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1040ez Tax Form Instructions

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1040ez Tax Form Instructions

1040ez tax form instructions Publication 17 - Introductory Material Table of Contents What's New Reminders IntroductionIcons. 1040ez tax form instructions Ordering forms and publications. 1040ez tax form instructions Tax questions. 1040ez tax form instructions All material in this publication may be reprinted freely. 1040ez tax form instructions A citation to Your Federal Income Tax (2013) would be appropriate. 1040ez tax form instructions The explanations and examples in this publication reflect the interpretation by the Internal Revenue Service (IRS) of: Tax laws enacted by Congress, Treasury regulations, and Court decisions. 1040ez tax form instructions However, the information given does not cover every situation and is not intended to replace the law or change its meaning. 1040ez tax form instructions This publication covers some subjects on which a court may have made a decision more favorable to taxpayers than the interpretation by the IRS. 1040ez tax form instructions Until these differing interpretations are resolved by higher court decisions or in some other way, this publication will continue to present the interpretations by the IRS. 1040ez tax form instructions All taxpayers have important rights when working with the IRS. 1040ez tax form instructions These rights are described in Your Rights as a Taxpayer in the back of this publication. 1040ez tax form instructions What's New This section summarizes important tax changes that took effect in 2013. 1040ez tax form instructions Most of these changes are discussed in more detail throughout this publication. 1040ez tax form instructions Future developments. 1040ez tax form instructions  For the latest information about the tax law topics covered in this publication, including information about any tax legislation, go to www. 1040ez tax form instructions irs. 1040ez tax form instructions gov/pub17. 1040ez tax form instructions Additional Medicare Tax. 1040ez tax form instructions  Beginning in 2013, a 0. 1040ez tax form instructions 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. 1040ez tax form instructions See Form 8959 and its instructions. 1040ez tax form instructions Net Investment Income Tax. 1040ez tax form instructions  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). 1040ez tax form instructions The NIIT is 3. 1040ez tax form instructions 8% of the smaller of (a) your net investment income or (b) the excess of your modified adjusted gross income over: $125,000 if married filing separately, $250,000 if married filing jointly or qualifying widow(er), or $200,000 if any other filing status. 1040ez tax form instructions See Form 8960 and its instructions. 1040ez tax form instructions Change in tax rates. 1040ez tax form instructions  The highest tax rate is 39. 1040ez tax form instructions 6%. 1040ez tax form instructions For more information, see the 2013 Tax Computation Worksheet or the 2013 Tax Rate Schedules near the end of this publication. 1040ez tax form instructions Tax rate on net capital gain and qualified dividends. 1040ez tax form instructions  The maximum tax rate of 15% on net capital gain and qualified dividends has increased to 20% for some taxpayers. 1040ez tax form instructions See chapter 16. 1040ez tax form instructions Medical and dental expenses. 1040ez tax form instructions  You can deduct only the part of your medical and dental expenses that is more than 10% of your adjusted gross income (7. 1040ez tax form instructions 5% if either you or your spouse is age 65 or older). 1040ez tax form instructions See chapter 21. 1040ez tax form instructions Personal exemption amount increased for certain taxpayers. 1040ez tax form instructions  Your personal exemption is increased to $3,900. 1040ez tax form instructions But the amount is reduced if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if any other filing status. 1040ez tax form instructions See chapter 3. 1040ez tax form instructions Limit on itemized deductions. 1040ez tax form instructions  You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if any other filing status. 1040ez tax form instructions See chapter 29. 1040ez tax form instructions Same-sex marriages. 1040ez tax form instructions  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. 1040ez tax form instructions See chapter 2. 1040ez tax form instructions If you meet certain requirements, you may be able to file amended returns to change your filing status for some earlier years. 1040ez tax form instructions For details on filing amended returns, see chapter 1. 1040ez tax form instructions Health flexible spending arrangements (FSAs). 1040ez tax form instructions  You cannot have more than $2,500 in salary reduction contributions made to a health FSA for plan years beginning after 2012. 1040ez tax form instructions See chapter 5. 1040ez tax form instructions Expiring credits. 1040ez tax form instructions  The plug-in electric vehicle credit and the refundable part of the credit for prior year minimum tax have expired. 1040ez tax form instructions You cannot claim either one on your 2013 return. 1040ez tax form instructions See chapter 37. 1040ez tax form instructions Ponzi-type investment schemes. 1040ez tax form instructions  There are new rules for how to claim a theft loss deduction on Form 4684 due to a Ponzi-type investment scheme. 1040ez tax form instructions See chapter 25. 1040ez tax form instructions Home office deduction simplified method. 1040ez tax form instructions  If you can take a home office deduction, you may be able to use a simplified method to figure it. 1040ez tax form instructions See Publication 587. 1040ez tax form instructions Standard mileage rates. 1040ez tax form instructions  The 2013 rate for business use of your car is increased to 56½ cents a mile. 1040ez tax form instructions See chapter 26. 1040ez tax form instructions The 2013 rate for use of your car to get medical care is increased to 24 cents a mile. 1040ez tax form instructions See chapter 21. 1040ez tax form instructions The 2013 rate for use of your car to move is increased to 24 cents a mile. 1040ez tax form instructions See Publication 521, Moving Expenses. 1040ez tax form instructions Reminders Listed below are important reminders and other items that may help you file your 2013 tax return. 1040ez tax form instructions Many of these items are explained in more detail later in this publication. 