlier payment periods. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Minimum required each period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   You will owe a penalty for any 2013 payment period for which your estimated tax payment plus your withholding for the period and overpayments applied from previous periods was less than the smaller of: 22. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 5% of your 2013 tax, or 25% of your 2012 tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm (Your 2012 tax return must cover a 12-month period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ) Minimum required for higher income taxpayers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 5% for 25% in (2) under General Rule . Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm When penalty is charged. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you miss a payment or you paid less than the minimum required in a period, you may be charged an underpayment penalty from the date the amount was due to the date the payment is made. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If a payment is mailed, the date of the U. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm S. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm postmark is considered the date of payment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ) is considered to be the date of payment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Estate or trust payments of estimated tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you have estimated taxes credited to you from an estate or trust (Schedule K-1 (Form 1041)), treat the payment as made by you on January 15, 2014. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Amended returns. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    If you file an amended return by the due date of your original return, use the tax shown on your amended return to figure your required estimated tax payments. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you file an amended return after the due date of the original return, use the tax shown on the original return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   However, if you and your spouse file a joint return after the due date to replace separate returns you originally filed by the due date, use the tax shown on the joint return to figure your required estimated tax payments. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This rule applies only if both original separate returns were filed on time. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 2012 separate returns and 2013 joint return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    If you file a joint return with your spouse for 2013, but you filed separate returns for 2012, your 2012 tax is the total of the tax shown on your separate returns. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You filed a separate return if you filed as single, head of household, or married filing separately. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 2012 joint return and 2013 separate returns. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, your 2012 tax is your share of the tax on the joint return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You are filing a separate return if you file as single, head of household, or married filing separately. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   To figure your share of the taxes on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2012 using the same filing status as for 2013. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Then multiply the tax on the joint return by the following fraction. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For 2013, they file married filing separately. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Lisa figures her share of the tax on the 2012 joint return as follows. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 2012 tax on $41,000 based on a separate return $ 6,286 2012 tax on $8,000 based on a  separate return 803 Total $ 7,089 Lisa's percentage of total tax  ($6,286 ÷ $ 7,089) 88. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 67% Lisa's part of tax on joint return ($6,484 × 88. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 67%) $ 5,749 Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   In most cases, you do not need to file Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The IRS will figure the penalty for you and send you a bill. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you want us to figure the penalty for you, leave the penalty line on your return blank. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Do not file Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   To determine if you should file Form 2210, see Part II of Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you decide to figure your penalty, complete Part I, Part II, and either Part III or Part IV of the form and the Penalty Worksheet in the Instructions for Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you use Form 2210, you cannot file Form 1040EZ. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   On Form 1040, enter the amount of your penalty on line 77. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. 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Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Lowering or eliminating the penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    You may be able to lower or eliminate your penalty if you file Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You must file Form 2210 with your return if any of the following applies. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You request a waiver. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Waiver of Penalty , later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You use the annualized income installment method. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See the explanation of this method under Annualized Income Installment Method (Schedule AI) . Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You use your actual withholding for each payment period for estimated tax purposes. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You base any of your required installments on the tax shown on your 2012 return and you filed or are filing a joint return for either 2012 or 2013, but not for both years. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Exceptions Generally, you do not have to pay an underpayment penalty if either: Your total tax is less than $1,000, or You had no tax liability last year. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Less Than $1,000 Due You do not owe a penalty if the total tax shown on your return minus the amount you paid through withholding (including excess social security and tier 1 railroad retirement (RRTA) tax withholding) is less than $1,000. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Total tax for 2013. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Note. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm When figuring the amount on line 60, include household employment taxes only if you had federal income tax withheld from your income or you would owe the penalty even if you did not include those taxes. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Paid through withholding. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    For 2013, the amount you paid through withholding on Form 1040 is the amount on line 62 plus any excess social security or tier 1 RRTA tax withholding on line 69. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Add to that any write-in amount on line 72 identified as “Form 8689. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ” On Form 1040A, the amount you paid through withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included on line 41. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm On Form 1040EZ, it is the amount on line 7. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm S. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm citizen or resident for the whole year. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For this rule to apply, your tax year must have included all 12 months of the year. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Example. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Ray, who is single and 22 years old, was unemployed for a few months during 2012. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm He had no other income. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Even though he had gross income of $8,100, he did not have to pay income tax because his gross income was less than the filing requirement for a single person under age 65 ($9,750 for 2012). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm He filed a return only to have his withheld income tax refunded to him. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm In 2013, Ray began regular work as an independent contractor. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Ray made no estimated tax payments in 2013. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Even though he did owe tax at the end of the year, Ray does not owe the underpayment penalty for 2013 because he had no tax liability in 2012. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Total tax for 2012. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Any refundable credit amounts listed on lines 64a, 65, 66, 70, and credits from Forms 8801 (line 27 only), and 8885 included on line 71. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you filed Form 1040A, your 2012 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Example. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax on Lori Lane's 2012 return was $12,400. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Her AGI was not more than $150,000 for either 2012 or 2013. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax on her 2013 return (Form 1040, line 55) is $13,044. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Line 56 (self-employment tax) is $8,902. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Her 2013 total tax is $21,946. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 90% of her 2013 tax is $19,751. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Because she paid less than her 2012 tax ($12,400) and less than 90% of her 2013 tax ($19,751), and does not meet an exception, Lori knows that she owes a penalty for underpayment of estimated tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The IRS will figure the penalty for Lori, but she decides to figure it herself on Form 2210 and pay it with her taxes when she files her tax return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Different 2012 filing status. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, see 2012 joint return and 2013 separate returns , earlier, to figure the amount to enter as your 2012 tax on line 8 of Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Short Method for Figuring the Penalty (Part III) You may be able to use the short method in Part III of Form 2210 to figure your penalty for underpayment of estimated tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you qualify to use this method, it will result in the same penalty amount as the regular method. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You can use the short method only if you meet one of the following requirements. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You paid the same amount of estimated tax on each of the four payment due dates. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you do not meet either requirement, figure your penalty using the regular method in Part IV of Form 2210 and the Penalty Worksheet in the instructions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Note. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If any payment was made before the due date, you can use the short method, but the penalty may be less if you use the regular method. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, if the payment was only a few days early, the difference is likely to be small. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You cannot use the short method if any of the following apply. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You made any estimated tax payments late. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You checked box C or D in Part II of Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm S. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm income tax withholding. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Also, you cannot use your actual withholding during each period to figure your payments for each period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Regular Method for Figuring the Penalty (Part IV) You can use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if you paid one or more estimated tax payments earlier than the due date. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You must use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if any of the following apply to you. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You paid one or more estimated tax payments on a date after the due date. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You paid at least one, but less than four, installments of estimated tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You paid estimated tax payments in un- equal amounts. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You use the annualized income installment method to figure your underpayment for each payment period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You use your actual withholding during each payment period to figure your payments. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Under the regular method, figure your underpayment for each payment period in Section A, then figure your penalty using the Penalty Worksheet in the Instructions for Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the results on line 27 of Section B. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Figuring Your Underpayment (Part IV, Section A) Figure your underpayment of estimated tax for each payment period in Section A following the line-by-line instructions in the Instructions for Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Complete lines 20 through 26 of the first column before going to line 20 of the next column. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Required installments—line 18. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This method—the regular method—is the one to use if you received your income evenly throughout the year. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   However, if you did not receive your income evenly throughout the year, you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Annualized Income Installment Method (Schedule AI), later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Payments made—line 19. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Enter in each column the total of: Your estimated tax paid after the due date for the previous column and by the due date shown at the top of the column, and One-fourth of your withholding. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For special rules for figuring your payments, see Form 2210 instructions for line 19. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you file Form 1040, your withholding is the amount on line 62, plus any excess social security or tier 1 RRTA tax withholding on line 69. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you file Form 1040A, your withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included in line 41. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Actual withholding method. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You can make this choice separately for the tax withheld from your wages and for all other withholding. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This includes any excess social security and tier 1 RRTA tax withheld. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you use your actual withholding, you must check box D in Form 2210, Part II. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Then complete Form 2210 using the regular method (Part IV) and file it with your return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Figure the amount of your penalty for Section B using the Penalty Worksheet in the Form 2210 instructions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The penalty is imposed on each underpayment amount shown on Form 2210, Section A, line 25, for the number of days that it remained unpaid. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For 2013, there are four rate periods—April 16 through June 30, July 1 through September 30, October 1 through December 31, and January 1, 2014 through April 15, 2014. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm A 3% rate applies to all four periods. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Payments. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    Before completing the Penalty Worksheet, it may be helpful to make a list of the payments you made and income tax withheld after the due date (or the last day payments could be made on time) for the earliest payment period an underpayment occurred. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You can use the table in the Form 2210 instructions to make your list. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Follow those instructions for listing income tax withheld and payments made with your return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Use the list to determine when each underpayment was paid. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If you mail your estimated tax payments, use the date of the U. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm S. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm postmark as the date of payment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Line 1b. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Apply the payments listed to underpayment balance in the first column until it is fully paid. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Apply payments in the order made. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Figuring the penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm On line 3 of the Penalty Worksheet enter the number of days between the due date (line 2) and the date of each payment on line 1b. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If no payments are applied, figure the penalty on the amount on line 1a. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Aid for counting days. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Find the number for the date the payment was due by going across to the column of the month the payment was due and moving down the column to the due date. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm In the same manner, find the number for the date the payment was made. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Subtract the due date “number” from the payment date “number. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ”   For example, if a payment was due on June 15 (61), but was not paid until September 1 (139), the payment was 78 (139 – 61) days late. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Table 4-1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Calendar To Determine the Number of Days a Payment Is Late Instructions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Use this table with Form 2210 if you are completing Part IV, Section B. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Then, in the same manner, find the number for the date the payment was made. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Finally, subtract the due date number from the payment date number. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The result is the number of days the payment is late. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Example. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The payment due date is June 15 (61). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The payment was made on November 4 (203). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The payment is 142 days late (203 – 61). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Sept. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Oct. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Nov. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Dec. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Jan. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Feb. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Mar. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Apr. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 1   16 47 77 108 139 169 200 230 261 292 320 351 2   17 48 78 109 140 170 201 231 262 293 321 352 3   18 49 79 110 141 171 202 232 263 294 322 353 4   19 50 80 111 142 172 203 233 264 295 323 354 5   20 51 81 112 143 173 204 234 265 296 324 355 6   21 52 82 113 144 174 205 235 266 297 325 356 7   22 53 83 114 145 175 206 236 267 298 326 357 8   23 54 84 115 146 176 207 237 268 299 327 358 9   24 55 85 116 147 177 208 238 269 300 328 359 10   25 56 86 117 148 178 209 239 270 301 329 360 11   26 57 87 118 149 179 210 240 271 302 330 361 12   27 58 88 119 150 180 211 241 272 303 331 362 13   28 59 89 120 151 181 212 242 273 304 332 363 14   29 60 90 121 152 182 213 243 274 305 333 364 15 0 30 61 91 122 153 183 214 244 275 306 334 365 16 1 31 62 92 123 154 184 215 245 276 307 335   17 2 32 63 93 124 155 185 216 246 277 308 336   18 3 33 64 94 125 156 186 217 247 278 309 337   19 4 34 65 95 126 157 187 218 248 279 310 338   20 5 35 66 96 127 158 188 219 249 280 311 339   21 6 36 67 97 128 159 189 220 250 281 312 340   22 7 37 68 98 129 160 190 221 251 282 313 341   23 8 38 69 99 130 161 191 222 252 283 314 342   24 9 39 70 100 131 162 192 223 253 284 315 343   25 10 40 71 101 132 163 193 224 254 285 316 344   26 11 41 72 102 133 164 194 225 255 286 317 345   27 12 42 73 103 134 165 195 226 256 287 318 346   28 13 43 74 104 135 166 196 227 257 288 319 347   29 14 44 75 105 136 167 197 228 258 289   348   30 15 45 76 106 137 168 198 229 259 290   349   31   46   107 138   199   260 291   350   Annualized Income Installment Method (Schedule AI) If you did not receive your income evenly throughout the year (for example, your income from a shop you operated at a marina was much larger in the summer than it was during the rest of the year), you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Under this method, your required installment (Part IV, line 18) for one or more payment periods may be less than one-fourth of your required annual payment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm To figure your underpayment using this method, complete Form 2210, Schedule AI. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Schedule AI annualizes your tax at the end of each payment period based on your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you use the annualized income installment method, you must check box C in Part II of Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Also, you must attach Form 2210 and Schedule AI to your return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you use Schedule AI for any payment due date, you must use it for all payment due dates. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Completing Schedule AI. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Follow the Form 2210 instructions to complete Schedule AI. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Note. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Each period includes amounts from the previous period(s). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Period (a) includes items for January 1 through March 31. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Period (b) includes items for January 1 through May 31. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Period (c) includes items for January 1 through August 31. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Period (d) includes items for the entire year. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The penalty for underpaying your 2013 estimated tax will not apply if you file your return and pay all the tax due by March 3, 2014. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you are a fiscal year taxpayer, the penalty will not apply if you file your return and pay the tax due by the first day of the third month after the end of your tax year. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The underpayment penalty for 2013 is figured on the difference between the amount of 2013 withholding plus estimated tax paid by the due date and the smaller of: 662/3% (rather than 90%) of your 2013 tax, or 100% of the tax shown on your 2012 return. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Even if these special rules apply to you, you will not owe the penalty if you meet either of the two conditions discussed under Exceptions . Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Form 2210-F. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Use Form 2210-F to figure any underpayment penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Do not attach it to your return unless you check a box in Part I. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the amount from line 16 on Form 1040, line 77 and add the penalty to any balance due on your return or subtract it from your refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Keep your filled-in Form 2210-F for your records. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    If none of the boxes on Form 2210-F apply to you and you owe a penalty, the IRS can figure your penalty and send you a bill. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You had a reasonable cause for not making the payment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Your underpayment was not due to willful neglect. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm How to request a waiver. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   To request a waiver, see the Instructions for Form 2210. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Farmers and fishermen. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   To request a waiver, see the Instructions for Form 2210-F. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Federally declared disaster. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you still owe a penalty after the automatic waiver is applied, we will send you a bill. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Details on the applicable disaster postponement period can be found at IRS. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm gov. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter Tax Relief in Disaster Situations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Select the federally declared disaster that affected you. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    Worksheet 4-1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the  annualization amount on line 2 of Schedule AI for the same period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm                   1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       2. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter your annualized qualified dividends for the period 2. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm           3. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Are you filing Schedule D?               □ Yes. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If either line 15 or line 16 is blank or a loss, enter -0-. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 3. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm             □ No. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter your annualized capital gain distributions from Form 1040, line 13             4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Add lines 2 and 3   4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm           5. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Otherwise, enter -0-   5. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm           6. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Subtract line 5 from line 4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If zero or less, enter -0- 6. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       7. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Subtract line 6 from line 1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If zero or less, enter -0- 7. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       8. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter: $36,900 if single or married filing separately, $73,800 if married filing jointly or qualifying widow(er), $49,400 if head of household. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 8. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       9. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the smaller of line 1 or line 8 9. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       10. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the smaller of line 7 or line 9 10. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       11. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Subtract line 10 from line 9. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This amount is taxed at 0% 11. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       12. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the smaller of line 1 or line 6 12. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       13. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the amount from line 11 13. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       14. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Subtract line 13 from line 12 14. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm       15. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Multiply line 14 by 15% (. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 15) 15. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   16. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Figure the tax on the amount on line 7. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the amount on line 7 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   17. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Add lines 15 and 16 17. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   18. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Figure the tax on the amount on line 1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the amount on line 1 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   19. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Tax on all taxable income. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the smaller of line 17 or line 18. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Also enter this amount on line 12 of Schedule AI in the appropriate column. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, if you are using this worksheet to figure the tax on the amount on line 3 of Worksheet 4-2, enter the amount from line 19 on Worksheet 4-2, line 4 19. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Worksheet 4-2. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 2013 Form 2210, Schedule AI—Line 12 Foreign Earned Income Tax Worksheet Before you begin:If Schedule AI, line 11, is zero for the period, do not complete this worksheet. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm             1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the amount from line 11 of Schedule AI for the period 1. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   2. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from  Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1  of Schedule AI 2. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   3. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Add lines 1 and 2 3. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Tax on the amount on line 3. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm (Note. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You do not have to use the same method for each period on Schedule AI. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ) 4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   5. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Tax on the amount on line 2. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the amount on line 2 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   6. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Subtract line 5 from line 4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Enter the result here and on line 12 of Schedule AI. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If zero or less,  enter -0- 6. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm             * To figure the annualized amount for line 2, multiply the exclusion or deduction for the period by the annualization amount on line 2 of Schedule AI for the same period. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Complete the rest of Form 8615 according to its instructions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Then complete lines 5 and 6 above. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Next, determine if you have a capital gain excess. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     Figuring capital gain excess. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If the result is more than zero, that amount is your capital gain excess. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     No capital gain excess. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Then complete lines 5 and 6 above. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     Capital gain excess. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Then complete lines 5 and 6 above. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     Make the modifications below only for purposes of filling out Worksheet 4-2 above. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     a. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 9 of your Schedule D Tax Worksheet by your capital gain excess. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     b. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, line 2 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     c. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm     d. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the 2013 Instructions for Schedule D (Form 1040). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Prev  Up  Next   Home   More Online Publications
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The Www Hrblock Com Lp Efile Html &otppartnerid 9012&campaignid Ps_mcm_9012_0011&omnisource Msn Camp028d E Efile Free M Desktop Bmm

Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Private communication service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See chapter 14, later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Regular method taxpayers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Alternative method taxpayers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Alternative method in  chapter 11. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Where to file. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    Do not file the uncollected tax report with Form 720. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Local telephone service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Local telephone service also includes any facility or services provided in connection with this service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Local-only service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Private communication service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Private communication service is not local telephone service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Teletypewriter exchange service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Figuring the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax is based on the sum of all charges for local telephone service included in the bill. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax on the remaining items not included in any group is based on the charge for each item separately. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Nontaxable service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Nontaxable service means bundled service and long distance service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Bundled service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Long distance service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Pre-paid telephone cards (PTC). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The transferee is the person liable for the tax and is eligible to request a credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For more information, see Regulations section 49. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 4251-4. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The holder is the person that purchases a PTC to use and not to resell. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Holders are not liable for the tax and cannot request a credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Pre-paid cellular telephones. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The transferee is the person eligible to request the credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Installation charges. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Answering services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Mobile radio telephone service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Coin-operated telephones. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Telephone-operated security systems. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm News services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax on teletypewriter exchange service does not apply to charges for the following news services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Services not exempted. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax applies to amounts paid by members of the news media for local telephone service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm International organizations and the American Red Cross. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Nonprofit hospitals. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Nonprofit educational organizations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm A nonprofit educational organization is one that satisfies all the following requirements. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm It normally maintains a regular faculty and curriculum. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm It is exempt from income tax under section 501(a). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Qualified blood collector organizations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Federal, state, and local government. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Exemption certificate. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Regulations section 49. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 4253-11. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm File the certificate with the provider of the communication services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm An exemption certificate is not required for nontaxable services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The American National Red Cross and other international organizations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Nonprofit hospitals. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Nonprofit educational organizations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Qualified blood collector organizations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm State and local governments. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The federal government does not have to file any exemption certificate. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   All other organizations must furnish exemption certificates when required. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Alternatively, the person who paid the tax may claim a refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Collectors. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm These requirements also apply to nontaxable service refunds. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Collectors using the regular method for deposits. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Collectors using the alternative method for deposits. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For more information, see the Instructions for Form 720. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Percentage tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   A tax of 7. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 5% applies to amounts paid for taxable transportation of persons by air. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Mileage awards. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Until regulations are issued, the following rules apply to mileage awards. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Domestic-segment tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, see Rural airports, later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm A segment is a single takeoff and a single landing. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The amount of the domestic-segment tax is in the Instructions for Form 720. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Charter flights. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Rural airports. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The domestic-segment tax does not apply to a segment to or from a rural airport. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   An updated list of rural airports can be found on the Department of Transportation website at www. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm dot. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm gov and enter the phrase “Essential Air Service” in the search box. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Taxable transportation. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Taxable transportation is transportation by air that meets either of the following tests. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Round trip. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   A round trip is considered two separate trips. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The first trip is from the point of departure to the destination. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The second trip is the return trip from that destination. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Uninterrupted international air transportation. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For a special rule that applies to military personnel, see Exemptions, later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Transportation between the continental U. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm S. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm and Alaska or Hawaii. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   This transportation is partially exempt from the tax on transportation of persons by air. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Therefore, this transportation is subject to the percentage tax on the part of the trip in U. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm S. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Transportation within Alaska or Hawaii. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Package tours. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm ” This rule also applies to the tax on the use of international air travel facilities, discussed later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Liability for tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For more information on resellers of air transportation, see Revenue Ruling 2006-52. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm You can find Revenue Ruling 2006-52 on page 761 of I. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm R. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm B. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 2006-43 at www. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm irs. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm gov/pub/irs-irbs/irb06-43. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm pdf. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm But see Certain helicopter uses, later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Exemptions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax on transportation of persons by air does not apply in the following situations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See also Special Rules on Transportation Taxes, later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Military personnel on international trips. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The trip must begin or end outside the United States and the 225-mile zone. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Certain helicopter uses. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Providing emergency medical transportation. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For item (1), treat each flight segment as a separate flight. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Fixed-wing aircraft uses. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Providing emergency medical transportation. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Skydiving. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Seaplanes. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Bonus tickets. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See the Instructions for Form 720 for the tax rates. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Transportation of Property by Air A tax of 6. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Exemptions. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax on transportation of property by air does not apply in the following situations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See also Special Rules on Transportation Taxes, later. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Cropdusting and firefighting service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Exportation. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm See Form 1363 for more information. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Certain helicopter and fixed-wing air ambulance uses. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Skydiving. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Excess baggage. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Surtax on fuel used in a fractional ownership program aircraft. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Alaska and Hawaii. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Liability for tax. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Aircraft used by affiliated corporations. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Small aircraft. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, the taxes do apply if the aircraft is operated on an established line. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Mixed load of persons and property. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm The allocation must be reasonable and supported by adequate records. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Credits or refunds. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Alternatively, the person who paid the tax may claim a refund. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Www hrblock com lp efile html &otppartnerid 9012&campaignid ps_mcm_9012_0011&omnisource msn camp028d e efile free m desktop bmm Prev  Up  Next   Home   More Online Publications