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2010 Tax Act Online Login

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2010 Tax Act Online Login

2010 tax act online login 1. 2010 tax act online login   Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. 2010 tax act online login Employee. 2010 tax act online login Other payee. 2010 tax act online login Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. 2010 tax act online login Earning credits in 2013 and 2014. 2010 tax act online login Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. 2010 tax act online login Penalties. 2010 tax act online login Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. 2010 tax act online login It also discusses taxpayer identification numbers. 2010 tax act online login Table 1-1 lists the benefits of filing electronically. 2010 tax act online login Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. 2010 tax act online login Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. 2010 tax act online login You may want to get Publication 509, Tax Calendars. 2010 tax act online login It has tax calendars that tell you when to file returns and make tax payments. 2010 tax act online login Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. 2010 tax act online login S. 2010 tax act online login Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. 2010 tax act online login Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. 2010 tax act online login Social security number (SSN). 2010 tax act online login   Generally, use your SSN as your taxpayer identification number. 2010 tax act online login You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. 2010 tax act online login   To apply for an SSN, use Form SS-5, Application for a Social Security Card. 2010 tax act online login This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. 2010 tax act online login It is also available from the SSA website at www. 2010 tax act online login socialsecurity. 2010 tax act online login gov. 2010 tax act online login Individual taxpayer identification number (ITIN). 2010 tax act online login   The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. 2010 tax act online login In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. 2010 tax act online login  Internal Revenue Service ITIN Operation P. 2010 tax act online login O. 2010 tax act online login Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. 2010 tax act online login If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. 2010 tax act online login The application is also available in Spanish. 2010 tax act online login The form is available at IRS. 2010 tax act online login gov or you can call 1-800-829-3676 to order the form. 2010 tax act online login    An ITIN is for tax use only. 2010 tax act online login It does not entitle the holder to social security benefits or change the holder's employment or immigration status. 2010 tax act online login Employer identification number (EIN). 2010 tax act online login   You must also have an EIN to use as a taxpayer identification number if you do either of the following. 2010 tax act online login Pay wages to one or more employees. 2010 tax act online login File pension or excise tax returns. 2010 tax act online login   If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. 2010 tax act online login   You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. 2010 tax act online login irs. 2010 tax act online login gov/businesses/small. 2010 tax act online login The EIN is issued immediately once the application information is validated. 2010 tax act online login By telephone at 1-800-829-4933. 2010 tax act online login By mailing or faxing Form SS-4, Application for Employer Identification Number. 2010 tax act online login New EIN. 2010 tax act online login   You may need to get a new EIN if either the form or the ownership of your business changes. 2010 tax act online login For more information, see Publication 1635, Understanding Your EIN. 2010 tax act online login When you need identification numbers of other persons. 2010 tax act online login   In operating your business, you will probably make certain payments you must report on information returns. 2010 tax act online login These payments are discussed under Information Returns, later in this chapter. 2010 tax act online login You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. 2010 tax act online login You must include the payee's identification number and your identification number on the returns and statements. 2010 tax act online login Employee. 2010 tax act online login   If you have employees, you must get an SSN from each of them. 2010 tax act online login Record the name and SSN of each employee exactly as they are shown on the employee's social security card. 2010 tax act online login If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. 2010 tax act online login This may occur if the employee's name was changed due to marriage or divorce. 2010 tax act online login   Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. 2010 tax act online login   If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. 2010 tax act online login Other payee. 2010 tax act online login   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. 2010 tax act online login If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. 2010 tax act online login   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. 2010 tax act online login   A payee who does not provide you with an identification number may be subject to backup withholding. 2010 tax act online login For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. 2010 tax act online login Income Tax This part explains whether you have to file an income tax return and when you file it. 2010 tax act online login It also explains how you pay the tax. 2010 tax act online login Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. 2010 tax act online login If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. 2010 tax act online login How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. 2010 tax act online login Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. 2010 tax act online login Use Schedule C to figure your net profit or loss from your business. 2010 tax act online login If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. 2010 tax act online login You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. 2010 tax act online login IRS e-file (Electronic Filing) Please click here for the text description of the image. 2010 tax act online login E-file logo You may be able to file your tax returns electronically using an IRS e-file option. 2010 tax act online login Table 1-1 lists the benefits of IRS e-file. 2010 tax act online login IRS e-file uses automation to replace most of the manual steps needed to process paper returns. 2010 tax act online login As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. 2010 tax act online login As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. 