1040ez tax form instructions Enter your social security number (SSN). 1040ez tax form instructions  Enter your SSN in the space provided on your tax form. 1040ez tax form instructions If you filed a joint return for 2012 and are filing a joint return for 2013 with the same spouse, enter your names and SSNs in the same order as on your 2012 return. 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Secure your tax records from identity theft. 1040ez tax form instructions  Identity theft occurs when someone uses your personal information, such as your name, SSN, or other identifying information, without your permission, to commit fraud or other crimes. 1040ez tax form instructions An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund. 1040ez tax form instructions For more information about identity theft and how to reduce your risk from it, see chapter 1. 1040ez tax form instructions Taxpayer identification numbers. 1040ez tax form instructions  You must provide the taxpayer identification number for each person for whom you claim certain tax benefits. 1040ez tax form instructions This applies even if the person was born in 2013. 1040ez tax form instructions Generally, this number is the person's social security number (SSN). 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Foreign source income. 1040ez tax form instructions  If you are a U. 1040ez tax form instructions S. 1040ez tax form instructions citizen with income from sources outside the United States (foreign income), you must report all such income on your tax return unless it is exempt by U. 1040ez tax form instructions S. 1040ez tax form instructions law. 1040ez tax form instructions This is true whether you live inside or outside the United States and whether or not you receive a Form W-2 or Form 1099 from the foreign payer. 1040ez tax form instructions This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents and royalties). 1040ez tax form instructions If you live outside the United States, you may be able to exclude part or all of your foreign source earned income. 1040ez tax form instructions For details, see Publication 54, Tax Guide for U. 1040ez tax form instructions S. 1040ez tax form instructions Citizens and Resident Aliens Abroad. 1040ez tax form instructions Foreign financial assets. 1040ez tax form instructions  If you had foreign financial assets in 2013, you may have to file Form 8938 with your return. 1040ez tax form instructions Check www. 1040ez tax form instructions IRS. 1040ez tax form instructions gov/form8938 for details. 1040ez tax form instructions Automatic 6-month extension to file tax return. 1040ez tax form instructions  You can use Form 4868, Application for Automatic Extension of Time To File U. 1040ez tax form instructions S. 1040ez tax form instructions Individual Income Tax Return, to obtain an automatic 6-month extension of time to file your tax return. 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Include your phone number on your return. 1040ez tax form instructions  To promptly resolve any questions we have in processing your tax return, we would like to be able to call you. 1040ez tax form instructions Please enter your daytime telephone number on your tax form next to your signature and occupation. 1040ez tax form instructions If you are filing a joint return, you can enter either your or your spouse's daytime phone number. 1040ez tax form instructions Payment of taxes. 1040ez tax form instructions   You can pay your taxes online, by phone, or by check or money order. 1040ez tax form instructions You can make a direct transfer from your bank account or use a credit or debit card. 1040ez tax form instructions If you e-file, you can schedule an electronic payment. 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Faster ways to file your return. 1040ez tax form instructions  The IRS offers fast, accurate ways to file your tax return information without filing a paper tax return. 1040ez tax form instructions You can use IRS e-file (electronic filing). 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Free electronic filing. 1040ez tax form instructions  You may be able to file your 2013 taxes online for free. 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Change of address. 1040ez tax form instructions  If you change your address, you should notify the IRS. 1040ez tax form instructions See Change of Address in chapter 1. 1040ez tax form instructions Refund on a late filed return. 1040ez tax form instructions  If you were due a refund but you did not file a return, you generally must file your return within 3 years from the date the return was due (including extensions) to get that refund. 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Frivolous tax returns. 1040ez tax form instructions  The IRS has published a list of positions that are identified as frivolous. 1040ez tax form instructions The penalty for filing a frivolous tax return is $5,000. 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Filing erroneous claim for refund or credit. 1040ez tax form instructions  You may have to pay a penalty if you file an erroneous claim for refund or credit. 1040ez tax form instructions See chapter 1. 1040ez tax form instructions Privacy Act and paperwork reduction information. 1040ez tax form instructions   The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and the Paperwork Reduction Act of 1980 require that when we ask you for information we must first tell you what our legal right is to ask for the information, why we are asking for it, how it will be used, what could happen if we do not receive it, and whether your response is voluntary, required to obtain a benefit, or mandatory under the law. 1040ez tax form instructions A complete statement on this subject can be found in your tax form instructions. 1040ez tax form instructions Customer service for taxpayers. 1040ez tax form instructions  You can set up a personal appointment at the most convenient Taxpayer Assistance Center, on the most convenient business day. 1040ez tax form instructions See How To Get Tax Help in the back of this publication. 1040ez tax form instructions Preparer e-file mandate. 1040ez tax form instructions  Most paid preparers must e-file returns they prepare and file. 1040ez tax form instructions Your preparer may make you aware of this requirement and the options available to you. 1040ez tax form instructions Treasury Inspector General for Tax Administration. 