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2012 1040 Form

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2012 1040 Form

2012 1040 form 2. 2012 1040 form   Filing Status Table of Contents What's New Introduction Useful Items - You may want to see: Marital StatusDivorced persons. 2012 1040 form Divorce and remarriage. 2012 1040 form Annulled marriages. 2012 1040 form Head of household or qualifying widow(er) with dependent child. 2012 1040 form Considered married. 2012 1040 form Same-sex marriage. 2012 1040 form Spouse died during the year. 2012 1040 form Married persons living apart. 2012 1040 form Single Married Filing JointlyFiling a Joint Return Married Filing SeparatelySpecial Rules Head of HouseholdConsidered Unmarried Keeping Up a Home Qualifying Person Qualifying Widow(er) With Dependent Child What's New Filing status for same-sex married couples. 2012 1040 form  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. 2012 1040 form See Same-sex marriage under Marital Status, later. 2012 1040 form Introduction This chapter helps you determine which filing status to use. 2012 1040 form There are five filing statuses. 2012 1040 form Single. 2012 1040 form Married Filing Jointly. 2012 1040 form Married Filing Separately. 2012 1040 form Head of Household. 2012 1040 form Qualifying Widow(er) With Dependent Child. 2012 1040 form If more than one filing status applies to you, choose the one that will give you the lowest tax. 2012 1040 form You must determine your filing status before you can determine whether you must file a tax return (chapter 1), your standard deduction (chapter 20), and your tax (chapter 30). 2012 1040 form You also use your filing status to determine whether you are eligible to claim certain deductions and credits. 2012 1040 form Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 519 U. 2012 1040 form S. 2012 1040 form Tax Guide for Aliens 555 Community Property Marital Status In general, your filing status depends on whether you are considered unmarried or married. 2012 1040 form Unmarried persons. 2012 1040 form   You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. 2012 1040 form State law governs whether you are married or legally separated under a divorce or separate maintenance decree. 2012 1040 form Divorced persons. 2012 1040 form   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. 2012 1040 form Divorce and remarriage. 2012 1040 form   If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. 2012 1040 form Annulled marriages. 2012 1040 form    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. 2012 1040 form You must file Form 1040X, Amended U. 2012 1040 form S. 2012 1040 form Individual Income Tax Return, claiming single or head of household status for all tax years that are affected by the annulment and are not closed by the statute of limitations for filing a tax return. 2012 1040 form Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. 2012 1040 form If you filed your original return early (for example, March 1), your return is considered filed on the due date (generally April 15). 2012 1040 form However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. 2012 1040 form Head of household or qualifying widow(er) with dependent child. 2012 1040 form   If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. 2012 1040 form See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. 2012 1040 form Married persons. 2012 1040 form   If you are considered married, you and your spouse can file a joint return or separate returns. 2012 1040 form Considered married. 2012 1040 form   You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. 2012 1040 form You are married and living together as a married couple. 2012 1040 form You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. 2012 1040 form You are married and living apart, but not legally separated under a decree of divorce or separate maintenance. 2012 1040 form You are separated under an interlocutory (not final) decree of divorce. 2012 1040 form Same-sex marriage. 2012 1040 form   For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. 2012 1040 form The term “spouse” includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. 2012 1040 form However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state (or foreign) law are not considered married for federal tax purposes. 2012 1040 form For more details, see Publication 501. 2012 1040 form Spouse died during the year. 2012 1040 form   If your spouse died during the year, you are considered married for the whole year for filing status purposes. 2012 1040 form   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. 2012 1040 form For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . 2012 1040 form   If you remarried before the end of the tax year, you can file a joint return with your new spouse. 2012 1040 form Your deceased spouse's filing status is married filing separately for that year. 2012 1040 form Married persons living apart. 2012 1040 form   If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. 2012 1040 form If you qualify to file as head of household instead of married filing separately, your standard deduction will be higher. 2012 1040 form Also, your tax may be lower, and you may be able to claim the earned income credit. 2012 1040 form See Head of Household , later. 2012 1040 form Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. 2012 1040 form To determine your marital status, see Marital Status , earlier. 2012 1040 form Widow(er). 2012 1040 form   Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. 2012 1040 form You may, however, be able to use another filing status that will give you a lower tax. 2012 1040 form See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. 2012 1040 form How to file. 2012 1040 form   You can file Form 1040. 2012 1040 form If you have taxable income of less than $100,000, you may be able to file Form 1040A. 2012 1040 form If, in addition, you have no dependents, and are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. 2012 1040 form If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. 2012 1040 form Use the Single column of the Tax Table or Section A of the Tax Computation Worksheet to figure your tax. 2012 1040 form Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. 2012 1040 form On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. 2012 1040 form You can file a joint return even if one of you had no income or deductions. 2012 1040 form If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. 2012 1040 form Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. 2012 1040 form If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). 2012 1040 form You can choose the method that gives the two of you the lower combined tax. 2012 1040 form How to file. 2012 1040 form   If you file as married filing jointly, you can use Form 1040. 2012 1040 form If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. 2012 1040 form If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. 