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1040 Ez 2011

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1040 Ez 2011

1040 ez 2011 2. 1040 ez 2011   Accounting Methods Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Accounting MethodsCash Method Accrual Method Farm Inventory Cash Versus Accrual Method Special Methods of Accounting Combination Method Changes in Methods of Accounting Introduction You must use an accounting method that clearly shows your income and expenses. 1040 ez 2011 You must also figure your taxable income and file an income tax return for an annual accounting period called a tax year. 1040 ez 2011 This chapter discusses accounting methods. 1040 ez 2011 For information on accounting periods, see Publication 538, Accounting Periods and Methods, and the Instructions for Form 1128, Application To Adopt, Change, or Retain a Tax Year. 1040 ez 2011 Topics - This chapter discusses: Cash method Accrual method Farm inventory Special methods of accounting Changes in methods of accounting Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 535 Business Expenses Form (and Instructions) 1128 Application To Adopt, Change, or Retain a Tax Year 3115 Application for Change in Accounting Method See chapter 16 for information about getting publications and forms. 1040 ez 2011 Accounting Methods An accounting method is a set of rules used to determine when and how your income and expenses are reported on your tax return. 1040 ez 2011 Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. 1040 ez 2011 A material item is one that affects the proper time for inclusion of income or allowance of a deduction. 1040 ez 2011 An item considered material for financial statement purposes is generally also considered material for income tax purposes. 1040 ez 2011 See Publication 538 for more information. 1040 ez 2011 You generally choose an accounting method for your farm business when you file your first income tax return that includes a Schedule F (Form 1040), Profit or Loss From Farming. 1040 ez 2011 If you later want to change your accounting method, you generally must get IRS approval. 1040 ez 2011 How to obtain IRS approval is discussed later under Changes in Methods of Accounting . 1040 ez 2011 Types of accounting methods. 1040 ez 2011   Generally, you can use any of the following accounting methods. 1040 ez 2011 Each method is discussed in detail below. 1040 ez 2011 Cash method. 1040 ez 2011 Accrual method. 1040 ez 2011 Special methods of accounting for certain items of income and expenses. 1040 ez 2011 Combination (hybrid) method using elements of two or more of the above. 1040 ez 2011 Business and other items. 1040 ez 2011   You can account for business and personal items using different accounting methods. 1040 ez 2011 For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. 1040 ez 2011 Two or more businesses. 1040 ez 2011   If you operate two or more separate and distinct businesses, you can use a different accounting method for each business. 1040 ez 2011 Generally, no business is separate and distinct unless a complete and separate set of books and records is maintained for each business. 1040 ez 2011 Cash Method Most farmers use the cash method because they find it easier to keep records using the cash method. 1040 ez 2011 However, certain farm corporations and partnerships and all tax shelters must use an accrual method of accounting. 1040 ez 2011 See Accrual Method Required , later. 1040 ez 2011 Income Under the cash method, include in your gross income all items of income you actually or constructively received during the tax year. 1040 ez 2011 Items of income include money received as well as property or services received. 1040 ez 2011 If you receive property or services, you must include the fair market value (FMV) of the property or services in income. 1040 ez 2011 See chapter 3 for information on how to report farm income on your income tax return. 1040 ez 2011 Constructive receipt. 1040 ez 2011   Income is constructively received when an amount is credited to your account or made available to you without restriction. 1040 ez 2011 You do not need to have possession of the income for it to be treated as income for the tax year. 1040 ez 2011 If you authorize someone to be your agent and receive income for you, you are considered to have received the income when your agent receives it. 1040 ez 2011 Income is not constructively received if your receipt of the income is subject to substantial restrictions or limitations. 1040 ez 2011 Direct payments and counter-cyclical payments. 1040 ez 2011   If you received direct payments or counter-cyclical payments under Subtitle A or C of the Farm Security and Rural Investment Act of 2002, you will not be considered to have constructively received a payment merely because you had the option to receive it in the year before it is required to be paid. 1040 ez 2011 Delaying receipt of income. 