2010 tax act online login Using e-file does not affect your chances of an IRS examination of your return. 2010 tax act online login You can file most commonly used business forms using IRS e-file. 2010 tax act online login For more information, visit IRS. 2010 tax act online login gov. 2010 tax act online login Electronic signatures. 2010 tax act online login   Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. 2010 tax act online login If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. 2010 tax act online login If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. 2010 tax act online login    To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). 2010 tax act online login You will also need to provide your date of birth (DOB). 2010 tax act online login Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. 2010 tax act online login To do this, check your annual Social Security Statement. 2010 tax act online login   With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. 2010 tax act online login For more details on the Self-Select PIN program, visit IRS. 2010 tax act online login gov. 2010 tax act online login State returns. 2010 tax act online login   In most states, you can file an electronic state return simultaneously with your federal return. 2010 tax act online login For more information, check with your local IRS office, state tax agency, tax professional, or IRS. 2010 tax act online login gov. 2010 tax act online login Refunds. 2010 tax act online login   You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. 2010 tax act online login   With e-file, your refund will be issued in half the time as when filing on paper. 2010 tax act online login Most refunds are issued within 3 weeks. 2010 tax act online login If you choose Direct Deposit, you can receive your refund in as few as 10 days. 2010 tax act online login Offset against debts. 2010 tax act online login   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. 2010 tax act online login You will be notified if the refund you claimed has been offset against your debts. 2010 tax act online login Refund inquiries. 2010 tax act online login   You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. 2010 tax act online login Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. 2010 tax act online login To check on your refund, do one of the following. 2010 tax act online login Go to IRS. 2010 tax act online login gov and click on Where's My Refund. 2010 tax act online login Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. 2010 tax act online login Call 1-800-829-1954 during the hours shown in your form instructions. 2010 tax act online login Balance due. 2010 tax act online login   If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. 2010 tax act online login You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. 2010 tax act online login Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. 2010 tax act online login You have two options. 2010 tax act online login You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. 2010 tax act online login You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. 2010 tax act online login You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. 2010 tax act online login Depending on the provider and the specific services requested, a fee may be charged. 2010 tax act online login To find an authorized IRS e-file provider near you, go to IRS. 2010 tax act online login gov or look for an “Authorized IRS e-file Provider” sign. 2010 tax act online login Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. 2010 tax act online login When you use your personal computer, you can e-file your return from your home any time of the day or night. 2010 tax act online login Sign your return electronically using a self-selected PIN to complete the process. 2010 tax act online login There is no signature form to submit or Forms W-2 to send in. 2010 tax act online login Free Internet filing options. 2010 tax act online login   More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. 2010 tax act online login gov or www. 2010 tax act online login usa. 2010 tax act online login gov. 2010 tax act online login The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. 2010 tax act online login Security and privacy certificate programs will assure tax data is safe and secure. 2010 tax act online login To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. 2010 tax act online login gov. 2010 tax act online login   If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. 2010 tax act online login You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. 2010 tax act online login Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. 2010 tax act online login Others offer it for a fee. 2010 tax act online login Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. 2010 tax act online login Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. 2010 tax act online login The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. 2010 tax act online login Some locations offer free electronic filing. 2010 tax act online login Table 1-1. 2010 tax act online login Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. 2010 tax act online login Security • Your privacy and security are assured. 2010 tax act online login Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. 2010 tax act online login There is nothing to mail. 2010 tax act online login Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. 2010 tax act online login Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. 2010 tax act online login Free Internet filing options • Use IRS. 2010 tax act online login gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. 2010 tax act online login Electronic payment options • Convenient, safe, and secure electronic payment options are available. 2010 tax act online login E-file and pay your taxes in a single step. 2010 tax act online login Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. 2010 tax act online login Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. 2010 tax act online login When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. 2010 tax act online login If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. 2010 tax act online login If you file late, you may have to pay penalties and interest. 2010 tax act online login If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. 2010 tax act online login S. 2010 tax act online login Individual Income Tax Return, to request an automatic 6-month extension. 2010 tax act online login For calendar year taxpayers, this will extend the tax filing due date until October 15. 2010 tax act online login Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. 2010 tax act online login How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. 2010 tax act online login You must pay it as you earn or receive income during the year. 2010 tax act online login An employee usually has income tax withheld from his or her pay. 2010 tax act online login If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 2010 tax act online login You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. 