2012 1040 form If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. 2012 1040 form Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. 2012 1040 form Spouse died. 2012 1040 form   If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. 2012 1040 form See Spouse died during the year under Marital Status, earlier, for more information. 2012 1040 form   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. 2012 1040 form Divorced persons. 2012 1040 form   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. 2012 1040 form Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. 2012 1040 form Accounting period. 2012 1040 form   Both of you must use the same accounting period, but you can use different accounting methods. 2012 1040 form See Accounting Periods and Accounting Methods in chapter 1. 2012 1040 form Joint responsibility. 2012 1040 form   Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. 2012 1040 form This means that if one spouse does not pay the tax due, the other may have to. 2012 1040 form Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. 2012 1040 form One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. 2012 1040 form You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. 2012 1040 form Divorced taxpayer. 2012 1040 form   You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. 2012 1040 form This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. 2012 1040 form Relief from joint responsibility. 2012 1040 form   In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. 2012 1040 form You can ask for relief no matter how small the liability. 2012 1040 form   There are three types of relief available. 2012 1040 form Innocent spouse relief. 2012 1040 form Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or have not lived together for the 12 months ending on the date the election for this relief is filed). 2012 1040 form Equitable relief. 2012 1040 form    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. 2012 1040 form Publication 971, Innocent Spouse Relief, explains these kinds of relief and who may qualify for them. 2012 1040 form Signing a joint return. 2012 1040 form   For a return to be considered a joint return, both spouses generally must sign the return. 2012 1040 form Spouse died before signing. 2012 1040 form   If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. 2012 1040 form If neither you nor anyone else has yet been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. 2012 1040 form Spouse away from home. 2012 1040 form   If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so that it can be filed on time. 2012 1040 form Injury or disease prevents signing. 2012 1040 form   If your spouse cannot sign because of disease or injury and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). 2012 1040 form ” Be sure to also sign in the space provided for your signature. 2012 1040 form Attach a dated statement, signed by you, to the return. 2012 1040 form The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. 2012 1040 form Signing as guardian of spouse. 2012 1040 form   If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. 2012 1040 form Spouse in combat zone. 2012 1040 form   You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf Area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. 2012 1040 form Attach a signed statement to your return explaining that your spouse is serving in a combat zone. 2012 1040 form For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. 2012 1040 form Other reasons spouse cannot sign. 2012 1040 form    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). 2012 1040 form Attach the power of attorney (or a copy of it) to your tax return. 2012 1040 form You can use Form 2848, Power of Attorney and Declaration of Representative. 2012 1040 form Nonresident alien or dual-status alien. 2012 1040 form   Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. 2012 1040 form However, if one spouse was a nonresident alien or dual-status alien who was married to a U. 2012 1040 form S. 2012 1040 form citizen or resident alien at the end of the year, the spouses can choose to file a joint return. 2012 1040 form If you do file a joint return, you and your spouse are both treated as U. 2012 1040 form S. 2012 1040 form residents for the entire tax year. 2012 1040 form See chapter 1 of Publication 519. 2012 1040 form Married Filing Separately You can choose married filing separately as your filing status if you are married. 2012 1040 form This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. 2012 1040 form If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. 2012 1040 form You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). 2012 1040 form This can apply to you even if you are not divorced or legally separated. 2012 1040 form If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. 2012 1040 form The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. 2012 1040 form See Head of Household , later, for more information. 2012 1040 form You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. 2012 1040 form However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). 2012 1040 form This way you can make sure you are using the filing status that results in the lowest combined tax. 2012 1040 form When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. 2012 1040 form How to file. 2012 1040 form   If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. 2012 1040 form You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. 2012 1040 form You can file Form 1040. 2012 1040 form If your taxable income is less than $100,000, you may be able to file Form 1040A. 2012 1040 form Select this filing status by checking the box on line 3 of either form. 2012 1040 form Enter your spouse's full name and SSN or ITIN in the spaces provided. 2012 1040 form If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. 2012 1040 form Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. 2012 1040 form Special Rules If you choose married filing separately as your filing status, the following special rules apply. 2012 1040 form Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. 2012 1040 form   Your tax rate generally is higher than on a joint return. 2012 1040 form Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. 2012 1040 form You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000). 2012 1040 form If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. 2012 1040 form For more information about these expenses, the credit, and the exclusion, see chapter 32. 2012 1040 form You cannot take the earned income credit. 2012 1040 form You cannot take the exclusion or credit for adoption expenses in most cases. 2012 1040 form You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. 2012 1040 form You cannot exclude any interest income from qualified U. 2012 1040 form S. 2012 1040 form savings bonds you used for higher education expenses. 2012 1040 form If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. 2012 1040 form The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. 