1040ez tax form instructions   If you want to confidentially report misconduct, waste, fraud, or abuse by an IRS employee, you can call 1-800-366-4484 (call 1-800-877-8339 if you are deaf, hard of hearing, or have a speech disability, and are using TTY/TDD equipment). 1040ez tax form instructions You can remain anonymous. 1040ez tax form instructions Photographs of missing children. 1040ez tax form instructions  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040ez tax form instructions Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040ez tax form instructions You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040ez tax form instructions Introduction This publication covers the general rules for filing a federal income tax return. 1040ez tax form instructions It supplements the information contained in your tax form instructions. 1040ez tax form instructions It explains the tax law to make sure you pay only the tax you owe and no more. 1040ez tax form instructions How this publication is arranged. 1040ez tax form instructions   This publication closely follows Form 1040, U. 1040ez tax form instructions S. 1040ez tax form instructions Individual Income Tax Return. 1040ez tax form instructions It is divided into six parts which cover different sections of Form 1040. 1040ez tax form instructions Each part is further divided into chapters which generally discuss one line of the form. 1040ez tax form instructions Do not worry if you file Form 1040A or Form 1040EZ. 1040ez tax form instructions Anything included on a line of either of these forms is also included on Form 1040. 1040ez tax form instructions   The table of contents inside the front cover and the index in the back of the publication are useful tools to help you find the information you need. 1040ez tax form instructions What is in this publication. 1040ez tax form instructions   The publication begins with the rules for filing a tax return. 1040ez tax form instructions It explains: Who must file a return, Which tax form to use, When the return is due, How to e-file your return, and Other general information. 1040ez tax form instructions It will help you identify which filing status you qualify for, whether you can claim any dependents, and whether the income you receive is taxable. 1040ez tax form instructions The publication goes on to explain the standard deduction, the kinds of expenses you may be able to deduct, and the various kinds of credits you may be able to take to reduce your tax. 1040ez tax form instructions   Throughout the publication are examples showing how the tax law applies in typical situations. 1040ez tax form instructions Also throughout the publication are flowcharts and tables that present tax information in an easy-to-understand manner. 1040ez tax form instructions   Many of the subjects discussed in this publication are discussed in greater detail in other IRS publications. 1040ez tax form instructions References to those other publications are provided for your information. 1040ez tax form instructions Icons. 1040ez tax form instructions   Small graphic symbols, or icons, are used to draw your attention to special information. 1040ez tax form instructions See Table 1 later for an explanation of each icon used in this publication. 1040ez tax form instructions What is not covered in this publication. 1040ez tax form instructions   Some material that you may find helpful is not included in this publication but can be found in your tax form instruction booklet. 1040ez tax form instructions This includes lists of: Where to report certain items shown on information documents, and Recorded tax information topics (TeleTax). 1040ez tax form instructions   If you operate your own business or have other self-employment income, such as from babysitting or selling crafts, see the following publications for more information. 1040ez tax form instructions Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ). 1040ez tax form instructions Publication 535, Business Expenses. 1040ez tax form instructions Publication 587, Business Use of Your Home (Including Use by Daycare Providers). 1040ez tax form instructions Help from the IRS. 1040ez tax form instructions   There are many ways you can get help from the IRS. 1040ez tax form instructions These are explained under How To Get Tax Help in the back of this publication. 1040ez tax form instructions Comments and suggestions. 1040ez tax form instructions   We welcome your comments about this publication and your suggestions for future editions. 1040ez tax form instructions   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040ez tax form instructions NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040ez tax form instructions Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040ez tax form instructions   You can send your comments from www. 1040ez tax form instructions irs. 1040ez tax form instructions gov/formspubs/. 1040ez tax form instructions Click on “More Information” and then on “Comment on Tax Forms and Publications”. 1040ez tax form instructions   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040ez tax form instructions Ordering forms and publications. 1040ez tax form instructions   Visit www. 1040ez tax form instructions irs. 1040ez tax form instructions gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 1040ez tax form instructions Internal Revenue Service 1201 N. 1040ez tax form instructions Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040ez tax form instructions   If you have a tax question, check the information available on IRS. 1040ez tax form instructions gov or call 1-800-829-1040. 1040ez tax form instructions We cannot answer tax questions sent to either of the above addresses. 1040ez tax form instructions IRS mission. 1040ez tax form instructions   Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. 1040ez tax form instructions Table 1. 1040ez tax form instructions Legend of Icons Icon Explanation Items that may cause you particular problems, or an alert about pending legislation that may be enacted after this publication goes to print. 1040ez tax form instructions An Internet site or an email address. 1040ez tax form instructions An address you may need. 1040ez tax form instructions Items you should keep in your personal records. 1040ez tax form instructions Items you may need to figure or a worksheet you may need to complete and keep for your records. 1040ez tax form instructions An important phone number. 1040ez tax form instructions Helpful information you may need. 1040ez tax form instructions Prev  Up  Next   Home   More Online Publications
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Understanding Your CP63 Notice