1040 ez 2011   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. 1040 ez 2011 You must report the income in the year the money or property is received or made available to you without restriction. 1040 ez 2011 Example. 1040 ez 2011 Frances Jones, a farmer, was entitled to receive a $10,000 payment on a grain contract in December 2013. 1040 ez 2011 She was told in December that her payment was available. 1040 ez 2011 She requested not to be paid until January 2014. 1040 ez 2011 However, she must still include this payment in her 2013 income because it was made available to her in 2013. 1040 ez 2011 Debts paid by another person or canceled. 1040 ez 2011   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. 1040 ez 2011 If you receive income in this way, you constructively receive the income when the debt is canceled or paid. 1040 ez 2011 See Cancellation of Debt in chapter 3. 1040 ez 2011 Deferred payment contract. 1040 ez 2011   If you sell an item under a deferred payment contract that calls for payment in a future year, there is no constructive receipt in the year of sale. 1040 ez 2011 However, if the sales contract states that you have the right to the proceeds of the sale from the buyer at any time after delivery of the item, then you must include the sales price in income in the year of the sale, regardless of when you actually receive payment. 1040 ez 2011 Example. 1040 ez 2011 You are a farmer who uses the cash method and a calendar tax year. 1040 ez 2011 You sell grain in December 2013 under a bona fide arm's-length contract that calls for payment in 2014. 1040 ez 2011 You include the proceeds from the sale in your 2014 gross income since that is the year payment is received. 1040 ez 2011 However, if the contract states that you have the right to the proceeds from the buyer at any time after the grain is delivered, you must include the sales price in your 2013 income, regardless of when you actually receive payment. 1040 ez 2011 Repayment of income. 1040 ez 2011   If you include an amount in income and in a later year you have to repay all or part of it, then you can usually deduct the repayment in the year repaid. 1040 ez 2011 If the repayment is more than $3,000, a special rule applies. 1040 ez 2011 For details, see Repayments in chapter 11 of Publication 535, Business Expenses. 1040 ez 2011 Expenses Under the cash method, generally you deduct expenses in the tax year you pay them. 1040 ez 2011 This includes business expenses for which you contest liability. 1040 ez 2011 However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained under Uniform Capitalization Rules in chapter 6. 1040 ez 2011 See chapter 4 for information on how to deduct farm business expenses on your income tax return. 1040 ez 2011 Prepayment. 1040 ez 2011   Generally, you cannot deduct expenses paid in advance. 1040 ez 2011 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. 1040 ez 2011 Example. 1040 ez 2011 On November 1, 2013, you signed and paid $3,600 for a 3-year (36-month) insurance contract for equipment. 1040 ez 2011 In 2013, you are allowed to deduct only $200 (2/36 x $3,600) of the cost of the policy that is attributable to 2013. 1040 ez 2011 In 2014, you'll be able to deduct $1,200 (12/36 x $3,600); in 2015, you'll be able to deduct $1,200 (12/36 x $3,600); and in 2016 you'll be able to deduct the remaining balance of $1,000. 1040 ez 2011 An exception applies if the expense qualifies for the 12-month rule. 1040 ez 2011 See Publication 538 for more information and examples. 1040 ez 2011 See chapter 4 for special rules for prepaid farm supplies and prepaid livestock feed. 1040 ez 2011 Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. 1040 ez 2011 The purpose of an accrual method of accounting is to correctly match income and expenses. 1040 ez 2011 Certain businesses engaged in farming must use an accrual method of accounting for its farm business and for sales and purchases of inventory items. 1040 ez 2011 See Accrual Method Required and Farm Inventory , later. 1040 ez 2011 Income Generally, you include an amount in income for the tax year in which all events that fix your right to receive the income have occurred, and you can determine the amount with reasonable accuracy. 1040 ez 2011 Under this rule, include an amount in income on the earliest of the following dates. 1040 ez 2011 When you receive payment. 1040 ez 2011 When the income amount is due to you. 1040 ez 2011 When you earn the income. 1040 ez 2011 When title passes. 1040 ez 2011 If you use an accrual method of accounting, complete Part III of Schedule F (Form 1040) to report your income. 1040 ez 2011 Inventory. 1040 ez 2011   If you keep an inventory, generally you must use an accrual method of accounting to determine your gross income. 