2010 tax act online login Use Form 1040-ES to figure and pay the tax. 2010 tax act online login If you do not have to make estimated tax payments, you can pay any tax due when you file your return. 2010 tax act online login For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. 2010 tax act online login What are my payment options?   You can pay your estimated tax electronically using various options. 2010 tax act online login If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. 2010 tax act online login These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). 2010 tax act online login Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. 2010 tax act online login Paying by credit or debit card over the phone or by Internet. 2010 tax act online login Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. 2010 tax act online login EFTPS    To enroll in EFTPS, go to www. 2010 tax act online login eftps. 2010 tax act online login gov or call 1-800-555-4477. 2010 tax act online login When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. 2010 tax act online login Benefits of EFTPS: The chance of an error in making your payments is reduced. 2010 tax act online login You receive immediate confirmation of every transaction. 2010 tax act online login Penalty for underpayment of tax. 2010 tax act online login   If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. 2010 tax act online login The IRS will figure the penalty for you and send you a bill. 2010 tax act online login Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. 2010 tax act online login For more information, see Publication 505. 2010 tax act online login Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. 2010 tax act online login It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. 2010 tax act online login If you earned income as a statutory employee, you do not pay SE tax on that income. 2010 tax act online login Social security coverage. 2010 tax act online login   Social security benefits are available to self-employed persons just as they are to wage earners. 2010 tax act online login Your payments of SE tax contribute to your coverage under the social security system. 2010 tax act online login Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. 2010 tax act online login By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. 2010 tax act online login How to become insured under social security. 2010 tax act online login   You must be insured under the social security system before you begin receiving social security benefits. 2010 tax act online login You are insured if you have the required number of credits (also called quarters of coverage), discussed next. 2010 tax act online login Earning credits in 2013 and 2014. 2010 tax act online login   For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. 2010 tax act online login Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). 2010 tax act online login   For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. 2010 tax act online login    Making false statements to get or to increase social security benefits may subject you to penalties. 2010 tax act online login The Social Security Administration (SSA) time limit for posting self-employment income. 2010 tax act online login   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. 2010 tax act online login If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. 2010 tax act online login The SSA will not change its records to increase your self-employment income. 2010 tax act online login Who must pay self-employment tax. 2010 tax act online login   You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. 2010 tax act online login Your net earnings from self-employment (excluding church employee income) were $400 or more. 2010 tax act online login You had church employee income of $108. 2010 tax act online login 28 or more. 2010 tax act online login The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. 2010 tax act online login SE tax rate. 2010 tax act online login   For 2013, the SE tax rate on net earnings is 15. 2010 tax act online login 3% (12. 2010 tax act online login 4% social security tax plus 2. 2010 tax act online login 9% Medicare tax). 2010 tax act online login Maximum earnings subject to SE tax. 2010 tax act online login   Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. 2010 tax act online login 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. 2010 tax act online login   All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. 2010 tax act online login 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. 2010 tax act online login   If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. 2010 tax act online login 4% social security part of the SE tax on any of your net earnings. 2010 tax act online login However, you must pay the 2. 2010 tax act online login 9% Medicare part of the SE tax on all your net earnings. 2010 tax act online login Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. 2010 tax act online login   More information. 2010 tax act online login   For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. 2010 tax act online login Table 1-2. 2010 tax act online login Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of  tax year. 2010 tax act online login Self-employment tax Schedule SE File with Form 1040. 2010 tax act online login Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. 2010 tax act online login Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. 2010 tax act online login     See Publication 15. 2010 tax act online login Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee)  W-2 and W-3 (to the Social Security Administration) January 313. 2010 tax act online login   Last day of February (March 31 if filing electronically)3. 2010 tax act online login Federal unemployment (FUTA) tax 940 January 313. 2010 tax act online login     April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. 2010 tax act online login Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). 2010 tax act online login     Other forms – see the General Instructions for Certain Information Returns. 2010 tax act online login Excise tax See Excise Taxes See the instructions to the forms. 2010 tax act online login 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. 2010 tax act online login For more information, see Publication 509, Tax Calendars. 2010 tax act online login 2 File a separate schedule for each business. 2010 tax act online login 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. 2010 tax act online login     Employment Taxes If you have employees, you will need to file forms to report employment taxes. 2010 tax act online login Employment taxes include the following items. 2010 tax act online login Social security and Medicare taxes. 2010 tax act online login Federal income tax withholding. 