We are holding your refund because you have not filed one or more tax returns and we believe you will owe tax.


What you need to do

  • File your personal tax return immediately or explain to us:
    • why you're filing late
    • why you don't have to file
    • that you've already filed

You may want to...


Answers to Common Questions

What should I do if I disagree with the notice, I didn't file my tax return, or it's been more than eight weeks since I filed it?
Call us at the toll free number on the top right corner of your notice. Please have your paperwork ready when you call. If you prefer, you can write to us. If you choose to write, please enclose your response in the envelope we've provided.

What should I do if I've just filed my tax return?
You don't have to do anything if you filed your tax return(s) within the last eight weeks.

What happens if I can't pay the full amount I owe when I file my return?
You can make a payment plan with us when you can't pay the full amount you owe. If you owe tax on any return(s) you file, we will use your refund to help pay it.

When will my refund be released?
We can release your refund when we have received all past due returns, or explanations showing you did not have to file for those years.


Tips for next year

File your return on time, even if you will owe taxes. If necessary, you can make a payment plan to pay what you owe.

Filing on time saves you money because it costs the Internal Revenue Service less money to process your return when it's filed on time.

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

If you have dependent children, you may be able to claim a tax credit for them. Publication 972, Child Tax Credit, has information about this credit.

Page Last Reviewed or Updated: 04-Mar-2014

The 1040ez Tax Form Instructions

1040ez tax form instructions 31. 1040ez tax form instructions   Tax on Unearned Income of Certain Children Table of Contents What's New Introduction Useful Items - You may want to see: Which Parent's Return To UseParents Who Do Not File a Joint Return Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, lines A–C) Step 1. 1040ez tax form instructions Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. 1040ez tax form instructions Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. 1040ez tax form instructions Figuring the Child's Tax (Form 8615, Part III) What's New Net Investment Income Tax. 1040ez tax form instructions . 1040ez tax form instructions  For tax years beginning after December 31, 2012, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax (NIIT). 1040ez tax form instructions NIIT is a 3. 1040ez tax form instructions 8% tax on the lesser of the net investment income or the excess of the child's modified adjusted gross income (MAGI) over the threshold amount. 1040ez tax form instructions Use Form 8960, Net Investment Income Tax, to figure this tax. 1040ez tax form instructions For more information on NIIT, go to www. 1040ez tax form instructions irs. 1040ez tax form instructions gov and enter “Net Investment Income Tax” in the search box. 1040ez tax form instructions Introduction This chapter discusses the following two rules that may affect the tax on unearned income of certain children. 1040ez tax form instructions If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. 1040ez tax form instructions (See Parent's Election To Report Child's Interest and Dividends , later. 1040ez tax form instructions ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. 1040ez tax form instructions (See Tax for Certain Children Who Have Unearned Income , later. 1040ez tax form instructions ) For these rules, the term “child” includes a legally adopted child and a stepchild. 1040ez tax form instructions These rules apply whether or not the child is a dependent. 1040ez tax form instructions Useful Items - You may want to see: Publication 929 Tax Rules for Children and Dependents Form (and Instructions) 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. 1040ez tax form instructions The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . 1040ez tax form instructions Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. 1040ez tax form instructions Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . 1040ez tax form instructions Parents are married. 1040ez tax form instructions   If the child's parents file separate returns, use the return of the parent with the greater taxable income. 1040ez tax form instructions Parents not living together. 1040ez tax form instructions   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. 1040ez tax form instructions If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. 1040ez tax form instructions   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in chapter 2. 1040ez tax form instructions Parents are divorced. 1040ez tax form instructions   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. 1040ez tax form instructions Custodial parent remarried. 1040ez tax form instructions   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. 1040ez tax form instructions Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. 1040ez tax form instructions Do not use the return of the noncustodial parent. 1040ez tax form instructions   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. 1040ez tax form instructions If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. 1040ez tax form instructions Parents never married. 