1040 ez 2011 An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. 1040 ez 2011 See Publication 538 for more information. 1040 ez 2011 Also see Farm Inventory , later, for more information on items that must be included in inventory by farmers and inventory valuation methods for farmers. 1040 ez 2011 Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both of the following apply. 1040 ez 2011 The all-events test has been met. 1040 ez 2011 This test is met when: All events have occurred that fix the fact that you have a liability, and The amount of the liability can be determined with reasonable accuracy. 1040 ez 2011 Economic performance has occurred. 1040 ez 2011 Economic performance. 1040 ez 2011   Generally, you cannot deduct or capitalize a business expense until economic performance occurs. 1040 ez 2011 If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. 1040 ez 2011 If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. 1040 ez 2011 Example. 1040 ez 2011 Jane, who is a farmer, uses a calendar tax year and an accrual method of accounting. 1040 ez 2011 She entered into a contract with ABC Farm Consulting in 2012. 1040 ez 2011 The contract stated that Jane pay ABC Farm Consulting $2,000 in December 2012. 1040 ez 2011 It further stipulates that ABC Farm Consulting will develop a plan for integrating her farm with a larger farm operation based in a neighboring state by March 1, 2013. 1040 ez 2011 Jane paid ABC Farm Consulting $2,000 in December 2012. 1040 ez 2011 Integration of operations according to the plan began in May 2013 and they completed the integration in December 2013. 1040 ez 2011 Economic performance for Jane's liability in the contract occurs as the services are provided. 1040 ez 2011 Jane incurs the $2,000 cost in 2013. 1040 ez 2011 An exception to the economic performance rule allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. 1040 ez 2011 For more information, see Economic Performance in Publication 538. 1040 ez 2011 Special rule for related persons. 1040 ez 2011   Business expenses and interest owed to a related person who uses the cash method of accounting are not deductible until you make the payment and the corresponding amount is includible in the related person's gross income. 1040 ez 2011 Determine the relationship for this rule as of the end of the tax year for which the expense or interest would otherwise be deductible. 1040 ez 2011 For more information, see Internal Revenue Code section 267. 1040 ez 2011 Accrual Method Required Generally, the following businesses, if engaged in farming, must use an accrual method of accounting. 1040 ez 2011 A corporation (other than a family corporation) that had gross receipts of more than $1,000,000 for any tax year beginning after 1975. 1040 ez 2011 A family corporation that had gross receipts of more than $25,000,000 for any tax year beginning after 1985. 1040 ez 2011 A partnership with a corporation as a partner, if that corporation meets the requirements of (1) or (2) above. 1040 ez 2011 A tax shelter. 1040 ez 2011 Note. 1040 ez 2011 Items (1), (2), and (3) above do not apply to an S corporation or a business operating a nursery or sod farm, or the raising or harvesting of trees (other than fruit and nut trees). 1040 ez 2011 Family corporation. 1040 ez 2011   A family corporation is generally a corporation that meets one of the following ownership requirements. 1040 ez 2011 Members of the same family own at least 50% of the total combined voting power of all classes of stock entitled to vote and at least 50% of the total shares of all other classes of stock of the corporation. 1040 ez 2011 Members of two families have owned, directly or indirectly, since October 4, 1976, at least 65% of the total combined voting power of all classes of voting stock and at least 65% of the total shares of all other classes of the corporation's stock. 1040 ez 2011 Members of three families have owned, directly or indirectly, since October 4, 1976, at least 50% of the total combined voting power of all classes of voting stock and at least 50% of the total shares of all other classes of the corporation's stock. 1040 ez 2011 For more information on family corporations, see Internal Revenue Code section 447. 1040 ez 2011 Tax shelter. 1040 ez 2011   A tax shelter is a partnership, noncorporate enterprise, or S corporation that meets either of the following tests. 1040 ez 2011 Its principal purpose is the avoidance or evasion of federal income tax. 1040 ez 2011 It is a farming syndicate. 1040 ez 2011 A farming syndicate is an entity that meets either of the following tests. 1040 ez 2011 Interests in the activity have been offered for sale in an offering required to be registered with a federal or state agency with the authority to regulate the offering of securities for sale. 1040 ez 2011 More than 35% of the losses during the tax year are allocable to limited partners or limited entrepreneurs. 