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1040x 2010 Instructions

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1040x 2010 Instructions

1040x 2010 instructions 1. 1040x 2010 instructions   Tax Withholding for 2014 Table of Contents Introduction Useful Items - You may want to see: Salaries and WagesDetermining Amount of Tax Withheld Using Form W-4 Completing Form W-4 and Worksheets Getting the Right Amount of Tax Withheld Rules Your Employer Must Follow Exemption From Withholding Supplemental Wages Penalties Tips Taxable Fringe BenefitsSpecial rule. 1040x 2010 instructions Exceptions. 1040x 2010 instructions Sick Pay Pensions and AnnuitiesPeriodic Payments Nonperiodic Payments Eligible Rollover Distributions Choosing Not To Have Income Tax Withheld Gambling WinningsException. 1040x 2010 instructions Identical wagers. 1040x 2010 instructions Unemployment Compensation Federal Payments Backup WithholdingTaxpayer identification number. 1040x 2010 instructions Underreported interest or dividends. 1040x 2010 instructions Introduction This chapter discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. 1040x 2010 instructions This chapter explains in detail the rules for withholding tax from each of these types of income. 1040x 2010 instructions The discussion of salaries and wages includes an explanation of how to complete Form W-4. 1040x 2010 instructions This chapter also covers backup withholding on interest, dividends, and other payments. 1040x 2010 instructions Useful Items - You may want to see: Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request See chapter 5 of this publication for information about getting these publications and forms. 1040x 2010 instructions Salaries and Wages Income tax is withheld from the pay of most employees. 1040x 2010 instructions Your pay includes your regular pay, bonuses, commissions, and vacation allowances. 1040x 2010 instructions It also includes reimbursements and other expense allowances paid under a nonaccountable plan. 1040x 2010 instructions See Supplemental Wages , later, for definitions of accountable and nonaccountable plans. 1040x 2010 instructions If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. 1040x 2010 instructions This is explained under Exemption From Withholding , later. 1040x 2010 instructions You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. 1040x 2010 instructions If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed in chapter 2. 1040x 2010 instructions Military retirees. 1040x 2010 instructions   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. 1040x 2010 instructions Household workers. 1040x 2010 instructions   If you are a household worker, you can ask your employer to withhold income tax from your pay. 1040x 2010 instructions A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. 1040x 2010 instructions   Tax is withheld only if you want it withheld and your employer agrees to withhold it. 1040x 2010 instructions If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed in chapter 2. 1040x 2010 instructions Farmworkers. 1040x 2010 instructions   Generally, income tax is withheld from your cash wages for work on a farm unless your employer both: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. 1040x 2010 instructions Differential wage payments. 1040x 2010 instructions   When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. 1040x 2010 instructions Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. 1040x 2010 instructions The wages and withholding will be reported on Form W-2, Wage and Tax Statement. 1040x 2010 instructions Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. 1040x 2010 instructions The amount you earn in each payroll period. 1040x 2010 instructions The information you give your employer on Form W-4. 1040x 2010 instructions Form W-4 includes four types of information that your employer will use to figure your withholding. 1040x 2010 instructions Whether to withhold at the single rate or at the lower married rate. 1040x 2010 instructions How many withholding allowances you claim (each allowance reduces the amount withheld). 1040x 2010 instructions Whether you want an additional amount withheld. 1040x 2010 instructions Whether you are claiming an exemption from withholding in 2014. 1040x 2010 instructions See Exemption From Withholding , later. 1040x 2010 instructions Note. 1040x 2010 instructions You must specify a filing status and a number of withholding allowances on Form W-4. 1040x 2010 instructions You cannot specify only a dollar amount of withholding. 1040x 2010 instructions New Job When you start a new job, you must fill out a Form W-4 and give it to your employer. 1040x 2010 instructions Your employer should have copies of the form. 1040x 2010 instructions If you need to change the information later, you must fill out a new form. 1040x 2010 instructions If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. 1040x 2010 instructions You may be able to avoid overwithholding if your employer agrees to use the part-year method. 1040x 2010 instructions See Part-Year Method , later, for more information. 1040x 2010 instructions Employee also receiving pension income. 1040x 2010 instructions   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. 1040x 2010 instructions However, you can choose to split your withholding allowances between your pension and job in any manner. 1040x 2010 instructions Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. 1040x 2010 instructions When this happens, you may need to give your employer a new Form W-4 to change your withholding status or number of allowances. 1040x 2010 instructions If the changes reduce the number of allowances you are allowed to claim or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. 1040x 2010 instructions See Marital Status (Line 3 of Form W-4) and Withholding Allowances (Line 5 of Form W-4) , later. 1040x 2010 instructions Generally, you can submit a new Form W-4 whenever you wish to change your withholding allowances for any other reason. 1040x 2010 instructions See Table 1-1 for examples of personal and financial changes you should consider. 1040x 2010 instructions Table 1-1. 1040x 2010 instructions Personal and Financial Changes Factor Examples Lifestyle change Marriage Divorce Birth or adoption of child Loss of an exemption Purchase of a new home Retirement Filing chapter 11 bankruptcy Wage income You or your spouse start or stop working, or start or stop a second job Change in the amount of taxable income not subject to withholding Interest income Dividends Capital gains Self-employment income IRA (including certain Roth  IRA) distributions Change in the amount of adjustments to income IRA deduction Student loan interest deduction Alimony expense Change in the amount of itemized deductions or tax credits Medical expenses Taxes Interest expense Gifts to charity Job expenses Dependent care expenses Education credit Child tax credit Earned income credit If you change the number of your withholding allowances, you can request that your employer withhold using the Cumulative Wage Method , explained later. 1040x 2010 instructions Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too much or too little. 1040x 2010 instructions If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. 1040x 2010 instructions You can get a blank Form W-4 from your employer or print the form from IRS. 1040x 2010 instructions gov. 1040x 2010 instructions You should try to have your withholding match your actual tax liability. 1040x 2010 instructions If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. 1040x 2010 instructions If too much tax is withheld, you will lose the use of that money until you get your refund. 1040x 2010 instructions Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. 1040x 2010 instructions See Table 1-1 for examples. 1040x 2010 instructions Note. 1040x 2010 instructions You cannot give your employer a payment to cover federal income tax withholding on salaries and wages for past pay periods or a payment for estimated tax. 1040x 2010 instructions When Should You Check Your Withholding? The earlier in the year you check your withholding, the easier it is to get the right amount of tax withheld. 1040x 2010 instructions You should check your withholding when any of the following situations occur. 1040x 2010 instructions You receive a paycheck stub (statement) covering a full pay period in 2014, showing tax withheld based on 2014 tax rates. 1040x 2010 instructions You prepare your 2013 tax return and get a: Big refund, or Balance due that is: More than you can comfortably pay, or Subject to a penalty. 1040x 2010 instructions There are changes in your life or financial situation that affect your tax liability. 1040x 2010 instructions See Table 1-1. 1040x 2010 instructions There are changes in the tax law that affect your tax liability. 1040x 2010 instructions How Do You Check Your Withholding? You can use the worksheets and tables in this publication to see if you are having the right amount of tax withheld. 1040x 2010 instructions You can also use the IRS Withholding calculator at www. 1040x 2010 instructions irs. 1040x 2010 instructions gov/individuals. 1040x 2010 instructions If you use the worksheets and tables in this publication, follow these steps. 1040x 2010 instructions Fill out Worksheet 1-5 to project your total federal income tax liability for 2014. 1040x 2010 instructions Fill out Worksheet 1-7 to project your total federal withholding for 2014 and compare that with your projected tax liability from Worksheet 1-5. 1040x 2010 instructions If you are not having enough tax withheld, line 6 of Worksheet 1-7 will show you how much more to have withheld each payday. 1040x 2010 instructions For ways to increase the amount of tax withheld, see How Do You Increase Your Withholding? If line 5 of Worksheet 1-7 shows that you are having more tax withheld than necessary, see How Do You Decrease Your Withholding, for ways to decrease the amount of tax you have withheld each payday. 1040x 2010 instructions How Do You Increase Your Withholding? There are two ways to increase your withholding. 1040x 2010 instructions You can: Decrease the number of allowances you claim on Form W-4, or Enter an additional amount that you want withheld from each paycheck on Form W-4. 1040x 2010 instructions Requesting an additional amount withheld. 1040x 2010 instructions   You can request that an additional amount be withheld from each paycheck by following these steps. 1040x 2010 instructions Complete Worksheets 1-5 and 1-7. 