1040ez tax form instructions   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. 1040ez tax form instructions If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. 1040ez tax form instructions Widowed parent remarried. 1040ez tax form instructions   If a widow or widower remarries, the new spouse is treated as the child's other parent. 1040ez tax form instructions The rules explained earlier under Custodial parent remarried apply. 1040ez tax form instructions Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. 1040ez tax form instructions If you do, your child will not have to file a return. 1040ez tax form instructions You can make this election only if all the following conditions are met. 1040ez tax form instructions Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. 1040ez tax form instructions Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). 1040ez tax form instructions The child's gross income was less than $10,000. 1040ez tax form instructions The child is required to file a return unless you make this election. 1040ez tax form instructions The child does not file a joint return for the year. 1040ez tax form instructions No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. 1040ez tax form instructions No federal income tax was taken out of your child's income under the backup withholding rules. 1040ez tax form instructions You are the parent whose return must be used when applying the special tax rules for children. 1040ez tax form instructions (See Which Parent's Return To Use , earlier. 1040ez tax form instructions ) These conditions are also shown in Figure 31-A. 1040ez tax form instructions Certain January 1 birthdays. 1040ez tax form instructions   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. 1040ez tax form instructions You cannot make this election for such a child unless the child was a full-time student. 1040ez tax form instructions   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. 1040ez tax form instructions You cannot make this election for such a child. 1040ez tax form instructions Full-time student. 1040ez tax form instructions   A full-time student is a child who during some part of each of any 5 calendar months of the year was enrolled as a full-time student at a school, or took a full-time on-farm training course given by a school or a state, county, or local government agency. 1040ez tax form instructions A school includes a technical, trade, or mechanical school. 1040ez tax form instructions It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. 1040ez tax form instructions How to make the election. 1040ez tax form instructions   Make the election by attaching Form 8814 to your Form 1040. 1040ez tax form instructions (If you make this election, you cannot file Form 1040A or Form 1040EZ. 1040ez tax form instructions ) Attach a separate Form 8814 for each child for whom you make the election. 1040ez tax form instructions You can make the election for one or more children and not for others. 1040ez tax form instructions Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. 1040ez tax form instructions Rate may be higher. 1040ez tax form instructions   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. 1040ez tax form instructions This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. 1040ez tax form instructions However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. 1040ez tax form instructions Deductions you cannot take. 1040ez tax form instructions   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. 1040ez tax form instructions The additional standard deduction if the child is blind. 1040ez tax form instructions The deduction for a penalty on an early withdrawal of your child's savings. 1040ez tax form instructions Itemized deductions (such as your child's investment expenses or charitable contributions). 1040ez tax form instructions Reduced deductions or credits. 1040ez tax form instructions   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return including the following. 1040ez tax form instructions Deduction for contributions to a traditional individual retirement arrangement (IRA). 1040ez tax form instructions Deduction for student loan interest. 1040ez tax form instructions Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. 1040ez tax form instructions Credit for child and dependent care expenses. 1040ez tax form instructions Child tax credit. 1040ez tax form instructions Education tax credits. 1040ez tax form instructions Earned income credit. 1040ez tax form instructions Penalty for underpayment of estimated tax. 1040ez tax form instructions   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. 1040ez tax form instructions If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. 1040ez tax form instructions See chapter 4 for more information. 1040ez tax form instructions Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. 1040ez tax form instructions Only the amount over $2,000 is added to your income. 1040ez tax form instructions The amount over $2,000 is shown on Form 8814, line 6. 1040ez tax form instructions Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. 1040ez tax form instructions Include the amount from Form 8814, line 12, on Form 1040, line 21. 1040ez tax form instructions Enter “Form 8814” on the dotted line next to line 21. 1040ez tax form instructions If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040, line 21. 1040ez tax form instructions Capital gain distributions and qualified dividends. 