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Back Taxes Owed

2010 Ez 1040 FormSelf Employed Tax FilingI Need To File My State Taxes OnlyFree State File TaxesHow To File 2010 Tax ReturnsTaxact 2008 Free Download1040x 2012 Tax FormFiling A Tax Amendment Online10ez1040nr Ez FormCan You E File An Amended ReturnIrs Tax ReturnTax Amendment Form 2011Need Help Filing A 1040xMilitary Tax Return2009 Tax Return2012 Federal Tax Forms 1040ezTax Form EzH & R Block Tax Online2012 Amended Federal Tax Return FormFree File For State Income TaxIrs Amended FormFederal Income Tax Return1040 Es Tax Forms2010 Irs FormsFile Back Taxes Free OnlineIrs Ammended ReturnAmended Federal Tax Form1040 Ez InstructionsFree Website For Filing State TaxesState Tax Return 2013H&r Block Online Tax Filing1040ez Instructions 2012Irs Filing ExtensionHow To Fill Out 1040xFiling 2010 Taxes LateHow To File A 1040ezH R Block 2011Student Tax Return 20112009 Tax Return Form

Back Taxes Owed

Back taxes owed Publication 584SP - Introductory Material Table of Contents Qué Hay de Nuevo Introduction Qué Hay de Nuevo Acontecimientos futuros. Back taxes owed  El IRS ha diseñado una página en el Internet, www. Back taxes owed irs. Back taxes owed gov/pub584sp, que incluye información sobre la Publicación 584(SP). Back taxes owed Toda información sobre desarrollos futuros que afecten la Publicación 584(SP) (como legislación aprobada después de que la publicación haya sido publicada) será anunciada en esta página. Back taxes owed Introduction Este registro se ha creado para ayudarlo a determinar la cantidad de una pérdida ocasionada por un desastre, hecho fortuito o robo que esté relacionada con propiedad de uso personal. Back taxes owed Contiene anexos para ayudarlo a calcular el valor de la pérdida de su residencia principal, de toda propiedad contenida dentro de la misma y de sus vehículos motorizados. Back taxes owed Sin embargo, estos anexos sólo son para su información. Back taxes owed Tiene que completar el Formulario 4684, Casualties and Thefts (Hechos Fortuitos y Robos), en inglés, para declarar su pérdida. Back taxes owed Prev  Up  Next   Home   More Online Publications
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Understanding your CP21B Notice

We made the change(s) you requested to your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of your notice.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the toll free number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully ― it shows the area(s) of your tax return that changed, e.g., Schedule A.
  • If you agree with the notice, you don't need to do anything.
  • Contact us if you disagree with the change(s) we made.
  • Correct the copy of your tax return that you kept for your records.
  • Be sure to report any interest we paid you on your tax return for this year.

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Answers to Common Questions

What if I don't receive my refund in 2-3 weeks?
If you don't owe other taxes or debts we're required to collect, such as child support, and 3 weeks have lapsed, call us at the toll-free number listed on the top right corner of your notice.

Will I receive information about the interest that I need to report on my next tax return?
If you were paid $10 or more in interest, you'll receive a Form 1099-INT from IRS by January 31st of next year. Please note, even if the interest amount paid to you is less than $10, you must report this amount on your tax return.

The notice says "We made the changes you requested to your 2006 Form 1040 to adjust your..." but I don't remember sending any change to IRS. How can I find out what IRS received to initiate this change?
Please contact us at the number listed on the top right corner of your notice for specific information about your tax return.

What if I need to make another correction to my account?
You'll need to file Form 1040X, Amended U.S. Individual Income Tax Return.

What if I have tried to get answers and after contacting IRS several times have not been successful?
Call Taxpayer Advocate at 1-877-777-4778 or for TTY/TDD 1-800-829-4059.

What if I think I’m a victim of identity theft?
Please contact us at the number listed on the top right corner of your notice. Refer to the IRS Identity Theft resource page for more information.