1040x 2010 instructions Complete a new Form W-4 if the amount on Worksheet 1-7, line 5: Is more than you want to pay with your tax return or in estimated tax payments throughout the year, or Would cause you to pay a penalty when you file your tax return for 2014. 1040x 2010 instructions Enter on your new Form W-4, the same number of withholding allowances your employer now uses for your withholding. 1040x 2010 instructions This is the number of allowances you entered on the last Form W-4 you gave your employer. 1040x 2010 instructions Enter on your new Form W-4, the amount from Worksheet 1-7, line 6. 1040x 2010 instructions Give your newly completed Form W-4 to your employer. 1040x 2010 instructions   If you have this additional amount withheld from your pay each payday, you should avoid owing a large amount at the end of the year. 1040x 2010 instructions Example. 1040x 2010 instructions Early in 2014, Steve Miller used Worksheets 1-5, 1-6, and 1-7 to project his 2014 tax liability ($4,316) and his withholding for the year ($3,516). 1040x 2010 instructions Steve's tax will be underwithheld by $800 ($4,316 − $3,516). 1040x 2010 instructions His choices are to pay this amount when he files his 2014 tax return, make estimated tax payments, or increase his withholding now. 1040x 2010 instructions Steve gets a new Form W-4 from his employer, who tells him that there are 50 paydays remaining in 2014. 1040x 2010 instructions Steve completes the new Form W-4 as before, entering the same number of withholding allowances as before, but, in addition, entering $16 ($800 ÷ 50) on the form as the additional amount to be withheld from his pay each payday. 1040x 2010 instructions He gives the completed form to his employer. 1040x 2010 instructions What if I have more than one job or my spouse also has a job?   You are more likely to need to increase your withholding if you have more than one job or if you are married filing jointly and your spouse also works. 1040x 2010 instructions If this is the case, you can increase your withholding for one or more of the jobs. 1040x 2010 instructions   You can apply the amount on Worksheet 1-7, line 5, to only one job or divide it between the jobs any way you wish. 1040x 2010 instructions For each job, determine the extra amount that you want to apply to that job and divide that amount by the number of paydays remaining in 2014 for that job. 1040x 2010 instructions This will give you the additional amount to enter on the Form W-4 you will file for that job. 1040x 2010 instructions You need to give your employer a new Form W-4 for each job for which you are changing your withholding. 1040x 2010 instructions Example. 1040x 2010 instructions Meg Green works in a store and earns $46,000 a year. 1040x 2010 instructions Her husband, John, works full-time in manufacturing and earns $68,000 a year. 1040x 2010 instructions In 2014, they will also have $184 in taxable interest and $1,000 of other taxable income. 1040x 2010 instructions They expect to file a joint income tax return. 1040x 2010 instructions Meg and John complete Worksheets 1-5, 1-6, and 1-7. 1040x 2010 instructions Line 5 of Worksheet 1-7 shows that they will owe an additional $4,459 after subtracting their withholding for the year. 1040x 2010 instructions They can divide the $4,459 any way they want. 1040x 2010 instructions They can enter an additional amount on either of their Forms W-4, or divide it between them. 1040x 2010 instructions They decide to have the additional amount withheld from John's wages, so they enter $91 ($4,459 ÷ 49 remaining paydays) on his Form W-4. 1040x 2010 instructions Both claim the same number of allowances as before. 1040x 2010 instructions How Do You Decrease Your Withholding? If your completed Worksheets 1-5 and 1-7 show that you may have more tax withheld than your projected tax liability for 2014, you may be able to decrease your withholding. 1040x 2010 instructions There are two ways to do this. 1040x 2010 instructions You can: Decrease any additional amount you are having withheld, or Increase the number of allowances you claim on Form W-4. 1040x 2010 instructions You can claim only the number of allowances to which you are entitled. 1040x 2010 instructions To see if you can decrease your withholding by increasing your allowances, see the Form W-4 instructions and the rest of this publication. 1040x 2010 instructions Increasing the number of allowances. 1040x 2010 instructions   Figure and increase the number of withholding allowances you can claim as follows. 1040x 2010 instructions On a new Form W-4, complete the Personal Allowances Worksheet. 1040x 2010 instructions If you plan to itemize deductions, claim adjustments to income, or claim tax credits, complete a new Deductions and Adjustments Worksheet. 1040x 2010 instructions If you plan to claim tax credits, see Converting Credits to Withholding Allowances, later. 1040x 2010 instructions If you meet the criteria on line H of the Form W-4 Personal Allowances Worksheet, complete a new Two-Earners/Multiple Jobs Worksheet. 1040x 2010 instructions If the number of allowances you can claim on Form W-4, is different from the number you already are claiming, give the newly completed Form W-4 to your employer. 1040x 2010 instructions Converting Credits to Withholding Allowances Table 1-2 , later, shows many of the tax credits you may be able to use to decrease your withholding. 1040x 2010 instructions The Form W-4 Personal Allowances Worksheet provides only rough adjustments for the child and dependent care credit and the child tax credit. 1040x 2010 instructions Complete Worksheet 1-8 to figure these credits more accurately and also take other credits into account. 1040x 2010 instructions Include the amount from line 12 of Worksheet 1-8 in the total on line 5 of the Deductions and Adjustments Worksheet. 1040x 2010 instructions Then complete the Deductions and Adjustments Worksheet and the rest of Form W-4. 1040x 2010 instructions If you take the child and dependent care credit into account on Worksheet 1-8, enter -0- on line F of the Personal Allowances Worksheet. 1040x 2010 instructions If you take the child tax credit into account on Worksheet 1-8, enter -0- on line G of the Personal Allowances Worksheet. 1040x 2010 instructions Example. 1040x 2010 instructions Brett and Alyssa Davis are married and expect to file a joint return for 2014. 1040x 2010 instructions Their expected taxable income from all sources is $68,000. 1040x 2010 instructions They expect to have $15,900 of itemized deductions. 1040x 2010 instructions Their projected tax credits include a child and dependent care credit of $960 and an adoption credit of $1,500. 1040x 2010 instructions The Davis' complete Worksheet 1-8, as follows, to see whether they can convert their tax credits into additional withholding allowances. 1040x 2010 instructions Line 1, expected child and dependent care credit—$960. 1040x 2010 instructions Line 9, expected adoption credit—$1,500. 1040x 2010 instructions Line 10, total estimated tax credits—$2,460. 1040x 2010 instructions Line 11. 1040x 2010 instructions Their combined total income from all sources, $68,000, falls between $42,001 and $98,000 on the table for married filing jointly or qualifying widow(er). 1040x 2010 instructions The number to the right of this range is 6. 1040x 2010 instructions 7. 1040x 2010 instructions Line 12, multiply line 10 by line 11—$16,482. 1040x 2010 instructions Then the Davis' complete the Form W-4 worksheets. 1040x 2010 instructions Because they choose to account for their child and dependent care credit on the Deductions and Adjustments Worksheet, they enter -0- on line F of the Personal Allowances Worksheet and figure a new total for line H. 1040x 2010 instructions They take the result on line 12 of Worksheet 1-8, add it to their other adjustments on line 5 of the Form W-4 Deductions and Adjustments Worksheet, and complete the Form W-4 worksheets. 1040x 2010 instructions When Will Your New Form W-4 Go Into Effect? If the change is for the current year, your employer must put your new Form W-4 into effect no later than the start of the first payroll period ending on or after the 30th day after the day on which you give your employer your revised Form W-4. 1040x 2010 instructions If the change is for next year, your new Form W-4 will not take effect until next year. 1040x 2010 instructions Retirees Returning to the Workforce When you first began receiving your pension, you told the payer how much tax to withhold, if any, by completing Form W-4P, Withholding Certificate for Pension or Annuity Payments (or similar form). 1040x 2010 instructions However, if your retirement pay is from the military or certain deferred compensation plans, you completed Form W-4 instead of Form W-4P. 1040x 2010 instructions You completed either form based on your projected income at that time. 1040x 2010 instructions Now that you are returning to the workforce, your new Form W-4 (given to your employer) and your Form W-4 or W-4P (on file with your pension plan) must work together to determine the correct amount of withholding for your new amount of income. 1040x 2010 instructions The worksheets that come with Forms W-4 and W-4P are basically the same, so you can use either set of worksheets to figure out how many withholding allowances you are entitled to claim. 1040x 2010 instructions Start off with the Personal Allowances Worksheet. 1040x 2010 instructions Then, if you will be itemizing your deductions, claiming adjustments to income, or claiming tax credits when you file your tax return, complete the Deductions and Adjustments Worksheet. 1040x 2010 instructions The third worksheet is the most important for this situation. 1040x 2010 instructions Form W-4 calls it the Two-Earners/Multiple Jobs Worksheet, Form W-4P calls it the Multiple Pensions/More-Than-One-Income Worksheet—both are the same. 1040x 2010 instructions If you have more than one source of income, in order to have enough withholding to cover the tax on your higher income, you may need to claim fewer withholding allowances or request your employer to withhold an additional amount from each paycheck. 1040x 2010 instructions Once you have figured out how many allowances you are entitled to claim, look at the income from both your pension and your new job, and how often you receive payments. 1040x 2010 instructions It is your decision how to divide up your withholding allowances between these sources of income. 1040x 2010 instructions For example, you may want to “take home” most of your weekly paycheck to use as spending money and use your monthly pension to “pay the bills. 1040x 2010 instructions ” In that case, change your Form W-4P to zero allowances and claim all that you are entitled to on your Form W-4. 