1040ez tax form instructions   If your child's dividend income included any capital gain distributions, see Capital gain distributions under Figuring Child's Income in Publication 929, Part 2. 1040ez tax form instructions If your child's dividend income included any qualified dividends, see Qualified dividends under Figuring Child's Income in Publication 929, Part 2. 1040ez tax form instructions Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. 1040ez tax form instructions This tax is added to the tax figured on your income. 1040ez tax form instructions This additional tax is the smaller of: 10% × (your child's gross income − $1,000), or $100. 1040ez tax form instructions Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44. 1040ez tax form instructions Check box a on Form 1040, line 44. 1040ez tax form instructions Figure 31-A. 1040ez tax form instructions Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. 1040ez tax form instructions Figure 31–A. 1040ez tax form instructions Can You Include Your Child's Income On Your Tax Return? Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. 1040ez tax form instructions If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. 1040ez tax form instructions Attach the completed form to the child's Form 1040 or Form 1040A. 1040ez tax form instructions When Form 8615 must be filed. 1040ez tax form instructions   Form 8615 must be filed for a child if all of the following statements are true. 1040ez tax form instructions The child's investment income was more than $2,000. 1040ez tax form instructions The child is required to file a return for 2013. 1040ez tax form instructions The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. 1040ez tax form instructions At least one of the child's parents was alive at the end of 2013. 1040ez tax form instructions The child does not file a joint return for 2013. 1040ez tax form instructions These conditions are also shown in  Figure 31-B. 1040ez tax form instructions Earned income. 1040ez tax form instructions   Earned income includes salaries, wages, tips, and other payments received for personal services performed. 1040ez tax form instructions It does not include unearned income as defined later in this chapter. 1040ez tax form instructions Support. 1040ez tax form instructions   Your child's support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. 1040ez tax form instructions To figure your child's support, count support provided by you, your child, and others. 1040ez tax form instructions However, a scholarship received by your child is not considered support if your child is a full-time student. 1040ez tax form instructions See chapter 3 for details about support. 1040ez tax form instructions Certain January 1 birthdays. 1040ez tax form instructions   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. 1040ez tax form instructions Figure 31-B. 1040ez tax form instructions Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. 1040ez tax form instructions Figure 31-B. 1040ez tax form instructions Do You Have To Use Form 8615 To Figure Your Child's Tax?    IF a child was born on. 1040ez tax form instructions . 1040ez tax form instructions . 1040ez tax form instructions THEN, at the end of 2013, the child is considered to be. 1040ez tax form instructions . 1040ez tax form instructions . 1040ez tax form instructions January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. 1040ez tax form instructions The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. 1040ez tax form instructions  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. 1040ez tax form instructions  ***Do not use Form 8615 for this child. 1040ez tax form instructions Providing Parental Information (Form 8615, lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. 1040ez tax form instructions (If the parents filed a joint return, enter the name and social security number listed first on the joint return. 1040ez tax form instructions ) On line C, check the box for the parent's filing status. 1040ez tax form instructions See Which Parent's Return To Use at the beginning of this chapter for information on which parent's return information must be used on Form 8615. 1040ez tax form instructions Parent with different tax year. 1040ez tax form instructions   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. 1040ez tax form instructions Parent's return information not known timely. 1040ez tax form instructions   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. 1040ez tax form instructions   You can use any reasonable estimate. 1040ez tax form instructions This includes using information from last year's return. 1040ez tax form instructions If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. 1040ez tax form instructions    When you get the correct information, file an amended return on Form 1040X, Amended U. 1040ez tax form instructions S. 1040ez tax form instructions Individual Income Tax Return. 1040ez tax form instructions   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. 1040ez tax form instructions S. 1040ez tax form instructions Individual Income Tax Return. 1040ez tax form instructions Extensions are discussed in chapter 1. 1040ez tax form instructions Step 1. 1040ez tax form instructions Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. 1040ez tax form instructions To do that, use Form 8615, Part I. 1040ez tax form instructions Line 1 (unearned income). 1040ez tax form instructions   If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. 