1040 ez 2011   A “limited partner” is one whose personal liability for partnership debts is limited to the money or other property the partner contributed or is required to contribute to the partnership. 1040 ez 2011   A “limited entrepreneur” is one who has an interest in an enterprise other than as a limited partner and does not actively participate in the management of the enterprise. 1040 ez 2011 Farm Inventory If you are required to keep an inventory, you should keep a complete record of your inventory as part of your farm records. 1040 ez 2011 This record should show the actual count or measurement of the inventory. 1040 ez 2011 It should also show all factors that enter into its valuation, including quality and weight, if applicable. 1040 ez 2011 Hatchery business. 1040 ez 2011   If you are in the hatchery business, and use an accrual method of accounting, you must include in inventory eggs in the process of incubation. 1040 ez 2011 Products held for sale. 1040 ez 2011   All harvested and purchased farm products held for sale or for feed or seed, such as grain, hay, silage, concentrates, cotton, tobacco, etc. 1040 ez 2011 , must be included in inventory. 1040 ez 2011 Supplies. 1040 ez 2011   Supplies acquired for sale or that become a physical part of items held for sale must be included in inventory. 1040 ez 2011 Deduct the cost of supplies in the year used or consumed in operations. 1040 ez 2011 Do not include incidental supplies in inventory as these are deductible in the year of purchase. 1040 ez 2011 Livestock. 1040 ez 2011   Livestock held primarily for sale must be included in inventory. 1040 ez 2011 Livestock held for draft, breeding, or dairy purposes can either be depreciated or included in inventory. 1040 ez 2011 See also Unit-livestock-price method , later. 1040 ez 2011 If you are in the business of breeding and raising chinchillas, mink, foxes, or other fur-bearing animals, these animals are livestock for inventory purposes. 1040 ez 2011 Growing crops. 1040 ez 2011   Generally, growing crops are not required to be included in inventory. 1040 ez 2011 However, if the crop has a preproductive period of more than 2 years, you may have to capitalize (or include in inventory) costs associated with the crop. 1040 ez 2011 See Uniform capitalization rules below. 1040 ez 2011 Also see Uniform Capitalization Rules in  chapter 6. 1040 ez 2011 Items to include in inventory. 1040 ez 2011   Your inventory should include all items held for sale, or for use as feed, seed, etc. 1040 ez 2011 , whether raised or purchased, that are unsold at the end of the year. 1040 ez 2011 Uniform capitalization rules. 1040 ez 2011   The following applies if you are required to use an accrual method of accounting. 1040 ez 2011 The uniform capitalization rules apply to all costs of raising a plant, even if the preproductive period of raising a plant is 2 years or less. 1040 ez 2011 The costs of animals are subject to the uniform capitalization rules. 1040 ez 2011 Inventory valuation methods. 1040 ez 2011   The following methods, described below, are those generally available for valuing inventory. 1040 ez 2011 The method you use must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. 1040 ez 2011 Cost. 1040 ez 2011 Lower of cost or market. 1040 ez 2011 Farm-price method. 1040 ez 2011 Unit-livestock-price method. 1040 ez 2011 Cost and lower of cost or market methods. 1040 ez 2011   See Publication 538 for information on these valuation methods. 1040 ez 2011 If you value your livestock inventory at cost or the lower of cost or market, you do not need IRS approval to change to the unit-livestock-price method. 1040 ez 2011 However, if you value your livestock inventory using the farm-price method, then you must obtain permission from the IRS to change to the unit-livestock-price method. 1040 ez 2011 Farm-price method. 1040 ez 2011   Under this method, each item, whether raised or purchased, is valued at its market price less the direct cost of disposition. 1040 ez 2011 Market price is the current price at the nearest market in the quantities you usually sell. 1040 ez 2011 Cost of disposition includes broker's commissions, freight, hauling to market, and other marketing costs. 1040 ez 2011 If you use this method, you must use it for your entire inventory, except that livestock can be inventoried under the unit-livestock-price method. 1040 ez 2011 Unit-livestock-price method. 1040 ez 2011   This method recognizes the difficulty of establishing the exact costs of producing and raising each animal. 1040 ez 2011 You group or classify livestock according to type and age and use a standard unit price for each animal within a class or group. 