2012 1040 form Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). 2012 1040 form If your spouse itemizes deductions, you cannot claim the standard deduction. 2012 1040 form If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. 2012 1040 form Adjusted gross income (AGI) limits. 2012 1040 form   If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. 2012 1040 form Individual retirement arrangements (IRAs). 2012 1040 form   You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. 2012 1040 form Your deduction is reduced or eliminated if your income is more than a certain amount. 2012 1040 form This amount is much lower for married individuals who file separately and lived together at any time during the year. 2012 1040 form For more information, see How Much Can You Deduct in chapter 17. 2012 1040 form Rental activity losses. 2012 1040 form   If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income, up to $25,000. 2012 1040 form This is called a special allowance. 2012 1040 form However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. 2012 1040 form Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. 2012 1040 form See Limits on Rental Losses in chapter 9. 2012 1040 form Community property states. 2012 1040 form   If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. 2012 1040 form See Publication 555. 2012 1040 form Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. 2012 1040 form You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. 2012 1040 form This does not include any extensions. 2012 1040 form A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. 2012 1040 form Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. 2012 1040 form Exception. 2012 1040 form   A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. 2012 1040 form The personal representative has 1 year from the due date of the return (including extensions) to make the change. 2012 1040 form See Publication 559, Survivors, Executors, and Administrators, for more information on filing a return for a decedent. 2012 1040 form Head of Household You may be able to file as head of household if you meet all the following requirements. 2012 1040 form You are unmarried or “considered unmarried” on the last day of the year. 2012 1040 form See Marital Status , earlier, and Considered Unmarried , later. 2012 1040 form You paid more than half the cost of keeping up a home for the year. 2012 1040 form A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). 2012 1040 form However, if the qualifying person is your dependent parent, he or she does not have to live with you. 2012 1040 form See Special rule for parent , later, under Qualifying Person. 2012 1040 form If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. 2012 1040 form You will also receive a higher standard deduction than if you file as single or married filing separately. 2012 1040 form Kidnapped child. 2012 1040 form   A child may qualify you to file as head of household even if the child has been kidnapped. 2012 1040 form For more information, see Publication 501. 2012 1040 form How to file. 2012 1040 form   If you file as head of household, you can use Form 1040. 2012 1040 form If your taxable income is less than $100,000, you may be able to file Form 1040A. 2012 1040 form Indicate your choice of this filing status by checking the box on line 4 of either form. 2012 1040 form Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. 2012 1040 form Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. 2012 1040 form You are considered unmarried on the last day of the tax year if you meet all the following tests. 2012 1040 form You file a separate return (defined earlier under Joint Return After Separate Returns ). 2012 1040 form You paid more than half the cost of keeping up your home for the tax year. 2012 1040 form Your spouse did not live in your home during the last 6 months of the tax year. 2012 1040 form Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. 2012 1040 form See Temporary absences , under Qualifying Person, later. 2012 1040 form Your home was the main home of your child, stepchild, or foster child for more than half the year. 2012 1040 form (See Home of qualifying person , under Qualifying Person, later, for rules applying to a child's birth, death, or temporary absence during the year. 2012 1040 form ) You must be able to claim an exemption for the child. 2012 1040 form However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described in Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3, or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative in chapter 3. 2012 1040 form The general rules for claiming an exemption for a dependent are explained under Exemptions for Dependents in chapter 3. 2012 1040 form If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. 2012 1040 form See Publication 555 for more information. 2012 1040 form Nonresident alien spouse. 2012 1040 form   You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. 2012 1040 form However, your spouse is not a qualifying person for head of household purposes. 2012 1040 form You must have another qualifying person and meet the other tests to be eligible to file as a head of household. 2012 1040 form Choice to treat spouse as resident. 2012 1040 form   You are considered married if you choose to treat your spouse as a resident alien. 2012 1040 form See Publication 519. 2012 1040 form Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. 2012 1040 form You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 2–1. 2012 1040 form Worksheet 2-1. 2012 1040 form Cost of Keeping Up a Home   Amount You Paid Total Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $ Minus total amount you paid   () Amount others paid   $ If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. 2012 1040 form Costs you include. 2012 1040 form   Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. 2012 1040 form   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. 2012 1040 form However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. 2012 1040 form Costs you do not include. 2012 1040 form   Do not include the costs of clothing, education, medical treatment, vacations, life insurance, or transportation. 2012 1040 form Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. 2012 1040 form Qualifying Person See Table 2-1 to see who is a qualifying person. 2012 1040 form Any person not described in Table 2-1 is not a qualifying person. 2012 1040 form Table 2-1. 2012 1040 form Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Caution. 2012 1040 form See the text of this chapter for the other requirements you must meet to claim head of household filing status. 2012 1040 form IF the person is your . 2012 1040 form . 2012 1040 form . 2012 1040 form   AND . 2012 1040 form . 2012 1040 form . 2012 1040 form   THEN that person is . 2012 1040 form . 2012 1040 form . 2012 1040 form qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. 2012 1040 form   he or she is married and you can claim an exemption for him or her   a qualifying person. 