1040x 2010 instructions There are a couple of ways you can get a better idea of how much tax will be withheld when claiming a certain number of allowances. 1040x 2010 instructions Use the withholding tables in Publication 15 (Circular E), Employer's Tax Guide. 1040x 2010 instructions Contact your pension provider and your employer's payroll department. 1040x 2010 instructions And remember, this is not a final decision. 1040x 2010 instructions If you do not get the correct amount of withholding with the first Forms W-4 and W-4P you submit, you should refigure your allowances (or divide them differently) using the information and worksheets in this publication, or the resources mentioned above. 1040x 2010 instructions You should go through this same process each time your life situation changes, whether it be for personal or financial reasons. 1040x 2010 instructions You may need more tax withheld, or you may need less. 1040x 2010 instructions Table 1-2. 1040x 2010 instructions Tax Credits for 2014 For more information about the . 1040x 2010 instructions . 1040x 2010 instructions . 1040x 2010 instructions See . 1040x 2010 instructions . 1040x 2010 instructions . 1040x 2010 instructions Adoption credit Form 8839 instructions Child and dependent care expenses, credit for Publication 503, Child and Dependent Care Expenses Child tax credit (including the additional child tax credit) Instructions for Form 1040 or Form 1040A Earned income credit Publication 596, Earned Income Credit Education credits Publication 970, Tax Benefits for Education Elderly or the disabled, credit for the Publication 524, Credit for the Elderly or the Disabled Foreign tax credit (except any credit that applies to wages not subject to U. 1040x 2010 instructions S. 1040x 2010 instructions income tax withholding because they are subject to income tax withholding by a foreign country) Publication 514, Foreign Tax Credit for Individuals General business credit Form 3800, General Business Credit Mortgage interest credit Publication 530, Tax Information for First-Time Homeowners Qualified electric vehicle passive activity credit Form 8834 Prior year minimum tax, credit for (if you paid alternative minimum tax in an earlier year) Form 8801 instructions Retirement savings contributions credit (saver's credit) Publication 590, Individual Retirement Arrangements (IRAs) Tax credit bonds, credit to holders of Form 8912 instructions Completing Form W-4 and Worksheets When reading the following discussion, you may find it helpful to refer to Form W-4. 1040x 2010 instructions Marital Status There is a lower withholding rate for people who qualify to check the “Married” box on line 3 of Form W-4. 1040x 2010 instructions Everyone else must have tax withheld at the higher single rate. 1040x 2010 instructions Single. 1040x 2010 instructions   You must check the “Single” box if any of the following applies. 1040x 2010 instructions You are single. 1040x 2010 instructions If you are divorced, or separated from your spouse under a court decree of separate maintenance, you are considered single. 1040x 2010 instructions You are married, but neither you nor your spouse is a citizen or resident of the United States. 1040x 2010 instructions You are married, either you or your spouse is a nonresident alien, and you have not chosen to have that person treated as a resident alien for tax purposes. 1040x 2010 instructions For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. 1040x 2010 instructions Married. 1040x 2010 instructions   You qualify to check the “Married” box if any of the following applies. 1040x 2010 instructions You are married and neither you nor your spouse is a nonresident alien. 1040x 2010 instructions You are considered married for the whole year even if your spouse died during the year. 1040x 2010 instructions You are married and either you or your spouse is a nonresident alien who has chosen to be treated as a resident alien for tax purposes. 1040x 2010 instructions For more information, see Nonresident Spouse Treated as a Resident in chapter 1 of Publication 519. 1040x 2010 instructions You expect to be able to file your return as a qualifying widow or widower. 1040x 2010 instructions You usually can use this filing status if your spouse died within the previous 2 years and you provide more than half the cost of keeping up a home for the entire year that was the main home for you and your child whom you can claim as a dependent. 1040x 2010 instructions However, you must file a new Form W-4 showing your filing status as single by December 1 of the last year you are eligible to file as a qualifying widow or widower. 1040x 2010 instructions For more information on this filing status, see Qualifying Widow(er) With Dependent Child under Filing Status in Publication 501, Exemptions, Standard Deduction, and Filing Information. 1040x 2010 instructions Married, but withhold at higher single rate. 1040x 2010 instructions   Some married people find that they do not have enough tax withheld at the married rate. 1040x 2010 instructions This can happen, for example, when both spouses work. 1040x 2010 instructions To avoid this, you can check the “Married, but withhold at higher Single rate” box (even if you qualify for the married rate). 1040x 2010 instructions Also, you may find that more tax is withheld if you fill out the Two-Earners/Multiple Jobs Worksheet, explained later. 1040x 2010 instructions Withholding Allowances The more allowances you claim on Form W-4, the less income tax your employer will withhold. 1040x 2010 instructions You will have the most tax withheld if you claim “0” allowances. 1040x 2010 instructions The number of allowances you can claim depends on the following factors. 1040x 2010 instructions How many exemptions you can take on your tax return. 1040x 2010 instructions Whether you have income from more than one job. 1040x 2010 instructions What deductions, adjustments to income, and credits you expect to have for the year. 1040x 2010 instructions Whether you will file as head of household. 1040x 2010 instructions If you are married (filing jointly), it also depends on whether your spouse also works and claims any allowances on his or her own Form W-4. 1040x 2010 instructions Or, if married filing separately, whether or not your spouse also works. 1040x 2010 instructions Form W-4 worksheets. 1040x 2010 instructions    Form W-4 has worksheets to help you figure how many withholding allowances you can claim. 1040x 2010 instructions The worksheets are for your own records. 1040x 2010 instructions Do not give them to your employer. 1040x 2010 instructions   Complete only one set of Form W-4 worksheets, no matter how many jobs you have. 1040x 2010 instructions If you are married and will file a joint return, complete only one set of worksheets for you and your spouse, even if you both earn wages and each must give Form W-4 to your employers. 1040x 2010 instructions Complete separate sets of worksheets only if you and your spouse will file separate returns. 1040x 2010 instructions   If you are not exempt from withholding (see Exemption From Withholding , later), complete the Personal Allowances Worksheet on page 1 of the form. 1040x 2010 instructions Also, use the worksheets on page 2 of the form to adjust the number of your withholding allowances for itemized deductions and adjustments to income, and for two-earner or multiple-job situations. 1040x 2010 instructions If you want to adjust the number of your withholding allowances for certain tax credits, use the Deductions and Adjustments Worksheet on page 2 of Form W-4, even if you do not have any deductions or adjustments. 1040x 2010 instructions   Complete all worksheets that apply to your situation. 1040x 2010 instructions The worksheets will help you figure the maximum number of withholding allowances you are entitled to claim so that the amount of income tax withheld from your wages will match, as closely as possible, the amount of income tax you will owe at the end of the year. 1040x 2010 instructions Multiple jobs. 1040x 2010 instructions   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. 1040x 2010 instructions Then split your allowances between the Forms W-4 for each job. 1040x 2010 instructions You cannot claim the same allowances with more than one employer at the same time. 1040x 2010 instructions You can claim all your allowances with one employer and none with the other(s), or divide them any other way. 1040x 2010 instructions Married individuals. 1040x 2010 instructions   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. 1040x 2010 instructions Use only one set of worksheets. 1040x 2010 instructions You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. 1040x 2010 instructions   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. 1040x 2010 instructions Alternative method of figuring withholding allowances. 1040x 2010 instructions   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. 1040x 2010 instructions   The method you use must be based on withholding schedules, the tax rate schedules, and the 2014 Estimated Tax Worksheet in chapter 2. 1040x 2010 instructions It must take into account only the items of income, adjustments to income, deductions, and tax credits that are taken into account on Form W-4. 1040x 2010 instructions   You can use the number of withholding allowances determined under an alternative method rather than the number determined using the Form W-4 worksheets. 1040x 2010 instructions You still must give your employer a Form W-4 claiming your withholding allowances. 1040x 2010 instructions Employees who are not citizens or residents. 1040x 2010 instructions   If you are neither a citizen nor a resident of the United States, you usually can claim only one withholding allowance. 1040x 2010 instructions However, this rule does not apply if you are a resident of Canada or Mexico, or if you are a U. 1040x 2010 instructions S. 1040x 2010 instructions national. 1040x 2010 instructions It also does not apply if your spouse is a U. 1040x 2010 instructions S. 1040x 2010 instructions citizen or resident and you have chosen to be treated as a resident of the United States for tax purposes. 1040x 2010 instructions Special rules apply to residents of South Korea and India. 1040x 2010 instructions For more information, see Withholding From Compensation in chapter 8 of Publication 519. 1040x 2010 instructions Personal Allowances Worksheet Use the Personal Allowances Worksheet on page 1 of Form W-4 to figure your withholding allowances based on all of the following that apply. 1040x 2010 instructions Exemptions. 1040x 2010 instructions Only one job. 1040x 2010 instructions Head of household filing status. 