1040ez tax form instructions Adjusted gross income is shown on Form 1040, line 38, or Form 1040A, line 22. 1040ez tax form instructions Form 1040EZ cannot be used if Form 8615 must be filed. 1040ez tax form instructions   If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. 1040ez tax form instructions   However, if the child has: excluded any foreign earned income, deducted either a loss from self-employment, or deducted a net operating loss from another year, then use the Alternate Worksheet for Form 8615, Line 1, in Publication 929 to figure the amount to enter on Form 8615, line 1. 1040ez tax form instructions Unearned income defined. 1040ez tax form instructions   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. 1040ez tax form instructions It includes taxable interest, dividends (including capital gain distributions), capital gains, unemployment compensation, the taxable part of social security and pension payments, and certain distributions from trusts. 1040ez tax form instructions Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). 1040ez tax form instructions Nontaxable income. 1040ez tax form instructions   For this purpose, unearned income includes only amounts the child must include in total income. 1040ez tax form instructions Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. 1040ez tax form instructions Income from property received as a gift. 1040ez tax form instructions   A child's unearned income includes all income produced by property belonging to the child. 1040ez tax form instructions This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. 1040ez tax form instructions   A child's unearned income includes income produced by property given as a gift to the child. 1040ez tax form instructions This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. 1040ez tax form instructions Example. 1040ez tax form instructions Amanda Black, age 13, received the following income. 1040ez tax form instructions Dividends — $800 Wages — $2,100 Taxable interest — $1,200 Tax-exempt interest — $100 Net capital gains — $100 The dividends were qualified dividends on stock given to her by her grandparents. 1040ez tax form instructions Amanda's unearned income is $2,100. 1040ez tax form instructions This is the total of the dividends ($800), taxable interest ($1,200), and net capital gains ($100). 1040ez tax form instructions Her wages are earned (not unearned) income because they are received for work actually done. 1040ez tax form instructions Her tax-exempt interest is not included because it is nontaxable. 1040ez tax form instructions Trust income. 1040ez tax form instructions   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. 1040ez tax form instructions   However, for purposes of completing Form 8615, a taxable distribution from a qualified disability trust is considered earned income, not unearned income. 1040ez tax form instructions Line 2 (deductions). 1040ez tax form instructions   If the child does not itemize deductions on Schedule A (Form 1040), enter $2,000 on line 2. 1040ez tax form instructions   If the child does itemize deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29, that are directly connected with the production of unearned income entered on line 1, or $2,000. 1040ez tax form instructions Directly connected. 1040ez tax form instructions   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. 1040ez tax form instructions These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. 1040ez tax form instructions   These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). 1040ez tax form instructions Only the amount greater than 2% of the child's adjusted gross income can be deducted. 1040ez tax form instructions See chapter 28 for more information. 1040ez tax form instructions Example 1. 1040ez tax form instructions Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2% limit) that are directly connected with his unearned income. 1040ez tax form instructions His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. 1040ez tax form instructions Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly connected itemized deductions of $300. 1040ez tax form instructions Example 2. 1040ez tax form instructions Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. 1040ez tax form instructions She has no other income. 1040ez tax form instructions She has itemized deductions of $1,050 (net of the 2% limit) that are directly connected with the production of her unearned income. 1040ez tax form instructions Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). 1040ez tax form instructions The amount on line 2 is $2,050. 1040ez tax form instructions This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. 1040ez tax form instructions Line 3. 1040ez tax form instructions   Subtract line 2 from line 1 and enter the result on this line. 1040ez tax form instructions If zero or less, do not complete the rest of the form. 1040ez tax form instructions However, you must still attach Form 8615 to the child's tax return. 1040ez tax form instructions Figure the tax on the child's taxable income in the normal manner. 1040ez tax form instructions Line 4 (child's taxable income). 1040ez tax form instructions   Enter on line 4 the child's taxable income from Form 1040, line 43, or Form 1040A, line 27. 1040ez tax form instructions   However, if the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, see the Form 8615 instructions or Pub. 1040ez tax form instructions 929. 