2012 1040 form   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. 2012 1040 form 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. 2012 1040 form 6   you cannot claim an exemption for him or her   not a qualifying person. 2012 1040 form qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests)   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and you can claim an exemption for him or her5   a qualifying person. 2012 1040 form   he or she did not live with you more than half the year   not a qualifying person. 2012 1040 form   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. 2012 1040 form   you cannot claim an exemption for him or her   not a qualifying person. 2012 1040 form 1A person cannot qualify more than one taxpayer to use the head of household filing status for the year. 2012 1040 form 2The term “qualifying child” is defined in chapter 3. 2012 1040 form Note. 2012 1040 form If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3. 2012 1040 form If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. 2012 1040 form 3This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. 2012 1040 form 4The term “ qualifying relative ” is defined in chapter 3. 2012 1040 form 5If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. 2012 1040 form See Multiple Support Agreement in chapter 3. 2012 1040 form 6See Special rule for parent . 2012 1040 form Example 1—child. 2012 1040 form Your unmarried son lived with you all year and was 18 years old at the end of the year. 2012 1040 form He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. 2012 1040 form As a result, he is your qualifying child (see Qualifying Child in chapter 3) and, because he is single, your qualifying person for you to claim head of household filing status. 2012 1040 form Example 2—child who is not qualifying person. 2012 1040 form The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. 2012 1040 form Because he does not meet the age test (explained under Qualifying Child in chapter 3), your son is not your qualifying child. 2012 1040 form Because he does not meet the gross income test (explained later under Qualifying Relative in chapter 3), he is not your qualifying relative. 2012 1040 form As a result, he is not your qualifying person for head of household purposes. 2012 1040 form Example 3—girlfriend. 2012 1040 form Your girlfriend lived with you all year. 2012 1040 form Even though she may be your qualifying relative if the gross income and support tests (explained in chapter 3) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3. 2012 1040 form See Table 2-1. 2012 1040 form Example 4—girlfriend's child. 2012 1040 form The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. 2012 1040 form He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test in chapter 3). 2012 1040 form As a result, he is not your qualifying person for head of household purposes. 2012 1040 form Home of qualifying person. 2012 1040 form   Generally, the qualifying person must live with you for more than half of the year. 2012 1040 form Special rule for parent. 2012 1040 form   If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. 2012 1040 form However, you must be able to claim an exemption for your father or mother. 2012 1040 form Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. 2012 1040 form   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. 2012 1040 form Death or birth. 2012 1040 form   You may be eligible to file as head of household even if the individual who qualifies you for this filing status is born or dies during the year. 2012 1040 form If the individual is your qualifying child, the child must have lived with you for more than half the part of the year he or she was alive. 2012 1040 form If the individual is anyone else, see Publication 501. 2012 1040 form Temporary absences. 2012 1040 form   You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. 2012 1040 form It must be reasonable to assume the absent person will return to the home after the temporary absence. 2012 1040 form You must continue to keep up the home during the absence. 2012 1040 form Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. 2012 1040 form The year of death is the last year for which you can file jointly with your deceased spouse. 2012 1040 form See Married Filing Jointly , earlier. 2012 1040 form You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. 2012 1040 form For example, if your spouse died in 2012, and you have not remarried, you may be able to use this filing status for 2013 and 2014. 2012 1040 form This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). 2012 1040 form It does not entitle you to file a joint return. 2012 1040 form How to file. 2012 1040 form   If you file as qualifying widow(er) with dependent child, you can use Form 1040. 2012 1040 form If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. 2012 1040 form Check the box on line 5 of either form. 2012 1040 form Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. 2012 1040 form Eligibility rules. 2012 1040 form   You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all of the following tests. 2012 1040 form You were entitled to file a joint return with your spouse for the year your spouse died. 2012 1040 form It does not matter whether you actually filed a joint return. 2012 1040 form Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. 2012 1040 form You have a child or stepchild for whom you can claim an exemption. 2012 1040 form This does not include a foster child. 2012 1040 form This child lived in your home all year, except for temporary absences. 2012 1040 form See Temporary absences , earlier, under Head of Household. 2012 1040 form There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. 2012 1040 form You paid more than half the cost of keeping up a home for the year. 2012 1040 form See Keeping Up a Home , earlier, under Head of Household. 2012 1040 form Example. 2012 1040 form John's wife died in 2011. 2012 1040 form John has not remarried. 2012 1040 form During 2012 and 2013, he continued to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. 2012 1040 form For 2011 he was entitled to file a joint return for himself and his deceased wife. 2012 1040 form For 2012 and 2013, he can file as qualifying widower with a dependent child. 2012 1040 form After 2013 he can file as head of household if he qualifies. 2012 1040 form Death or birth. 2012 1040 form    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. 2012 1040 form You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. 2012 1040 form Kidnapped child. 2012 1040 form   A child may qualify you for qualifying widow(er) with dependent child, even if the child has been kidnapped. 2012 1040 form See Publication 501. 2012 1040 form    As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. 2012 1040 form Prev  Up  Next   Home   More Online Publications
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Return Preparer Office Federal Tax Return Preparer Statistics