1040 ez 2011 The unit price you assign should reasonably approximate the normal costs incurred in producing the animals in such classes. 1040 ez 2011 Unit prices and classifications are subject to approval by the IRS on examination of your return. 1040 ez 2011 You must annually reevaluate your unit livestock prices and adjust the prices upward or downward to reflect increases or decreases in the costs of raising livestock. 1040 ez 2011 IRS approval is not required for these adjustments. 1040 ez 2011 Any other changes in unit prices or classifications do require IRS approval. 1040 ez 2011   If you use this method, include all raised livestock in inventory, regardless of whether they are held for sale or for draft, breeding, sport, or dairy purposes. 1040 ez 2011 This method accounts only for the increase in cost of raising an animal to maturity. 1040 ez 2011 It does not provide for any decrease in the animal's market value after it reaches maturity. 1040 ez 2011 Also, if you raise cattle, you are not required to inventory hay you grow to feed your herd. 1040 ez 2011   Do not include sold or lost animals in the year-end inventory. 1040 ez 2011 If your records do not show which animals were sold or lost, treat the first animals acquired as sold or lost. 1040 ez 2011 The animals on hand at the end of the year are considered those most recently acquired. 1040 ez 2011   You must include in inventory all livestock purchased primarily for sale. 1040 ez 2011 You can choose either to include in inventory or depreciate livestock purchased for draft, breeding, sport or dairy purposes. 1040 ez 2011 However, you must be consistent from year to year, regardless of the method you have chosen. 1040 ez 2011 You cannot change your method without obtaining approval from the IRS. 1040 ez 2011   You must include in inventory animals purchased after maturity or capitalize them at their purchase price. 1040 ez 2011 If the animals are not mature at purchase, increase the cost at the end of each tax year according to the established unit price. 1040 ez 2011 However, in the year of purchase, do not increase the cost of any animal purchased during the last 6 months of the year. 1040 ez 2011 This “no increase” rule does not apply to tax shelters which must make an adjustment for any animal purchased during the year. 1040 ez 2011 It also does not apply to taxpayers that must make an adjustment to reasonably reflect the particular period in the year in which animals are purchased, if necessary to avoid significant distortions in income. 1040 ez 2011 Uniform capitalization rules. 1040 ez 2011   A farmer can determine costs required to be allocated under the uniform capitalization rules by using the farm-price or unit-livestock-price inventory method. 1040 ez 2011 This applies to any plant or animal, even if the farmer does not hold or treat the plant or animal as inventory property. 1040 ez 2011 Cash Versus Accrual Method The following examples compare the cash and accrual methods of accounting. 1040 ez 2011 Example 1. 1040 ez 2011 You are a farmer who uses an accrual method of accounting. 1040 ez 2011 You keep your books on the calendar year basis. 1040 ez 2011 You sell grain in December 2013 but you are not paid until January 2014. 1040 ez 2011 Because the accrual method was used and 2013 was the tax year in which the grain was sold, you must both include the sales proceeds and deduct the costs incurred in producing the grain on your 2013 tax return. 1040 ez 2011 Example 2. 1040 ez 2011 Assume the same facts as in Example 1 except that you use the cash method and there was no constructive receipt of the sales proceeds in 2013. 1040 ez 2011 Under this method, you include the sales proceeds in income for 2014, the year you receive payment. 1040 ez 2011 Deduct the costs of producing the grain in the year you pay for them. 1040 ez 2011 Special Methods of Accounting There are special methods of accounting for certain items of income and expense. 1040 ez 2011 Crop method. 1040 ez 2011   If you do not harvest and dispose of your crop in the same tax year that you plant it, you can, with IRS approval, use the crop method of accounting. 1040 ez 2011 You cannot use the crop method for any tax return, including your first tax return, unless you receive approval from the IRS. 1040 ez 2011 Under this method, you deduct the entire cost of producing the crop, including the expense of seed or young plants, in the year you realize income from the crop. 1040 ez 2011    See chapter 4 for details on deducting the costs of operating a farm. 1040 ez 2011 Also see Regulations section 1. 1040 ez 2011 162-12. 1040 ez 2011 Other special methods. 1040 ez 2011   Other special methods of accounting apply to the following items. 1040 ez 2011 Amortization, see chapter 7. 1040 ez 2011 Casualties, see chapter 11. 