1040x 2010 instructions Child and dependent care credit. 1040x 2010 instructions Child tax credit. 1040x 2010 instructions Exemptions (worksheet lines A, C, and D). 1040x 2010 instructions   You can claim one withholding allowance for each exemption you expect to claim on your tax return. 1040x 2010 instructions Self. 1040x 2010 instructions   You can claim an allowance for your exemption on line A unless another person can claim an exemption for you on his or her tax return. 1040x 2010 instructions If another person is entitled to claim an exemption for you, you cannot claim an allowance for your exemption even if the other person will not claim your exemption. 1040x 2010 instructions Spouse. 1040x 2010 instructions   You can claim an allowance for your spouse's exemption on line C unless your spouse is claiming his or her own exemption or another person can claim an exemption for your spouse. 1040x 2010 instructions Do not claim this allowance if you and your spouse expect to file separate returns. 1040x 2010 instructions Dependents. 1040x 2010 instructions   You can claim one allowance on line D for each exemption you will claim for a dependent on your tax return. 1040x 2010 instructions Only one job (worksheet line B). 1040x 2010 instructions    You can claim an additional withholding allowance if any of the following apply for 2014. 1040x 2010 instructions You are single and you have only one job at a time. 1040x 2010 instructions You are married, you have only one job at a time, and your spouse does not work. 1040x 2010 instructions Your wages from a second job or your spouse's wages (or the total of both) are $1,500 or less. 1040x 2010 instructions If you qualify for this allowance, enter “1” on line B of the worksheet. 1040x 2010 instructions Head of household filing status (worksheet line E). 1040x 2010 instructions   Generally, you can file as head of household if you are unmarried and pay more than half the cost of keeping up a home that: Was the main home for all of 2014 of your parent whom you can claim as a dependent, or You lived in for more than half the year with your qualifying child or any other person you can claim as a dependent. 1040x 2010 instructions For more information, see Publication 501. 1040x 2010 instructions   If you expect to file as head of household on your 2014 tax return, enter “1” on line E of the worksheet. 1040x 2010 instructions Reduction of personal allowances. 1040x 2010 instructions   For 2014, your deduction for personal exemptions on your tax return is reduced if your adjusted gross income (AGI) is more than the AGI shown next for your filing status. 1040x 2010 instructions Personal Allowance Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1-1 to figure your reduced number of personal allowances on lines A, C, and D of the Personal Allowances Worksheet. 1040x 2010 instructions Worksheet 1-1. 1040x 2010 instructions Personal Allowances Worksheet (Form W-4) Reduction of Personal Allowances if AGI Above Phaseout Threshold 1. 1040x 2010 instructions Enter the total amount of allowances on lines A, C, and D of the Personal Allowance Worksheet without regard to the phaseout rule 1. 1040x 2010 instructions   2. 1040x 2010 instructions Enter your expected AGI 2. 1040x 2010 instructions       3. 1040x 2010 instructions Enter $254,200 if single $305,050 if married filing jointly or qualifying widow(er) $152,525 if married filing separately $279,650 if head of household 3. 1040x 2010 instructions       4. 1040x 2010 instructions Subtract line 3 from line 2 4. 1040x 2010 instructions       5. 1040x 2010 instructions Divide line 4 by $125,000 ($62,500 if married filing separately). 1040x 2010 instructions Enter the result as a decimal 5. 1040x 2010 instructions   6. 1040x 2010 instructions Multiply line 1 by line 5. 1040x 2010 instructions If the result is not a whole number, increase it to the next higher whole number 6. 1040x 2010 instructions   7. 1040x 2010 instructions Subtract line 6 from line 1. 1040x 2010 instructions The total of the numbers you enter on A, C, and D of the Personal Allowances Worksheet can not be more than this amount 7. 1040x 2010 instructions     Child and dependent care credit (worksheet line F). 1040x 2010 instructions   Enter “1” on line F if you expect to claim a credit for at least $2,000 of qualifying child or dependent care expenses on your 2014 return. 1040x 2010 instructions Generally, qualifying expenses are those you pay for the care of your dependent who is your qualifying child under age 13 or for your spouse or dependent who is not able to care for himself or herself so that you can work or look for work. 1040x 2010 instructions For more information, see Publication 503, Child and Dependent Care Expenses. 1040x 2010 instructions   Instead of using line F, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. 1040x 2010 instructions Child tax credit (worksheet line G). 1040x 2010 instructions   If your total income will be less than $65,000 ($95,000 if married), enter “2” on line G for each eligible child. 1040x 2010 instructions Subtract “1” from that amount if you have three to six eligible children. 1040x 2010 instructions Subtract “2” from that amount if you have seven or more eligible children. 1040x 2010 instructions   If your total income will be between $65,000 and $84,000 ($95,000 and $119,000 if married), enter “1” on line G for each eligible child. 1040x 2010 instructions   An eligible child is any child: Who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Who will be under age 17 at the end of 2014, Who is younger than you (or your spouse if filing jointly) or permanently and totally disabled, Who will not provide over half of his or her own support for 2014, Who will not file a joint return, unless the return is filed only as a claim for refund, Who will live with you for more than half of 2014, Who is a U. 1040x 2010 instructions S. 1040x 2010 instructions citizen, U. 1040x 2010 instructions S. 1040x 2010 instructions national, or U. 1040x 2010 instructions S. 1040x 2010 instructions resident alien, and Who will be claimed as a dependent on your return. 1040x 2010 instructions If you are a U. 1040x 2010 instructions S. 1040x 2010 instructions citizen or U. 1040x 2010 instructions S. 1040x 2010 instructions national and your adopted child lived with you all year as a member of your household, that child meets the citizenship test. 1040x 2010 instructions   Also, if any other person can claim the child as an eligible child, see Qualifying child of more than one person in the 2013 instructions for Form 1040 or 1040A, line 6c. 1040x 2010 instructions   For more information about the child tax credit, see the instructions for Form 1040 or Form 1040A. 1040x 2010 instructions   Instead of using line G, you can choose to take the credit into account on line 5 of the Deductions and Adjustments Worksheet, as explained under Tax credits , later. 1040x 2010 instructions Total personal allowances (worksheet line H). 1040x 2010 instructions    Add lines A through G and enter the total on line H. 1040x 2010 instructions If you do not use either of the worksheets on the back of Form W-4, enter the number from line H on line 5 of Form W-4. 1040x 2010 instructions Deductions and Adjustments Worksheet Use the Deductions and Adjustments Worksheet on page 2 of Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. 1040x 2010 instructions Also, complete this worksheet when you have changes to those items to see if you need to change your withholding. 1040x 2010 instructions Use the amount of each item you reasonably can expect to show on your return. 1040x 2010 instructions However, do not use more than: The amount shown for that item on your 2013 return (or your 2012 return if you have not yet filed your 2013 return), plus Any additional amount related to a transaction or occurrence (such as payments already made, the signing of an agreement, or the sale of property) that you can prove has happened or will happen during 2013 or 2014. 1040x 2010 instructions Do not include any amount shown on your last tax return that has been disallowed by the IRS. 1040x 2010 instructions Example. 1040x 2010 instructions On June 30, 2013, you bought your first home. 1040x 2010 instructions On your 2013 tax return, you claimed itemized deductions of $6,600, the total mortgage interest and real estate tax you paid during the 6 months you owned your home. 1040x 2010 instructions Based on your mortgage payment schedule and your real estate tax assessment, you reasonably can expect to claim deductions of $13,200 for those items on your 2014 return. 1040x 2010 instructions You can use $13,200 to figure the number of your withholding allowances for itemized deductions. 1040x 2010 instructions Not itemizing deductions. 1040x 2010 instructions   If you expect to claim the standard deduction on your tax return, skip lines 1 and 2, and enter “0” on line 3 of the worksheet. 1040x 2010 instructions Itemized deductions (worksheet line 1). 1040x 2010 instructions   Enter your estimated total itemized deductions on line 1 of the worksheet. 1040x 2010 instructions   Listed below are some of the deductions you can take into account when figuring additional withholding allowances for 2014. 1040x 2010 instructions You normally claim these deductions on Schedule A of Form 1040. 1040x 2010 instructions Medical and dental expenses that are more than 10% (7. 1040x 2010 instructions 5% if either you or your spouse was born before January 2, 1950) of your 2014 AGI (defined under AGI , later). 1040x 2010 instructions State and local income or property taxes. 1040x 2010 instructions Deductible home mortgage interest. 1040x 2010 instructions Investment interest up to net investment income. 1040x 2010 instructions Charitable contributions. 1040x 2010 instructions Casualty and theft losses that are more than $100 and 10% of your AGI. 1040x 2010 instructions Fully deductible miscellaneous itemized deductions, including: Impairment-related work expenses of persons with disabilities, Federal estate tax on income in respect of a decedent, Repayment of more than $3,000 of income held under a claim of right that you included in income in an earlier year because at the time you thought you had an unrestricted right to it, Unrecovered investments in an annuity contract under which payments have ceased because of the annuitant's death, Gambling losses up to the amount of gambling winnings reported on your return, and Casualty and theft losses from  income-producing property. 