Data current as of 3/3/2014

Number of Individuals with Current Preparer Tax Identification Numbers (PTINs) for 2014†

671,491

Professional Credentials

Attorneys

28,803

Certified Public Accountants

208,347

Enrolled Actuaries

443

Enrolled Agents

48,434

Enrolled Retirement Plan Agents

675

 

 

Other Categories

Supervised Preparers*

57,906

Non-1040 Preparers*

44,414

 

 

† Cumulative number of individuals issued PTINs since 9/28/2010: 1,030,773

‡ Some preparers have multiple professional credentials.

* These numbers do not include attorneys, certified public accountants, or enrolled agents. Also, preparers may be both supervised and non-1040 filers.

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Page Last Reviewed or Updated: 04-Mar-2014

The 2012 1040 Form

2012 1040 form 3. 2012 1040 form   Reporting Rental Income, Expenses, and Losses Table of Contents Which Forms To UseSchedule E (Form 1040) Schedule C (Form 1040), Profit or Loss From Business Qualified Joint Venture Limits on Rental LossesAt-Risk Rules Passive Activity Limits Casualties and Thefts Example Figuring the net income or loss for a residential rental activity may involve more than just listing the income and deductions on Schedule E (Form 1040). 2012 1040 form There are activities which do not qualify to use Schedule E, such as when the activity is not engaged in to make a profit or when you provide substantial services in conjunction with the property. 2012 1040 form There are also the limitations which may need to be applied if you have a net loss on Schedule E. 2012 1040 form There are two: (1) the limitation based on the amount of investment you have at risk in your rental activity, and (2) the special limits imposed on passive activities. 2012 1040 form You may also have a gain or loss related to your rental property from a casualty or theft. 2012 1040 form This is considered separately from the income and expense information you report on Schedule E. 2012 1040 form Which Forms To Use The basic form for reporting residential rental income and expenses is Schedule E (Form 1040). 2012 1040 form However, do not use that schedule to report a not-for-profit activity. 2012 1040 form See Not Rented for Profit , in chapter 4. 2012 1040 form There are also other rental situations in which forms other than Schedule E would be used. 2012 1040 form Schedule E (Form 1040) If you rent buildings, rooms, or apartments, and provide basic services such as heat and light, trash collection, etc. 2012 1040 form , you normally report your rental income and expenses on Schedule E, Part I. 2012 1040 form List your total income, expenses, and depreciation for each rental property. 2012 1040 form Be sure to enter the number of fair rental and personal use days on line 2. 2012 1040 form If you have more than three rental or royalty properties, complete and attach as many Schedules E as are needed to list the properties. 2012 1040 form Complete lines 1 and 2 for each property. 2012 1040 form However, fill in lines 23a through 26 on only one Schedule E. 2012 1040 form On Schedule E, page 1, line 18, enter the depreciation you are claiming for each property. 2012 1040 form To find out if you need to attach Form 4562, see Form 4562 , later. 2012 1040 form If you have a loss from your rental real estate activity, you also may need to complete one or both of the following forms. 2012 1040 form Form 6198, At-Risk Limitations. 2012 1040 form See At-Risk Rules , later. 2012 1040 form Also see Publication 925. 2012 1040 form Form 8582, Passive Activity Loss Limitations. 2012 1040 form See Passive Activity Limits , later. 2012 1040 form Page 2 of Schedule E is used to report income or loss from partnerships, S corporations, estates, trusts, and real estate mortgage investment conduits. 2012 1040 form If you need to use page 2 of Schedule E, be sure to use page 2 of the same Schedule E you used to enter your rental activity on page 1. 2012 1040 form Also, include the amount from line 26 (Part I) in the “Total income or (loss)” on line 41 (Part V). 2012 1040 form Form 4562. 2012 1040 form   You must complete and attach Form 4562 for rental activities only if you are claiming: Depreciation, including the special depreciation allowance, on property placed in service during 2013; Depreciation on listed property (such as a car), regardless of when it was placed in service; or Any other car expenses, including the standard mileage rate or lease expenses. 2012 1040 form Otherwise, figure your depreciation on your own worksheet. 2012 1040 form You do not have to attach these computations to your return, but you should keep them in your records for future reference. 2012 1040 form   See Publication 946 for information on preparing Form 4562. 2012 1040 form Schedule C (Form 1040), Profit or Loss From Business Generally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer. 2012 1040 form Providing substantial services. 2012 1040 form   If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. 2012 1040 form Use Form 1065, U. 2012 1040 form S. 2012 1040 form Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). 2012 1040 form Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. 2012 1040 form For information, see Publication 334, Tax Guide for Small Business. 2012 1040 form Also, you may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. 2012 1040 form For a discussion of “substantial services,” see Real Estate Rents in Publication 334, chapter 5. 2012 1040 form Qualified Joint Venture If you and your spouse each materially participate (see Material participation under Passive Activity Limits, later) as the only members of a jointly owned and operated real estate business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. 