1040 ez 2011 Condemnations, see chapter 11. 1040 ez 2011 Depletion, see chapter 7. 1040 ez 2011 Depreciation, see chapter 7. 1040 ez 2011 Farm business expenses, see chapter 4. 1040 ez 2011 Farm income, see chapter 3. 1040 ez 2011 Installment sales, see chapter 10. 1040 ez 2011 Soil and water conservation expenses, see chapter 5. 1040 ez 2011 Thefts, see chapter 11. 1040 ez 2011 Combination Method Generally, you can use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. 1040 ez 2011 However, the following restrictions apply. 1040 ez 2011 If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. 1040 ez 2011 If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. 1040 ez 2011 Changes in Methods of Accounting A change in your method of accounting includes a change in: Your overall method, such as from the cash method to an accrual method, and Your treatment of any material item, such as a change in your method of valuing inventory (for example, a change from the farm-price method to the unit-livestock-price method, discussed earlier). 1040 ez 2011 Generally, once you have set up your accounting method, you must receive approval from the IRS before you can change to another method of accounting. 1040 ez 2011 You may also have to pay a fee. 1040 ez 2011 To obtain approval, you must generally file Form 3115. 1040 ez 2011 There are instances when you can obtain automatic consent to change certain methods of accounting. 1040 ez 2011 See the List of Automatic Accounting Method Changes located in the Instructions for Form 3115. 1040 ez 2011 For more information on changes in methods of accounting, see Form 3115 and the Instructions for Form 3115. 1040 ez 2011 Also see Publication 538. 1040 ez 2011 Prev  Up  Next   Home   More Online Publications
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Know Your Options

Airline delays caused by bad weather, traffic control problems, and mechanical repairs are hard to predict. If your flight is canceled, most airlines will rebook you on the earliest flight possible to your destination, at no additional charge. If you're able to find a flight on another airline, ask the first airline to endorse your ticket to the new carrier. This could save you a fare increase, but there is no rule requiring them to do this.

Each airline has its own policies about what it will do for delayed passengers; there are no federal requirements. If your flight is delayed or canceled, ask the airline if it will pay for meals or a phone call. Contrary to what many people believe, airlines are not required to do so.

Tarmac Delays

Under new federal rules, U.S. airlines operating domestic flights must allow passengers to deplane after a tarmac delay of three hours. The only exceptions allowed are for safety or security, or if air traffic control advises the pilot otherwise. Carriers are also required to provided adequate food and drinking water within two hours of being delayed on the tarmac; they must also maintain operable lavatories and, if necessary, provide medical attention.
There are other protections as well, such as prohibiting airlines from scheduling chronically delayed flights. For more information, search for Airline Passenger Protections on the Department of Transportation's website.

Overbooked Flights

Selling more tickets than there are seats is not illegal. Most airlines overbook their flights to compensate for "no-shows." If there are more passengers than seats just before a plane is scheduled to depart, you could be "bumped" or left behind against your will. Whether you are bumped or not may depend on when you officially check-in for your flight, so try to arrive early. The U.S. Department of Transportation requires airlines to ask people to give up their seats voluntarily, in exchange for compensation. Airlines decide what to offer volunteers, such as money, a free trip, food or lodging.

Federal rules protect you if you are "bumped" on most flights within the United States and on outbound international flights. Passengers who are involuntarily bumped are protected under Federal Aviation Administration guidelines. If you volunteer to be bumped, your agreement with the airline that is not regulated and will depend on negotiating at the gate.
The airline must give you a written statement describing your rights, as well as the airline's boarding priority rules and criteria. If the airline is not able to get you to your final destination within one hour of your original arrival time, the airline must pay you an amount equal to 200% of your one-way fare, with a maximum of $650. To receive this payment, you must have a confirmed reservation. You must also meet the airline's deadlines for ticketing and check-in. An airline may offer you a free ticket on a future flight in place of a check, but you have the right to insist on a check.