1040x 2010 instructions Other miscellaneous itemized deductions that are more than 2% of your AGI, including: Unreimbursed employee business expenses, such as education expenses, work clothes and uniforms, union dues and fees, and the cost of work-related small tools and supplies, Safe deposit box rental, Tax counsel and assistance, and Certain fees paid to an IRA trustee or custodian. 1040x 2010 instructions AGI. 1040x 2010 instructions   For the purpose of estimating your itemized deductions, your AGI is your estimated total income for 2014 minus any estimated adjustments to income (discussed later) that you include on line 4 of the Deductions and Adjustments Worksheet. 1040x 2010 instructions Phaseout of itemized deductions. 1040x 2010 instructions   For 2014, your total itemized deductions may be phased out (reduced) if your AGI is more than the following thresholds. 1040x 2010 instructions    Itemized Deduction Phaseout Threshold Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than the amount listed, use Worksheet 1–2 to figure your reduction in itemized deductions. 1040x 2010 instructions Worksheet 1-2. 1040x 2010 instructions Deductions and Adjustments Worksheet (Form W-4)—Line 1 Phaseout of Itemized Deductions 1. 1040x 2010 instructions Enter the estimated total of your itemized deductions 1. 1040x 2010 instructions   2. 1040x 2010 instructions Enter the amount included in line 1 for medical and dental expenses, investment interest, casualty or theft losses, and gambling losses 2. 1040x 2010 instructions   3. 1040x 2010 instructions Is the amount on line 2 less than the amount on line 1? ❑ No. 1040x 2010 instructions Stop here. 1040x 2010 instructions Your deduction is not limited. 1040x 2010 instructions Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. 1040x 2010 instructions  ❑ Yes. 1040x 2010 instructions Subtract line 2 from line 1. 1040x 2010 instructions 3. 1040x 2010 instructions       4. 1040x 2010 instructions Multiply line 3 by 80% (. 1040x 2010 instructions 80) 4. 1040x 2010 instructions       5. 1040x 2010 instructions Enter your expected AGI 5. 1040x 2010 instructions       6. 1040x 2010 instructions Enter $305,050 If married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately 6. 1040x 2010 instructions   7. 1040x 2010 instructions Is the amount on line 6 less than the amount on line 5? ❑ No. 1040x 2010 instructions Stop here. 1040x 2010 instructions Your deduction is not limited. 1040x 2010 instructions Enter the amount from line 1 above on line 1 of the Deductions and Adjustments Worksheet. 1040x 2010 instructions  ❑ Yes. 1040x 2010 instructions Subtract line 6 from line 5. 1040x 2010 instructions 7. 1040x 2010 instructions       8. 1040x 2010 instructions Multiply line 7 by 3% (. 1040x 2010 instructions 03) 8. 1040x 2010 instructions       9. 1040x 2010 instructions Enter the smaller of line 4 or line 8 9. 1040x 2010 instructions     10. 1040x 2010 instructions Subtract line 9 from line 1. 1040x 2010 instructions Enter the result here and on line 1 of the Deductions and Adjustments Worksheet 10. 1040x 2010 instructions     Adjustments to income (worksheet line 4). 1040x 2010 instructions   Enter your estimated total adjustments to income on line 4 of the Deductions and Adjustments Worksheet. 1040x 2010 instructions   You can take the following adjustments to income into account when figuring additional withholding allowances for 2014. 1040x 2010 instructions These adjustments appear on page 1 of your Form 1040 or 1040A. 1040x 2010 instructions Net losses from Schedules C, D, E, and F of Form 1040 and from Part II of Form 4797, line 18b. 1040x 2010 instructions Net operating loss carryovers. 1040x 2010 instructions Certain business expenses of reservists, performing artists, and fee-based government officials. 1040x 2010 instructions Health savings account or medical savings account deduction. 1040x 2010 instructions Certain moving expenses. 1040x 2010 instructions Deduction for self-employment tax. 1040x 2010 instructions Deduction for contributions to self-employed SEP, and qualified SIMPLE plans. 1040x 2010 instructions Self-employed health insurance deduction. 1040x 2010 instructions Penalty on early withdrawal of savings. 1040x 2010 instructions Alimony paid. 1040x 2010 instructions IRA deduction. 1040x 2010 instructions Student loan interest deduction. 1040x 2010 instructions Jury duty pay given to your employer. 1040x 2010 instructions Reforestation amortization and expenses. 1040x 2010 instructions Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. 1040x 2010 instructions Repayment of certain supplemental unemployment benefits. 1040x 2010 instructions Contributions to IRC 501(c)(18)(D) pension plans. 1040x 2010 instructions Contributions by certain chaplains to IRC 403(b) plans. 1040x 2010 instructions Attorney fees and court costs for certain unlawful discrimination claims. 1040x 2010 instructions Attorney fees and court costs for certain whistleblower awards. 1040x 2010 instructions Estimated amount of decrease in tax attributable to income averaging using Schedule J (Form 1040). 1040x 2010 instructions Tax credits (worksheet line 5). 1040x 2010 instructions   Although you can take most tax credits into account when figuring withholding allowances, the Personal Allowances Worksheet uses only the child and dependent care credit (line F) and the child tax credit (line G). 1040x 2010 instructions But you can take these credits and others into account by adding an extra amount on line 5 of the Deductions and Adjustments Worksheet. 1040x 2010 instructions   If you take the child and dependent care credit into account on line 5, do not use line F. 1040x 2010 instructions If you take the child tax credit into account on line 5, do not use line G. 1040x 2010 instructions   In addition to the child and dependent care credit and the child tax credit, you can generally take into account the following credits. 1040x 2010 instructions See the individual tax form instructions for more details. 1040x 2010 instructions Foreign tax credit, except any credit that applies to wages not subject to U. 1040x 2010 instructions S. 1040x 2010 instructions income tax withholding because they are subject to income tax withholding by a foreign country. 1040x 2010 instructions See Publication 514, Foreign Tax Credit for Individuals. 1040x 2010 instructions Credit for the elderly or the disabled. 1040x 2010 instructions See Publication 524, Credit for the Elderly or the Disabled. 1040x 2010 instructions Education credits. 1040x 2010 instructions See Publication 970, Tax Benefits for Education. 1040x 2010 instructions Retirement savings contributions credit (saver's credit). 1040x 2010 instructions See Publication 590. 1040x 2010 instructions Mortgage interest credit. 1040x 2010 instructions See Publication 530, Tax Information for Homeowners. 1040x 2010 instructions Adoption credit. 1040x 2010 instructions See the Instructions for Form 8839. 1040x 2010 instructions Credit for nonrefundable portion of prior year minimum tax if you paid alternative minimum tax in an earlier year. 1040x 2010 instructions See the Instructions for Form 8801. 1040x 2010 instructions General business credit. 1040x 2010 instructions See the Instructions for Form 3800. 1040x 2010 instructions Earned income credit. 1040x 2010 instructions See Publication 596. 1040x 2010 instructions Figuring line 5 entry. 1040x 2010 instructions   To figure the amount to add on line 5 for tax credits, multiply your estimated total credits by the appropriate number from Table 1-3 . 1040x 2010 instructions Example. 1040x 2010 instructions You are married and expect to file a joint return for 2014. 1040x 2010 instructions Your combined estimated wages are $68,000. 1040x 2010 instructions Your estimated tax credits include a child and dependent care credit of $960 and a mortgage interest credit of $1,700 (total credits = $2,660). 1040x 2010 instructions In Table 1-3, the number corresponding to your combined estimated wages ($42,001 – $98,000) is 6. 1040x 2010 instructions 7. 1040x 2010 instructions Multiply your total estimated tax credits of $2,660 by 6. 1040x 2010 instructions 7. 1040x 2010 instructions Add the result, $17,822, to the amount you otherwise would show on line 5 of the Deductions and Adjustments Worksheet and enter the total on line 5. 1040x 2010 instructions Because you choose to account for your child and dependent care credit this way, do not make an entry on line F of the Personal Allowances Worksheet. 1040x 2010 instructions Nonwage income (worksheet line 6). 1040x 2010 instructions   Enter on line 6 your estimated total nonwage income (other than tax-exempt income). 1040x 2010 instructions Nonwage income includes interest, dividends, net rental income, unemployment compensation, alimony, gambling winnings, prizes and awards, hobby income, capital gains, royalties, and partnership income. 1040x 2010 instructions   If line 6 is more than line 5, you may not have enough income tax withheld from your wages. 1040x 2010 instructions See Getting the Right Amount of Tax Withheld , later. 1040x 2010 instructions Net deductions and adjustments (worksheet line 8). 1040x 2010 instructions    If line 7 is less than $3,950, enter “0” on line 8. 1040x 2010 instructions If line 7 is $3,950 or more, divide it by $3,950, drop any fraction, and enter the result on line 8. 1040x 2010 instructions Example. 1040x 2010 instructions If line 7 is $5,200, $5,200 ÷ $3,950 = 1. 1040x 2010 instructions 32. 1040x 2010 instructions Drop the fraction (. 1040x 2010 instructions 32) and enter “1” on line 8. 1040x 2010 instructions Two-Earners/Multiple Jobs Worksheet Complete the Two-Earners/Multiple Jobs Worksheet on page 2 of Form W-4 if you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs are more than $50,000 ($20,000 if married). 1040x 2010 instructions Reducing your allowances (worksheet lines 1-3). 1040x 2010 instructions   On line 1 of the worksheet, enter the number from line H of the Personal Allowances Worksheet (or line 10 of the Deductions and Adjustments Worksheet, if used). 1040x 2010 instructions Using Table 1 in the Two-Earners/Multiple Jobs Worksheet, find the number listed beside the amount of your estimated wages for the year from your lowest paying job (or if lower and you are filing jointly, your spouse's job). 1040x 2010 instructions Enter that number on line 2. 1040x 2010 instructions However, if you are married filing jointly and estimated wages from the highest paying job are $65,000 or less, do not enter more than “3. 1040x 2010 instructions ”    Table 1-3. 1040x 2010 instructions Deductions and Adjustments Worksheet (Form W-4)—Line 5 a. 1040x 2010 instructions  Married Filing Jointly or Qualifying Widow(er) If combined income from all sources is:   Multiply credits by: $0 – 42,000 10. 1040x 2010 instructions 0 $42,001 – 98,000 6. 