2012 1040 form This election, in most cases, will not increase the total tax owed on the joint return, but it does give each of you credit for social security earnings on which retirement benefits are based and for Medicare coverage if your rental income is subject to self-employment tax. 2012 1040 form If you make this election, you must report rental real estate income on Schedule E (or Schedule C if you provide substantial services). 2012 1040 form You will not be required to file Form 1065 for any year the election is in effect. 2012 1040 form Rental real estate income generally is not included in net earnings from self-employment subject to self-employment tax and generally is subject to the passive activity limits. 2012 1040 form If you and your spouse filed a Form 1065 for the year prior to the election, the partnership terminates at the end of the tax year immediately preceding the year the election takes effect. 2012 1040 form For more information on qualified joint ventures, go to IRS. 2012 1040 form gov and enter “qualified joint venture” in the search box. 2012 1040 form Limits on Rental Losses If you have a loss from your rental real estate activity, two sets of rules may limit the amount of loss you can deduct. 2012 1040 form You must consider these rules in the order shown below. 2012 1040 form Both are discussed in this section. 2012 1040 form At-risk rules. 2012 1040 form These rules are applied first if there is investment in your rental real estate activity for which you are not at risk. 2012 1040 form This applies only if the real property was placed in service after 1986. 2012 1040 form Passive activity limits. 2012 1040 form Generally, rental real estate activities are considered passive activities and losses are not deductible unless you have income from other passive activities to offset them. 2012 1040 form However, there are exceptions. 2012 1040 form At-Risk Rules You may be subject to the at-risk rules if you have: A loss from an activity carried on as a trade or business or for the production of income, and Amounts invested in the activity for which you are not fully at risk. 2012 1040 form Losses from holding real property (other than mineral property) placed in service before 1987 are not subject to the at-risk rules. 2012 1040 form In most cases, any loss from an activity subject to the at-risk rules is allowed only to the extent of the total amount you have at risk in the activity at the end of the tax year. 2012 1040 form You are considered at risk in an activity to the extent of cash and the adjusted basis of other property you contributed to the activity and certain amounts borrowed for use in the activity. 2012 1040 form Any loss that is disallowed because of the at-risk limits is treated as a deduction from the same activity in the next tax year. 2012 1040 form See Publication 925 for a discussion of the at-risk rules. 2012 1040 form Form 6198. 2012 1040 form   If you are subject to the at-risk rules, file Form 6198, At-Risk Limitations, with your tax return. 2012 1040 form Passive Activity Limits In most cases, all rental real estate activities (except those of certain real estate professionals, discussed later) are passive activities. 2012 1040 form For this purpose, a rental activity is an activity from which you receive income mainly for the use of tangible property, rather than for services. 2012 1040 form For a discussion of activities that are not considered rental activities, see Rental Activities in Publication 925. 2012 1040 form Deductions or losses from passive activities are limited. 2012 1040 form You generally cannot offset income, other than passive income, with losses from passive activities. 2012 1040 form Nor can you offset taxes on income, other than passive income, with credits resulting from passive activities. 2012 1040 form Any excess loss or credit is carried forward to the next tax year. 2012 1040 form Exceptions to the rules for figuring passive activity limits for personal use of a dwelling unit and for rental real estate with active participation are discussed later. 2012 1040 form For a detailed discussion of these rules, see Publication 925. 2012 1040 form Real estate professionals. 2012 1040 form   If you are a real estate professional, complete line 43 of Schedule E. 2012 1040 form      You qualify as a real estate professional for the tax year if you meet both of the following requirements. 2012 1040 form More than half of the personal services you perform in all trades or businesses during the tax year are performed in real property trades or businesses in which you materially participate. 2012 1040 form You perform more than 750 hours of services during the tax year in real property trades or businesses in which you materially participate. 2012 1040 form If you qualify as a real estate professional, rental real estate activities in which you materially participated are not passive activities. 2012 1040 form For purposes of determining whether you materially participated in your rental real estate activities, each interest in rental real estate is a separate activity unless you elect to treat all your interests in rental real estate as one activity. 2012 1040 form   Do not count personal services you perform as an employee in real property trades or businesses unless you are a 5% owner of your employer. 2012 1040 form You are a 5% owner if you own (or are considered to own) more than 5% of your employer's outstanding stock, or capital or profits interest. 2012 1040 form   Do not count your spouse's personal services to determine whether you met the requirements listed earlier to qualify as a real estate professional. 2012 1040 form However, you can count your spouse's participation in an activity in determining if you materially participated. 2012 1040 form Real property trades or businesses. 