2010 tax act online login Federal unemployment (FUTA) tax. 2010 tax act online login For more information, see Publication 15 (Circular E), Employer's Tax Guide. 2010 tax act online login That publication explains your tax responsibilities as an employer. 2010 tax act online login To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. 2010 tax act online login That publication has information to help you determine whether an individual is an independent contractor or an employee. 2010 tax act online login If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. 2010 tax act online login An independent contractor is someone who is self-employed. 2010 tax act online login You do not generally have to withhold or pay any taxes on payments made to an independent contractor. 2010 tax act online login Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. 2010 tax act online login Manufacture or sell certain products. 2010 tax act online login Operate certain kinds of businesses. 2010 tax act online login Use various kinds of equipment, facilities, or products. 2010 tax act online login Receive payment for certain services. 2010 tax act online login For more information on excise taxes, see Publication 510, Excise Taxes. 2010 tax act online login Form 720. 2010 tax act online login   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. 2010 tax act online login Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. 2010 tax act online login Communications and air transportation taxes. 2010 tax act online login Fuel taxes. 2010 tax act online login Tax on the first retail sale of heavy trucks, trailers, and tractors. 2010 tax act online login Manufacturers taxes on the sale or use of a variety of different articles. 2010 tax act online login Tax on indoor tanning services. 2010 tax act online login Form 2290. 2010 tax act online login   There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. 2010 tax act online login The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. 2010 tax act online login Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. 2010 tax act online login For more information, see the Instructions for Form 2290. 2010 tax act online login Depositing excise taxes. 2010 tax act online login   If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. 2010 tax act online login For details on depositing excise taxes, see the Instructions for Form 720. 2010 tax act online login Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. 2010 tax act online login The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. 2010 tax act online login You must give a copy of each information return you are required to file to the recipient or payer. 2010 tax act online login In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. 2010 tax act online login For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. 2010 tax act online login Form 1099-MISC. 2010 tax act online login   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. 2010 tax act online login These payments include the following items. 2010 tax act online login Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. 2010 tax act online login Rent payments of $600 or more, other than rents paid to real estate agents. 2010 tax act online login Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. 2010 tax act online login Royalty payments of $10 or more. 2010 tax act online login Payments to certain crew members by operators of fishing boats. 2010 tax act online login You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. 2010 tax act online login Form W-2. 2010 tax act online login   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. 2010 tax act online login You can file Form W-2 online. 2010 tax act online login For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. 2010 tax act online login Penalties. 2010 tax act online login   The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. 2010 tax act online login For more information, see the General Instructions for Certain Information Returns. 2010 tax act online login Failure to file information returns. 2010 tax act online login This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. 2010 tax act online login Failure to furnish correct payee statements. 2010 tax act online login This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. 2010 tax act online login Waiver of penalties. 2010 tax act online login   These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. 2010 tax act online login   In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. 2010 tax act online login (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. 2010 tax act online login ) Form 8300. 2010 tax act online login   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or two or more related business transactions. 2010 tax act online login Cash includes U. 2010 tax act online login S. 2010 tax act online login and foreign coin and currency. 2010 tax act online login It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. 2010 tax act online login Cash does not include a check drawn on an individual's personal account (personal check). 2010 tax act online login For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). 2010 tax act online login Penalties. 2010 tax act online login   There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. 2010 tax act online login Table 1-3. 2010 tax act online login Going Out of Business Checklists (Note. 2010 tax act online login The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. 2010 tax act online login For more information, see the instructions for the listed forms. 2010 tax act online login ) IF you are liable for:   THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. 2010 tax act online login   □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. 2010 tax act online login   □ File Form 8594 with your Form 1040 if you sold your business. 2010 tax act online login Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. 2010 tax act online login Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. 2010 tax act online login Note. 2010 tax act online login Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. 2010 tax act online login   □ File Form 940 for the calendar year in which final wages were paid. 2010 tax act online login Note. 2010 tax act online login Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. 2010 tax act online login Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. 2010 tax act online login Note. 2010 tax act online login These forms are generally due by the due date of your final Form 941 or Form 944. 2010 tax act online login   □ File Form W-3 to file Forms W-2. 2010 tax act online login Note. 2010 tax act online login These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. 2010 tax act online login   □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. 2010 tax act online login   □ File Form 1096 to file Forms 1099-MISC. 2010 tax act online login Prev  Up  Next   Home   More Online Publications
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Understanding Your CP2000 Notice

The income and/or payment information we have on file doesn’t match the information you reported on your tax return. This could affect your tax return; it may cause an increase or decrease in your tax, or may not change it at all.


What you need to do

  • Read your notice carefully—it explains the information we received and how it affects your tax return.
  • Complete the notice response form whether or not you agree or disagree with the notice, the response form explains what actions to take. (Your specific notice may not have a response form. In that case, the notice will have instructions on what to do).
  • Contact the business or person reporting the information, if it is wrong. Ask them to correct it, and then provide the corrected information to us.

You may want to…


Answers to Common Questions

Why did I receive the notice?

We received information from a third party that doesn’t match the information you reported on your tax return.

Is the notice a bill?

No. It informs you about the information we’ve received and how it affects your tax.

What do I need to do?

Complete the notice response form. (Follow the notice instructions if your notice doesn’t have a response form.)

What do I do if the information is wrong or if I disagree?

The notice response form has instructions on what to do if the new information is wrong. You also may want to contact whoever reported the information and ask them to correct it.

The information is wrong because someone else is using my name and social security number. What can I do?

Call us and let us know. You also can use this link to go to our Identity theft information webpage to find out more about what you can do.

I reported the information but I reported it incorrectly. Can I call you to correct my return?

We can accept your information over the phone for incorrectly reported information as long as the mistake didn't increase or decrease your tax.

Do I need to amend my return?

If the information displayed in the CP2000 notice is correct, you don't need to amend your return unless you have additional income, credits or expenses to report. If you agree with our notice, follow the instructions to sign the response page and return it to us in the envelope provided.

If you have additional income, credits or expenses to report, you may want to complete and submit a Form 1040-X, Amended U.S. Individual Income Tax Return. You can receive help at an IRS Taxpayer Assistance Center.

I want to check a copy of my original return. I don’t have one. How can I get one?

You can get a transcript of your return on our ”Order a Transcript” webpage at irs.gov. You also can get one by completing and sending us a Form 4506-T, Request for Transcript of Tax Return.

I don’t want a transcript of my return. I want a copy. How can I get one?

Did an accountant or some other person prepare your return? You could ask them for a copy.

I can’t get a copy of my return from a tax preparer. How else can I get a copy of it?

You can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return. We charge a fee for tax return requests.

How can I find an IRS Taxpayer Assistance Center?

We have centers located throughout the country. Our website has directions on how to find the center nearest to you.

Why did it take you so long to contact me about this matter?

Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.

The notice says my taxes will increase. Will I be charged interest on the money I owe?

Yes, interest accrues on your unpaid balance until you pay it in full.

What happens if I can’t pay the full amount I owe?

You can make a payment plan with us when you can’t pay the full amount you owe.

How can I make a payment plan?

Call us at the toll free number on the top right corner of your notice to talk about payment plans or learn more about them at this web page.


Tips for next year

You can avoid future problems by:

  • keeping accurate and full records
  • waiting until you get all of your income statements before filing your tax return
  • checking the records you get from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they're correct
  • including all your income on your tax return
  • following the instructions on how to report income, expenses and deductions
  • filing an amended tax return for any information you receive after you’ve filed your return

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

Page Last Reviewed or Updated: 28-Feb-2014

The 2010 Tax Act Online Login

2010 tax act online login Publication 600 - Main Contents Table of Contents Actual Expenses Optional Sales Tax Tables Instructions for the State and Local General Sales Tax Deduction WorksheetWhat if you lived in more than one state? What if you lived in more than one locality? What if your local general sales tax rate changed during 2006? What if you lived in more than one locality in the same state during 2006? Actual Expenses Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2006 if the tax rate was the same as the general sales tax rate. 2010 tax act online login However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. 2010 tax act online login If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. 2010 tax act online login Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. 2010 tax act online login Also include any state and local general sales taxes paid for a leased motor vehicle. 2010 tax act online login Do not include sales taxes paid on items used in your trade or business. 2010 tax act online login To deduct your actual expenses, enter the amount on Schedule A, line 5, and enter “ST” on the dotted line to the left of the line 5 entry space. 2010 tax act online login You must keep your actual receipts showing general sales taxes paid to use this method. 2010 tax act online login Refund of general sales taxes. 2010 tax act online login   If you received a refund of state or local general sales taxes in 2006 for amounts paid in 2006, reduce your actual 2006 state and local general sales taxes by this amount. 2010 tax act online login If you received a refund of state or local general sales taxes in 2006 for prior year purchases, do not reduce your 2006 state and local general sales taxes by this amount. 2010 tax act online login But if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Form 1040, line 21. 2010 tax act online login See Recoveries in Pub. 2010 tax act online login 525 for details. 2010 tax act online login Optional Sales Tax Tables Instead of using your actual expenses, you can use the tables on pages 5 through 7 to figure your state and local general sales tax deduction. 2010 tax act online login You may also be able to add the state and local general sales taxes paid on certain specified items. 2010 tax act online login To figure your state and local general sales tax deduction using the tables, complete the worksheet below. 2010 tax act online login If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you also must use the tables to figure your state and local general sales tax deduction. 2010 tax act online login State and Local General Sales Tax Deduction Worksheet (See the instructions that begin on page 3. 2010 tax act online login ) Before you begin: See the instructions for line 1 on page 3 if: You lived in more than one state during 2006, or You had any nontaxable income in 2006. 2010 tax act online login   1. 2010 tax act online login Enter your state general sales taxes from the applicable table on page 5 or 6 (see page 3 of the instructions) 1. 2010 tax act online login $     Next. 2010 tax act online login If, for all of 2006, you lived only in Connecticut, the District of Columbia, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island, Virginia, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. 2010 tax act online login Otherwise, go to line 2       2. 2010 tax act online login Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only), Colorado, Georgia, Illinois, Louisiana, New York State, or North Carolina in 2006?         No. 2010 tax act online login Enter -0-                   Yes. 2010 tax act online login Enter your local general sales taxes from the applicable table on page 7 (see page 3 of the instructions)     2. 2010 tax act online login $       3. 2010 tax act online login Did your locality impose a local general sales tax in 2006? Residents of California, Nevada, and Texarkana, Arkansas, see page 3 of the instructions             No. 2010 tax act online login Skip lines 3 through 5, enter -0- on line 6, and go to line 7             Yes. 2010 tax act online login Enter your local general sales tax rate, but omit the percentage sign. 2010 tax act online login For example, if your local general sales tax rate was 2. 2010 tax act online login 5%, enter 2. 2010 tax act online login 5. 2010 tax act online login If your local general sales tax rate changed or you lived in more than one locality in the same state during 2006, see page 3 of the instructions. 2010 tax act online login (If you do not know your local general sales tax rate, contact your local government. 2010 tax act online login ) 3. 2010 tax act online login . 2010 tax act online login       4. 2010 tax act online login Did you enter -0- on line 2 above?             No. 2010 tax act online login Skip lines 4 and 5 and go to line 6             Yes. 2010 tax act online login Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. 2010 tax act online login For example, if your state general sales tax rate is 6%, enter 6. 2010 tax act online login 0 4. 2010 tax act online login . 2010 tax act online login       5. 2010 tax act online login Divide line 3 by line 4. 2010 tax act online login Enter the result as a decimal (rounded to at least three places) 5. 2010 tax act online login . 2010 tax act online login       6. 2010 tax act online login Did you enter -0- on line 2 above?             No. 2010 tax act online login Multiply line 2 by line 3   6. 2010 tax act online login $     Yes. 2010 tax act online login Multiply line 1 by line 5. 2010 tax act online login If you lived in more than one locality in the same state during 2006, see page 4 of the instructions           7. 2010 tax act online login Enter your state and local general sales taxes paid on specified items, if any (see page 4 of the instructions) 7. 2010 tax act online login $   8. 2010 tax act online login Deduction for general sales taxes. 2010 tax act online login Add lines 1, 6, and 7. 2010 tax act online login Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5. 2010 tax act online login Be sure to enter “ST” on the dotted line to the left of the entry space 8. 2010 tax act online login $     Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. 2010 tax act online login    If you lived in the same state for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional state sales tax table for your state on page 5 or 6. 2010 tax act online login Read down the “At least-But less than” columns for your state and find the line that includes your 2006 income. 2010 tax act online login If married filing separately, do not include your spouse's income. 2010 tax act online login Your 2006 income is the amount shown on your Form 1040, line 38, plus any nontaxable items, such as the following. 2010 tax act online login Tax-exempt interest. 2010 tax act online login Veterans' benefits. 2010 tax act online login Nontaxable combat pay. 2010 tax act online login Workers' compensation. 2010 tax act online login Nontaxable part of social security and railroad retirement benefits. 2010 tax act online login Nontaxable part of IRA, pension, or annuity distributions. 2010 tax act online login Do not include rollovers. 2010 tax act online login Public assistance payments. 2010 tax act online login The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. 2010 tax act online login Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. 2010 tax act online login What if you lived in more than one state?    If you lived in more than one state during 2006, look up the table amount for each state using the above rules. 2010 tax act online login If there is no table for your state, the table amount is considered to be zero. 2010 tax act online login Multiply the table amount for each state you lived in by a fraction. 2010 tax act online login The numerator of the fraction is the number of days you lived in the state during 2006 and the denominator is the total number of days in the year (365). 2010 tax act online login Enter the total of the prorated table amounts for each state on line 1. 2010 tax act online login However, if you also lived in a locality during 2006 that imposed a local general sales tax, do not enter the total on line 1. 2010 tax act online login Instead, complete a separate worksheet for each state you lived in and enter the prorated amount for that state on line 1. 2010 tax act online login Example. 2010 tax act online login You lived in State A from January 1 through August 31, 2006 (243 days), and in State B from September 1 through December 31, 2006 (122 days). 2010 tax act online login The table amount for State A is $500. 2010 tax act online login The table amount for State B is $400. 2010 tax act online login You would figure your state general sales tax as follows. 2010 tax act online login State A: $500 x 243/365 = $333   State B: $400 x 122/365 = 134   Total = $467   If none of the localities in which you lived during 2006 imposed a local general sales tax, enter $467 on line 1 of your worksheet. 2010 tax act online login Otherwise, complete a separate worksheet for State A and State B. 2010 tax act online login Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. 2010 tax act online login Line 2. 2010 tax act online login   If you checked the “No” box, enter -0- on line 2, and go to line 3. 2010 tax act online login If you checked the “Yes” box and lived in the same locality for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional local sales tax table for your locality on page 7. 2010 tax act online login Read down the “At least-But less than” columns for your locality and find the line that includes your 2006 income. 2010 tax act online login See the line 1 instructions on this page to figure your 2006 income. 2010 tax act online login The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. 2010 tax act online login Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. 2010 tax act online login What if you lived in more than one locality?   If you lived in more than one locality during 2006, look up the table amount for each locality using the above rules. 2010 tax act online login If there is no table for your locality, the table amount is considered to be zero. 2010 tax act online login Multiply the table amount for each locality you lived in by a fraction. 2010 tax act online login The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). 2010 tax act online login If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prorated table amounts for each locality in that state on line 2. 2010 tax act online login Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prorated table amount on line 2 of the applicable worksheet. 2010 tax act online login Example. 2010 tax act online login You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). 2010 tax act online login The table amount for Locality 1 is $100. 2010 tax act online login The table amount for Locality 2 is $150. 2010 tax act online login You would figure the amount to enter on line 2 as follows. 2010 tax act online login Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. 2010 tax act online login Locality 1: $100 x 243/365 = $67   Locality 2: $150 x 122/365 = 50   Total = $117   Line 3. 2010 tax act online login   If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7. 2010 tax act online login 25%. 2010 tax act online login Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 7. 2010 tax act online login 25%. 2010 tax act online login   If you lived in Nevada, check the “No” box if your combined state and local general sales tax rate is 6. 2010 tax act online login 5%. 2010 tax act online login Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 6. 2010 tax act online login 5%. 2010 tax act online login   If you lived in Texarkana, Arkansas, check the “Yes” box and enter “4. 2010 tax act online login 0” on line 3. 2010 tax act online login Your local general sales tax rate of 4. 2010 tax act online login 0% includes the additional 1. 2010 tax act online login 0% Arkansas state sales tax rate for Texarkana and the 1. 2010 tax act online login 5% sales tax rate for Miller County. 2010 tax act online login What if your local general sales tax rate changed during 2006?    If you checked the “Yes” box and your local general sales tax rate changed during 2006, figure the rate to enter on line 3 as follows. 2010 tax act online login Multiply each tax rate for the period it was in effect by a fraction. 2010 tax act online login The numerator of the fraction is the number of days the rate was in effect during 2006 and the denominator is the total number of days in the year (365). 2010 tax act online login Enter the total of the prorated tax rates on line 3. 2010 tax act online login Example. 2010 tax act online login Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2006 (273 days). 2010 tax act online login The rate increased to 1. 2010 tax act online login 75% for the period from October 1 through December 31, 2006 (92 days). 2010 tax act online login You would enter “1. 2010 tax act online login 189” on line 3, figured as follows. 2010 tax act online login January 1 - September 30: 1. 2010 tax act online login 00 x 273/365 = 0. 2010 tax act online login 748   October 1 - December 31: 1. 2010 tax act online login 75 x 92/365 = 0. 2010 tax act online login 441   Total = 1. 2010 tax act online login 189   What if you lived in more than one locality in the same state during 2006?    Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one locality in the same state during 2006 and either of the following applies. 2010 tax act online login Each locality did not have the same local general sales tax rate. 2010 tax act online login You lived in Texarkana, AR, or Los Angeles County, CA. 2010 tax act online login   To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the table on page 7 to figure your local general sales tax deduction), multiply the local general sales tax rate by a fraction. 2010 tax act online login The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). 2010 tax act online login Example. 2010 tax act online login You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). 2010 tax act online login The local general sales tax rate for Locality 1 is 1%. 2010 tax act online login The rate for Locality 2 is 1. 2010 tax act online login 75%. 2010 tax act online login You would enter “0. 2010 tax act online login 666” on line 3 for the Locality 1 worksheet and “0. 2010 tax act online login 585” for the Locality 2 worksheet, figured as follows. 2010 tax act online login Locality 1: 1. 2010 tax act online login 00 x 243/365 = 0. 2010 tax act online login 666   Locality 2: 1. 2010 tax act online login 75 x 122/365 = 0. 2010 tax act online login 585   Line 6. 2010 tax act online login   If you lived in more than one locality in the same state during 2006, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2006. 2010 tax act online login If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. 2010 tax act online login Line 7. 2010 tax act online login    Enter on line 7 any state and local general sales taxes paid on the following specified items. 2010 tax act online login If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets. 2010 tax act online login A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). 2010 tax act online login Also include any state and local general sales taxes paid for a leased motor vehicle. 2010 tax act online login If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate. 2010 tax act online login An aircraft or boat, if the tax rate was the same as the general sales tax rate. 2010 tax act online login A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. 2010 tax act online login Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. 2010 tax act online login You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. 2010 tax act online login Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. 2010 tax act online login The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. 2010 tax act online login In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly. 2010 tax act online login   Do not include sales taxes paid on items used in your trade or business. 2010 tax act online login If you received a refund of state or local general sales taxes in 2006, see Refund of general sales taxes on page 1. 2010 tax act online login Prev  Up  Next   Home   More Online Publications