Tips for next year

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

Page Last Reviewed or Updated: 26-Feb-2014

The Back Taxes Owed

Back taxes owed 37. Back taxes owed   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. Back taxes owed  The maximum adoption credit is $12,970 for 2013. Back taxes owed See Adoption Credit . Back taxes owed Plug-in electric vehicle credit. Back taxes owed  This credit has expired. Back taxes owed Credit for prior year minimum tax. Back taxes owed  The refundable portion of the credit for prior year minimum tax has expired. Back taxes owed Excess withholding of social security and railroad retirement tax. Back taxes owed  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. Back taxes owed 2% of wages up to $113,700. Back taxes owed If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. Back taxes owed See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . Back taxes owed Introduction This chapter discusses the following nonrefundable credits. Back taxes owed Adoption credit. Back taxes owed Alternative motor vehicle credit. Back taxes owed Alternative fuel vehicle refueling property credit. Back taxes owed Credit to holders of tax credit bonds. Back taxes owed Foreign tax credit. Back taxes owed Mortgage interest credit. Back taxes owed Nonrefundable credit for prior year minimum tax. Back taxes owed Plug-in electric drive motor vehicle credit. Back taxes owed Residential energy credits. Back taxes owed Retirement savings contributions credit. Back taxes owed This chapter also discusses the following refundable credits. Back taxes owed Credit for tax on undistributed capital gain. Back taxes owed Health coverage tax credit. Back taxes owed Credit for excess social security tax or railroad retirement tax withheld. Back taxes owed Several other credits are discussed in other chapters in this publication. Back taxes owed Child and dependent care credit (chapter 32). Back taxes owed Credit for the elderly or the disabled (chapter 33). Back taxes owed Child tax credit (chapter 34). Back taxes owed Education credits (chapter 35). Back taxes owed Earned income credit (chapter 36). Back taxes owed Nonrefundable credits. Back taxes owed   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. Back taxes owed These credits may reduce your tax to zero. Back taxes owed If these credits are more than your tax, the excess is not refunded to you. Back taxes owed Refundable credits. Back taxes owed   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. Back taxes owed These credits are added to the federal income tax withheld and any estimated tax payments you made. Back taxes owed If this total is more than your total tax, the excess will be refunded to you. Back taxes owed Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. Back taxes owed However, if the total of these credits is more than your tax, the excess is not refunded to you. Back taxes owed Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. Back taxes owed The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. Back taxes owed If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. Back taxes owed If your modified AGI is $234,580 or more, you cannot take the credit. Back taxes owed Qualified adoption expenses. Back taxes owed   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. Back taxes owed These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. Back taxes owed Nonqualified expenses. Back taxes owed   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. Back taxes owed Eligible child. Back taxes owed   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. Back taxes owed Child with special needs. Back taxes owed   An eligible child is a child with special needs if all three of the following apply. Back taxes owed The child was a citizen or resident of the United States (including U. Back taxes owed S. Back taxes owed possessions) at the time the adoption process began. Back taxes owed A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. Back taxes owed The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. Back taxes owed Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. Back taxes owed When to take the credit. Back taxes owed   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. Back taxes owed If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. Back taxes owed See the Instructions for Form 8839 for more specific information on when to take the credit. Back taxes owed Foreign child. Back taxes owed   If the child is not a U. Back taxes owed S. Back taxes owed citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. Back taxes owed You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. Back taxes owed How to take the credit. Back taxes owed   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. Back taxes owed Include the credit in your total for Form 1040, line 53. Back taxes owed Check box c and enter “8839” on the line next to that box. Back taxes owed More information. Back taxes owed   For more information, see the Instructions for Form 8839. Back taxes owed Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. Back taxes owed Amount of credit. Back taxes owed   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. Back taxes owed In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. Back taxes owed   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. Back taxes owed How to take the credit. Back taxes owed   To take the credit, you must complete Form 8910 and attach it to your Form 1040. Back taxes owed Include the credit in your total for Form 1040, line 53. Back taxes owed Check box c and enter “8910” on the line next to that box. Back taxes owed More information. Back taxes owed   For more information on the credit, see the Instructions for Form 8910. Back taxes owed Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. Back taxes owed Qualified alternative fuel vehicle refueling property. Back taxes owed   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. Back taxes owed To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. Back taxes owed To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. Back taxes owed   The following are alternative fuels. Back taxes owed Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. Back taxes owed Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. Back taxes owed Electricity. Back taxes