1040x 2010 instructions 7 $98,001 – 180,000 4. 1040x 2010 instructions 0 $180,001 – 270,000 3. 1040x 2010 instructions 6 $270,001 – 440,000 3. 1040x 2010 instructions 0 $440,001 – 490,000. 1040x 2010 instructions . 1040x 2010 instructions . 1040x 2010 instructions . 1040x 2010 instructions 2. 1040x 2010 instructions 9 $490,001 and over 2. 1040x 2010 instructions 5 b. 1040x 2010 instructions  Single If combined income from all sources is:   Multiply credits by: $0 – 19,000 10. 1040x 2010 instructions 0 $19,001 – 47,000 6. 1040x 2010 instructions 7 $47,001 – 104,000 4. 1040x 2010 instructions 0 $104,001 – 205,000 3. 1040x 2010 instructions 6 $205,001 – 430,000 3. 1040x 2010 instructions 0 $430,001 and over 2. 1040x 2010 instructions 5 c. 1040x 2010 instructions  Head of Household If combined income from all sources is:   Multiply credits by: $0 – 30,000 10. 1040x 2010 instructions 0 $30,001 – 66,000 6. 1040x 2010 instructions 7 $66,001 – 150,000 4. 1040x 2010 instructions 0 $150,001 – 235,000 3. 1040x 2010 instructions 6 $235,001 – 430,000 3. 1040x 2010 instructions 0 $430,001 – 460,000 2. 1040x 2010 instructions 9 $460,001 and over 2. 1040x 2010 instructions 5 d. 1040x 2010 instructions  Married Filing Separately   If combined income from all sources is:   Multiply credits by: $0 – 21,000 10. 1040x 2010 instructions 0 $21,001 – 49,000 6. 1040x 2010 instructions 7 $49,001 – 90,000 4. 1040x 2010 instructions 0 $90,001 – 135,000 3. 1040x 2010 instructions 6 $135,001 – 220,000 3. 1040x 2010 instructions 0 $220,001 – 245,000 2. 1040x 2010 instructions 9 $245,001 and over 2. 1040x 2010 instructions 5   Subtract line 2 from line 1 and enter the result (but not less than zero) on line 3 and on Form W-4, line 5. 1040x 2010 instructions If line 1 is more than or equal to line 2, do not use the rest of the worksheet. 1040x 2010 instructions   If line 1 is less than line 2, enter “0” on Form W-4, line 5. 1040x 2010 instructions Then complete lines 4 through 9 of the worksheet to figure the additional withholding needed to avoid underwithholding. 1040x 2010 instructions Other amounts owed. 1040x 2010 instructions   If you expect to owe amounts other than income tax, such as self-employment tax, include them on line 8. 1040x 2010 instructions The total is the additional withholding needed for the year. 1040x 2010 instructions Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. 1040x 2010 instructions You accurately complete all the Form W-4 worksheets that apply to you. 1040x 2010 instructions You give your employer a new Form W-4 when changes occur. 1040x 2010 instructions But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. 1040x 2010 instructions This is most likely to happen in the following situations. 1040x 2010 instructions You are married and both you and your spouse work. 1040x 2010 instructions You have more than one job at a time. 1040x 2010 instructions You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. 1040x 2010 instructions You will owe additional amounts with your return, such as self-employment tax. 1040x 2010 instructions Your withholding is based on obsolete Form W-4 information for a substantial part of the year. 1040x 2010 instructions Your earnings are more than $130,000 if you are single or $180,000 if you are married. 1040x 2010 instructions You work only part of the year. 1040x 2010 instructions You change the number of your withholding allowances during the year. 1040x 2010 instructions You are subject to Additional Medicare Tax or Net Investment Income Tax. 1040x 2010 instructions If you anticipate liability for Additional Medicare Tax or Net Investment Income Tax, you may request that your employer withhold an additional amount of income tax withholding on Form W-4. 1040x 2010 instructions Part-Year Method If you work only part of the year and your employer agrees to use the part-year withholding method, less tax will be withheld from each wage payment than would be withheld if you worked all year. 1040x 2010 instructions To be eligible for the part-year method, you must meet both of the following requirements. 1040x 2010 instructions You must use the calendar year (the 12 months from January 1 through December 31) as your tax year. 1040x 2010 instructions You cannot use a fiscal year. 1040x 2010 instructions You must not expect to be employed for more than 245 days during the year. 1040x 2010 instructions To figure this limit, count all calendar days that you are employed (including weekends, vacations, and sick days) beginning with the first day you are on the job for pay and ending with your last day of work. 1040x 2010 instructions If you are temporarily laid off for 30 days or less, count those days too. 1040x 2010 instructions If you are laid off for more than 30 days, do not count those days. 1040x 2010 instructions You will not meet this requirement if you begin working before May 1 and expect to work for the rest of the year. 1040x 2010 instructions How to apply for the part-year method. 1040x 2010 instructions   You must ask your employer in writing to use this method. 1040x 2010 instructions The request must state all three of the following. 1040x 2010 instructions The date of your last day of work for any prior employer during the current calendar year. 1040x 2010 instructions That you do not expect to be employed more than 245 days during the current calendar year. 1040x 2010 instructions That you use the calendar year as your tax year. 1040x 2010 instructions Cumulative Wage Method If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. 1040x 2010 instructions You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. 1040x 2010 instructions You must ask your employer in writing to use this method. 1040x 2010 instructions To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. 1040x 2010 instructions ) since the beginning of the year. 1040x 2010 instructions Aids for Figuring Your Withholding IRS Withholding Calculator. 1040x 2010 instructions   If you had too much or too little income tax withheld from your pay, the IRS provides a withholding calculator on its website. 1040x 2010 instructions Go to www. 1040x 2010 instructions irs. 1040x 2010 instructions gov/Individuals/IRS-Withholding-Calculator. 1040x 2010 instructions It can help you determine the correct amount to be withheld any time during the year. 1040x 2010 instructions Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. 1040x 2010 instructions These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. 1040x 2010 instructions New Form W-4. 1040x 2010 instructions   When you start a new job, your employer should give you a Form W-4 to fill out. 1040x 2010 instructions Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. 1040x 2010 instructions   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. 1040x 2010 instructions The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. 1040x 2010 instructions No Form W-4. 1040x 2010 instructions   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. 1040x 2010 instructions Repaying withheld tax. 1040x 2010 instructions   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. 1040x 2010 instructions Your employer cannot repay any of the tax previously withheld. 1040x 2010 instructions Instead, claim the full amount withheld when you file your tax return. 1040x 2010 instructions   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. 1040x 2010 instructions Your employer can repay the amount that was withheld incorrectly. 1040x 2010 instructions If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. 1040x 2010 instructions IRS review of your withholding. 1040x 2010 instructions   Whether you are entitled to claim a certain number of allowances or a complete exemption from withholding is subject to review by the IRS. 1040x 2010 instructions Your employer may be required to send a copy of the Form W-4 to the IRS. 1040x 2010 instructions There is a penalty for supplying false information on Form W-4. 1040x 2010 instructions See Penalties , later. 1040x 2010 instructions   If the IRS determines that you cannot claim more than a specified number of withholding allowances or claim a complete exemption from withholding, the IRS will issue a notice of the maximum number of withholding allowances permitted (commonly referred to as a “lock-in letter”) to both you and your employer. 1040x 2010 instructions   The IRS will provide a period of time during which you can dispute the determination before your employer adjusts your withholding. 1040x 2010 instructions If you believe that you are entitled to claim complete exemption from withholding or claim more withholding allowances than the maximum number specified by the IRS in the lock-in letter, you must submit a new Form W-4 and a written statement to support your claims to the IRS. 1040x 2010 instructions Contact information (a toll-free number and an IRS office address) will be provided in the lock-in letter. 1040x 2010 instructions At the end of this period, if you have not responded or if your response is not adequate, your employer will be required to withhold based on the original lock-in letter. 1040x 2010 instructions   After the lock-in letter takes effect, your employer must withhold tax on the basis of the withholding rate (marital status) and maximum number of withholding allowances specified in that letter. 1040x 2010 instructions   If you later believe that you are entitled to claim exemption from withholding or more allowances than the IRS determined, you can complete a new Form W-4 and a written statement to support the claims made on the Form W-4 and send them directly to the IRS address shown on the lock-in letter. 1040x 2010 instructions Your employer must continue to figure your withholding on the basis of the number of allowances previously determined by the IRS until the IRS advises your employer otherwise. 1040x 2010 instructions   At any time, either before or after the lock-in letter becomes effective, you may give your employer a new Form W-4 that does not claim complete exemption from withholding and results in more income tax withheld than specified in the lock-in letter. 1040x 2010 instructions Your employer must then withhold tax based on this new Form W-4. 1040x 2010 instructions   Additional information is available at IRS. 1040x 2010 instructions gov. 1040x 2010 instructions Enter “withholding compliance questions” in the search box. 1040x 2010 instructions Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. 1040x 2010 instructions The exemption applies only to income tax, not to social security or Medicare tax. 1040x 2010 instructions You can claim exemption from withholding for 2014 only if both of the following situations apply. 