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Can I Amend My 2010 Tax Return

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Can I Amend My 2010 Tax Return

Can i amend my 2010 tax return Publication 929 - Main Content Table of Contents Part 1. Can i amend my 2010 tax return Rules for All Dependents Filing RequirementsEarned Income Only Unearned Income Only Both Earned and Unearned Income Other Filing Requirements Should a Return Be Filed Even If Not Required? Responsibility for Child's ReturnThird party designee. Can i amend my 2010 tax return Designated as representative. Can i amend my 2010 tax return IRS notice. Can i amend my 2010 tax return Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. Can i amend my 2010 tax return Part 2. Can i amend my 2010 tax return Tax on Unearned Income of Certain ChildrenWhich Parent's Return To Use Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, Lines A–C) Step 1. Can i amend my 2010 tax return Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Can i amend my 2010 tax return Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Can i amend my 2010 tax return Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. Can i amend my 2010 tax return Rules for All Dependents This part of the publication discusses the filing requirements for dependents, who is responsible for a child's return, how to figure a dependent's standard deduction and exemption (if any), and whether a dependent can claim exemption from federal income tax withholding. Can i amend my 2010 tax return Filing Requirements Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is age 65 or older, or is blind. Can i amend my 2010 tax return A dependent may have to file a return even if his or her income is less than the amount that would normally require a return. Can i amend my 2010 tax return See Other Filing Requirements, later. Can i amend my 2010 tax return The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. Can i amend my 2010 tax return  To find out whether a dependent must file, read the section that applies, or use Table 1. Can i amend my 2010 tax return Earned Income Only A dependent whose gross income is only earned income must file a return if the gross income is more than the amount listed in the following table. Can i amend my 2010 tax return Marital Status Amount Single   Under 65 and not blind $6,100 Either 65 or older or blind $7,600 65 or older and blind $9,100 Married*   Under 65 and not blind $6,100 Either 65 or older or blind $7,300 65 or older and blind $8,500 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Can i amend my 2010 tax return Example. Can i amend my 2010 tax return William is 16. Can i amend my 2010 tax return His mother claims an exemption for him on her income tax return. Can i amend my 2010 tax return He worked part time on weekends during the school year and full time during the summer. Can i amend my 2010 tax return He earned $7,000 in wages. Can i amend my 2010 tax return He did not have any unearned income. Can i amend my 2010 tax return He must file a tax return because he has earned income only and his gross income is more than $6,100. Can i amend my 2010 tax return If he is blind, he does not have to file a return because his gross income is not more than $7,600. Can i amend my 2010 tax return Unearned Income Only A dependent whose gross income is only unearned income must file a return if the gross income is more than the amount listed in the following table. Can i amend my 2010 tax return Marital Status Amount Single   Under 65 and not blind $1,000 Either 65 or older or blind $2,500 65 or older and blind $4,000 Married*   Under 65 and not blind $1,000 Either 65 or older or blind $2,200 65 or older and blind $3,400 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Can i amend my 2010 tax return Example. Can i amend my 2010 tax return Sarah is 18 and single. Can i amend my 2010 tax return Her parents can claim an exemption for her on their income tax return. Can i amend my 2010 tax return She received $1,970 of taxable interest and dividend income. Can i amend my 2010 tax return She did not work during the year. Can i amend my 2010 tax return She must file a tax return because she has unearned income only and her gross income is more than $1,000. Can i amend my 2010 tax return If she is blind, she does not have to file a return because she has unearned income only and her gross income is not more than $2,500. Can i amend my 2010 tax return Election to report child's unearned income on parent's return. Can i amend my 2010 tax return   A parent of a child under age 19 (or under age 24 if a full-time student) may be able to elect to include the child's interest and dividend income on the parent's return. Can i amend my 2010 tax return See Parent's Election To Report Child's Interest and Dividends in Part 2. Can i amend my 2010 tax return If the parent makes this election, the child does not have to file a return. Can i amend my 2010 tax return Both Earned and Unearned Income A dependent who has both earned and unearned income generally must file a return if the dependent's gross income is more than line 5 of the following worksheet. Can i amend my 2010 tax return Filing Requirement Worksheet for Most Dependents 1. Can i amend my 2010 tax return Enter dependent's earned income plus $350     2. Can i amend my 2010 tax return Minimum amount   $1,000 3. Can i amend my 2010 tax return Compare lines 1 and 2. Can i amend my 2010 tax return Enter the larger amount     4. Can i amend my 2010 tax return Maximum amount   6,100 5. Can i amend my 2010 tax return Compare lines 3 and 4. Can i amend my 2010 tax return Enter the smaller amount     6. Can i amend my 2010 tax return Enter the dependent's gross income. Can i amend my 2010 tax return If line 6 is more than line 5, the dependent must file an income tax return. Can i amend my 2010 tax return If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Can i amend my 2010 tax return       Table 1. Can i amend my 2010 tax return 2013 Filing Requirements for Dependents If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Can i amend my 2010 tax return   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. Can i amend my 2010 tax return   Single dependents—Were you either age 65 or older or blind?     No. Can i amend my 2010 tax return You must file a return if any of the following apply. Can i amend my 2010 tax return       Your unearned income was over $1,000. Can i amend my 2010 tax return Your earned income was over $6,100. Can i amend my 2010 tax return Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Can i amend my 2010 tax return         Yes. Can i amend my 2010 tax return You must file a return if any of the following apply. Can i amend my 2010 tax return     Your unearned income was over $2,500 ($4,000 if 65 or older and blind), Your earned income was over $7,600 ($9,100 if 65 or older and blind), Your gross income was more than the larger of—       $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Can i amend my 2010 tax return       Married dependents—Were you either age 65 or older or blind?     No. Can i amend my 2010 tax return You must file a return if any of the following apply. Can i amend my 2010 tax return       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Can i amend my 2010 tax return Your unearned income was over $1,000. Can i amend my 2010 tax return Your earned income was over $6,100. Can i amend my 2010 tax return Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Can i amend my 2010 tax return       Yes. Can i amend my 2010 tax return You must file a return if any of the following apply. Can i amend my 2010 tax return       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Can i amend my 2010 tax return Your unearned income was over $2,200 ($3,400 if 65 or older and blind), Your earned income was over $7,300 ($8,500 if 65 or older and blind), Your gross income was more than the larger of—       $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Can i amend my 2010 tax return       Example 1. Can i amend my 2010 tax return Joe is 20, single, not blind, and a full-time college student. Can i amend my 2010 tax return He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. Can i amend my 2010 tax return He received $200 taxable interest income and earned $2,750 from a part-time job. Can i amend my 2010 tax return He does not have to file a tax return because his gross income of $2,950 ($200 interest plus $2,750 in wages) is not more than $3,100, the amount on line 5 of his filled-in Filing Requirement Worksheet for Most Dependents (shown next). Can i amend my 2010 tax return Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. Can i amend my 2010 tax return Enter dependent's earned income plus $350   $ 3,100 2. Can i amend my 2010 tax return Minimum amount   1,000 3. Can i amend my 2010 tax return Compare lines 1 and 2. Can i amend my 2010 tax return Enter the larger amount   3,100 4. Can i amend my 2010 tax return Maximum amount   6,100 5. Can i amend my 2010 tax return Compare lines 3 and 4. Can i amend my 2010 tax return Enter the smaller amount   3,100 6. Can i amend my 2010 tax return Enter the dependent's gross income. Can i amend my 2010 tax return If line 6 is more than line 5, the dependent must file an income tax return. Can i amend my 2010 tax return If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Can i amend my 2010 tax return   $ 2,950   Example 2. Can i amend my 2010 tax return The facts are the same as in Example 1 except that Joe had $600 taxable interest income. Can i amend my 2010 tax return He must file a tax return because his gross income of $3,350 ($600 interest plus $2,750 wages) is more than $3,100, the amount on line 5 of his filled-in worksheet (shown next). Can i amend my 2010 tax return Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. Can i amend my 2010 tax return Enter dependent's earned income plus $350   $ 3,100 2. Can i amend my 2010 tax return Minimum amount   1,000 3. Can i amend my 2010 tax return Compare lines 1 and 2. Can i amend my 2010 tax return Enter the larger amount   3,100 4. Can i amend my 2010 tax return Maximum amount   6,100 5. Can i amend my 2010 tax return Compare lines 3 and 4. Can i amend my 2010 tax return Enter the smaller amount   3,100 6. Can i amend my 2010 tax return Enter the dependent's gross income. Can i amend my 2010 tax return If line 6 is more than line 5, the dependent must file an income tax return. Can i amend my 2010 tax return If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Can i amend my 2010 tax return   $ 3,350   Age 65 or older or blind. Can i amend my 2010 tax return A dependent who is age 65 or older or blind must file a return if his or her gross income is more than line 7 of the following worksheet. Can i amend my 2010 tax return Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Can i amend my 2010 tax return Enter dependent's earned income plus $350     2. Can i amend my 2010 tax return Minimum amount   $1,000 3. Can i amend my 2010 tax return Compare lines 1 and 2. Can i amend my 2010 tax return Enter the larger amount     4. Can i amend my 2010 tax return Maximum amount   6,100 5. Can i amend my 2010 tax return Compare lines 3 and 4. Can i amend my 2010 tax return Enter the smaller amount     6. Can i amend my 2010 tax return Enter the amount from the following table that applies to the dependent       Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Can i amend my 2010 tax return Add lines 5 and 6. Can i amend my 2010 tax return Enter the total     8. Can i amend my 2010 tax return Enter the dependent's gross income. Can i amend my 2010 tax return If line 8 is more than line 7, the dependent must file an income tax return. Can i amend my 2010 tax return If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more     Example 3. Can i amend my 2010 tax return The facts are the same as in Example 2 except that Joe is also blind. Can i amend my 2010 tax return He does not have to file a return because his gross income of $3,350 is not more than $4,600, the amount on line 7 of his filled-in Filing Requirement Worksheet for Dependents Who Are Age 65 or Older or Blind (shown next). Can i amend my 2010 tax return   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Can i amend my 2010 tax return Enter dependent's earned income plus $350   $3,100 2. Can i amend my 2010 tax return Minimum amount   1,000 3. Can i amend my 2010 tax return Compare lines 1 and 2. Can i amend my 2010 tax return Enter the larger amount   3,100 4. Can i amend my 2010 tax return Maximum amount   6,100 5. Can i amend my 2010 tax return Compare lines 3 and 4. Can i amend my 2010 tax return Enter the smaller amount   3,100 6. Can i amend my 2010 tax return Enter the amount from the following table that applies to the dependent   1,500   Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Can i amend my 2010 tax return Add lines 5 and 6. Can i amend my 2010 tax return Enter the total   4,600 8. Can i amend my 2010 tax return Enter the dependent's gross income. Can i amend my 2010 tax return If line 8 is more than line 7, the dependent must file an income tax return. Can i amend my 2010 tax return If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more   $3,350 Other Filing Requirements Some dependents may have to file a tax return even if their income is less than the amount that would normally require them to file a return. Can i amend my 2010 tax return A dependent must file a tax return if he or she owes any other taxes, such as: Social security and Medicare taxes on tips not reported to his or her employer or on wages received from an employer who did not withhold these taxes, Uncollected social security and Medicare or railroad retirement taxes on tips reported to his or her employer or on group-term life insurance, Alternative minimum tax, Additional tax on a health savings account from Form 8889, Part III, Recapture taxes, such as the tax from recapture of an education credit, or Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Can i amend my 2010 tax return But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. Can i amend my 2010 tax return A dependent must also file a tax return if he or she: Had wages of $108. Can i amend my 2010 tax return 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes, or Had net earnings from self-employment of at least $400. Can i amend my 2010 tax return Spouse itemizes. Can i amend my 2010 tax return   A dependent must file a return if the dependent's spouse itemizes deductions on a separate return and the dependent has $5 or more of gross income (earned and/or unearned). Can i amend my 2010 tax return Should a Return Be Filed Even If Not Required? Even if a dependent does not meet any of the filing requirements discussed earlier, he or she should file a tax return if either of the following applies. Can i amend my 2010 tax return Income tax was withheld from his or her income. Can i amend my 2010 tax return He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. Can i amend my 2010 tax return See the tax return instructions to find out who qualifies for these credits. Can i amend my 2010 tax return  By filing a return, the dependent can get a refund. Can i amend my 2010 tax return Responsibility for Child's Return Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. Can i amend my 2010 tax return If a child cannot file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child. Can i amend my 2010 tax return Signing the child's return. Can i amend my 2010 tax return   If the child cannot sign his or her return, a parent or guardian must sign the child's name followed by the words “By (signature), parent (or guardian) for minor child. Can i amend my 2010 tax return ” Authority of parent or guardian. Can i amend my 2010 tax return   A parent or guardian who signs a return on a child's behalf can deal with the IRS on all matters connected with the return. Can i amend my 2010 tax return   In general, a parent or guardian who does not sign the child's return can only provide information concerning the child's return and pay the child's tax. Can i amend my 2010 tax return That parent or guardian is not entitled to receive information from the IRS or legally bind the child to a tax liability arising from the return. Can i amend my 2010 tax return Third party designee. Can i amend my 2010 tax return   A child's parent or guardian who does not sign the child's return may be authorized, as a third party designee, to discuss the processing of the return with the IRS as well as provide information concerning the return. Can i amend my 2010 tax return The child or the person signing the return on the child's behalf must check the “Yes” box in the “Third Party Designee” area of the return and name the parent or guardian as the designee. Can i amend my 2010 tax return   If designated, a parent or guardian can respond to certain IRS notices and receive information about the processing of the return and the status of a refund or payment. Can i amend my 2010 tax return This designation does not authorize the parent or guardian to receive any refund check, bind the child to any tax liability, or otherwise represent the child before the IRS. Can i amend my 2010 tax return See the return instructions for more information. Can i amend my 2010 tax return Designated as representative. Can i amend my 2010 tax return   A parent or guardian who does not sign the child's return may be designated as the child's representative by the child or the person signing the return on the child's behalf. Can i amend my 2010 tax return Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. Can i amend my 2010 tax return See Publication 947, Practice Before the IRS and Power of Attorney, for more information. Can i amend my 2010 tax return   If designated, a parent or guardian can receive information about the child's return but cannot legally bind the child to a tax liability unless authorized to do so by the law of the state in which the child lives. Can i amend my 2010 tax return IRS notice. Can i amend my 2010 tax return   If you or the child receives a notice from the IRS concerning the child's return or tax liability, you should immediately inform the IRS that the notice concerns a child. Can i amend my 2010 tax return The notice will show who to contact. Can i amend my 2010 tax return The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. Can i amend my 2010 tax return Child's earnings. Can i amend my 2010 tax return   For federal income tax purposes, amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. Can i amend my 2010 tax return This is true even if, under state law, the parent has the right to the earnings and may actually have received them. Can i amend my 2010 tax return If the child does not pay the tax due on this income, the parent may be liable for the tax. Can i amend my 2010 tax return Child's expenses. Can i amend my 2010 tax return   Deductions for payments that are made out of a child's earnings are the child's, even if the payments are made by the parent. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. Can i amend my 2010 tax return You made the payments out of your child's earnings. Can i amend my 2010 tax return These items can be deducted only on the child's return. Can i amend my 2010 tax return Standard Deduction The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: $1,000, or The individual's earned income plus $350, but not more than the regular standard deduction (generally $6,100). Can i amend my 2010 tax return However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. Can i amend my 2010 tax return Certain dependents cannot claim any standard deduction. Can i amend my 2010 tax return See Standard Deduction of Zero , later. Can i amend my 2010 tax return Worksheet 1. Can i amend my 2010 tax return   Use Worksheet 1 to figure the dependent's standard deduction. Can i amend my 2010 tax return Worksheet 1. Can i amend my 2010 tax return Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. Can i amend my 2010 tax return If you were 65 or older and/or blind, check the correct number of boxes below. Can i amend my 2010 tax return Put the total number of boxes checked in box c and go to line 1. Can i amend my 2010 tax return a. Can i amend my 2010 tax return You 65 or older   Blind   b. Can i amend my 2010 tax return Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. Can i amend my 2010 tax return Total boxes checked         1. Can i amend my 2010 tax return Enter your earned income (defined below) plus $350. Can i amend my 2010 tax return If none, enter -0-. Can i amend my 2010 tax return 1. Can i amend my 2010 tax return     2. Can i amend my 2010 tax return Minimum amount. Can i amend my 2010 tax return   2. Can i amend my 2010 tax return $1,000   3. Can i amend my 2010 tax return Compare lines 1 and 2. Can i amend my 2010 tax return Enter the larger of the two amounts here. Can i amend my 2010 tax return 3. Can i amend my 2010 tax return     4. Can i amend my 2010 tax return Enter on line 4 the amount shown below for your filing status. Can i amend my 2010 tax return       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. Can i amend my 2010 tax return     5. Can i amend my 2010 tax return Standard deduction. Can i amend my 2010 tax return         a. Can i amend my 2010 tax return Compare lines 3 and 4. Can i amend my 2010 tax return Enter the smaller amount here. Can i amend my 2010 tax return If under 65 and not blind, stop here. Can i amend my 2010 tax return This is your standard deduction. Can i amend my 2010 tax return Otherwise, go on to line 5b. Can i amend my 2010 tax return 5a. Can i amend my 2010 tax return     b. Can i amend my 2010 tax return If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. Can i amend my 2010 tax return Enter the result here. Can i amend my 2010 tax return 5b. Can i amend my 2010 tax return     c. Can i amend my 2010 tax return Add lines 5a and 5b. Can i amend my 2010 tax return This is your standard deduction for 2013. Can i amend my 2010 tax return 5c. Can i amend my 2010 tax return     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Can i amend my 2010 tax return It also includes any amount received as a scholarship that you must include in income. Can i amend my 2010 tax return   Example 1. Can i amend my 2010 tax return Michael is single, age 15, and not blind. Can i amend my 2010 tax return His parents can claim him as a dependent on their tax return. Can i amend my 2010 tax return He has taxable interest income of $800 and wages of $150. Can i amend my 2010 tax return He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. Can i amend my 2010 tax return On line 3, he enters $1,000, the larger of $500 or $1,000. Can i amend my 2010 tax return Michael enters $6,100 on line 4. Can i amend my 2010 tax return On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. Can i amend my 2010 tax return His standard deduction is $1,000. Can i amend my 2010 tax return Example 2. Can i amend my 2010 tax return Judy, a full-time student, is single, age 22, and not blind. Can i amend my 2010 tax return Her parents can claim her as a dependent on their tax return. Can i amend my 2010 tax return She has dividend income of $275 and wages of $2,500. Can i amend my 2010 tax return She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. Can i amend my 2010 tax return On line 3, she enters $2,850, the larger of $2,850 or $1,000. Can i amend my 2010 tax return She enters $6,100 on line 4. Can i amend my 2010 tax return On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. Can i amend my 2010 tax return Example 3. Can i amend my 2010 tax return Amy, who is single, is claimed as a dependent on her parents' tax return. Can i amend my 2010 tax return She is 18 years old and blind. Can i amend my 2010 tax return She has taxable interest income of $1,000 and wages of $2,000. Can i amend my 2010 tax return She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. Can i amend my 2010 tax return She enters $2,350 (the larger of $2,350 or $1,000) on line 3, $6,100 on line 4, and $2,350 (the smaller of $2,350 or $6,100) on line 5a. Can i amend my 2010 tax return Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. Can i amend my 2010 tax return She enters $1,500 (the number in box c times $1,500) on line 5b. Can i amend my 2010 tax return Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). Can i amend my 2010 tax return Standard Deduction of Zero The standard deduction for the following dependents is zero. Can i amend my 2010 tax return A married dependent filing a separate return whose spouse itemizes deductions. Can i amend my 2010 tax return A dependent who files a return for a period of less than 12 months due to a change in his or her annual accounting period. Can i amend my 2010 tax return A nonresident or dual-status alien dependent, unless the dependent is married to a U. Can i amend my 2010 tax return S. Can i amend my 2010 tax return citizen or resident alien at the end of the year and chooses to be treated as a U. Can i amend my 2010 tax return S. Can i amend my 2010 tax return resident for the year. Can i amend my 2010 tax return See Publication 519, U. Can i amend my 2010 tax return S. Can i amend my 2010 tax return Tax Guide for Aliens, for information on making this choice. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. Can i amend my 2010 tax return However, her husband elects to file a separate return and itemize his deductions. Can i amend my 2010 tax return Because he itemizes, Jennifer's standard deduction on her return is zero. Can i amend my 2010 tax return She can, however, itemize any of her allowable deductions. Can i amend my 2010 tax return Dependent's Own Exemption A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption. Can i amend my 2010 tax return This is true even if the other taxpayer does not actually claim the exemption. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return James and Barbara can claim their child, Ben, as a dependent on their return. Can i amend my 2010 tax return Ben is a college student who works during the summer and must file a tax return. Can i amend my 2010 tax return Ben cannot claim his own exemption on his return. Can i amend my 2010 tax return This is true even if James and Barbara do not claim him as a dependent on their return. Can i amend my 2010 tax return Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. Can i amend my 2010 tax return If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. Can i amend my 2010 tax return The exemption from withholding does not apply to social security and Medicare taxes. Can i amend my 2010 tax return Conditions for exemption from withholding. Can i amend my 2010 tax return   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. Can i amend my 2010 tax return For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. Can i amend my 2010 tax return For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. Can i amend my 2010 tax return Dependents. Can i amend my 2010 tax return   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. Can i amend my 2010 tax return The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. Can i amend my 2010 tax return The employee's unearned income will be more than $350. Can i amend my 2010 tax return Exceptions. Can i amend my 2010 tax return   An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: Is age 65 or older, Is blind, or Will claim on his or her 2014 tax return: Adjustments to income, Tax credits, or Itemized deductions. Can i amend my 2010 tax return The above exceptions do not apply to supplemental wages greater than $1,000,000. Can i amend my 2010 tax return For more information, see Exemption From Withholding in chapter 1 of Publication 505. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return Guy is 17 and a student. Can i amend my 2010 tax return During the summer he works part time at a grocery store. Can i amend my 2010 tax return He expects to earn about $1,200 this year. Can i amend my 2010 tax return He also worked at the store last summer and received a refund of all his withheld income tax because he did not have a tax liability. Can i amend my 2010 tax return The only other income he expects during the year is $375 interest on a savings account. Can i amend my 2010 tax return He expects that his parents will be able to claim him as a dependent on their tax return. Can i amend my 2010 tax return He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. Can i amend my 2010 tax return Guy cannot claim exemption from withholding when he fills out Form W-4 because his parents will be able to claim him as a dependent, his gross income will be more than $1,000 (the minimum standard deduction amount) and his unearned income will be more than $350. Can i amend my 2010 tax return Claiming exemption from withholding. Can i amend my 2010 tax return    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. Can i amend my 2010 tax return The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. Can i amend my 2010 tax return Renewing an exemption from withholding. Can i amend my 2010 tax return   An exemption from withholding is good for only one year. Can i amend my 2010 tax return An employee must file a new Form W-4 by February 15 each year to continue the exemption. Can i amend my 2010 tax return Part 2. Can i amend my 2010 tax return Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. Can i amend my 2010 tax return If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. Can i amend my 2010 tax return (See Parent's Election To Report Child's Interest and Dividends , later. Can i amend my 2010 tax return ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Can i amend my 2010 tax return (See Tax for Certain Children Who Have Unearned Income , later. Can i amend my 2010 tax return ) For these rules, the term “child” includes a legally adopted child and a stepchild. Can i amend my 2010 tax return These rules apply whether or not the child is a dependent. Can i amend my 2010 tax return These rules do not apply if neither of the child's parents were living at the end of the year. Can i amend my 2010 tax return Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. Can i amend my 2010 tax return The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . Can i amend my 2010 tax return Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. Can i amend my 2010 tax return Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Can i amend my 2010 tax return Parents are married. Can i amend my 2010 tax return   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Can i amend my 2010 tax return Parents not living together. Can i amend my 2010 tax return   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. Can i amend my 2010 tax return If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Can i amend my 2010 tax return   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in Publication 501. Can i amend my 2010 tax return Parents are divorced. Can i amend my 2010 tax return   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. Can i amend my 2010 tax return Custodial parent remarried. Can i amend my 2010 tax return   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Can i amend my 2010 tax return Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Can i amend my 2010 tax return Do not use the return of the noncustodial parent. Can i amend my 2010 tax return   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Can i amend my 2010 tax return If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Can i amend my 2010 tax return Parents never married. Can i amend my 2010 tax return   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. Can i amend my 2010 tax return If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Can i amend my 2010 tax return Widowed parent remarried. Can i amend my 2010 tax return   If a widow or widower remarries, the new spouse is treated as the child's other parent. Can i amend my 2010 tax return The rules explained earlier under Custodial parent remarried apply. Can i amend my 2010 tax return Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. Can i amend my 2010 tax return If you do, your child will not have to file a return. Can i amend my 2010 tax return You can make this election only if all the following conditions are met. Can i amend my 2010 tax return Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Can i amend my 2010 tax return Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Can i amend my 2010 tax return The child's gross income was less than $10,000. Can i amend my 2010 tax return The child is required to file a return unless you make this election. Can i amend my 2010 tax return The child does not file a joint return for the year. Can i amend my 2010 tax return No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. Can i amend my 2010 tax return No federal income tax was withheld from your child's income under the backup withholding rules. Can i amend my 2010 tax return You are the parent whose return must be used when applying the special tax rules for children. Can i amend my 2010 tax return (See Which Parent's Return To Use , earlier. Can i amend my 2010 tax return ) These conditions are also shown in Figure 1. Can i amend my 2010 tax return Certain January 1 birthdays. Can i amend my 2010 tax return   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Can i amend my 2010 tax return You cannot make this election for such a child unless the child was a full-time student. Can i amend my 2010 tax return   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Can i amend my 2010 tax return You cannot make this election for such a child. Can i amend my 2010 tax return How to make the election. Can i amend my 2010 tax return    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. Can i amend my 2010 tax return (If you make this election, you cannot file Form 1040A or Form 1040EZ. Can i amend my 2010 tax return ) Attach a separate Form 8814 for each child for whom you make the election. Can i amend my 2010 tax return You can make the election for one or more children and not for others. Can i amend my 2010 tax return Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Can i amend my 2010 tax return Rate may be higher. Can i amend my 2010 tax return   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. Can i amend my 2010 tax return This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Can i amend my 2010 tax return However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. Can i amend my 2010 tax return Deductions you cannot take. Can i amend my 2010 tax return   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. Can i amend my 2010 tax return The additional standard deduction if the child is blind. Can i amend my 2010 tax return The deduction for a penalty on an early withdrawal of your child's savings. Can i amend my 2010 tax return Itemized deductions (such as your child's investment expenses or charitable contributions). Can i amend my 2010 tax return Figure 1. Can i amend my 2010 tax return Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Can i amend my 2010 tax return Figure 1. Can i amend my 2010 tax return Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. Can i amend my 2010 tax return   If you use Form 8814, your child's unearned income is considered your unearned income. Can i amend my 2010 tax return To figure the limit on your deductible investment interest, add the child's unearned income to yours. Can i amend my 2010 tax return However, if your child received qualified dividends, capital gain distributions, or Alaska Permanent Fund dividends, see chapter 3 of Publication 550 for information about how to figure the limit. Can i amend my 2010 tax return Alternative minimum tax. Can i amend my 2010 tax return    If your child received tax-exempt interest (or exempt-interest dividends paid by a regulated investment company) from certain private activity bonds, you must determine if that interest is a tax preference item for alternative minimum tax (AMT) purposes. Can i amend my 2010 tax return If it is, you must include it with your own tax preference items when figuring your AMT. Can i amend my 2010 tax return See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. Can i amend my 2010 tax return Reduced deductions or credits. Can i amend my 2010 tax return   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. Can i amend my 2010 tax return Deduction for contributions to a traditional individual retirement arrangement (IRA). Can i amend my 2010 tax return Deduction for student loan interest. Can i amend my 2010 tax return Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Can i amend my 2010 tax return Credit for child and dependent care expenses. Can i amend my 2010 tax return Child tax credit. Can i amend my 2010 tax return Education tax credits. Can i amend my 2010 tax return Earned income credit. Can i amend my 2010 tax return Penalty for underpayment of estimated tax. Can i amend my 2010 tax return   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. Can i amend my 2010 tax return If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. Can i amend my 2010 tax return Get Publication 505 for more information. Can i amend my 2010 tax return Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Can i amend my 2010 tax return Only the amount over $2,000 is added to your income. Can i amend my 2010 tax return The amount over $2,000 is shown on Form 8814, line 6. Can i amend my 2010 tax return Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Can i amend my 2010 tax return Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. Can i amend my 2010 tax return If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040 or Form 1040NR, line 21. Can i amend my 2010 tax return On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. Can i amend my 2010 tax return Note. Can i amend my 2010 tax return The tax on the first $2,000 is figured on Form 8814, Part II. Can i amend my 2010 tax return See Figuring Additional Tax , later. Can i amend my 2010 tax return Qualified dividends. Can i amend my 2010 tax return   Enter on Form 8814, line 2a, any ordinary dividends your child received. Can i amend my 2010 tax return This amount may include qualified dividends. Can i amend my 2010 tax return Qualified dividends are those dividends reported on Form 1040, line 9b, or Form 1040NR, line 10b, and are eligible for lower tax rates that apply to a net capital gain. Can i amend my 2010 tax return For detailed information about qualified dividends, see Publication 550. Can i amend my 2010 tax return   If your child received qualified dividends, the amount of these dividends that is added to your income must be reported on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Can i amend my 2010 tax return You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Can i amend my 2010 tax return   Enter the child's qualified dividends on Form 8814, line 2b. Can i amend my 2010 tax return But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Can i amend my 2010 tax return Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Can i amend my 2010 tax return (The amount on Form 8814, line 9, may be less than the amount on Form 8814, line 2b, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Can i amend my 2010 tax return ) Capital gain distributions. Can i amend my 2010 tax return   Enter on Form 8814, line 3, any capital gain distributions your child received. Can i amend my 2010 tax return The amount of these distributions that is added to your income must be reported on Schedule D (Form 1040), line 13, or, if you are not required to file Schedule D, on Form 1040, line 13, or Form 1040NR, line 14. Can i amend my 2010 tax return You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Can i amend my 2010 tax return   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. Can i amend my 2010 tax return (The amount on Form 8814, line 10, may be less than the amount on Form 8814, line 3, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Can i amend my 2010 tax return ) Collectibles (28% rate) gain. Can i amend my 2010 tax return    If any of the child's capital gain distributions are reported on Form 1099-DIV as collectibles (28% rate) gain, you must determine how much to also include on line 4 of the 28% Rate Gain Worksheet, in the instructions for Schedule D, line 18. Can i amend my 2010 tax return Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Can i amend my 2010 tax return The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. Can i amend my 2010 tax return The denominator is the child's total capital gain distribution. Can i amend my 2010 tax return Enter the result on line 4 of the 28% Rate Gain Worksheet. Can i amend my 2010 tax return Unrecaptured section 1250 gain. Can i amend my 2010 tax return   If any of the child's capital gain distributions are reported on Form 1099-DIV as unrecaptured section 1250 gain, you must determine how much to include on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the instructions for Schedule D, line 19. Can i amend my 2010 tax return Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Can i amend my 2010 tax return The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. Can i amend my 2010 tax return The denominator is the child's total capital gain distribution. Can i amend my 2010 tax return Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. Can i amend my 2010 tax return Section 1202 gain. Can i amend my 2010 tax return   If any of the child's capital gain distributions are reported as section 1202 gain (gain on qualified small business stock) on Form 1099-DIV, part or all of that gain may be eligible for the section 1202 exclusion. Can i amend my 2010 tax return (For information about the exclusion, see chapter 4 of Publication 550. Can i amend my 2010 tax return ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Can i amend my 2010 tax return The numerator is the part of the child's total capital gain distribution that is section 1202 gain. Can i amend my 2010 tax return The denominator is the child's total capital gain distribution. Can i amend my 2010 tax return Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. Can i amend my 2010 tax return In some cases, the exclusion is more than 50%. Can i amend my 2010 tax return See the instructions for Schedule D for details and information on how to report the exclusion amount. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return Fred is 6 years old. Can i amend my 2010 tax return In 2013, he received dividend income of $2,100, which included $1,575 of ordinary dividends and a $525 capital gain distribution from a mutual fund. Can i amend my 2010 tax return (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. Can i amend my 2010 tax return ) All of the ordinary dividends are qualified dividends. Can i amend my 2010 tax return He has no other income and is not subject to backup withholding. Can i amend my 2010 tax return No estimated tax payments were made under his name and social security number. Can i amend my 2010 tax return Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. Can i amend my 2010 tax return They figure the amount to report on Form 1040, lines 9a and 9b, the amount to report on their Schedule D, line 13, and the amount to report on Form 1040, line 21, as follows. Can i amend my 2010 tax return They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. Can i amend my 2010 tax return They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. Can i amend my 2010 tax return They enter the amount of Fred's capital gain distributions, $525, on line 3. Can i amend my 2010 tax return Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. Can i amend my 2010 tax return They subtract the base amount on line 5, $2,000, from the amount on line 4, $2,100, and enter the result, $100, on line 6. Can i amend my 2010 tax return This is the total amount from Form 8814 to be reported on their return. Can i amend my 2010 tax return Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. Can i amend my 2010 tax return They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. Can i amend my 2010 tax return They enter the result, . Can i amend my 2010 tax return 75, on line 7. Can i amend my 2010 tax return They divide the amount on line 3, $525, by the amount on line 4, $2,100. Can i amend my 2010 tax return They enter the result, . Can i amend my 2010 tax return 25, on line 8. Can i amend my 2010 tax return They multiply the amount on line 6, $100, by the decimal on line 7, . Can i amend my 2010 tax return 75, and enter the result, $75, on line 9. Can i amend my 2010 tax return They multiply the amount on line 6, $100, by the decimal on line 8, . Can i amend my 2010 tax return 25, and enter the result, $25, on line 10. Can i amend my 2010 tax return They include the amount from line 9, $75, on lines 9a and 9b of their Form 1040 and enter “Form 8814 – $75” on the dotted lines next to lines 9a and 9b. Can i amend my 2010 tax return They include the amount from line 10, $25, on line 13 of their Schedule D (Form 1040) and enter “Form 8814 – $25” on the dotted line next to Schedule D, line 13. Can i amend my 2010 tax return They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. Can i amend my 2010 tax return Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. Can i amend my 2010 tax return Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. Can i amend my 2010 tax return This tax is added to the tax figured on your income. Can i amend my 2010 tax return This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. Can i amend my 2010 tax return Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. Can i amend my 2010 tax return Check box a on Form 1040, line 44, or Form 1040NR, line 42. Can i amend my 2010 tax return Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Can i amend my 2010 tax return If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. Can i amend my 2010 tax return Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. Can i amend my 2010 tax return When Form 8615 must be filed. Can i amend my 2010 tax return   Form 8615 must be filed for a child if all of the following statements are true. Can i amend my 2010 tax return The child's unearned income was more than $2,000. Can i amend my 2010 tax return The child is required to file a return for 2013. Can i amend my 2010 tax return The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. Can i amend my 2010 tax return At least one of the child's parents was alive at the end of 2013. Can i amend my 2010 tax return The child does not file a joint return for 2013. Can i amend my 2010 tax return These conditions are also shown in Figure 2. Can i amend my 2010 tax return Certain January 1 birthdays. Can i amend my 2010 tax return   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Can i amend my 2010 tax return IF a child was born on. Can i amend my 2010 tax return . Can i amend my 2010 tax return . Can i amend my 2010 tax return THEN, at the end of 2013, the child is considered to be. Can i amend my 2010 tax return . Can i amend my 2010 tax return . Can i amend my 2010 tax return January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Can i amend my 2010 tax return The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Can i amend my 2010 tax return  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. Can i amend my 2010 tax return  ***Do not use Form 8615 for this child. Can i amend my 2010 tax return Figure 2. Can i amend my 2010 tax return Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Can i amend my 2010 tax return Figure 2. Can i amend my 2010 tax return Do You Have To Use Form 8615 To Figure Your Child's Tax? Providing Parental Information (Form 8615, Lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Can i amend my 2010 tax return (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Can i amend my 2010 tax return ) On line C, check the box for the parent's filing status. Can i amend my 2010 tax return See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. Can i amend my 2010 tax return Parent with different tax year. Can i amend my 2010 tax return   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). Can i amend my 2010 tax return Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). Can i amend my 2010 tax return Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. Can i amend my 2010 tax return Parent's return information not known timely. Can i amend my 2010 tax return   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. Can i amend my 2010 tax return   You can use any reasonable estimate. Can i amend my 2010 tax return This includes using information from last year's return. Can i amend my 2010 tax return If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Can i amend my 2010 tax return   When you get the correct information, file an amended return on Form 1040X, Amended U. Can i amend my 2010 tax return S. Can i amend my 2010 tax return Individual Income Tax Return. Can i amend my 2010 tax return Extension of time to file. Can i amend my 2010 tax return   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Can i amend my 2010 tax return S. Can i amend my 2010 tax return Individual Income Tax Return. Can i amend my 2010 tax return See the instructions for Form 4868 for details. Can i amend my 2010 tax return    An extension of time to file is not an extension of time to pay. Can i amend my 2010 tax return You must make an accurate estimate of the tax for 2013. Can i amend my 2010 tax return If you do not pay the full amount due by the regular due date, the child will owe interest and may also be charged penalties. Can i amend my 2010 tax return See Form 4868 and its instructions. Can i amend my 2010 tax return Parent's return information not available. Can i amend my 2010 tax return   If a child cannot get the required information about his or her parent's tax return, the child (or the child's legal representative) can request the necessary information from the Internal Revenue Service (IRS). Can i amend my 2010 tax return How to request. Can i amend my 2010 tax return   After the end of the tax year, send a signed, written request for the information to the Internal Revenue Service Center where the parent's return will be filed. Can i amend my 2010 tax return (The IRS cannot process a request received before the end of the tax year. Can i amend my 2010 tax return )    You should also consider getting an extension of time to file the child's return, because there may be a delay in getting the requested information. Can i amend my 2010 tax return   The request must contain all of the following. Can i amend my 2010 tax return A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and that you have tried to get the information from the parent. Can i amend my 2010 tax return Proof of the child's age (for example, a copy of the child's birth certificate). Can i amend my 2010 tax return Evidence the child has more than $2,000 of unearned income (for example, a copy of the child's prior year tax return or copies of Forms 1099 for the current year). Can i amend my 2010 tax return The name, address, social security number (if known), and filing status (if known) of the parent whose information is to be shown on Form 8615. Can i amend my 2010 tax return    A child's legal representative making the request should include a copy of his or her Power of Attorney, such as Form 2848, or proof of legal guardianship. Can i amend my 2010 tax return Step 1. Can i amend my 2010 tax return Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. Can i amend my 2010 tax return To do that, use Form 8615, Part I. Can i amend my 2010 tax return Line 1 (Unearned Income) If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Can i amend my 2010 tax return Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Can i amend my 2010 tax return Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. Can i amend my 2010 tax return If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. Can i amend my 2010 tax return However, use the following worksheet if: the child has excluded any foreign earned income, deducted a loss from self-employment, or has a net operating loss from another year. Can i amend my 2010 tax return Alternate Worksheet for Form 8615, Line 1 A. Can i amend my 2010 tax return Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. Can i amend my 2010 tax return Enter the total of any net loss  from self-employment, any net operating loss deduction, any foreign earned income exclusion, and any foreign housing exclusion from the child's Form 1040 or Form 1040NR. Can i amend my 2010 tax return Enter this total as a positive number (greater than zero)   C. Can i amend my 2010 tax return Add line A and line B and  enter the total   D. Can i amend my 2010 tax return Enter the child's earned income plus any amount from the child's Form 1040, line 30, or the child's Form 1040NR, line 30     Generally, the child's earned income is the total of the amounts reported on Form 1040, lines 7, 12, and 18 (if line 12 or 18 is a loss, use zero) or Form 1040NR, lines 8, 13, and 19 (if line 13 or 19 is a loss, use zero)   E. Can i amend my 2010 tax return Subtract line D from line C. Can i amend my 2010 tax return Enter the result here and on Form 8615, line 1   Unearned income defined. Can i amend my 2010 tax return   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. Can i amend my 2010 tax return It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. Can i amend my 2010 tax return Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). Can i amend my 2010 tax return Nontaxable income. Can i amend my 2010 tax return   For this purpose, unearned income includes only amounts the child must include in gross income. Can i amend my 2010 tax return Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Can i amend my 2010 tax return Capital loss. Can i amend my 2010 tax return   A child's capital losses are taken into account in figuring the child's unearned income. Can i amend my 2010 tax return Capital losses are first applied against capital gains. Can i amend my 2010 tax return If the capital losses are more than the capital gains, the difference (up to $3,000) is subtracted from the child's interest, dividends, and other unearned income. Can i amend my 2010 tax return Any difference over $3,000 is carried to the next year. Can i amend my 2010 tax return Income from property received as a gift. Can i amend my 2010 tax return   A child's unearned income includes all income produced by property belonging to the child. Can i amend my 2010 tax return This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. Can i amend my 2010 tax return   A child's unearned income includes income produced by property given as a gift to the child. Can i amend my 2010 tax return This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return Amanda Black, age 13, received the following income. Can i amend my 2010 tax return Dividends—$800 Wages—$2,100 Taxable interest—$1,200 Tax-exempt interest—$100 Capital gains—$300 Capital losses—($200) The dividends were qualified dividends on stock given to her by her grandparents. Can i amend my 2010 tax return Amanda's unearned income is $2,100. Can i amend my 2010 tax return This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). Can i amend my 2010 tax return Her wages are earned (not unearned) income because they are received for work actually performed. Can i amend my 2010 tax return Her tax-exempt interest is not included because it is nontaxable. Can i amend my 2010 tax return Trust income. Can i amend my 2010 tax return   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. Can i amend my 2010 tax return   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. Can i amend my 2010 tax return See the Form 8615 instructions for details. Can i amend my 2010 tax return Adjustment to income. Can i amend my 2010 tax return   In figuring the amount to enter on line 1, the child's unearned income is reduced by any penalty on the early withdrawal of savings. Can i amend my 2010 tax return Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. Can i amend my 2010 tax return If the child itemizes deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29 (or Schedule A (Form 1040NR), line 15), that are directly connected with the production of the unearned income entered on line 1, or $2,000. Can i amend my 2010 tax return Directly connected. Can i amend my 2010 tax return   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. Can i amend my 2010 tax return These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Can i amend my 2010 tax return    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Can i amend my 2010 tax return Only the amount greater than 2% of the child's adjusted gross income can be deducted. Can i amend my 2010 tax return See Publication 529, Miscellaneous Deductions, for more information. Can i amend my 2010 tax return Example 1. Can i amend my 2010 tax return Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with his unearned income. Can i amend my 2010 tax return His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Can i amend my 2010 tax return Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly-connected itemized deductions of $300. Can i amend my 2010 tax return Example 2. Can i amend my 2010 tax return Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Can i amend my 2010 tax return She has no other income. Can i amend my 2010 tax return She has itemized deductions of $1,050 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with the production of her unearned income. Can i amend my 2010 tax return Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Can i amend my 2010 tax return The amount on line 2 is $2,050. Can i amend my 2010 tax return This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Can i amend my 2010 tax return Line 3 Subtract line 2 from line 1 and enter the result on this line. Can i amend my 2010 tax return If zero or less, do not complete the rest of the form. Can i amend my 2010 tax return However, you must still attach Form 8615 to the child's tax return. Can i amend my 2010 tax return Figure the tax on the child's taxable income in the normal manner. Can i amend my 2010 tax return Line 4 (Child's Taxable Income) Enter on line 4 the child's taxable income from Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Can i amend my 2010 tax return Child files Form 2555 or 2555-EZ. Can i amend my 2010 tax return   If the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) is used to figure the child's tax. Can i amend my 2010 tax return Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. Can i amend my 2010 tax return Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. Can i amend my 2010 tax return Enter on Form 8615, line 5, the smaller of line 3 or line 4. Can i amend my 2010 tax return This is the child's net unearned income. Can i amend my 2010 tax return If zero or less, do not complete the rest of the form. Can i amend my 2010 tax return However, you must still attach Form 8615 to the child's tax return. Can i amend my 2010 tax return Figure the tax on the child's taxable income in the normal manner. Can i amend my 2010 tax return Step 2. Can i amend my 2010 tax return Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. Can i amend my 2010 tax return The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. Can i amend my 2010 tax return When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. Can i amend my 2010 tax return For example, do not refigure the medical expense deduction. Can i amend my 2010 tax return Figure the tentative tax on Form 8615, lines 6 through 13. Can i amend my 2010 tax return Line 6 (Parent's Taxable Income) Enter on line 6 the amount from the parent's Form 1040, line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR, line 41; or Form 1040NR-EZ, line 14. Can i amend my 2010 tax return If the parent's taxable income is zero or less, enter zero on line 6. Can i amend my 2010 tax return Parent files Form 2555 or 2555-EZ. Can i amend my 2010 tax return   If the parent files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet in the Form 1040 instructions is used to figure the parent's tax. Can i amend my 2010 tax return Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the parent's taxable income, on line 6 of Form 8615. Can i amend my 2010 tax return Line 7 (Net Unearned Income of Other Children) If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. Can i amend my 2010 tax return Do not include the amount from line 5 of the Form 8615 being completed. Can i amend my 2010 tax return (The term “other child” means any other child whose Form 8615 uses the tax information of the parent identified on Lines A and B of Form 8615. Can i amend my 2010 tax return ) Example. Can i amend my 2010 tax return Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Can i amend my 2010 tax return The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon—$800 Jerry—$600 Mike—$1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. Can i amend my 2010 tax return Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Can i amend my 2010 tax return Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Can i amend my 2010 tax return Other children's information not available. Can i amend my 2010 tax return   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. Can i amend my 2010 tax return Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . Can i amend my 2010 tax return Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. Can i amend my 2010 tax return You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. Can i amend my 2010 tax return Net capital gain. Can i amend my 2010 tax return   Net capital gain is the smaller of the gain, if any, on Schedule D (Form 1040), line 15, or the gain, if any, on Schedule D, line 16. Can i amend my 2010 tax return If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. Can i amend my 2010 tax return Qualified dividends. Can i amend my 2010 tax return   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. Can i amend my 2010 tax return Net capital gain and qualified dividends on line 8. Can i amend my 2010 tax return   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. Can i amend my 2010 tax return   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. Can i amend my 2010 tax return   If the child, parent, or any other child has net capital gain, figure the amount of net capital gain included on line 8 by adding together the net capital gain amounts included on lines 5, 6, and 7 of Form 8615. Can i amend my 2010 tax return   If the child, parent, or any other child has qualified dividends, figure the amount of qualified dividends included on line 8 by adding together the qualified dividend amounts included on lines 5, 6, and 7. Can i amend my 2010 tax return   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. Can i amend my 2010 tax return See the instructions for Form 8615 for more details. Can i amend my 2010 tax return Note. Can i amend my 2010 tax return The amount of any net capital gain or qualified dividends is not separately reported on line 8. Can i amend my 2010 tax return It is  needed, however, when figuring the tax on line 9. Can i amend my 2010 tax return Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Figure the tax on the amount on line 8 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet (in the Form 1040, 1040A, or 1040NR instructions), the Schedule D Tax Worksheet (in the Schedule D instructions), or Schedule J (Form 1040), as follows. Can i amend my 2010 tax return If line 8 does not include any net capital gain or qualified dividends, use the Tax Table or Tax Computation Worksheet to figure this tax. Can i amend my 2010 tax return But if Schedule J, Income Averaging for Farmers and Fishermen, is used to figure the tax on the parent's return, use it to figure this tax. Can i amend my 2010 tax return If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. Can i amend my 2010 tax return For details, see the instructions for Form 8615, line 9. Can i amend my 2010 tax return However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. Can i amend my 2010 tax return But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. Can i amend my 2010 tax return Child files Form 2555 or 2555-EZ. Can i amend my 2010 tax return   If line 8 includes any net capital gain or qualified dividends and the child, or any other child filing Form 8615, also files Form 2555 or 2555-EZ, use Using the Schedule D Tax Worksheet for line 9 tax, next, to figure the line 9 tax. Can i amend my 2010 tax return Using the Schedule D Tax Worksheet for line 9 tax. Can i amend my 2010 tax return    Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the line 9 tax on Form 8615 if the child, parent, or any other child has unrecaptured section 1250 gain or 28% rate gain. Can i amend my 2010 tax return If you must use the Schedule D Tax Worksheet, first complete any Schedule D and any actual Schedule D Tax Worksheet required for the child, parent, or any other child. Can i amend my 2010 tax return Then figure the line 9 tax using another Schedule D Tax Worksheet. Can i amend my 2010 tax return (Do not attach this Schedule D Tax Worksheet to the child's return. Can i amend my 2010 tax return )   Complete this Schedule D Tax Worksheet as follows. Can i amend my 2010 tax return On line 1, enter the amount from Form 8615, line 8. Can i amend my 2010 tax return On line 2, enter the qualified dividends included on Form 8615, line 8. Can i amend my 2010 tax return (See the earlier discussion for line 8. Can i amend my 2010 tax return ) On line 3, enter the total of the amounts, if any, on line 4g of all Forms 4952 filed by the child, parent, or any other child. Can i amend my 2010 tax return On line 4, enter the total of the amounts, if any, on line 4e of all Forms 4952 filed by the child, parent, or any other child. Can i amend my 2010 tax return If applicable, include instead the smaller amount entered on the dotted line next to line 4e. Can i amend my 2010 tax return On lines 5 and 6, follow the worksheet instructions. Can i amend my 2010 tax return On line 7, enter the net capital gain included on Form 8615, line 8. Can i amend my 2010 tax return (See the earlier discussion for line 8. Can i amend my 2010 tax return ) On lines 8 through 10, follow the worksheet instructions. Can i amend my 2010 tax return On line 11, enter zero if neither the child, nor the parent, nor any other child has unrecaptured section 1250 gain (Schedule D, line 19) or 28% rate gain (Schedule D, line 18). Can i amend my 2010 tax return Otherwise, enter the amount of unrecaptured section 1250 gain and 28% rate gain included in the net capital gain on line 8 of Form 8615. Can i amend my 2010 tax return Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). Can i amend my 2010 tax return If the Foreign Earned Income Tax Worksheet was used to figure the parent's tax or the tax of any child, go to step 10 below. Can i amend my 2010 tax return Otherwise, skip steps 10, 11, and 12 below, and go to step 13. Can i amend my 2010 tax return Determine whether there is a line 8 capital gain excess as follows. Can i amend my 2010 tax return Add the amounts on line 2 of all Foreign Earned Income Tax Worksheets completed by the parent or any child for whom Form 8615 is filed. Can i amend my 2010 tax return (But for each child do not add more than the excess, if any, of the amount on line 5 of the child's Form 8615 over the child's taxable income on Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Can i amend my 2010 tax return ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. Can i amend my 2010 tax return Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. Can i amend my 2010 tax return If the result is more than zero, that amount is the line 8 capital gain excess. Can i amend my 2010 tax return If the result is zero or less, there is no line 8 capital gain excess. Can i amend my 2010 tax return If there is no line 8 capital gain excess, skip step 12 below and go to step 13. Can i amend my 2010 tax return If there is a line 8 capital gain excess, complete a second Schedule D Tax Worksheet as instructed above and in step 13, but in its entirety and with the following additional modifications. Can i amend my 2010 tax return (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. Can i amend my 2010 tax return ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. Can i amend my 2010 tax return Reduce the amount you would otherwise enter on line 6 (but not below zero) by any of the line 8 capital gain excess not used in (a) above. Can i amend my 2010 tax return If the child, parent, or any other child has 28% rate gain, reduce the amount you would otherwise enter on line 8 of Worksheet 1 for Line 11 of the Schedule D Tax Worksheet – 28% Rate Gain (Line 9 Tax), shown later, (but not below zero) by the line 8 capital gain excess, and refigure the amount on line 11 of this Schedule D Tax Worksheet. Can i amend my 2010 tax return If the child, parent, or any other child has unrecaptured section 1250 gain, reduce the amount you would otherwise enter on line 8 of Worksheet 2 for Line 11 of the Schedule D Tax Worksheet – Unrecaptured Section 1250 Gain (Line 9 Tax) (but not below zero) by the line 8 capital gain excess not used in 12(c), and refigure the amount on line 11 of this Schedule D Tax Worksheet. Can i amend my 2010 tax return Complete lines 12 through 45 following the worksheet instructions. Can i amend my 2010 tax return Use the parent's filing status to complete lines 15, 42, and 44. Can i amend my 2010 tax return Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line
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The Can I Amend My 2010 Tax Return

Can i amend my 2010 tax return 4. Can i amend my 2010 tax return   Other Section 501(c) Organizations Table of Contents Introduction 501(c)(4) - Civic Leagues and Social Welfare OrganizationsSpecific Organizations 501(c)(5) - Labor, Agricultural and Horticultural OrganizationsLabor Organizations Agricultural and Horticultural Organizations 501(c)(6) - Business Leagues, etc. Can i amend my 2010 tax return Line of business. Can i amend my 2010 tax return Examples. Can i amend my 2010 tax return Improvement of business conditions. Can i amend my 2010 tax return Exception for local legislation. Can i amend my 2010 tax return De minimis exception. Can i amend my 2010 tax return Grass roots lobbying. Can i amend my 2010 tax return 501(c)(7) - Social and Recreation ClubsLimited membership. Can i amend my 2010 tax return Support. Can i amend my 2010 tax return Facilities open to public. Can i amend my 2010 tax return Gross receipts from nonmembership sources. Can i amend my 2010 tax return Gross receipts. Can i amend my 2010 tax return Nontraditional activities. Can i amend my 2010 tax return 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal SocietiesFraternal Beneficiary Societies (501(c)(8)) Domestic Fraternal Societies (501(c)(10)) 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' AssociationsLocal Employees' Associations (501(c)(4)) Voluntary Employees' Beneficiary Associations (501(c)(9)) Supplemental Unemployment Benefit Trusts (501(c)(17)) 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like OrganizationsMembership. Can i amend my 2010 tax return Losses and expenses. Can i amend my 2010 tax return Distributions of proceeds. Can i amend my 2010 tax return The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. Can i amend my 2010 tax return Perpetual care organization. Can i amend my 2010 tax return Care of individual plots. Can i amend my 2010 tax return 501(c)(14) - Credit Unions and Other Mutual Financial OrganizationsState-Chartered Credit Unions Other Mutual Financial Organizations 501(c)(19) - Veterans' Organizations 501(c)(20) - Group Legal Services Plan Organizations 501(c)(21) - Black Lung Benefit TrustsExcise taxes. Can i amend my 2010 tax return 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. Can i amend my 2010 tax return Waiver of payment of income. Can i amend my 2010 tax return 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent CorporationsUnrelated Business Income 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations 501(c)(29) - CO-OP Health Insurance Issuers New Guidance for IRC 501(c)(29) Qualified Nonprofit Health Insurance Issuers General Requirements for Exemption under 501(c)(29) and Annual Filing Requirement Additional Guidance for Prospective 501(c)(29) Organizations Introduction This chapter contains specific information for certain organizations described in section 501(c), other than those organizations that are described in section 501(c)(3). Can i amend my 2010 tax return Section 501(c)(3) organizations are covered in chapter 3 of this publication. Can i amend my 2010 tax return The Table of Contents at the beginning of this publication, as well as the Organization Reference Chart, may help you locate at a glance the type of organization discussed in this chapter. Can i amend my 2010 tax return 501(c)(4) - Civic Leagues and Social Welfare Organizations If your organization is not organized for profit and will be operated primarily to promote social welfare to benefit the community, you should file Form 1024 to apply for recognition of exemption from federal income tax under section 501(c)(4). Can i amend my 2010 tax return The discussion that follows describes the information you must provide when applying. Can i amend my 2010 tax return For application procedures, see chapter 1. Can i amend my 2010 tax return To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. Can i amend my 2010 tax return In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. Can i amend my 2010 tax return If the organization provides an excess benefit to certain persons, an excise tax may be imposed. Can i amend my 2010 tax return See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. Can i amend my 2010 tax return Examples. Can i amend my 2010 tax return   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. Can i amend my 2010 tax return Nonprofit operation. Can i amend my 2010 tax return   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. Can i amend my 2010 tax return However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose. Can i amend my 2010 tax return Social welfare. Can i amend my 2010 tax return   To establish that your organization is organized primarily to promote social welfare, you should submit evidence with your application showing that your organization will operate primarily to further (in some way) the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements). Can i amend my 2010 tax return   An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. Can i amend my 2010 tax return It therefore does not qualify as a section 501(c)(4) organization. Can i amend my 2010 tax return Similarly, an organization formed to represent member-tenants of an apartment complex does not qualify, since its activities benefit the member-tenants and not all tenants in the community. Can i amend my 2010 tax return However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization. Can i amend my 2010 tax return Political activity. Can i amend my 2010 tax return   Promoting social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. Can i amend my 2010 tax return However, if you submit proof that your organization is organized primarily to promote social welfare, it can obtain exemption even if it participates legally in some political activity on behalf of or in opposition to candidates for public office. Can i amend my 2010 tax return See the discussion in chapter 2 under Political Organization Income Tax Return . Can i amend my 2010 tax return Social or recreational activity. Can i amend my 2010 tax return   If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501(c)(7). Can i amend my 2010 tax return Retirement benefit program. Can i amend my 2010 tax return   An organization established by its members that has as its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries does not qualify as an exempt social welfare organization. Can i amend my 2010 tax return It may qualify under another paragraph of section 501(c) depending on all the facts. Can i amend my 2010 tax return   However, a nonprofit association that is established, maintained, and funded by a local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4). Can i amend my 2010 tax return Tax treatment of donations. Can i amend my 2010 tax return   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. Can i amend my 2010 tax return Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. Can i amend my 2010 tax return They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. Can i amend my 2010 tax return However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Can i amend my 2010 tax return for more information. Can i amend my 2010 tax return For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. Can i amend my 2010 tax return gov. Can i amend my 2010 tax return Specific Organizations The following information should be contained in the application form and accompanying statements of certain types of civic leagues or social welfare organizations. Can i amend my 2010 tax return Volunteer fire companies. Can i amend my 2010 tax return   If your organization wishes to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that its members are actively engaged in fire fighting and similar disaster assistance, whether it actually owns the fire fighting equipment, and whether it provides any assistance for its members, such as death and medical benefits in case of injury to them. Can i amend my 2010 tax return   If your organization does not have an independent social purpose, such as providing recreational facilities for members, it may be exempt under section 501(c)(3). Can i amend my 2010 tax return In this event, your organization should file Form 1023. Can i amend my 2010 tax return Homeowners' associations. Can i amend my 2010 tax return   A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. Can i amend my 2010 tax return The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Can i amend my 2010 tax return Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Can i amend my 2010 tax return Even if an area represented by an association is not a community, the association can still qualify for exemption if its activities benefit a community. Can i amend my 2010 tax return   The association should submit evidence that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own members. Can i amend my 2010 tax return It also must show that it does not engage in exterior maintenance of private homes. Can i amend my 2010 tax return   A homeowners' association that is not exempt under section 501(c)(4) and that is a condominium management association, a residential real estate management association, or a timeshare association generally can elect under the provisions of section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income. Can i amend my 2010 tax return Other organizations. Can i amend my 2010 tax return   Other nonprofit organizations that qualify as social welfare organizations include: An organization operating an airport that is on land owned by a local government, which supervises the airport's operation, and that serves the general public in an area with no other airport, A community association that works to improve public services, housing, and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs, and meetings; and contracts with a private security service to patrol the community, A community association devoted to preserving the community's traditions, architecture, and appearance by representing it before the local legislature and administrative agencies in zoning, traffic, and parking matters, An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area, and An organization that holds an annual festival of regional customs and traditions. Can i amend my 2010 tax return 501(c)(5) - Labor, Agricultural and Horticultural Organizations If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. Can i amend my 2010 tax return You must indicate in your application for exemption and accompanying statements that no part of the organization's net earnings will inure to the benefit of any member. Can i amend my 2010 tax return In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Can i amend my 2010 tax return Submit any additional information that may be required, as described in this section. Can i amend my 2010 tax return Tax treatment of donations. Can i amend my 2010 tax return   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. Can i amend my 2010 tax return However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer's trade or business. Can i amend my 2010 tax return For more information about certain limits affecting the deductibility of these business expenses, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Can i amend my 2010 tax return Labor Organizations A labor organization is an association of workers who have combined to protect and promote the interests of the members by bargaining collectively with their employers to secure better working conditions. Can i amend my 2010 tax return To show that your organization has the purpose of a labor organization, you should include in the articles of organization or accompanying statements (submitted with your exemption application) information establishing that the organization is organized to better the conditions of workers, improve the grade of their products, and develop a higher degree of efficiency in their respective occupations. Can i amend my 2010 tax return In addition, no net earnings of the organization can inure to the benefit of any member. Can i amend my 2010 tax return Composition of membership. Can i amend my 2010 tax return   While a labor organization generally is composed of employees or representatives of the employees (in the form of collective bargaining agents) and similar employee groups, evidence that an organization's membership consists mainly of workers does not in itself indicate an exempt purpose. Can i amend my 2010 tax return You must show in your application that your organization has the purposes described in the preceding paragraph. Can i amend my 2010 tax return These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. Can i amend my 2010 tax return Benefits to members. Can i amend my 2010 tax return   The payment by a labor organization of death, sick, accident, and similar benefits to its individual members with funds contributed by its members, if made under a plan to better the conditions of the members, does not preclude exemption as a labor organization. Can i amend my 2010 tax return However, an organization does not qualify for exemption as a labor organization if it has no authority to represent members in job-related matters, even if it provides weekly income to its members in the event of a lawful strike by the members' union, in return for an annual payment by the member. Can i amend my 2010 tax return   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. Can i amend my 2010 tax return gov. Can i amend my 2010 tax return Agricultural and Horticultural Organizations Agricultural and horticultural organizations are connected with raising livestock, forestry, cultivating land, raising and harvesting crops or aquatic resources, cultivating useful or ornamental plants, and similar pursuits. Can i amend my 2010 tax return For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. Can i amend my 2010 tax return The term harvesting, in this case, includes fishing and related pursuits. Can i amend my 2010 tax return Agricultural organizations can be quasi-public in character and are often designed to encourage the development of better agricultural and horticultural products through a system of awards, using income from entry fees, gate receipts, and donations to meet the necessary expenses of upkeep and operation. Can i amend my 2010 tax return When the activities are directed toward the improvement of marketing or other business conditions in one or more lines of business, rather than the improvement of production techniques or the betterment of the conditions of persons engaged in agriculture, the organization must qualify for exemption as a business league, board of trade, or other organization, as discussed next in the section on 501(c)(6) organizations. Can i amend my 2010 tax return The primary purpose of exempt agricultural and horticultural organizations must be to better the conditions of those engaged in agriculture or horticulture, develop more efficiency in agriculture or horticulture, or improve the products. Can i amend my 2010 tax return The following list contains some examples of activities that show an agricultural or horticultural purpose. Can i amend my 2010 tax return Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. Can i amend my 2010 tax return Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. Can i amend my 2010 tax return Testing soil for members and nonmembers of the farm bureau on a cost basis, the results of the tests and other recommendations being furnished to the community members to educate them in soil treatment. Can i amend my 2010 tax return Guarding the purity of a specific breed of livestock. Can i amend my 2010 tax return Encouraging improvements in the production of fish on privately owned fish farms. Can i amend my 2010 tax return Negotiating with processors for the price to be paid to members for their crops. Can i amend my 2010 tax return For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. Can i amend my 2010 tax return gov. Can i amend my 2010 tax return 501(c)(6) - Business Leagues, etc. Can i amend my 2010 tax return If your association wants to apply for recognition of exemption from federal income tax as a nonprofit business league, chamber of commerce, real estate board, or board of trade, it should file Form 1024. Can i amend my 2010 tax return For a discussion of the procedure to follow, see chapter 1. Can i amend my 2010 tax return Your organization must indicate in its application form and attached statements that no part of its net earnings will inure to the benefit of any private shareholder or individual and that it is not organized for profit or organized to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining). Can i amend my 2010 tax return In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. Can i amend my 2010 tax return It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. Can i amend my 2010 tax return A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Can i amend my 2010 tax return Trade associations and professional associations are considered business leagues. Can i amend my 2010 tax return Chamber of commerce. Can i amend my 2010 tax return   A chamber of commerce usually is composed of the merchants and traders of a city. Can i amend my 2010 tax return Board of trade. Can i amend my 2010 tax return   A board of trade often consists of persons engaged in similar lines of business. Can i amend my 2010 tax return For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers, and buyers is a board of trade. Can i amend my 2010 tax return   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. Can i amend my 2010 tax return Real estate board. Can i amend my 2010 tax return   A real estate board consists of members interested in improving the business conditions in the real estate field. Can i amend my 2010 tax return It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. Can i amend my 2010 tax return Professional football leagues. Can i amend my 2010 tax return   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). Can i amend my 2010 tax return They are exempt whether or not they administer a pension fund for football players. Can i amend my 2010 tax return General purpose. Can i amend my 2010 tax return   You must indicate in the material submitted with your application that your organization will be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. Can i amend my 2010 tax return It must be shown that the conditions of a particular trade or the interests of the community will be advanced. Can i amend my 2010 tax return Merely indicating the name of the organization or the object of the local statute under which it is created is not enough to demonstrate the required general purpose. Can i amend my 2010 tax return Line of business. Can i amend my 2010 tax return   This term generally refers either to an entire industry or to all components of an industry within a geographic area. Can i amend my 2010 tax return It does not include a group composed of businesses that market a particular brand within an industry. Can i amend my 2010 tax return Common business interest. Can i amend my 2010 tax return   A common business interest of all members of the organization must be established by the application documents. Can i amend my 2010 tax return Examples. Can i amend my 2010 tax return   Activities that would tend to illustrate a common business interest are: Promotion of higher business standards and better business methods and encouragement of uniformity and cooperation by a retail merchants association, Education of the public in the use of credit, Establishment of uniform casualty rates and compilation of statistical information by an insurance rating bureau operated by casualty insurance companies, Establishment and maintenance of the integrity of a local commercial market, Operation of a trade publication primarily intended to benefit an entire industry, and Encouragement of the use of goods and services of an entire industry (such as a lawyer referral service whose main purpose is to introduce individuals to the use of the legal profession in the hope that they will enter into lawyer-client relationships on a paying basis as a result). Can i amend my 2010 tax return Improvement of business conditions. Can i amend my 2010 tax return   Generally, this must be shown to be the purpose of the organization. Can i amend my 2010 tax return This is not established by evidence of particular services that provide a convenience or economy to individual members in their businesses, such as advertising that carries the name of members, interest-free loans, assigning exclusive franchise areas, operation of a real estate multiple listing system, or operation of a credit reporting agency. Can i amend my 2010 tax return Stock or commodity exchange. Can i amend my 2010 tax return   A stock or commodity exchange is not a business league, chamber of commerce, real estate board, or board of trade and is not exempt under section 501(c)(6). Can i amend my 2010 tax return Legislative activity. Can i amend my 2010 tax return   An organization that is exempt under section 501(c)(6) can work for the enactment of laws to advance the common business interests of the organization's members. Can i amend my 2010 tax return Deduction not allowed for dues used for political or legislative activities. Can i amend my 2010 tax return   A taxpayer cannot deduct the part of dues or other payments to a business league, trade association, labor union, or similar organization that is reported to the taxpayer by the organization as having been used for any of the following activities. Can i amend my 2010 tax return Influencing legislation. Can i amend my 2010 tax return Participating or intervening in a political campaign for, or against, any candidate for public office. Can i amend my 2010 tax return Trying to influence the general public, or part of the general public, with respect to elections, legislative matters, or referendums (also known as grass roots lobbying). Can i amend my 2010 tax return Communicating directly with certain executive branch officials to try to influence their official actions or positions. Can i amend my 2010 tax return See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. Can i amend my 2010 tax return Exception for local legislation. Can i amend my 2010 tax return   Members can deduct dues (or assessments) to an organization that are for expenses of: Appearing before, submitting statements to, or sending communications to members of a local council or similar governing body with respect to legislation or proposed legislation of direct interest to the member, or Communicating information between the member and the organization with respect to local legislation or proposed legislation of direct interest to the organization or the member. Can i amend my 2010 tax return Legislation or proposed legislation is of direct interest to a taxpayer if it will, or can reasonably be expected to, affect the taxpayer's trade or business. Can i amend my 2010 tax return De minimis exception. Can i amend my 2010 tax return   In-house expenditures of $2,000 or less for the year for activities (1) – (4) listed earlier will not prevent a deduction for dues if the dues meet all other tests to be deductible as a business expense. Can i amend my 2010 tax return Grass roots lobbying. Can i amend my 2010 tax return   A tax-exempt trade association, labor union, or similar organization is considered to be engaging in grass roots lobbying if it contacts prospective members or calls upon its own members to contact their employees and customers for the purpose of urging such persons to communicate with their elected state or Congressional representatives to support the promotion, defeat, or repeal of legislation that is of direct interest to the organization. Can i amend my 2010 tax return Any dues or assessments directly related to such activities are not deductible by the taxpayer, since the individuals being contacted, who are not members of the organization, are a segment of the general public. Can i amend my 2010 tax return Tax treatment of donations. Can i amend my 2010 tax return   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. Can i amend my 2010 tax return They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. Can i amend my 2010 tax return   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. Can i amend my 2010 tax return gov. Can i amend my 2010 tax return 501(c)(7) - Social and Recreation Clubs If your club is organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities are for these purposes, it should file Form 1024 to apply for recognition of exemption from federal income tax. Can i amend my 2010 tax return In applying for recognition of exemption, you should submit the information described in this section. Can i amend my 2010 tax return Also see chapter 1 for the procedures to follow. Can i amend my 2010 tax return Typical organizations that should file for recognition of exemption as social clubs include: College alumni associations that are not described in chapter 3 under Alumni association , College fraternities or sororities operating chapter houses for students, Country clubs, Amateur hunting, fishing, tennis, swimming, and other sport clubs, Dinner clubs that provide a meeting place, library, and dining room for members, Hobby clubs, Garden clubs, and Variety clubs. Can i amend my 2010 tax return Discrimination prohibited. Can i amend my 2010 tax return   Your organization will not be recognized as tax exempt if its charter, bylaws, or other governing instrument, or any written policy statement provides for discrimination against any person on the basis of race, color, or religion. Can i amend my 2010 tax return   However, a club that in good faith limits its membership to the members of a particular religion to further the teachings or principles of that religion and not to exclude individuals of a particular race or color will not be considered as discriminating on the basis of religion. Can i amend my 2010 tax return Also, the restriction on religious discrimination does not apply to a club that is an auxiliary of a fraternal beneficiary society (discussed later) if that society is described in section 501(c)(8) and exempt from tax under section 501(a) and limits its membership to the members of a particular religion. Can i amend my 2010 tax return Private benefit prohibited. Can i amend my 2010 tax return   No part of the organization's net earnings can inure to the benefit of any person having a personal and private interest in the activities of the organization. Can i amend my 2010 tax return For purposes of this requirement, it is not necessary that net earnings be actually distributed. Can i amend my 2010 tax return Even undistributed earnings can benefit members. Can i amend my 2010 tax return Examples of this include a decrease in membership dues or an increase in the services the club provides to its members without a corresponding increase in dues or other fees paid for club support. Can i amend my 2010 tax return However, fixed-fee payments to members who bring new members into the club are not an inurement of the club's net earnings, if the payments are reasonable compensation for performance of a necessary administrative service. Can i amend my 2010 tax return Purposes. Can i amend my 2010 tax return   To show that your organization possesses the characteristics of a club within the meaning of the exemption law, you should submit evidence with your application that personal contact, commingling, and fellowship exist among members. Can i amend my 2010 tax return You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. Can i amend my 2010 tax return   Fellowship need not be present between each member and every other member of a club if it is a material part in the life of the organization. Can i amend my 2010 tax return A statewide or nationwide organization that is made up of individual members, but is divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group. Can i amend my 2010 tax return   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. Can i amend my 2010 tax return For example, a club that, in addition to its social activities, has a plan for the payment of sick and death benefits is not operating exclusively for pleasure, recreation, and other nonprofitable purposes. Can i amend my 2010 tax return Limited membership. Can i amend my 2010 tax return   The membership in a social club must be limited. Can i amend my 2010 tax return To show that your organization has a purpose that would characterize it as a club, you should submit evidence with your application that there are limits on admission to membership consistent with the character of the club. Can i amend my 2010 tax return   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. Can i amend my 2010 tax return Corporate members of a club are not the kind of members contemplated by the law. Can i amend my 2010 tax return Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. Can i amend my 2010 tax return See Gross receipts from nonmembership sources , later. Can i amend my 2010 tax return Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. Can i amend my 2010 tax return   The fact that a social club may have an associate (nonvoting) class of membership will not be, in and of itself, a cause for nonrecognition of exemption. Can i amend my 2010 tax return However, if one membership class pays substantially lower dues and fees than another membership class, although both classes enjoy the same rights and privileges in using the club facilities, there may be an inurement of income to the benefited class, resulting in a denial of the club's exemption. Can i amend my 2010 tax return Support. Can i amend my 2010 tax return   In general, your club should be supported solely by membership fees, dues, and assessments. Can i amend my 2010 tax return However, if otherwise entitled to exemption, your club will not be disqualified because it raises revenue from members through the use of club facilities or in connection with club activities. Can i amend my 2010 tax return Business activities. Can i amend my 2010 tax return   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. Can i amend my 2010 tax return However, evidence submitted with your application form that your organization will provide meals, refreshments, or services related to its exempt purposes only to its own members or their dependents or guests will not cause denial of exemption. Can i amend my 2010 tax return Facilities open to public. Can i amend my 2010 tax return   Evidence that your club's facilities will be open to the general public (persons other than members or their dependents or guests) may cause denial of exemption. Can i amend my 2010 tax return This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. Can i amend my 2010 tax return Gross receipts from nonmembership sources. Can i amend my 2010 tax return   A section 501(c)(7) organization can receive up to 35% of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. Can i amend my 2010 tax return Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. Can i amend my 2010 tax return Of the 35% gross receipts listed above, up to 15% of the gross receipts can be derived from the use of the club's facilities or services by the general public. Can i amend my 2010 tax return If an organization has outside income that is more than these limits, all the facts and circumstances will be taken into account in determining whether the organization qualifies for exempt status. Can i amend my 2010 tax return Gross receipts. Can i amend my 2010 tax return   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. Can i amend my 2010 tax return These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. Can i amend my 2010 tax return Receipts do not include initiation fees and capital contributions. Can i amend my 2010 tax return Unusual amounts of income, such as from the sale of a clubhouse or similar facility, are not included in gross receipts or in figuring the percentage limits. Can i amend my 2010 tax return Nontraditional activities. Can i amend my 2010 tax return   Activities conducted by a social club need to further its exempt purposes. Can i amend my 2010 tax return Traditional business activities are those that further a social club's exempt purposes. Can i amend my 2010 tax return Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. Can i amend my 2010 tax return Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. Can i amend my 2010 tax return Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. Can i amend my 2010 tax return Fraternity foundations. Can i amend my 2010 tax return   If your organization is a foundation formed for the exclusive purpose of acquiring and leasing a chapter house to a local fraternity chapter or sorority chapter maintained at an educational institution and does not engage in any social or recreational activities, it may be a title holding corporation (discussed later under section 501(c)(2) organizations and under section 501(c)(25) organizations) rather than a social club. Can i amend my 2010 tax return Tax treatment of donations. Can i amend my 2010 tax return   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. Can i amend my 2010 tax return 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies This section describes the information to be provided upon application for recognition of exemption by two types of fraternal societies: beneficiary and domestic. Can i amend my 2010 tax return The major distinction is that fraternal beneficiary societies provide for the payment of life, sick, accident, or other benefits to their members or their dependents, while domestic fraternal societies do not provide these benefits but rather devote their earnings to fraternal, religious, charitable, etc. Can i amend my 2010 tax return , purposes. Can i amend my 2010 tax return The procedures to follow in applying for recognition of exemption are described in chapter 1. Can i amend my 2010 tax return If your organization is controlled by a central organization, you should check with your controlling organization to determine whether your unit has been included in a group exemption letter or can be added. Can i amend my 2010 tax return If so, your organization need not apply for individual recognition of exemption. Can i amend my 2010 tax return For more information, see Group Exemption Letter in chapter 1 of this publication. Can i amend my 2010 tax return Tax treatment of donations. Can i amend my 2010 tax return   Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Can i amend my 2010 tax return Fraternal Beneficiary Societies (501(c)(8)) A fraternal beneficiary society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Can i amend my 2010 tax return The application and accompanying statements should establish that the organization: Is a fraternal organization, Operates under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system, and Provides for the payment of life, sick, accident, or other benefits to the members of the society, order, or association or their dependents. Can i amend my 2010 tax return Lodge system. Can i amend my 2010 tax return   Operating under the lodge system means carrying on activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. Can i amend my 2010 tax return Payment of benefits. Can i amend my 2010 tax return   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. Can i amend my 2010 tax return An organization can qualify for exemption if most of its members are eligible for benefits, and the benefits are paid from contributions or dues paid by those members. Can i amend my 2010 tax return   The benefits must be limited to members and their dependents. Can i amend my 2010 tax return If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. Can i amend my 2010 tax return Whole-life insurance. Can i amend my 2010 tax return   Whole-life insurance constitutes a life benefit under section 501(c)(8) even though the policy may contain investment features such as a cash surrender value or a policy loan. Can i amend my 2010 tax return Reinsurance pool. Can i amend my 2010 tax return   Payments by a fraternal beneficiary society into a state-sponsored reinsurance pool that protects participating insurers against excessive losses on major medical health and accident insurance will not preclude exemption as a fraternal beneficiary society. Can i amend my 2010 tax return Domestic Fraternal Societies (501(c)(10)) A domestic fraternal society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Can i amend my 2010 tax return The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. Can i amend my 2010 tax return S. Can i amend my 2010 tax return , Operates under the lodge system, Devotes its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and Does not provide for the payment of life, sick, accident, or other benefits to its members. Can i amend my 2010 tax return The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. Can i amend my 2010 tax return 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations This section describes the information to be provided upon application for recognition of exemption by the following types of employees' associations: A voluntary employees' beneficiary association (including federal employees' associations) organized to pay life, sick, accident, and similar benefits to members or their dependents, or designated beneficiaries, if no part of the net earnings of the association inures to the benefit of any private shareholder or individual, and A supplemental unemployment benefit trust whose primary purpose is providing for payment of supplemental unemployment benefits. Can i amend my 2010 tax return Both the application form to file and the information to provide are discussed later under the section that describes your employee association. Can i amend my 2010 tax return Chapter 1 describes the procedures to follow in applying for exemption. Can i amend my 2010 tax return Tax treatment of donations. Can i amend my 2010 tax return   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. Can i amend my 2010 tax return Local Employees' Associations (501(c)(4)) A local association of employees whose membership is limited to employees of a designated person or persons in a particular municipality, and whose income will be devoted exclusively to charitable, educational, or recreational purposes. Can i amend my 2010 tax return A local employees' association must apply for recognition of exemption by filing Form 1024. Can i amend my 2010 tax return The organization must submit evidence that: It is of a purely local character, Its membership is limited to employees of a designated person or persons in a particular locality, and Its net earnings will be devoted exclusively to charitable, educational, or recreational purposes. Can i amend my 2010 tax return A local association of employees that has established a system of paying retirement or death benefits, or both, to its members will not qualify for exemption since the payment of these benefits is not considered as being for