owed Amount of the credit. Back taxes owed   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. Back taxes owed For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. Back taxes owed How to take the credit. Back taxes owed   To take the credit, you must complete Form 8911 and attach it to your Form 1040. Back taxes owed Include the credit in your total for Form 1040, line 53. Back taxes owed Check box c and enter “8911” on the line next to that box. Back taxes owed More information. Back taxes owed   For more information on the credit, see the Form 8911 instructions. Back taxes owed Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. Back taxes owed You may be able to take a credit if you are a holder of one of the following bonds. Back taxes owed Clean renewable energy bonds (issued before 2010). Back taxes owed New clean renewable energy bonds. Back taxes owed Qualified energy conservation bonds. Back taxes owed Qualified school construction bonds. Back taxes owed Qualified zone academy bonds. Back taxes owed Build America bonds. Back taxes owed In some instances, an issuer may elect to receive a credit for interest paid on the bond. Back taxes owed If the issuer makes this election, you cannot also claim a credit. Back taxes owed Interest income. Back taxes owed   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. Back taxes owed How to take the credit. Back taxes owed   Complete Form 8912 and attach it to your Form 1040. Back taxes owed Include the credit in your total for Form 1040, line 53. Back taxes owed Check box c and enter “8912” on the line next to that box. Back taxes owed More information. Back taxes owed   For more information, see the Instructions for Form 8912. Back taxes owed Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. Back taxes owed S. Back taxes owed possession as a credit against your U. Back taxes owed S. Back taxes owed income tax. Back taxes owed Or, you can deduct them as an itemized deduction (see chapter 22). Back taxes owed You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. Back taxes owed S. Back taxes owed tax under any of the following. Back taxes owed Foreign earned income exclusion. Back taxes owed Foreign housing exclusion. Back taxes owed Income from Puerto Rico exempt from U. Back taxes owed S. Back taxes owed tax. Back taxes owed Possession exclusion. Back taxes owed Limit on the credit. Back taxes owed   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. Back taxes owed S. Back taxes owed tax liability (Form 1040, line 44), multiplied by a fraction. Back taxes owed The numerator of the fraction is your taxable income from sources outside the United States. Back taxes owed The denominator is your total taxable income from U. Back taxes owed S. Back taxes owed and foreign sources. Back taxes owed See Publication 514 for more information. Back taxes owed How to take the credit. Back taxes owed   Complete Form 1116 and attach it to your Form 1040. Back taxes owed Enter the credit on Form 1040, line 47. Back taxes owed Exception. Back taxes owed   You do not have to complete Form 1116 to take the credit if all of the following apply. Back taxes owed All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). Back taxes owed If you had dividend income from shares of stock, you held those shares for at least 16 days. Back taxes owed You are not filing Form 4563 or excluding income from sources within Puerto Rico. Back taxes owed The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). Back taxes owed All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. Back taxes owed More information. Back taxes owed   For more information on the credit and these requirements, see the Instructions for Form 1116. Back taxes owed Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. Back taxes owed If you qualify, you can take the credit each year for part of the home mortgage interest you pay. Back taxes owed Who qualifies. Back taxes owed   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. Back taxes owed Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. Back taxes owed Amount of credit. Back taxes owed   Figure your credit on Form 8396. Back taxes owed If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. Back taxes owed   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. Back taxes owed To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. Back taxes owed      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. Back taxes owed   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. Back taxes owed If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. Back taxes owed See Publication 530 for more information. Back taxes owed Carryforward. Back taxes owed   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. Back taxes owed If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. Back taxes owed   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). Back taxes owed How to take the credit. Back taxes owed    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. Back taxes owed Be sure to include any credit carryforward from 2010, 2011, and 2012. Back taxes owed   Include the credit in your total for Form 1040, line 53. Back taxes owed Check box c and enter “8396” on the line next to that box. Back taxes owed Reduced home mortgage interest deduction. Back taxes owed   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. Back taxes owed You must do this even if part of that amount is to be carried forward to 2014. Back taxes owed For more information about the home mortgage interest deduction, see chapter 23. Back taxes owed Recapture of federal mortgage subsidy. Back taxes owed   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. Back taxes owed The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. Back taxes owed See the Instructions for Form 8828 and chapter 15 for more information. Back taxes owed More information. Back taxes owed   For more information on the credit, see the Form 8396 instructions. Back taxes owed Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. Back taxes owed If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. Back taxes owed This is called the alternative minimum tax. Back taxes owed The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. Back taxes owed If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. Back taxes owed You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. Back