The 1040 Ez 2011

1040 ez 2011 Index Symbols 1099-C, Persons who each receive a Form 1099-C showing the full amount of debt. 1040 ez 2011 501(c)(3) organizations, Section 501(c)(3) organization. 1040 ez 2011 A Abandonments, Abandonments Canceled debt, Canceled debt. 1040 ez 2011 Assistance (see Tax help) B Bankruptcy, Bankruptcy Reduction of tax attributes, Bankruptcy and Insolvency Business Real property indebtedness, Qualified Real Property Business Indebtedness C Canceled debt, Canceled Debts, Persons who each receive a Form 1099-C showing the full amount of debt. 1040 ez 2011 Exceptions Deductible debt, Deductible Debt Gifts, Gifts, Bequests, Devises, and Inheritances Price reduced after purchase, Price Reduced After Purchase Student loans, Student Loans Exclusions Bankruptcy, Bankruptcy Insolvency, Insolvency Qualified farm indebtedness, Qualified Farm Indebtedness Qualified principal residence indebtedness, Qualified Principal Residence Indebtedness Qualified real property business indebtedness, Qualified Real Property Business Indebtedness Co-owners, Persons who each receive a Form 1099-C showing the full amount of debt. 1040 ez 2011 D Debts Stockholder's, Stockholder debt Definitions Adjusted tax attributes, Adjusted tax attributes. 1040 ez 2011 Main home, Main home. 1040 ez 2011 Qualified acquisition indebtedness, Definition of qualified acquisition indebtedness. 1040 ez 2011 Qualified farm indebtedness, Qualified Farm Indebtedness Qualified principal residence indebtedness, Qualified Principal Residence Indebtedness Qualified real property business indebtedness, Qualified Real Property Business Indebtedness E Educational loans, Student Loans Exceptions Home Affordable Modification Program, Home Affordable Modification Program F Farm indebtedness, Qualified Farm Indebtedness Reduction of tax attributes, Qualified Farm Indebtedness Foreclosures, Foreclosures and Repossessions Form 1099-A, Forms 1099-A and 1099-C. 1040 ez 2011 , Forms 1099-A and 1099-C. 1040 ez 2011 1099-C, Forms 1099-A and 1099-C. 1040 ez 2011 , Forms 1099-A and 1099-C. 1040 ez 2011 Free tax services, Free help with your tax return. 1040 ez 2011 G Gifts, Gifts, Bequests, Devises, and Inheritances H Help (see Tax help) Home Affordable Modification Program, Home Affordable Modification Program I Income from, Canceled Debts Income from canceled debt, Canceled Debts Insolvency, Insolvency Reduction of tax attributes, Bankruptcy and Insolvency L Limits Excluded farm debt, Exclusion limit. 1040 ez 2011 Excluded principal residence indebtedness, Exclusion limit. 1040 ez 2011 Qualified real property business indebtedness, Exclusion limit. 1040 ez 2011 Loans Student, Student Loans M Missing children, photographs of, Reminder Mortgage Debt Relief Act (see Qualified Principal Residence Indebtedness) P Principal residence indebtedness, Qualified Principal Residence Indebtedness Publications (see Tax help) Q Qualified farm indebtedness, Qualified Farm Indebtedness Reduction of tax attributes, Qualified Farm Indebtedness Qualified principal residence indebtedness, Qualified Principal Residence Indebtedness Reduction of tax attributes, Qualified Principal Residence Indebtedness Qualified real property business indebtedness, Qualified Real Property Business Indebtedness Reduction of tax attributes, Qualified Real Property Business Indebtedness R Real property business indebtedness, Qualified Real Property Business Indebtedness Recapture Basis reductions, Recapture of basis reductions. 1040 ez 2011 Repossessions, Foreclosures and Repossessions S Stockholder debts, Stockholder debt Student loans, Student Loans Suggestions for publication, Comments and suggestions. 1040 ez 2011 T Tax attributes, reduction of Bankruptcy, Bankruptcy and Insolvency Insolvency, Bankruptcy and Insolvency Qualified farm indebtedness, Qualified Farm Indebtedness Qualified principal residence indebtedness, Qualified Principal Residence Indebtedness Qualified real property business indebtedness, Qualified Real Property Business Indebtedness Tax help, How To Get Tax Help TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications