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2011 Taxes Efile

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2011 Taxes Efile

2011 taxes efile 3. 2011 taxes efile   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. 2011 taxes efile Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. 2011 taxes efile An exclusion from gross income is generally income you receive that is not included in your U. 2011 taxes efile S. 2011 taxes efile income and is not subject to U. 2011 taxes efile S. 2011 taxes efile tax. 2011 taxes efile This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. 2011 taxes efile Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. 2011 taxes efile Useful Items - You may want to see: Publication 54 Tax Guide for U. 2011 taxes efile S. 2011 taxes efile Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. 2011 taxes efile Resident Aliens Resident aliens may be able to exclude the following items from their gross income. 2011 taxes efile Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. 2011 taxes efile The exclusion is $97,600 in 2013. 2011 taxes efile In addition, you may be able to exclude or deduct certain foreign housing amounts. 2011 taxes efile You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. 2011 taxes efile For more information, see Publication 54. 2011 taxes efile Foreign country. 2011 taxes efile    A foreign country is any territory under the sovereignty of a government other than that of the United States. 2011 taxes efile   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. 2011 taxes efile It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. 2011 taxes efile   The term “foreign country” does not include U. 2011 taxes efile S. 2011 taxes efile possessions or territories. 2011 taxes efile It does not include the Antarctic region. 2011 taxes efile Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. 2011 taxes efile Interest Income Interest income that is not connected with a U. 2011 taxes efile S. 2011 taxes efile trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. 2011 taxes efile State and local government obligations. 2011 taxes efile   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. 2011 taxes efile S. 2011 taxes efile possession, generally is not included in income. 2011 taxes efile However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. 2011 taxes efile Portfolio interest. 2011 taxes efile   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. 2011 taxes efile To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. 2011 taxes efile Note. 2011 taxes efile For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. 2011 taxes efile Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. 2011 taxes efile Obligations in registered form. 2011 taxes efile   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. 2011 taxes efile   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. 2011 taxes efile   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. 2011 taxes efile For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. 2011 taxes efile Obligations not in registered form. 2011 taxes efile    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. 2011 taxes efile A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. 2011 taxes efile   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. 2011 taxes efile In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. 2011 taxes efile Interest that does not qualify as portfolio interest. 2011 taxes efile   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. 2011 taxes efile You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. 2011 taxes efile Contingent interest. 2011 taxes efile   Portfolio interest does not include contingent interest. 2011 taxes efile Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. 2011 taxes efile For exceptions, see Internal Revenue Code section 871(h)(4)(C). 2011 taxes efile Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. 2011 taxes efile Related persons. 2011 taxes efile   Related persons include the following. 2011 taxes efile Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. 2011 taxes efile ), and lineal descendants (children, grandchildren, etc. 2011 taxes efile ). 2011 taxes efile Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. 2011 taxes efile Certain corporations, partnerships, and other entities. 2011 taxes efile For details, see Nondeductible Loss in chapter 2 of Publication 544. 2011 taxes efile Exception for existing debt. 2011 taxes efile   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. 2011 taxes efile Dividend Income The following dividend income is exempt from the 30% tax. 2011 taxes efile Certain dividends paid by foreign corporations. 2011 taxes efile   There is no 30% tax on U. 2011 taxes efile S. 2011 taxes efile source dividends you receive from a foreign corporation. 2011 taxes efile See Second exception under Dividends in chapter 2 for how to figure the amount of U. 2011 taxes efile S. 2011 taxes efile source dividends. 2011 taxes efile Certain interest-related dividends. 2011 taxes efile   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. 2011 taxes efile The mutual fund will designate in writing which dividends are interest-related dividends. 2011 taxes efile Certain short-term capital gain dividends. 2011 taxes efile   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. 2011 taxes efile The mutual fund will designate in writing which dividends are short-term capital gain dividends. 2011 taxes efile This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. 2011 taxes efile Services Performed for Foreign Employer If you were paid by a foreign employer, your U. 2011 taxes efile S. 2011 taxes efile source income may be exempt from U. 2011 taxes efile S. 2011 taxes efile tax, but only if you meet one of the situations discussed next. 2011 taxes efile Employees of foreign persons, organizations, or offices. 2011 taxes efile   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. 2011 taxes efile S. 2011 taxes efile sources and is tax exempt if you meet all three of the following conditions. 2011 taxes efile You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. 2011 taxes efile S. 2011 taxes efile corporation, a U. 2011 taxes efile S. 2011 taxes efile partnership, or a U. 2011 taxes efile S. 2011 taxes efile citizen or resident. 2011 taxes efile You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. 2011 taxes efile Your pay for these services is not more than $3,000. 2011 taxes efile If you do not meet all three conditions, your income from personal services performed in the United States is U. 2011 taxes efile S. 2011 taxes efile source income and is taxed according to the rules in chapter 4. 2011 taxes efile   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. 2011 taxes efile To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. 2011 taxes efile If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. 2011 taxes efile   A day means a calendar day during any part of which you are physically present in the United States. 2011 taxes efile Example 1. 2011 taxes efile During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. 2011 taxes efile S. 2011 taxes efile partnership. 2011 taxes efile Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. 2011 taxes efile That office paid him a total gross salary of $2,800 for those services. 2011 taxes efile During 2013, he was not engaged in a trade or business in the United States. 2011 taxes efile The salary is not considered U. 2011 taxes efile S. 2011 taxes efile source income and is exempt from U. 2011 taxes efile S. 2011 taxes efile tax. 2011 taxes efile Example 2. 2011 taxes efile The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. 2011 taxes efile He received $2,875 in 2013, and $1,625 in 2014. 2011 taxes efile During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. 2011 taxes efile Henry's salary is U. 2011 taxes efile S. 2011 taxes efile source income and is taxed under the rules in chapter 4. 2011 taxes efile Crew members. 2011 taxes efile   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. 2011 taxes efile S. 2011 taxes efile possession is not U. 2011 taxes efile S. 2011 taxes efile source income and is exempt from U. 2011 taxes efile S. 2011 taxes efile tax. 2011 taxes efile This exemption does not apply to compensation for services performed on foreign aircraft. 2011 taxes efile Students and exchange visitors. 2011 taxes efile   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. 2011 taxes efile   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. 2011 taxes efile It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. 2011 taxes efile   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. 2011 taxes efile Foreign employer. 2011 taxes efile   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. 2011 taxes efile S. 2011 taxes efile possession by a U. 2011 taxes efile S. 2011 taxes efile corporation, a U. 2011 taxes efile S. 2011 taxes efile partnership, or an individual who is a U. 2011 taxes efile S. 2011 taxes efile citizen or resident. 2011 taxes efile   The term “foreign employer” does not include a foreign government. 2011 taxes efile Pay from a foreign government that is exempt from U. 2011 taxes efile S. 2011 taxes efile income tax is discussed in chapter 10. 2011 taxes efile Income from certain annuities. 2011 taxes efile   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. 2011 taxes efile S. 2011 taxes efile income tax if you meet both of the following conditions. 2011 taxes efile You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . 2011 taxes efile At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. 2011 taxes efile S. 2011 taxes efile citizens or residents. 2011 taxes efile   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. 2011 taxes efile S. 2011 taxes efile citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. 2011 taxes efile   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. 2011 taxes efile Income affected by treaties. 2011 taxes efile   Income of any kind that is exempt from U. 2011 taxes efile S. 2011 taxes efile tax under a treaty to which the United States is a party is excluded from your gross income. 2011 taxes efile Income on which the tax is only limited by treaty, however, is included in gross income. 2011 taxes efile See chapter 9. 2011 taxes efile Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. 2011 taxes efile Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. 2011 taxes efile If you are married and file a joint return, you may be able to exclude up to $500,000. 2011 taxes efile For information on the requirements for this exclusion, see Publication 523. 2011 taxes efile This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. 2011 taxes efile Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. 2011 taxes efile The rules discussed here apply to both resident and nonresident aliens. 2011 taxes efile If a nonresident alien receives a grant that is not from U. 2011 taxes efile S. 2011 taxes efile sources, it is not subject to U. 2011 taxes efile S. 2011 taxes efile tax. 2011 taxes efile See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. 2011 taxes efile S. 2011 taxes efile sources. 2011 taxes efile A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. 2011 taxes efile Candidate for a degree. 2011 taxes efile   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. 2011 taxes efile Eligible educational institution. 2011 taxes efile   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. 2011 taxes efile Qualified education expenses. 2011 taxes efile   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. 2011 taxes efile These items must be required of all students in your course of instruction. 2011 taxes efile However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. 2011 taxes efile Expenses that do not qualify. 2011 taxes efile   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. 2011 taxes efile This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. 2011 taxes efile Scholarship or fellowship amounts used to pay these costs are taxable. 2011 taxes efile Amounts used to pay expenses that do not qualify. 2011 taxes efile   A scholarship amount used to pay any expense that does not qualify is taxable, even if the expense is a fee that must be paid to the institution as a condition of enrollment or attendance. 2011 taxes efile Payment for services. 2011 taxes efile   You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. 2011 taxes efile This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree. 2011 taxes efile Example. 2011 taxes efile On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring semester. 2011 taxes efile As a condition for receiving the scholarship, Maria must serve as a part-time teaching assistant. 2011 taxes efile Of the $2,500 scholarship, $1,000 represents payment for her services. 2011 taxes efile Assuming that Maria meets all other conditions, she can exclude no more than $1,500 from income as a qualified scholarship. 2011 taxes efile Prev  Up  Next   Home   More Online Publications
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The 2011 Taxes Efile

2011 taxes efile Publication 4492-A - Main Contents Table of Contents DefinitionsKansas Disaster Area Storms and Tornadoes Casualty and Theft Losses Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Recovery Assistance Distributions Repayment of Qualified Recovery Assistance Distributions How To Report Qualified Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Employee Retention Credit Demolition and Clean-up Costs Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 2011 taxes efile Definitions The following definitions are used throughout this publication. 2011 taxes efile Kansas Disaster Area The Kansas disaster area covers the Kansas counties of Barton, Clay, Cloud, Comanche, Dickinson, Edwards, Ellsworth, Kiowa, Leavenworth, Lyon, McPherson, Osage, Osborne, Ottawa, Phillips, Pottawatomie, Pratt, Reno, Rice, Riley, Saline, Shawnee, Smith, and Stafford. 2011 taxes efile Storms and Tornadoes The term “storms and tornadoes” as used in this publication, refers to the storms and tornadoes that began on May 4, 2007, and affected the Kansas disaster area (defined above). 2011 taxes efile Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that occurred in the Kansas disaster area. 2011 taxes efile Limits on personal casualty or theft losses in the Kansas disaster area. 2011 taxes efile   Losses of personal use property that arose in the Kansas disaster area after May 3, 2007, are not subject to the $100 or 10% of adjusted gross income limits. 2011 taxes efile Qualifying losses include losses from casualties and thefts that arose in the disaster area and that were attributable to the storms and tornadoes. 2011 taxes efile When to deduct the loss. 2011 taxes efile   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. 2011 taxes efile However, the Kansas disaster area is a Presidentially declared disaster. 2011 taxes efile Therefore, you could have elected to deduct losses from these storms and tornadoes on your tax return for the previous year. 2011 taxes efile The deadline for making this election has expired. 2011 taxes efile   The following special instructions explain how to complete your forms if you deduct the loss in 2007 or elected to deduct the loss in 2006. 2011 taxes efile Special instructions for individuals who file Form 4684 to claim a Kansas disaster area casualty or theft loss for 2007 or are amending their 2006 return. 2011 taxes efile   Individuals filing or amending their 2007 tax return or amending their 2006 tax return for casualty or theft losses that were attributable to the storms and tornadoes should enter “Kansas Disaster Area” at the top of Form 1040 or 1040X. 2011 taxes efile They must also complete and attach the 2006 version of Form 4684 for either year and enter “Kansas Disaster Area” on the top and on the dotted line next to line 11 and enter -0- on line 11. 2011 taxes efile Individuals filing or amending their 2007 tax return should cross out “2006” and enter “2007” at the top of Form 4684. 2011 taxes efile They must also enter the amount from line 21 of that form on line 20 of Schedule A (Form 1040). 2011 taxes efile Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. 2011 taxes efile Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). 2011 taxes efile However, for property that was involuntarily converted after May 3, 2007, as a result of the storms and tornadoes, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Kansas disaster area. 2011 taxes efile For more information, see the Instructions for Form 4684. 2011 taxes efile Net Operating Losses Qualified recovery assistance loss. 2011 taxes efile   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. 2011 taxes efile However, the portion of an NOL that is a qualified recovery assistance loss can be carried back to the 5 tax years before the NOL year. 2011 taxes efile In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. 2011 taxes efile   A qualified recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified recovery assistance casualty loss (as defined below), Moving expenses paid or incurred after May 3, 2007, and before January 1, 2010, for the employment of an individual whose main home was in the Kansas disaster area before May 4, 2007, who was unable to remain in that home because of the storms and tornadoes, and whose main job location (after the move) is in the Kansas disaster area, Temporary housing expenses paid or incurred after May 3, 2007, and before January 1, 2010, to house employees of the taxpayer whose main job location is in the Kansas disaster area, Depreciation or amortization allowable for any qualified recovery assistance property (even if you elected not to claim the special recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after May 3, 2007, and before January 1, 2010, for any damage from the storms and tornadoes to property located in the Kansas disaster area. 2011 taxes efile Qualified recovery assistance casualty loss. 2011 taxes efile   A qualified recovery assistance casualty loss is any deductible section 1231 loss of property located in the Kansas disaster area if the loss was caused by the storms and tornadoes. 2011 taxes efile For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the storms and tornadoes of property located in the Kansas disaster area. 2011 taxes efile Any such loss taken into account in figuring your qualified recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. 2011 taxes efile Amended return. 2011 taxes efile   If you have already filed your 2007 tax return and then carried your NOL back 2 years, you may file an amended return to carry back for 5 years your NOL attributable to a qualified recovery assistance loss. 2011 taxes efile More information. 2011 taxes efile    For more information on NOLs, see Publication 536. 2011 taxes efile IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for individuals who suffered economic losses as a result of the storms and tornadoes. 2011 taxes efile Definitions Qualified recovery assistance distribution. 2011 taxes efile   Except as provided below, a qualified recovery assistance distribution is any distribution you received and designated as such from an eligible retirement plan if all of the following apply. 2011 taxes efile The distribution was made after May 3, 2007, and before January 1, 2009. 2011 taxes efile Your main home was located in the Kansas disaster area on May 4, 2007. 2011 taxes efile You sustained an economic loss because of the storms and tornadoes. 2011 taxes efile Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 2011 taxes efile   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified recovery assistance distribution, regardless of whether the distribution was made on account of the storms and tornadoes. 2011 taxes efile Qualified recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. 2011 taxes efile   The total of your qualified recovery assistance distributions from all plans is limited to $100,000. 2011 taxes efile If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. 2011 taxes efile   A reduction or offset after May 3, 2007, of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified recovery assistance distribution. 2011 taxes efile Eligible retirement plan. 2011 taxes efile   An eligible retirement plan can be any of the following. 2011 taxes efile A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). 2011 taxes efile A qualified annuity plan. 2011 taxes efile A tax-sheltered annuity contract. 2011 taxes efile A governmental section 457 deferred compensation plan. 2011 taxes efile A traditional, SEP, SIMPLE, or Roth IRA. 2011 taxes efile Main home. 2011 taxes efile   Generally, your main home is the home where you live most of the time. 2011 taxes efile A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. 2011 taxes efile Taxation of Qualified Recovery Assistance Distributions Qualified recovery assistance distributions are included in income in equal amounts over three years. 2011 taxes efile However, if you elect, you can include the entire distribution in your income in the year it was received. 2011 taxes efile Qualified recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). 2011 taxes efile However, any distributions you receive in excess of the $100,000 qualified recovery assistance distribution limit may be subject to the additional tax on early distributions. 2011 taxes efile For more information, see How To Report Qualified Recovery Assistance Distributions on page 4. 2011 taxes efile Repayment of Qualified Recovery Assistance Distributions If you choose, you generally can repay any portion of a qualified recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. 2011 taxes efile Also, you can repay a qualified recovery assistance distribution made on account of a hardship from a retirement plan. 2011 taxes efile However, see Exceptions below for qualified recovery assistance distributions you cannot repay. 2011 taxes efile You have three years from the day after the date you received the distribution to make a repayment. 2011 taxes efile Amounts that are repaid are treated as a qualified rollover and are not included in income. 2011 taxes efile Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 2011 taxes efile See Form 8915 for more information on how to report repayments. 2011 taxes efile Exceptions. 2011 taxes efile   You cannot repay the following types of distributions. 2011 taxes efile Qualified recovery assistance distributions received as a beneficiary (other than a surviving spouse). 2011 taxes efile Required minimum distributions. 2011 taxes efile Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. 2011 taxes efile How To Report Qualified Recovery Assistance Distributions You will need the following information to correctly report any 2007 or 2008 qualified recovery assistance distributions. 2011 taxes efile 2007 Qualified Recovery Assistance Distributions If you received a distribution after May 3, 2007, from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. 2011 taxes efile See Qualified recovery assistance distribution on page 3. 2011 taxes efile If you have not filed your 2007 income tax return, see Form 8915 and Form 8606 on this page to see how to complete these forms for any qualified recovery assistance distributions. 2011 taxes efile Be sure to attach Form 8915 and Form 8606 (if required) to your 2007 income tax return. 2011 taxes efile If you have filed your 2007 income tax return, you will need to amend your return to designate any distributions as qualified recovery assistance distributions. 2011 taxes efile You can amend your 2007 income tax return by using Form 1040X. 2011 taxes efile You will need to complete and attach Form 8915 and Form 8606 (if required) to your amended income tax return for any qualified recovery assistance distributions. 2011 taxes efile See Form 8915 and Form 8606 on this page. 2011 taxes efile Form 8915. 2011 taxes efile   For a 2007 qualified recovery assistance distribution, complete the 2005 Form 8915, Qualified Hurricane Retirement Plan Distributions and Repayments. 2011 taxes efile Before you complete the form, modify the form as follows. 2011 taxes efile Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 2011 taxes efile ” To the right of the title, cross out “2005” and enter “2007. 2011 taxes efile ” In Part I, at the top of column (a), cross out “2005” and enter “2007. 2011 taxes efile ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. 2011 taxes efile ” On lines 10 and 11, cross out “2005” and enter “2007. 2011 taxes efile ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. 2011 taxes efile ” On line 12, cross out “hurricane” and enter “recovery assistance. 2011 taxes efile ” On lines 13 and 14, cross out “line 15b” and “line 25b. 2011 taxes efile ” On lines 18 and 19, cross out “2005” and enter “2007. 2011 taxes efile ”   You can now complete Form 8915. 2011 taxes efile For the instructions, use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions. 2011 taxes efile See Example 1 on page 5 to see how to complete Form 8915. 2011 taxes efile Form 8606. 2011 taxes efile   For a 2007 qualified recovery assistance distribution, complete or amend the 2007 Form 8606, Nondeductible IRAs. 2011 taxes efile Before you complete or amend the form, use the following additional instructions. 2011 taxes efile Form 8606, Part I. 2011 taxes efile    On line 6, subtract any repayments of qualified recovery assistance distributions from the amount you would otherwise enter on line 6. 2011 taxes efile Do not enter an amount less than -0-. 2011 taxes efile Include on line 7 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. 2011 taxes efile Complete line 15 as follows. 2011 taxes efile If all of your distributions are qualified recovery assistance distributions, enter the amount from line 15 on Form 8915, line 13. 2011 taxes efile Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2011 taxes efile If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 15 by a fraction. 2011 taxes efile The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 7. 2011 taxes efile Enter the result in the white space in the bottom margin of the form under line 15. 2011 taxes efile To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 13. 2011 taxes efile Then, subtract this amount from the amount on line 15 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2011 taxes efile Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. 2011 taxes efile To the left of this amount, enter “Other distributions. 2011 taxes efile ” Form 8606, Part III. 2011 taxes efile    Include on line 19 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. 2011 taxes efile Complete line 25 as follows. 2011 taxes efile If all of your distributions are qualified recovery assistance distributions, enter the amount from line 25 on Form 8915, line 14. 2011 taxes efile Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2011 taxes efile If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 25 by a fraction. 2011 taxes efile The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 21. 2011 taxes efile Enter the result in the white space in the bottom margin of the form under line 25. 2011 taxes efile To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 14. 2011 taxes efile Then, subtract this amount from the amount on line 25 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. 2011 taxes efile Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. 2011 taxes efile To the left of this amount, enter “Other distributions. 2011 taxes efile ” Example 1. 2011 taxes efile   On May 4, 2007, Margaret Maple lost her home due to the tornadoes on that day. 2011 taxes efile Her home was located in the Kansas disaster area. 2011 taxes efile On July 31, 2007, Margaret took out $30,000 from her 401(k) plan and an additional $15,000 from her traditional IRA in order to rebuild her home. 2011 taxes efile Margaret has not filed her 2007 return yet but would like to designate the $45,000 in distributions from her retirement plans as qualified recovery assistance distributions. 2011 taxes efile Since the distributions occurred in 2007, Margaret would modify and complete the 2005 Form 8915 as discussed on page 4. 2011 taxes efile Margaret would also need to complete Form 8606 since her distribution from her traditional IRA has nondeductible contributions from previous years. 2011 taxes efile   In addition to the $15,000 qualified recovery assistance distribution on July 31, 2007, Margaret received an additional distribution of $15,000 from her traditional IRA on October 31, 2007, that she did not designate as a qualified recovery assistance distribution. 2011 taxes efile Because Margaret has a qualified recovery assistance distribution as well as a distribution not so designated, Margaret must allocate the amount on Form 8606, line 15 to both distributions, as discussed earlier. 2011 taxes efile Margaret's qualified recovery assistance distributions are $13,125 ($26,250 × $15,000 ÷ $30,000). 2011 taxes efile Margaret enters in the white space in the bottom margin of Form 8606, the following, “Qualified recovery assistance distributions $13,125. 2011 taxes efile ” This amount is then reported on Form 8915, line 13. 2011 taxes efile Below this entry, Margaret enters “Other distributions $13,125,” and includes this amount on Form 1040, line 15b. 2011 taxes efile See Margaret's modified 2005 Form 8915 and 2007 Form 8606 shown on pages 6 through 8. 2011 taxes efile This image is too large to be displayed in the current screen. 2011 taxes efile Please click the link to view the image. 2011 taxes efile 2005 Form 8915, page 1, Illustrated Example 1. 2011 taxes efile This image is too large to be displayed in the current screen. 2011 taxes efile Please click the link to view the image. 2011 taxes efile 2005 Form 8915, page 2, Illustrated Example 1 This image is too large to be displayed in the current screen. 2011 taxes efile Please click the link to view the image. 2011 taxes efile Form 8606, page 1, Illustrated Example 1 2008 Qualified Recovery Assistance Distributions If you received a distribution in 2008 from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. 2011 taxes efile See Qualified recovery assistance distribution on page 3. 2011 taxes efile You will need to complete and attach Form 8915 and Form 8606 (if required) to your 2008 income tax return for any qualified recovery assistance distributions. 2011 taxes efile See Form 8915 and Form 8606 below. 2011 taxes efile Form 8915. 2011 taxes efile   For a 2008 qualified recovery assistance distribution, you will need to complete the 2006 Form 8915. 2011 taxes efile Before you complete the form, modify the form as follows. 2011 taxes efile Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 2011 taxes efile ” To the right of the title, cross out “2006” and enter “2008. 2011 taxes efile ” In the first sentence of Part I and on line 1, cross out “hurricane” and enter “recovery assistance,” cross out “2006” and enter “2008,” and cross out “2005” and enter “2007. 2011 taxes efile ” At the top of column (a) cross out “2006” and enter “2008. 2011 taxes efile ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. 2011 taxes efile ” On lines 12, 14, and 15, cross out “2005” and enter “2007. 2011 taxes efile ” On lines 17 and 19, cross out “2006” and enter “2008. 2011 taxes efile ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. 2011 taxes efile ” On line 21, cross out “hurricane” and enter “recovery assistance. 2011 taxes efile ” On lines 22 and 23, cross out “line 15b” and “line 25b. 2011 taxes efile ” On lines 27, 29, and 30, cross out “2005” and enter “2007. 2011 taxes efile ” On lines 32 and 34, cross out “2006” and enter “2008. 2011 taxes efile ”   You can now complete Form 8915. 2011 taxes efile For the instructions, use the applicable dates and terms in this publication instead of those used in the 2006 Form 8915 instructions. 2011 taxes efile Example 2. 2011 taxes efile   On June 15, 2008, Margaret Maple, from the previous example, took out $15,000 from her 401(k) plan that she is designating as a qualified recovery assistance distribution. 2011 taxes efile Since the distribution occurred in 2008, Margaret would modify and complete the 2006 Form 8915 as discussed above. 2011 taxes efile Also, since Margaret is including her 2007 recovery assistance distributions in income over 3 years, she reports the applicable amount of those distributions on the modified 2006 Form 8915. 2011 taxes efile See Margaret's modified 2006 Form 8915 shown on pages 9 and 10. 2011 taxes efile This image is too large to be displayed in the current screen. 2011 taxes efile Please click the link to view the image. 2011 taxes efile 2006 Form 8915, page 1, Illustrated Example 2 This image is too large to be displayed in the current screen. 2011 taxes efile Please click the link to view the image. 2011 taxes efile 2006 Form 8915, page 2, Illustrated Example 2 Form 8606. 2011 taxes efile   For a 2008 qualified recovery assistance distribution, you may need to complete the 2008 Form 8606. 2011 taxes efile Before you complete Form 8606, use the additional instructions outlined in Form 8606, Part I, on page 4 and Form 8606, Part III, on this page. 2011 taxes efile Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Kansas disaster area, you can repay part or all of that distribution after May 3, 2007, but no later than October 22, 2008, to an eligible retirement plan. 2011 taxes efile For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. 2011 taxes efile To be a qualified distribution, the distribution must meet all of the following requirements. 2011 taxes efile The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. 2011 taxes efile The distribution was received after November 4, 2006, and before May 5, 2007. 2011 taxes efile The distribution was to be used to purchase or construct a main home in the Kansas disaster area that was not purchased or constructed because of the storms and tornadoes. 2011 taxes efile Amounts that are repaid before October 23, 2008, are treated as a qualified rollover and are not included in income. 2011 taxes efile Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. 2011 taxes efile A qualified distribution not repaid before October 23, 2008, may be taxable for 2006 or 2007 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. 2011 taxes efile You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before October 23, 2008. 2011 taxes efile See How to report, next, for information on completing Form 8915. 2011 taxes efile How to report. 2011 taxes efile   To report the repayment of a qualified distribution for the purchase or construction of a main home that was not purchased or constructed due to the storms and tornadoes, use the 2005 Form 8915, Part IV. 2011 taxes efile Before you complete the form, modify the form as follows. 2011 taxes efile Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. 2011 taxes efile ” To the right of the title, cross out “2005” and enter “2006” or “2007. 2011 taxes efile ” Enter only the year the distribution was received. 2011 taxes efile Cross out “Hurricane” in the title of Part IV and enter “Kansas. 2011 taxes efile ” In the sentence below the title of Part IV, cross out “March 1, 2006” and enter “October 23, 2008. 2011 taxes efile ” On line 24, cross out “March 1, 2006” and enter “October 23, 2008. 2011 taxes efile ” You can now complete Part IV of Form 8915. 2011 taxes efile Use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions to complete the form. 2011 taxes efile Attach Form 8915 to your original or amended return for the year of the distribution. 2011 taxes efile Amended return. 2011 taxes efile   If you repay part or all of a qualified distribution by October 22, 2008, you will need to file an amended return for that part of a distribution that was previously included in income. 2011 taxes efile Loans From Qualified Plans The following benefits are available to qualified individuals. 2011 taxes efile Increases to the limits for distributions treated as loans from employer plans. 2011 taxes efile A 1-year suspension for payments due on plan loans. 2011 taxes efile Qualified individual. 2011 taxes efile   You are a qualified individual if your main home on May 4, 2007, was located in the Kansas disaster area and you had an economic loss because of the storms and tornadoes. 2011 taxes efile Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. 2011 taxes efile Limits on plan loans. 2011 taxes efile   The $50,000 limit for distributions treated as plan loans is increased to $100,000. 2011 taxes efile In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. 2011 taxes efile If your home was located in the Kansas disaster area, the higher limits apply only to loans received during the period beginning on May 22, 2008, and ending on December 31, 2008. 2011 taxes efile One-year suspension of loan payments. 2011 taxes efile   Payments on plan loans outstanding after May 3, 2007, may be suspended for 1 year by the plan administrator. 2011 taxes efile To qualify for the suspension, the due date for any loan payment must occur during the period beginning on May 4, 2007, and ending on December 31, 2008. 2011 taxes efile Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified recovery assistance property (as defined below) you acquire after May 4, 2007. 2011 taxes efile The special allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). 2011 taxes efile The special allowance applies only for the first year the property is placed in service. 2011 taxes efile The special allowance is deductible for both the regular tax and the alternative minimum tax (AMT). 2011 taxes efile There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. 2011 taxes efile You can elect not to deduct the special allowance for qualified recovery assistance property. 2011 taxes efile If you make this election for any property, it applies to all property in the same class placed in service during the year. 2011 taxes efile Qualified recovery assistance property. 2011 taxes efile   Property that qualifies for the special allowance for qualified recovery assistance property includes the following. 2011 taxes efile Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. 2011 taxes efile Water utility property. 2011 taxes efile Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. 2011 taxes efile (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. 2011 taxes efile ) Qualified leasehold improvement property. 2011 taxes efile Nonresidential real property and residential rental property. 2011 taxes efile   For more information on this property, see Publication 946. 2011 taxes efile Other tests to be met. 2011 taxes efile   To be qualified recovery assistance property, the property must also meet all of the following tests. 2011 taxes efile You must have acquired the property, by purchase, after May 4, 2007, but only if no binding written contract for the acquisition was in effect before May 5, 2007. 2011 taxes efile The property must be placed in service before 2009 (2010 in the case of nonresidential real property and residential rental property). 2011 taxes efile Substantially all of the use of the property must be in the Kansas disaster area and in the active conduct of your trade or business in the Kansas disaster area. 2011 taxes efile The original use of the property in the Kansas disaster area must begin with you after May 4, 2007. 2011 taxes efile Used property can be qualified recovery assistance property if it has not previously been used within the Kansas disaster area. 2011 taxes efile Also, additional capital expenditures you incurred after May 4, 2007, to recondition or rebuild your property meet the original use test if the original use of the property in the Kansas disaster area began with you. 2011 taxes efile Excepted property. 2011 taxes efile   Qualified recovery assistance property does not include any of the following. 2011 taxes efile Property required to be depreciated using the Alternative Depreciation System (ADS). 2011 taxes efile Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. 2011 taxes efile Property for which you are claiming a commercial revitalization deduction. 2011 taxes efile Property in the same class as that for which you elected not to claim the special allowance for qualified recovery assistance property. 2011 taxes efile Property placed in service and disposed of in the same tax year. 2011 taxes efile Property converted from business use to personal use in the same tax year it is placed in service. 2011 taxes efile Property converted from personal use to business use in the same or later tax year may be qualified recovery assistance property. 2011 taxes efile Recapture of special allowance. 2011 taxes efile   If, in any year after the year you claim the special allowance, the property ceases to be qualified recovery assistance property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. 2011 taxes efile Amended return. 2011 taxes efile   If you have already filed your tax return, you may have to amend that return to claim any special allowance. 2011 taxes efile Additional guidance will be published on how you may claim, or elect not to claim, the special allowance if you have already filed your tax return. 2011 taxes efile Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 recovery assistance property (as defined later) placed in service in the Kansas disaster area. 2011 taxes efile Increased dollar limit. 2011 taxes efile   The limit on the section 179 deduction ($125,000 for 2007, $250,000 for 2008) is increased by the smaller of: $100,000, or The cost of qualified section 179 recovery assistance property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). 2011 taxes efile   The amount for which you can make the election is reduced if the cost of all section 179 property you placed in service during the year exceeds $500,000 for 2007 and $800,000 for 2008 increased by the smaller of: $600,000, or The cost of qualified section 179 recovery assistance property placed in service during the year. 2011 taxes efile Qualified section 179 recovery assistance property. 2011 taxes efile   Qualified section 179 recovery assistance property is section 179 property that is qualified recovery assistance property (explained earlier under Special Depreciation Allowance). 2011 taxes efile Section 179 property does not include nonresidential real property or residential rental property. 2011 taxes efile For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. 2011 taxes efile Amended return. 2011 taxes efile   If you have already filed your tax return, you may have to amend that return for any increased section 179 deduction. 2011 taxes efile Employee Retention Credit An eligible employer who conducted an active trade or business in the Kansas disaster area can claim the employee retention credit. 2011 taxes efile The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). 2011 taxes efile Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). 2011 taxes efile Use Form 5884-A to claim the credit. 2011 taxes efile See Form 5884-A later. 2011 taxes efile The following rules and definitions apply. 2011 taxes efile Employers affected by the storms and tornadoes. 2011 taxes efile   The following definitions apply to employers affected by the storms and tornadoes. 2011 taxes efile Eligible employer. 2011 taxes efile   For this purpose, an eligible employer is any employer who meets all of the following. 2011 taxes efile Employed an average of not more than 200 employees on business days during the tax year before May 4, 2007. 2011 taxes efile Conducted an active trade or business on May 4, 2007, in the Kansas disaster area. 2011 taxes efile Whose trade or business was inoperable on any day after May 4, 2007, and before January 1, 2008, because of damage caused by the storms and tornadoes. 2011 taxes efile Eligible employee. 2011 taxes efile   For this purpose, an eligible employee is an employee whose principal place of employment on May 4, 2007, with the eligible employer was in the Kansas disaster area. 2011 taxes efile An employee is not an eligible employee for purposes of the storms and tornadoes if the employee is treated as an eligible employee for the work opportunity credit. 2011 taxes efile Qualified wages. 2011 taxes efile   Qualified wages are wages you paid or incurred before January 1, 2008, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before May 4, 2007, and ending on the date your trade or business resumed significant operations at that place. 2011 taxes efile In addition, the wages must have been paid or incurred after May 4, 2007. 2011 taxes efile    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. 2011 taxes efile    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). 2011 taxes efile Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. 2011 taxes efile Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. 2011 taxes efile   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. 2011 taxes efile For a special rule that applies to railroad employees, see section 51(h)(1)(B). 2011 taxes efile   Qualified wages do not include the following. 2011 taxes efile Wages paid to your dependent or a related individual. 2011 taxes efile See section 51(i)(1). 2011 taxes efile Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. 2011 taxes efile Wages for services of replacement workers during a strike or lockout. 2011 taxes efile Form 5884-A. 2011 taxes efile   Use Section A of Form 5884-A (Rev. 2011 taxes efile October 2006) to claim the employer retention credit. 2011 taxes efile Section B does not apply to the Kansas disaster area. 2011 taxes efile Before you complete the form, modify the form as follows. 2011 taxes efile Cross out “Hurricane Katrina, Rita, or Wilma” in the title at the top of the form and enter “Kansas Storms and Tornadoes. 2011 taxes efile ” On line 1a cross out “Hurricane Katrina” and enter “Kansas Storms and Tornadoes,” cross out “August 28, 2005,” and enter “May 4, 2007,” and cross out “January 1, 2006,” and enter “January 1, 2008. 2011 taxes efile ”   Complete the form as instructed. 2011 taxes efile Lines 1b and 1c do not apply. 2011 taxes efile Include the amount from Form 5884-A, line 4 in the amount entered on Form 3800, line 1x. 2011 taxes efile On the dotted line to the left of line 1x, enter “5884-A. 2011 taxes efile ” Use the applicable dates and terms in this publication instead of those used in the Form 5884-A instructions. 2011 taxes efile Amended return. 2011 taxes efile   You may have to amend a previously filed return to claim the employee retention credit. 2011 taxes efile Demolition and Clean-up Costs You can elect to deduct 50% of any qualified recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. 2011 taxes efile Qualified recovery assistance clean-up costs are any amounts paid or incurred after May 3, 2007, and before January 1, 2010, for the removal of debris from, or the demolition of structures on, real property located in the Kansas disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. 2011 taxes efile Amended return. 2011 taxes efile   If you have already filed your tax return, you may have to amend that return to claim the 50% of any qualified recovery assistance clean-up costs. 2011 taxes efile Request for Copy or Transcript of Tax Return Request for copy of tax return. 2011 taxes efile   You can use Form 4506 to order a copy of your tax return. 2011 taxes efile Generally, there is a $39. 2011 taxes efile 00 fee (subject to change) for requesting each copy of a tax return. 2011 taxes efile If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Kansas Storms”) is written in red across the top of the form when filed. 2011 taxes efile Request for transcript of tax return. 2011 taxes efile   You can use Form 4506-T to order a free transcript of your tax return. 2011 taxes efile A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. 2011 taxes efile You can also call 1-800-829-1040 to order a transcript. 2011 taxes efile How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 2011 taxes efile By selecting the method that is best for you, you will have quick and easy access to tax help. 2011 taxes efile Contacting your Taxpayer Advocate. 2011 taxes efile   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. 2011 taxes efile   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. 2011 taxes efile You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. 2011 taxes efile You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. 2011 taxes efile For more information, go to www. 2011 taxes efile irs. 2011 taxes efile gov/advocate. 2011 taxes efile Low Income Taxpayer Clinics (LITCs). 2011 taxes efile   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. 2011 taxes efile The clinics also provide tax education and outreach for taxpayers who speak English as a second language. 2011 taxes efile Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. 2011 taxes efile It is available at www. 2011 taxes efile irs. 2011 taxes efile gov or your local IRS office. 2011 taxes efile Free tax services. 2011 taxes efile   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. 2011 taxes efile It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. 2011 taxes efile It also has an index of over 100 TeleTax topics, (recorded tax information) you can listen to on your telephone. 2011 taxes efile   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 2011 taxes efile Free help with your return. 2011 taxes efile   Free help in preparing your return is available nationwide from IRS-trained volunteers. 2011 taxes efile The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 2011 taxes efile Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2011 taxes efile To find a site near you, call 1-800-829-1040. 2011 taxes efile Or to find the nearest AARP TaxAide site, visit AARP's website at www. 2011 taxes efile aarp. 2011 taxes efile org/taxaide or call 1-888-227-7669. 2011 taxes efile For more information on these programs, go to www. 2011 taxes efile irs. 2011 taxes efile gov and enter keyword “VITA” in the upper right-hand corner. 2011 taxes efile Internet. 2011 taxes efile You can access the IRS website at www. 2011 taxes efile irs. 2011 taxes efile gov 24 hours a day, 7 days a week to: E-file your return. 2011 taxes efile Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 2011 taxes efile Check the status of your refund. 2011 taxes efile Click on Where's My Refund. 2011 taxes efile Wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 2011 taxes efile Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 2011 taxes efile Download forms, instructions, and publications. 2011 taxes efile Order IRS products online. 2011 taxes efile Research your tax questions online. 2011 taxes efile Search publications online by topic or keyword. 2011 taxes efile View Internal Revenue Bulletins (IRBs) published in the last few years. 2011 taxes efile Figure your withholding allowances using the withholding calculator online at www. 2011 taxes efile irs. 2011 taxes efile gov/individuals. 2011 taxes efile Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. 2011 taxes efile Sign up to receive local and national tax news by email. 2011 taxes efile Get information on starting and operating a small business. 2011 taxes efile Phone. 2011 taxes efile Many services are available by phone. 2011 taxes efile Ordering forms, instructions, and publications. 2011 taxes efile Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. 2011 taxes efile You should receive your order within 10 days. 2011 taxes efile Asking tax questions. 2011 taxes efile Call the IRS with your tax questions at 1-800-829-1040. 2011 taxes efile Solving problems. 2011 taxes efile You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. 2011 taxes efile An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 2011 taxes efile Call your local Taxpayer Assistance Center for an appointment. 2011 taxes efile To find the number, go to www. 2011 taxes efile irs. 2011 taxes efile gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2011 taxes efile TTY/TDD equipment. 2011 taxes efile If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 2011 taxes efile TeleTax topics. 2011 taxes efile Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 2011 taxes efile Refund information. 2011 taxes efile To check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information or call 1-800-829-1954. 2011 taxes efile Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). 2011 taxes efile Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. 2011 taxes efile Evaluating the quality of our telephone services. 2011 taxes efile To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 2011 taxes efile One method is for a second IRS representative to listen in on or record random telephone calls. 2011 taxes efile Another is to ask some callers to complete a short survey at the end of the call. 2011 taxes efile Walk-in. 2011 taxes efile Many products and services are available on a walk-in basis. 2011 taxes efile Products. 2011 taxes efile You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2011 taxes efile Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. 2011 taxes efile Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 2011 taxes efile Services. 2011 taxes efile You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. 2011 taxes efile An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 2011 taxes efile If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. 2011 taxes efile No appointment is necessary — just walk in. 2011 taxes efile If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. 2011 taxes efile A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. 2011 taxes efile If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment may be requested. 2011 taxes efile All other issues will be handled without an appointment. 2011 taxes efile To find the number of your local office, go to www. 2011 taxes efile irs. 2011 taxes efile gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2011 taxes efile Mail. 2011 taxes efile You can send your order for forms, instructions, and publications to the address below. 2011 taxes efile You should receive a response within 10 days after your request is received. 2011 taxes efile Internal Revenue Service 1201 N. 2011 taxes efile Mitsubishi Motorway Bloomington, IL 61705-6613 CD/DVD for tax products. 2011 taxes efile You can order Publication 1796, IRS Tax Products CD/DVD, and obtain: Current-year forms, instructions, and publications. 2011 taxes efile Prior-year forms, instructions, and publications. 2011 taxes efile Bonus: Historical Tax Products DVD - Ships with the final release. 2011 taxes efile IRS Tax Map: an electronic research tool and finding aid. 2011 taxes efile Tax law frequently asked questions (FAQ). 2011 taxes efile Tax Topics from the IRS telephone response system. 2011 taxes efile Fill-in, print, and save features for most tax forms. 2011 taxes efile Internal Revenue Bulletins. 2011 taxes efile Toll-free and email technical support. 2011 taxes efile The CD/DVD is released twice during the year in January and March. 2011 taxes efile Purchase the CD/DVD from National Technical Information Service (NTIS) at www. 2011 taxes efile irs. 2011 taxes efile gov/cdorders for $35 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the CD/DVD for $35 (plus a $5 handling fee). 2011 taxes efile Price is subject to change. 2011 taxes efile CD for small businesses. 2011 taxes efile Publication 3207, The Small Business Resource Guide CD, is a must for every small business owner or any taxpayer about to start a business. 2011 taxes efile This year's CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. 2011 taxes efile All the business tax forms, instructions, and publications needed to successfully manage a business. 2011 taxes efile Tax law changes. 2011 taxes efile Tax Map: an electronic research tool and finding aid. 2011 taxes efile Web links to various government agencies, business associations, and IRS organizations. 2011 taxes efile “Rate the Product” survey—your opportunity to suggest changes for future editions. 2011 taxes efile A site map of the CD to help you navigate the pages of the CD with ease. 2011 taxes efile An interactive “Teens in Biz” module that gives practical tips for teens about starting their own business, creating a business plan, and filing taxes. 2011 taxes efile An updated version of this CD is available each year in early April. 2011 taxes efile You can get a free copy by calling 1-800-829-3676 or by visiting www. 2011 taxes efile irs. 2011 taxes efile gov/smallbiz. 2011 taxes efile Prev  Up  Next   Home   More Online Publications