taxes owed How to take the credit. Back taxes owed    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. Back taxes owed Include the credit in your total for Form 1040, line 53, and check box b. Back taxes owed You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. Back taxes owed More information. Back taxes owed   For more information on the credit, see the Instructions for Form 8801. Back taxes owed Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. Back taxes owed Qualified plug-in electric drive motor vehicle. Back taxes owed   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Back taxes owed Qualified two- or three-wheeled plug-in electric vehicle. Back taxes owed   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. Back taxes owed 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Back taxes owed Certification and other requirements. Back taxes owed   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. Back taxes owed However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. Back taxes owed   The following requirements must also be met to qualify for the credit. Back taxes owed You are the owner of the vehicle. Back taxes owed If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. Back taxes owed You placed the vehicle in service during 2013. Back taxes owed The vehicle is manufactured primarily for use on public streets, roads, and highways. Back taxes owed The original use of the vehicle began with you. Back taxes owed You acquired the vehicle for your use or to lease to others, and not for resale. Back taxes owed In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. Back taxes owed You use the vehicle primarily in the United States. Back taxes owed How to take the credit. Back taxes owed   To take the credit, you must complete Form 8936 and attach it to your Form 1040. Back taxes owed Include the credit in your total for Form 1040, line 53. Back taxes owed Check box c and enter “8936” on the line next to that box. Back taxes owed More information. Back taxes owed   For more information on the credit, see the Form 8936 instructions. Back taxes owed Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. Back taxes owed Nonbusiness energy property credit. Back taxes owed Residential energy efficient property credit. Back taxes owed If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. Back taxes owed Nonbusiness energy property credit. Back taxes owed   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. Back taxes owed   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. Back taxes owed    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. Back taxes owed   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. Back taxes owed Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. Back taxes owed Exterior window (including skylights). Back taxes owed Exterior doors. Back taxes owed Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. Back taxes owed   Residential energy property is any of the following. Back taxes owed Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. Back taxes owed Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. Back taxes owed Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. Back taxes owed Residential energy efficient property credit. Back taxes owed   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. Back taxes owed The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. Back taxes owed Basis reduction. Back taxes owed   You must reduce the basis of your home by the amount of any credit allowed. Back taxes owed How to take the credit. Back taxes owed   Complete Form 5695 and attach it to your Form 1040. Back taxes owed Enter the credit on Form 1040, line 52. Back taxes owed More information. Back taxes owed   For more information on these credits, see the Form 5695 instructions. Back taxes owed Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. Back taxes owed However, you cannot take the credit if either of the following applies. Back taxes owed The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). Back taxes owed The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). Back taxes owed Student. Back taxes owed   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. Back taxes owed School. Back taxes owed   A school includes a technical, trade, or mechanical school. Back taxes owed It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Back taxes owed How to take the credit. Back taxes owed   Figure the credit on Form 8880. Back taxes owed Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. Back taxes owed More information. Back taxes owed   For more information on the credit, see the Form 8880 instructions. Back taxes owed Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. Back taxes owed If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. Back taxes owed Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. Back taxes owed If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. Back taxes owed The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. Back taxes owed How to take the credit. Back taxes owed   To take the credit, attach Copy B of Form 2439 to your Form 1040. Back taxes owed Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. Back taxes owed More information. Back taxes owed   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. Back taxes owed Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. Back taxes owed You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. Back taxes owed You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. Back taxes owed S. Back taxes owed Treasury–HCTC. Back taxes owed ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. Back taxes owed You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). Back taxes owed You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. Back taxes owed S. Back taxes owed military health system (TRICARE). Back taxes owed You were not imprisoned under federal, state, or local authority. Back taxes owed Your employer did not pay 50% or more of the cost of coverage. Back taxes owed You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. Back taxes owed But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. Back taxes owed If you meet all of these conditions, you may be able to take a credit of up to 72. Back taxes owed 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. Back taxes owed You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. Back taxes owed The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. Back taxes owed You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. Back taxes owed If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. Back taxes owed TAA recipient. Back taxes owed   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). Back taxes owed Example. Back taxes owed You received a trade adjustment allowance for January 2013. Back taxes owed You were an eligible TAA recipient on the first day of January and February. Back taxes owed Alternative TAA recipient. Back taxes owed   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. Back taxes owed Example. Back taxes owed You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. Back taxes owed The program was established by the Department of Labor. Back taxes owed You were an eligible alternative TAA recipient on the first day of October and November. Back taxes owed RTAA recipient. Back taxes owed   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. Back taxes owed PBGC pension recipient. Back taxes owed   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. Back taxes owed You were age 55 or older on the first day of the month. Back taxes owed You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). Back taxes owed If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. Back taxes owed How to take the credit. Back taxes owed   To take the credit, complete Form 8885 and attach it to your Form 1040. Back taxes owed Include your credit in the total for Form 1040, line 71, and check box c. Back taxes owed   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. Back taxes owed For details, see Publication 502 or Form 8885. Back taxes owed More information. Back taxes owed   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. Back taxes owed Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. Back taxes owed If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Back taxes owed If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. Back taxes owed If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. Back taxes owed 2% rate. Back taxes owed You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. Back taxes owed For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. Back taxes owed 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. Back taxes owed 45%) or the Additional Medicare Tax rate (. Back taxes owed 9%). Back taxes owed The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. Back taxes owed Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. Back taxes owed 40 RRTA tier 2 $84,300 $3,709. Back taxes owed 20 All wages are subject to Medicare tax withholding. Back taxes owed   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. Back taxes owed Be sure to attach a copy of all of your W-2 forms. Back taxes owed Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. Back taxes owed Employer's error. Back taxes owed   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. Back taxes owed The employer should adjust the tax for you. Back taxes owed If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. Back taxes owed Joint return. Back taxes owed   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. Back taxes owed Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. Back taxes owed How to figure the credit if you did not work for a railroad. Back taxes owed   If you did not work for a railroad during 2013, figure the credit as follows: 1. Back taxes owed Add all social security tax withheld (but not more than $7,049. Back taxes owed 40 for each employer). Back taxes owed Enter the total here   2. Back taxes owed Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Back taxes owed Add lines 1 and 2. Back taxes owed If $7,049. Back taxes owed 40 or less, stop here. Back taxes owed You cannot take  the credit   4. Back taxes owed Social security tax limit 7,049. Back taxes owed 40 5. Back taxes owed Credit. Back taxes owed Subtract line 4 from line 3. Back taxes owed Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. Back taxes owed You are married and file a joint return with your spouse who had no gross income in 2013. Back taxes owed During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. Back taxes owed Social security tax of $3,720 was withheld. Back taxes owed You also worked for another employer in 2013 and earned $55,000 in wages. Back taxes owed $3,410 of social security tax was withheld from these wages. Back taxes owed Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. Back taxes owed 60 for the excess social security tax withheld. Back taxes owed 1. Back taxes owed Add all social security tax withheld (but not more than $7,049. Back taxes owed 40 for each employer). Back taxes owed Enter the total here $7,130. Back taxes owed 00 2. Back taxes owed Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. Back taxes owed Add lines 1 and 2. Back taxes owed If $7,049. Back taxes owed 40 or less, stop here. Back taxes owed You cannot take the credit 7,130. Back taxes owed 00 4. Back taxes owed Social security tax limit 7,049. Back taxes owed 40 5. Back taxes owed Credit. Back taxes owed Subtract line 4 from line 3. Back taxes owed Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. Back taxes owed 60 How to figure the credit if you worked for a railroad. Back taxes owed   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. Back taxes owed Add all social security and tier 1 RRTA tax withheld at the 6. Back taxes owed 2% rate (but not more than $7,049. Back taxes owed 40 for each employer). Back taxes owed Enter the total here   2. Back taxes owed Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Back taxes owed Add lines 1 and 2. Back taxes owed If $7,049. Back taxes owed 40 or less, stop here. Back taxes owed You cannot take  the credit   4. Back taxes owed Social security and tier 1 RRTA  tax limit 7,049. Back taxes owed 40 5. Back taxes owed Credit. Back taxes owed Subtract line 4 from line 3. Back taxes owed Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. Back taxes owed   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. Back taxes owed More information. Back taxes owed   For more information on the credit, see Publication 505. Back taxes owed Prev  Up  Next   Home   More Online Publications