2012 1040 form   A real property trade or business is a trade or business that does any of the following with real property. 2012 1040 form Develops or redevelops it. 2012 1040 form Constructs or reconstructs it. 2012 1040 form Acquires it. 2012 1040 form Converts it. 2012 1040 form Rents or leases it. 2012 1040 form Operates or manages it. 2012 1040 form Brokers it. 2012 1040 form Choice to treat all interests as one activity. 2012 1040 form   If you were a real estate professional and had more than one rental real estate interest during the year, you can choose to treat all the interests as one activity. 2012 1040 form You can make this choice for any year that you qualify as a real estate professional. 2012 1040 form If you forgo making the choice for one year, you can still make it for a later year. 2012 1040 form   If you make the choice, it is binding for the tax year you make it and for any later year that you are a real estate professional. 2012 1040 form This is true even if you are not a real estate professional in any intervening year. 2012 1040 form (For that year, the exception for real estate professionals will not apply in determining whether your activity is subject to the passive activity rules. 2012 1040 form )   See the Instructions for Schedule E for information about making this choice. 2012 1040 form Material participation. 2012 1040 form   Generally, you materially participated in an activity for the tax year if you were involved in its operations on a regular, continuous, and substantial basis during the year. 2012 1040 form For details, see Publication 925 or the Instructions for Schedule C. 2012 1040 form Participating spouse. 2012 1040 form   If you are married, determine whether you materially participated in an activity by also counting any participation in the activity by your spouse during the year. 2012 1040 form Do this even if your spouse owns no interest in the activity or files a separate return for the year. 2012 1040 form Form 8582. 2012 1040 form    You may have to complete Form 8582 to figure the amount of any passive activity loss for the current tax year for all activities and the amount of the passive activity loss allowed on your tax return. 2012 1040 form See Form 8582 not required , later in this chapter, to determine if you must complete Form 8582. 2012 1040 form   If you are required to complete Form 8582 and are also subject to the at-risk rules, include the amount from Form 6198, line 21 (deductible loss) in column (b) of Form 8582, Worksheet 1 or 3, as required. 2012 1040 form Exception for Personal Use of Dwelling Unit If you used the rental property as a home during the year, any income, deductions, gain, or loss allocable to such use shall not be taken into account for purposes of the passive activity loss limitation. 2012 1040 form Instead, follow the rules explained in chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). 2012 1040 form Exception for Rental Real Estate With Active Participation If you or your spouse actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income. 2012 1040 form This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. 2012 1040 form Similarly, you may be able to offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception. 2012 1040 form Example. 2012 1040 form Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. 2012 1040 form $2,000 of Jane's $3,500 loss offsets her passive income. 2012 1040 form The remaining $1,500 loss can be deducted from her $40,000 wages. 2012 1040 form The special allowance is not available if you were married, lived with your spouse at any time during the year, and are filing a separate return. 2012 1040 form Active participation. 2012 1040 form   You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. 2012 1040 form Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions. 2012 1040 form Example. 2012 1040 form Mike is single and had the following income and losses during the tax year:   Salary $42,300     Dividends 300     Interest 1,400     Rental loss (4,000)   The rental loss was from the rental of a house Mike owned. 2012 1040 form Mike had advertised and rented the house to the current tenant himself. 2012 1040 form He also collected the rents, which usually came by mail. 2012 1040 form All repairs were either made or contracted out by Mike. 2012 1040 form Although the rental loss is from a passive activity, because Mike actively participated in the rental property management he can use the entire $4,000 loss to offset his other income. 2012 1040 form Maximum special allowance. 2012 1040 form   The maximum special allowance is: $25,000 for single individuals and married individuals filing a joint return for the tax year, $12,500 for married individuals who file separate returns for the tax year and lived apart from their spouses at all times during the tax year, and $25,000 for a qualifying estate reduced by the special allowance for which the surviving spouse qualified. 2012 1040 form   If your modified adjusted gross income (MAGI) is $100,000 or less ($50,000 or less if married filing separately), you can deduct your loss up to the amount specified above. 2012 1040 form If your MAGI is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your MAGI. 2012 1040 form   Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance. 2012 1040 form Modified adjusted gross income (MAGI). 