1040ez tax form instructions Line 5 (net unearned income). 1040ez tax form instructions   A child's net unearned income cannot be more than his or her taxable income. 1040ez tax form instructions Enter on Form 8615, line 5, the smaller of line 3 or line 4. 1040ez tax form instructions This is the child's net unearned income. 1040ez tax form instructions   If zero or less, do not complete the rest of the form. 1040ez tax form instructions However, you must still attach Form 8615 to the child's tax return. 1040ez tax form instructions Figure the tax on the child's taxable income in the normal manner. 1040ez tax form instructions Step 2. 1040ez tax form instructions Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. 1040ez tax form instructions The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. 1040ez tax form instructions When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. 1040ez tax form instructions For example, do not refigure the medical expense deduction. 1040ez tax form instructions Figure the tentative tax on Form 8615, lines 6 through 13. 1040ez tax form instructions Note. 1040ez tax form instructions If the child or parent has any capital gains or losses, get Publication 929 for help in completing Form 8615, Part II. 1040ez tax form instructions Line 6 (parent's taxable income). 1040ez tax form instructions   Enter on line 6 the parent's taxable income from Form 1040, line 43, Form 1040A, line 27, or Form 1040EZ, line 6. 1040ez tax form instructions   If the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) was used to figure the parent's tax, enter the amount from line 3 of that worksheet instead of the parent's taxable income. 1040ez tax form instructions Line 7 (net unearned income of other children). 1040ez tax form instructions   If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. 1040ez tax form instructions Do not include the amount from line 5 of the Form 8615 being completed. 1040ez tax form instructions Example. 1040ez tax form instructions Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. 1040ez tax form instructions The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon — $800 Jerry — $600 Mike — $1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. 1040ez tax form instructions Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). 1040ez tax form instructions Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). 1040ez tax form instructions Other children's information not available. 1040ez tax form instructions   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. 1040ez tax form instructions See Parent's return information not known timely , earlier. 1040ez tax form instructions Line 11 (tentative tax). 1040ez tax form instructions   Subtract line 10 from line 9 and enter the result on this line. 1040ez tax form instructions This is the tentative tax. 1040ez tax form instructions   If line 7 is blank, skip lines 12a and 12b and enter the amount from line 11 on line 13. 1040ez tax form instructions Also skip the discussion for lines 12a and 12b that follows. 1040ez tax form instructions Lines 12a and 12b (dividing the tentative tax). 1040ez tax form instructions   If an amount is entered on line 7, divide the tentative tax shown on line 11 among the children according to each child's share of the total net unearned income. 1040ez tax form instructions This is done on lines 12a, 12b, and 13. 1040ez tax form instructions Add the amount on line 7 to the amount on line 5 and enter the total on line 12a. 1040ez tax form instructions Divide the amount on line 5 by the amount on line 12a and enter the result, as a decimal, on line 12b. 1040ez tax form instructions Example. 1040ez tax form instructions In the earlier example under Line 7 (net unearned income of other children), Sharon's Form 8615 shows $1,600 on line 7. 1040ez tax form instructions The amount entered on line 12a is $2,400, the total of the amounts on lines 5 and 7 ($800 + $1,600). 1040ez tax form instructions The decimal on line 12b is  . 1040ez tax form instructions 333, figured as follows and rounded to three places. 1040ez tax form instructions   $800 = . 1040ez tax form instructions 333     $2,400   Step 3. 1040ez tax form instructions Figuring the Child's Tax (Form 8615, Part III) The final step in figuring a child's tax using Form 8615 is to determine the larger of: The total of: The child's share of the tentative tax based on the parent's tax rate, plus The tax on the child's taxable income in excess of net unearned income, figured at the child's tax rate, or The tax on the child's taxable income, figured at the child's tax rate. 1040ez tax form instructions This is the child's tax. 1040ez tax form instructions It is figured on Form 8615, lines 14 through 18. 1040ez tax form instructions Alternative minimum tax. 1040ez tax form instructions   A child may be subject to alternative minimum tax (AMT) if he or she has certain items given preferential treatment under the tax law. 1040ez tax form instructions See Alternative Minimum Tax (AMT) in chapter 30. 1040ez tax form instructions    For more information on who is liable for AMT and how to figure it, see Form 6251, Alternative Minimum Tax—Individuals. 1040ez tax form instructions For information on special limits that apply to a child who files Form 6251, see Certain Children Under Age 24 in the Instructions for Form 6251. 1040ez tax form instructions Prev  Up  Next   Home   More Online Publications