1040x 2010 instructions For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. 1040x 2010 instructions For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. 1040x 2010 instructions Use Figure 1-A to help you decide whether you can claim exemption from withholding. 1040x 2010 instructions Do not use Figure 1-A if you: Are 65 or older, Are blind, Will itemize deductions on your 2014 return, Will claim an exemption for a dependent on your 2014 return, or Will claim any tax credits on your 2014 return. 1040x 2010 instructions These situations are discussed later. 1040x 2010 instructions Students. 1040x 2010 instructions   If you are a student, you are not automatically exempt. 1040x 2010 instructions If you work only part time or during the summer, you may qualify for exemption from withholding. 1040x 2010 instructions Example 1. 1040x 2010 instructions You are a high school student and expect to earn $2,500 from a summer job. 1040x 2010 instructions You do not expect to have any other income during the year, and your parents will be able to claim an exemption for you on their tax return. 1040x 2010 instructions You worked last summer and had $375 federal income tax withheld from your pay. 1040x 2010 instructions The entire $375 was refunded when you filed your 2013 return. 1040x 2010 instructions Using Figure 1-A, you find that you can claim exemption from withholding. 1040x 2010 instructions Please click here for the text description of the image. 1040x 2010 instructions Figure 1-A: Exemption From Withholding on Form W-4 Example 2. 1040x 2010 instructions The facts are the same as in Example 1, except that you also have a savings account and expect to have $400 interest income during the year. 1040x 2010 instructions Using Figure 1-A, you find that you cannot claim exemption from withholding because your unearned income will be more than $350 and your total income will be more than $1,000. 1040x 2010 instructions    You may have to file a tax return, even if you are exempt from withholding. 1040x 2010 instructions See Publication 501 to see whether you must file a return. 1040x 2010 instructions    Age 65 or older or blind. 1040x 2010 instructions If you are 65 or older or blind, use Worksheet 1-3 or Worksheet 1-4, to help you decide whether you can claim exemption from withholding. 1040x 2010 instructions Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. 1040x 2010 instructions Instead, see Itemizing deductions or claiming exemptions or credits, next. 1040x 2010 instructions Itemizing deductions or claiming exemptions or credits. 1040x 2010 instructions   If you had no tax liability for 2013, and you will: Itemize deductions, Claim an exemption for a dependent, or Claim a tax credit, use the 2014 Estimated Tax Worksheet (also see chapter 2), to figure your 2014 expected tax liability. 1040x 2010 instructions You can claim exemption from withholding only if your total expected tax liability (line 13c of the worksheet) is zero. 1040x 2010 instructions Claiming exemption from withholding. 1040x 2010 instructions   To claim exemption, you must give your employer a Form W-4. 1040x 2010 instructions Do not complete lines 5 and 6. 1040x 2010 instructions Enter “Exempt” on line 7. 1040x 2010 instructions   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. 1040x 2010 instructions If you claim exemption in 2014 but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. 1040x 2010 instructions   Your claim of exempt status may be reviewed by the IRS. 1040x 2010 instructions See IRS review of your withholding , earlier. 1040x 2010 instructions An exemption is good for only 1 year. 1040x 2010 instructions   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. 1040x 2010 instructions Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. 1040x 2010 instructions The payer can figure withholding on supplemental wages using the same method used for your regular wages. 1040x 2010 instructions However, if these payments are identified separately from regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. 1040x 2010 instructions Expense allowances. 1040x 2010 instructions   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. 1040x 2010 instructions A nonaccountable plan is a reimbursement arrangement that does not require you to account for, or prove, your business expenses to your employer or does not require you to return your employer's payments that are more than your proven expenses. 1040x 2010 instructions   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. 1040x 2010 instructions Accountable plan. 1040x 2010 instructions   To be an accountable plan, your employer's reimbursement or allowance arrangement must include all three of the following rules. 1040x 2010 instructions Your expenses must have a business connection. 1040x 2010 instructions That is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. 1040x 2010 instructions You must adequately account to your employer for these expenses within a reasonable period of time. 1040x 2010 instructions You must return any excess reimbursement or allowance within a reasonable period of time. 1040x 2010 instructions    An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. 1040x 2010 instructions   The definition of reasonable period of time depends on the facts and circumstances of your situation. 1040x 2010 instructions However, regardless of those facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. 1040x 2010 instructions You receive an advance within 30 days of the time you have an expense. 1040x 2010 instructions You adequately account for your expenses within 60 days after they were paid or incurred. 1040x 2010 instructions You return any excess reimbursement within 120 days after the expense was paid or incurred. 1040x 2010 instructions You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. 1040x 2010 instructions Nonaccountable plan. 1040x 2010 instructions   Any plan that does not meet the definition of an accountable plan is considered a nonaccountable plan. 1040x 2010 instructions For more information about accountable and nonaccountable plans, see chapter 6 of Publication 463, Travel, Entertainment, Gift, and Car Expenses. 1040x 2010 instructions Penalties You may have to pay a penalty of $500 if both of the following apply. 1040x 2010 instructions You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. 1040x 2010 instructions You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. 1040x 2010 instructions There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. 1040x 2010 instructions The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. 1040x 2010 instructions These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. 1040x 2010 instructions A simple error or an honest mistake will not result in one of these penalties. 1040x 2010 instructions For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a Form W-4 penalty. 1040x 2010 instructions However, see chapter 4 for information on the penalty for underpaying your tax. 1040x 2010 instructions Tips The tips you receive while working on your job are considered part of your pay. 1040x 2010 instructions You must include your tips on your tax return on the same line as your regular pay. 1040x 2010 instructions However, tax is not withheld directly from tip income, as it is from your regular pay. 1040x 2010 instructions Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. 1040x 2010 instructions Reporting tips to your employer. 1040x 2010 instructions   If you receive tips of $20 or more in a month while working for any one employer, you must report to your employer the total amount of tips you receive on the job during the month. 1040x 2010 instructions The report is due by the 10th day of the following month. 1040x 2010 instructions   If you have more than one job, make a separate report to each employer. 1040x 2010 instructions Report only the tips you received while working for that employer, and only if they total $20 or more for the month. 1040x 2010 instructions How employer figures amount to withhold. 1040x 2010 instructions   The tips you report to your employer are counted as part of your income for the month you report them. 1040x 2010 instructions Your employer can figure your withholding in either of two ways. 1040x 2010 instructions By withholding at the regular rate on the sum of your pay plus your reported tips. 1040x 2010 instructions By withholding at the regular rate on your pay plus a percentage of your reported tips. 1040x 2010 instructions Not enough pay to cover taxes. 1040x 2010 instructions   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. 1040x 2010 instructions   If you do not give your employer money to cover the shortage, your employer first withholds as much Medicare tax and social security or railroad retirement tax as possible, up to the proper amount, and then withholds income tax up to the full amount of your pay. 1040x 2010 instructions If not enough tax is withheld, you may have to pay estimated tax. 1040x 2010 instructions When you file your return, you also may have to pay any Medicare and social security tax or railroad retirement tax your employer could not withhold. 1040x 2010 instructions Tips not reported to your employer. 1040x 2010 instructions   On your tax return, you must report all the tips you receive during the year, even tips you do not report to your employer (this includes the value of any noncash tips you received, such as tickets, passes, or other items of value). 1040x 2010 instructions Make sure you are having enough tax withheld, or are paying enough estimated tax (see chapter 2), to cover all your tip income. 1040x 2010 instructions Allocated tips. 1040x 2010 instructions   If you work in a large food or beverage establishment, your employer may have to report an allocated amount of tips on your Form W-2. 1040x 2010 instructions   Your employer should not withhold income tax, Medicare tax, and social security or railroad retirement tax on the allocated amount. 1040x 2010 instructions Withholding is based only on your pay plus your reported tips. 1040x 2010 instructions Your employer should refund to you any incorrectly withheld tax. 1040x 2010 instructions More information. 1040x 2010 instructions   For more information on the reporting and withholding rules for tip income and on tip allocation, see Publi
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U.S. Department of the Treasury

The Department of the Treasury manages Federal finances by collecting taxes and paying bills and by managing currency, government accounts and public debt. The Department of the Treasury also enforces finance and tax laws.

The 1040x 2010 Instructions

1040x 2010 instructions Publication 971 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 1040x 2010 instructions Questions & AnswersThis section answers questions commonly asked by taxpayers about innocent spouse relief. 1040x 2010 instructions . 1040x 2010 instructions What is joint and several liability? . 1040x 2010 instructions How can I get relief from joint and several liability? . 1040x 2010 instructions What are the rules for innocent spouse relief? . 1040x 2010 instructions What are erroneous items? . 1040x 2010 instructions What is an understated tax? . 1040x 2010 instructions Will I qualify for innocent spouse relief in any situation where there is an understated tax? . 1040x 2010 instructions What are the rules for separation of liability relief? . 1040x 2010 instructions Why would a request for separation of liability relief be denied? . 1040x 2010 instructions What are the rules for equitable relief? . 1040x 2010 instructions How do state community property laws affect my ability to qualify for relief? . 1040x 2010 instructions How do I request relief? . 1040x 2010 instructions When should I file Form 8857? . 1040x 2010 instructions Where should I file Form 8857? . 1040x 2010 instructions I am currently undergoing an examination of my return. 1040x 2010 instructions How do I request innocent spouse relief? . 1040x 2010 instructions What if the IRS has given me notice that it will levy my account for the tax liability and I decide to request relief? . 1040x 2010 instructions What is injured spouse relief? . 1040x 2010 instructions What is joint and several liability? When you file a joint income tax return, the law makes both you and your spouse responsible for the entire tax liability. 1040x 2010 instructions This is called joint and several liability. 1040x 2010 instructions Joint and several liability applies not only to the tax liability you show on the return but also to any additional tax liability the IRS determines to be due, even if the additional tax is due to the income, deductions, or credits of your spouse or former spouse. 1040x 2010 instructions You remain jointly and severally liable for taxes, and the IRS still can collect from you, even if you later divorce and the divorce decree states that your former spouse will be solely responsible for the tax. 1040x 2010 instructions There are three types of relief for filers of joint returns: “innocent spouse relief,” “separation of liability relief,” and “equitable relief. 1040x 2010 instructions ” Each type has different requirements. 1040x 2010 instructions They are explained separately below. 1040x 2010 instructions To qualify for innocent spouse relief, you must meet all of the following conditions. 1040x 2010 instructions You must have filed a joint return which has an understated tax. 1040x 2010 instructions The understated tax must be due to erroneous items of your spouse (or former spouse). 1040x 2010 instructions You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. 1040x 2010 instructions Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. 1040x 2010 instructions You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. 1040x 2010 instructions You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. 1040x 2010 instructions For example, you reported total tax on your 2008 return of $2,500. 1040x 2010 instructions IRS determined in an audit of your 2008 return that the total tax should be $3,000. 1040x 2010 instructions You have a $500 understated tax. 1040x 2010 instructions No. 1040x 2010 instructions There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. 1040x 2010 instructions For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. 1040x 2010 instructions You are not eligible for innocent spouse relief because you have knowledge of the understated tax. 1040x 2010 instructions Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). 1040x 2010 instructions The understated tax allocated to you is generally the amount you are responsible for. 1040x 2010 instructions To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. 1040x 2010 instructions You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. 1040x 2010 instructions (Under this rule, you are no longer married if you are widowed. 1040x 2010 instructions ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. 1040x 2010 instructions In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions How can I get relief from joint and several liability? There are three types of relief for filers of joint returns: “innocent spouse relief,” “separation of liability relief,” and “equitable relief. 1040x 2010 instructions ” Each type has different requirements. 1040x 2010 instructions They are explained separately below. 1040x 2010 instructions To qualify for innocent spouse relief, you must meet all of the following conditions. 1040x 2010 instructions You must have filed a joint return which has an understated tax. 1040x 2010 instructions The understated tax must be due to erroneous items of your spouse (or former spouse). 1040x 2010 instructions You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. 1040x 2010 instructions Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. 1040x 2010 instructions You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. 1040x 2010 instructions You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. 1040x 2010 instructions For example, you reported total tax on your 2008 return of $2,500. 1040x 2010 instructions IRS determined in an audit of your 2008 return that the total tax should be $3,000. 1040x 2010 instructions You have a $500 understated tax. 1040x 2010 instructions No. 1040x 2010 instructions There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. 1040x 2010 instructions For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. 1040x 2010 instructions You are not eligible for innocent spouse relief because you have knowledge of the understated tax. 1040x 2010 instructions Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). 1040x 2010 instructions The understated tax allocated to you is generally the amount you are responsible for. 1040x 2010 instructions To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. 1040x 2010 instructions You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. 1040x 2010 instructions (Under this rule, you are no longer married if you are widowed. 1040x 2010 instructions ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. 1040x 2010 instructions In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions What are the rules for innocent spouse relief? To qualify for innocent spouse relief, you must meet all of the following conditions. 1040x 2010 instructions You must have filed a joint return which has an understated tax. 1040x 2010 instructions The understated tax must be due to erroneous items of your spouse (or former spouse). 1040x 2010 instructions You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. 1040x 2010 instructions Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. 1040x 2010 instructions You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. 1040x 2010 instructions You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. 1040x 2010 instructions For example, you reported total tax on your 2008 return of $2,500. 1040x 2010 instructions IRS determined in an audit of your 2008 return that the total tax should be $3,000. 1040x 2010 instructions You have a $500 understated tax. 1040x 2010 instructions No. 1040x 2010 instructions There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. 1040x 2010 instructions For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. 1040x 2010 instructions You are not eligible for innocent spouse relief because you have knowledge of the understated tax. 1040x 2010 instructions Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). 1040x 2010 instructions The understated tax allocated to you is generally the amount you are responsible for. 1040x 2010 instructions To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. 1040x 2010 instructions You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. 1040x 2010 instructions (Under this rule, you are no longer married if you are widowed. 1040x 2010 instructions ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. 1040x 2010 instructions In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions What are “erroneous items”? Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. 1040x 2010 instructions You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. 1040x 2010 instructions For example, you reported total tax on your 2008 return of $2,500. 1040x 2010 instructions IRS determined in an audit of your 2008 return that the total tax should be $3,000. 1040x 2010 instructions You have a $500 understated tax. 1040x 2010 instructions No. 1040x 2010 instructions There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. 1040x 2010 instructions For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. 1040x 2010 instructions You are not eligible for innocent spouse relief because you have knowledge of the understated tax. 1040x 2010 instructions Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). 1040x 2010 instructions The understated tax allocated to you is generally the amount you are responsible for. 1040x 2010 instructions To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. 1040x 2010 instructions You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. 1040x 2010 instructions (Under this rule, you are no longer married if you are widowed. 1040x 2010 instructions ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. 1040x 2010 instructions In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions What is an “understated tax”? You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. 1040x 2010 instructions For example, you reported total tax on your 2008 return of $2,500. 1040x 2010 instructions IRS determined in an audit of your 2008 return that the total tax should be $3,000. 1040x 2010 instructions You have a $500 understated tax. 1040x 2010 instructions No. 1040x 2010 instructions There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. 1040x 2010 instructions For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. 1040x 2010 instructions You are not eligible for innocent spouse relief because you have knowledge of the understated tax. 1040x 2010 instructions Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). 1040x 2010 instructions The understated tax allocated to you is generally the amount you are responsible for. 1040x 2010 instructions To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. 1040x 2010 instructions You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. 1040x 2010 instructions (Under this rule, you are no longer married if you are widowed. 1040x 2010 instructions ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. 1040x 2010 instructions In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions Will I qualify for innocent spouse relief in any situation where there is an understated tax? No. 1040x 2010 instructions There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. 1040x 2010 instructions For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. 1040x 2010 instructions You are not eligible for innocent spouse relief because you have knowledge of the understated tax. 1040x 2010 instructions Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). 1040x 2010 instructions The understated tax allocated to you is generally the amount you are responsible for. 1040x 2010 instructions To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. 1040x 2010 instructions You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. 1040x 2010 instructions (Under this rule, you are no longer married if you are widowed. 1040x 2010 instructions ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. 1040x 2010 instructions In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions What are the rules for separation of liability relief? Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). 1040x 2010 instructions The understated tax allocated to you is generally the amount you are responsible for. 1040x 2010 instructions To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. 1040x 2010 instructions You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. 1040x 2010 instructions (Under this rule, you are no longer married if you are widowed. 1040x 2010 instructions ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. 1040x 2010 instructions In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. 1040x 2010 instructions Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions Why would a request for separation of liability relief be denied? Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. 1040x 2010 instructions The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. 1040x 2010 instructions The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). 1040x 2010 instructions Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. 1040x 2010 instructions Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions What are the rules for equitable relief? Equitable relief is only available if you meet all of the following conditions. 1040x 2010 instructions You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. 1040x 2010 instructions You have an understated tax or underpaid tax. 1040x 2010 instructions See Note later. 1040x 2010 instructions You did not pay the tax. 1040x 2010 instructions However, see Refunds , earlier, for exceptions. 1040x 2010 instructions The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. 1040x 2010 instructions You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. 1040x 2010 instructions Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. 1040x 2010 instructions You did not file or fail to file your return with the intent to commit fraud. 1040x 2010 instructions The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. 1040x 2010 instructions For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. 1040x 2010 instructions You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. 1040x 2010 instructions Note. 1040x 2010 instructions Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. 1040x 2010 instructions (An underpaid tax is tax that is properly shown on the return, but has not been paid. 1040x 2010 instructions ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or resume collecting from you. 1040x 2010 instructions The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. 1040x 2010 instructions See Publication 594 for more information. 1040x 2010 instructions Injured spouse relief is different from innocent spouse relief. 1040x 2010 instructions When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. 1040x 2010 instructions The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. 1040x 2010 instructions You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). 1040x 2010 instructions You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. 1040x 2010 instructions You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. 1040x 2010 instructions Note. 1040x 2010 instructions If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. 1040x 2010 instructions . 1040x 2010 instructions How do state community property laws affect my ability to qualify for relief? Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040x 2010 instructions Generally, community property laws require you to allocate community income and expenses equally between both spouses. 1040x 2010 instructions However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. 1040x 2010 instructions      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. 1040x 2010 instructions You must file an additional Form 8857 if you are requesting relief for more than three years. 1040x 2010 instructions If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. 1040x 2010 instructions If you are requesting equitable relief, see Exception for equitable relief. 1040x 2010 instructions under How To Request Relief, earlier, for when to file Form 8857. 1040x 2010 instructions If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. 1040x 2010 instructions Use the address or fax number shown in the Instructions for Form 8857. 1040x 2010 instructions File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. 1040x 2010 instructions Do not file it with the employee assigned to examine your return. 1040x 2010 instructions Generally, the IRS has 10 years to collect an amount you owe. 1040x 2010 instructions This is the collection statute of limitations. 1040x 2010 instructions By law, the IRS is not allowed to collect from you after the 10-year period ends. 1040x 2010 instructions If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. 1040x 2010 instructions But interest and penalties continue to accrue. 1040x 2010 instructions Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. 1040x 2010 instructions This includes the time the Tax Court is considering your request. 1040x 2010 instructions After your case is resolved, the IRS can begin or