2012 1040 form   This is your adjusted gross income from Form 1040, U. 2012 1040 form S. 2012 1040 form Individual Income Tax Return, line 38, or Form 1040NR, U. 2012 1040 form S. 2012 1040 form Nonresident Alien Income Tax Return, line 37, figured without taking into account: The taxable amount of social security or equivalent tier 1 railroad retirement benefits, The deductible contributions to traditional individual retirement accounts (IRAs) and section 501(c)(18) pension plans, The exclusion from income of interest from Series EE and I U. 2012 1040 form S. 2012 1040 form savings bonds used to pay higher educational expenses, The exclusion of amounts received under an employer's adoption assistance program, Any passive activity income or loss included on Form 8582, Any rental real estate loss allowed to real estate professionals, Any overall loss from a publicly traded partnership (see Publicly Traded Partnerships (PTPs) in the Instructions for Form 8582), The deduction allowed for one-half of self-employment tax, The deduction allowed for interest paid on student loans, The deduction for qualified tuition and related fees, and The domestic production activities deduction (see the Instructions for Form 8903). 2012 1040 form Form 8582 not required. 2012 1040 form   Do not complete Form 8582 if you meet all of the following conditions. 2012 1040 form Your only passive activities were rental real estate activities in which you actively participated. 2012 1040 form Your overall net loss from these activities is $25,000 or less ($12,500 or less if married filing separately and you lived apart from your spouse all year). 2012 1040 form If married filing separately, you lived apart from your spouse all year. 2012 1040 form You have no prior year unallowed losses from these (or any other passive) activities. 2012 1040 form You have no current or prior year unallowed credits from passive activities. 2012 1040 form Your MAGI is $100,000 or less ($50,000 or less if married filing separately and you lived apart from your spouse all year). 2012 1040 form You do not hold any interest in a rental real estate activity as a limited partner or as a beneficiary of an estate or a trust. 2012 1040 form   If you meet all of the conditions listed above, your rental real estate activities are not limited by the passive activity rules and you do not have to complete Form 8582. 2012 1040 form On lines 23a through 23e of your Schedule E, enter the applicable amounts. 2012 1040 form Casualties and Thefts As a result of a casualty or theft, you may have a loss related to your rental property. 2012 1040 form You may be able to deduct the loss on your income tax return. 2012 1040 form Casualty. 2012 1040 form   This is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. 2012 1040 form Such events include a storm, fire, or earthquake. 2012 1040 form Theft. 2012 1040 form   This is defined as the unlawful taking and removing of your money or property with the intent to deprive you of it. 2012 1040 form Gain from casualty or theft. 2012 1040 form   It is also possible to have a gain from a casualty or theft if you receive money, including insurance, that is more than your adjusted basis in the property. 2012 1040 form Generally, you must report this gain. 2012 1040 form However, under certain circumstances, you may defer paying tax by choosing to postpone reporting the gain. 2012 1040 form To do this, you generally must buy replacement property within 2 years after the close of the first tax year in which any part of your gain is realized. 2012 1040 form In certain circumstances, the replacement period can be greater than 2 years; see Replacement Period in Publication 547 for more information. 2012 1040 form The cost of the replacement property must be equal to or more than the net insurance or other payment you received. 2012 1040 form More information. 2012 1040 form   For information on business and nonbusiness casualty and theft losses, see Publication 547. 2012 1040 form How to report. 2012 1040 form    If you had a casualty or theft that involved property used in your rental activity, figure the net gain or loss in Section B of Form 4684, Casualties and Thefts. 2012 1040 form Follow the Instructions for Form 4684 for where to carry your net gain or loss. 2012 1040 form Example In February 2008, Marie Pfister bought a rental house for $135,000 (house $120,000 and land $15,000) and immediately began renting it out. 2012 1040 form In 2013, she rented it all 12 months for a monthly rental fee of $1,125. 2012 1040 form In addition to her rental income of $13,500 (12 x $1,125), Marie had the following expenses. 2012 1040 form Mortgage interest $8,000 Fire insurance (1-year policy) 250 Miscellaneous repairs 400 Real estate taxes imposed and paid 500 Maintenance 200 Marie depreciates the residential rental property under MACRS GDS. 2012 1040 form This means using the straight line method over a recovery period of 27. 2012 1040 form 5 years. 2012 1040 form She uses Table 2-2d to find her depreciation percentage. 2012 1040 form Because she placed the property in service in February 2008, she continues to use that row of Table 2-2d. 2012 1040 form For year 6, the rate is 3. 2012 1040 form 636%. 2012 1040 form Marie figures her net rental income or loss for the house as follows: Total rental income received  ($1,125 × 12) $13,500 Minus: Expenses     Mortgage interest $8,000   Fire insurance 250   Miscellaneous repairs 400   Real estate taxes 500   Maintenance 200   Total expenses 9,350 Balance $4,150 Minus: Depreciation ($120,000 x 3. 2012 1040 form 636%) 4,363 Net rental (loss) for house ($213)       Marie had a net loss for the year. 2012 1040 form Because she actively participated in her passive rental real estate activity and her loss was less than $25,000, she can deduct the loss on her return. 2012 1040 form Marie also meets all of the requirements for not having to file Form 8582. 2012 1040 form She uses Schedule E, Part I, to report her rental income and expenses. 2012 1040 form She enters her income, expenses, and depreciation for the house in the column for Property A and enters her loss on line 22. 2012 1040 form Form 4562 is not required. 2012 1040 form Prev  Up  Next   Home   More Online Publications