charitable, educational, or recreational purposes. Can i amend my 2010 tax return Similarly, a local association of employees that is operated primarily as a cooperative buying service for its members in order to obtain discount prices on merchandise, services, and activities does not qualify for exemption. Can i amend my 2010 tax return Voluntary Employees' Beneficiary Associations (501(c)(9)) An application for recognition of exemption as a voluntary employees' beneficiary association must be filed on Form 1024. Can i amend my 2010 tax return The material submitted with the application must show that your organization: Is a voluntary association of employees, Will provide for payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries and substantially all of its operations are for this purpose, and Will not allow any of its net earnings to inure to the benefit of any private individual or shareholder except in the form of scheduled benefit payments. Can i amend my 2010 tax return To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Can i amend my 2010 tax return Note. Can i amend my 2010 tax return Under section 4976, the reversion of funds from a section 501(c)(9) organization to the employer who created the beneficiary association may subject the employer to a 100% penalty excise tax on the amount of the reversion. Can i amend my 2010 tax return Notice requirement. Can i amend my 2010 tax return   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Can i amend my 2010 tax return The organization gives notice by filing Form 1024. Can i amend my 2010 tax return If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before notice is given. Can i amend my 2010 tax return An extension of time for filing the notice can be granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Can i amend my 2010 tax return Membership. Can i amend my 2010 tax return   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. Can i amend my 2010 tax return This common bond can be a common employer (or affiliated employers), coverage under one or more collective bargaining agreements, membership in a labor union, or membership in one or more locals of a national or international labor union. Can i amend my 2010 tax return   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. Can i amend my 2010 tax return For example, the owner of a business whose employees are members of the association can be a member. Can i amend my 2010 tax return An association will be considered composed of employees if 90% of its total membership on one day of each quarter of its tax year consists of employees. Can i amend my 2010 tax return Employees. Can i amend my 2010 tax return   Employees include individuals who became entitled to membership because they are or were employees. Can i amend my 2010 tax return For example, an individual will qualify as an employee even though the individual is on a leave of absence or has been terminated due to retirement, disability, or layoff. Can i amend my 2010 tax return   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. Can i amend my 2010 tax return Conversely, membership is involuntary if the designation as a member is due to employee status. Can i amend my 2010 tax return However, an association will be considered voluntary if employees are required to be members of the organization as a condition of their employment and they do not incur a detriment (such as a payroll deduction) as a result of their membership. Can i amend my 2010 tax return An employer has not imposed involuntary membership on the employee if membership is required as the result of a collective bargaining agreement or as an incident of membership in a labor organization. Can i amend my 2010 tax return Payment of benefits. Can i amend my 2010 tax return   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. Can i amend my 2010 tax return The benefits can be provided directly by your association or indirectly by your association through the payments of premiums to an insurance company (or fees to a medical clinic). Can i amend my 2010 tax return Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. Can i amend my 2010 tax return Nondiscrimination requirements. Can i amend my 2010 tax return   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. Can i amend my 2010 tax return However, if the organization is part of a plan that is a collective bargaining agreement that was the subject of good faith bargaining between employee organizations and employers, the plan need not meet these requirements for the organization to qualify as tax exempt. Can i amend my 2010 tax return   A plan meets the nondiscrimination requirements only if both of the following statements are true. Can i amend my 2010 tax return Each class of benefits under the plan is provided under a classification of employees that is set forth in the plan and does not discriminate in favor of employees who are highly compensated individuals. Can i amend my 2010 tax return The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. Can i amend my 2010 tax return A life insurance, disability, severance pay, or supplemental unemployment compensation benefit does not discriminate in favor of highly compensated individuals merely because the benefits available bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of employees covered by the plan. Can i amend my 2010 tax return   For purposes of determining whether a plan meets the nondiscrimination requirements, the employer can elect to exclude all disability or severance payments payable to individuals who are in pay status as of January 1, 1985. Can i amend my 2010 tax return This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. Can i amend my 2010 tax return   If a plan provides a benefit for which there is a nondiscrimination provision provided under Chapter 1 of the Internal Revenue Code as a condition of that benefit being excluded from gross income, these nondiscrimination requirements do not apply. Can i amend my 2010 tax return The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. Can i amend my 2010 tax return For example, benefits provided under a medical reimbursement plan would meet the nondiscrimination requirements for an association, if the benefits meet the nondiscrimination requirements of section 105(h)(3) and 105(h)(4). Can i amend my 2010 tax return Excluded employees. Can i amend my 2010 tax return   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. Can i amend my 2010 tax return These include employees: Who have not completed 3 years of service, Who have not attained age 21, Who are seasonal or less than half-time employees, Who are not in the plan and who are included in a unit of employees covered by a collective bargaining agreement if the class of benefits involved was the subject of good faith bargaining, or Who are nonresident aliens and who receive no earned income from the employer that has United States source income. Can i amend my 2010 tax return Highly compensated individual. Can i amend my 2010 tax return   A highly compensated individual is one who: Owned 5 percent or more of the employer at any time during the current year or the preceding year, Received more than $115,000 in compensation from the employer for the preceding year (the amount is annualized for inflation. Can i amend my 2010 tax return Go to IRS. Can i amend my 2010 tax return gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. Can i amend my 2010 tax return However, the employer can choose not to have (3) apply. Can i amend my 2010 tax return Aggregation rules. Can i amend my 2010 tax return   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. Can i amend my 2010 tax return Employees of controlled groups of corporations, trades, or businesses under common control, or members of an affiliated service group, are treated as employees of a single employer. Can i amend my 2010 tax return Leased employees are treated as employees of the recipient. Can i amend my 2010 tax return One employee. Can i amend my 2010 tax return   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). Can i amend my 2010 tax return Supplemental Unemployment Benefit Trusts (501(c)(17)) A trust or trusts forming part of a written plan (established and maintained by an employer, his or her employees, or both) providing solely for the payment of supplemental unemployment compensation benefits must file the application for recognition of exemption on Form 1024. Can i amend my 2010 tax return The trust must be a valid, existing trust under local law and must be evidenced by an executed document. Can i amend my 2010 tax return A conformed copy of the plan of which the trust is a part should be attached to the application. Can i amend my 2010 tax return To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Can i amend my 2010 tax return Note. Can i amend my 2010 tax return Under section 4976, the reversion of funds from a section 501(c)(17) organization to the employer who created the supplemental unemployment benefit trust may subject the employer to a 100% penalty excise tax on the amount of the reversion. Can i amend my 2010 tax return Notice requirement. Can i amend my 2010 tax return   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Can i amend my 2010 tax return The organization gives notice by filing Form 1024. Can i amend my 2010 tax return If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before such notice is given. Can i amend my 2010 tax return An extension of time for filing the notice is granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Can i amend my 2010 tax return Types of payments. Can i amend my 2010 tax return   You must show that the supplemental unemployment compensation benefits will be benefits paid to an employee because of the employee's involuntary separation from employment (whether or not the separation is temporary) resulting directly from a reduction-in-force, discontinuance of a plant or operation, or other similar conditions. Can i amend my 2010 tax return In addition, sickness and accident benefits (but not vacation, retirement, or death benefits) may be included in the plan if these are subordinate to the unemployment compensation benefits. Can i amend my 2010 tax return Diversion of funds. Can i amend my 2010 tax return   It must be impossible under the plan (at any time before the satisfaction of all liabilities with respect to employees under the plan) to use or to divert any of the corpus or income of the trust to any purpose other than the payment of supplemental unemployment compensation benefits (or sickness or accident benefits to the extent just explained). Can i amend my 2010 tax return Discrimination in benefits. Can i amend my 2010 tax return   Neither the terms of the plan nor the actual payment of benefits can be discriminatory in favor of the company's officers, stockholders, supervisors, or highly paid employees. Can i amend my 2010 tax return However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. Can i amend my 2010 tax return Prohibited transactions and exemption. Can i amend my 2010 tax return   If your organization is a supplemental unemployment benefit trust and has received a denial of exemption because it engaged in a prohibited transaction, as defined by section 503(b), it can file a claim for exemption in any tax year following the tax year in which the notice of denial was issued. Can i amend my 2010 tax return It must file the claim on Form 1024. Can i amend my 2010 tax return The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. Can i amend my 2010 tax return An authorized principal officer of your organization must make this declaration under the penalties of perjury. Can i amend my 2010 tax return   If your organization has satisfied all requirements as a supplemental unemployment benefit trust described in section 501(c)(17), it will be notified in writing that it has been recognized as exempt. Can i amend my 2010 tax return However, the organization will be exempt only for those tax years after the tax year in which the claim for exemption (Form 1024) is filed. Can i amend my 2010 tax return Tax year in this case means the established annual accounting period of the organization or, if the organization has not established an annual accounting period, the calendar year. Can i amend my 2010 tax return For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. Can i amend my 2010 tax return 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations Each of the following organizations apply for recognition of exemption from federal income tax by filing Form 1024. Can i amend my 2010 tax return Benevolent life insurance associations of a purely local character and like organizations. Can i amend my 2010 tax return Mutual ditch or irrigation companies and like organizations. Can i amend my 2010 tax return Mutual or cooperative telephone companies and like organizations. Can i amend my 2010 tax return A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. Can i amend my 2010 tax return The information to be provided upon application by each of these organizations is described in this section. Can i amend my 2010 tax return For information as to the procedures to follow in applying for exemption, see chapter 1. Can i amend my 2010 tax return General requirements. Can i amend my 2010 tax return   These organizations must use their income solely to cover losses and expenses, with any excess being returned to members or retained to cover future losses and expenses. Can i amend my 2010 tax return They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. Can i amend my 2010 tax return Mutual character. Can i amend my 2010 tax return   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. Can i amend my 2010 tax return They are associations of persons or organizations, or both, banded together to provide themselves a mutually desirable service approximately at cost and on a mutual basis. Can i amend my 2010 tax return To maintain the mutual characteristic of democratic ownership and control, they must be so organized and operated that their members have the right to choose the management, to receive services at cost, to receive a return of any excess of payments over losses and expenses, and to share in any assets upon dissolution. Can i amend my 2010 tax return   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. Can i amend my 2010 tax return Upon dissolution, gains from the sale of appreciated assets must be distributed to all persons who were members during the period the assets were owned by the organization in proportion to the amount of business done during that period. Can i amend my 2010 tax return The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. Can i amend my 2010 tax return Membership. Can i amend my 2010 tax return   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. Can i amend my 2010 tax return In a stock company, the stockholders are members. Can i amend my 2010 tax return However, a mutual life insurance organization cannot have policyholders other than its members. Can i amend my 2010 tax return Losses and expenses. Can i amend my 2010 tax return   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. Can i amend my 2010 tax return Any excess income not retained in reasonable reserves for future losses and expenses belongs to members in proportion to their patronage or business done with the organization. Can i amend my 2010 tax return If such patronage refunds are retained in reasonable amounts for purposes of expanding and improving facilities, retiring capital indebtedness, acquiring other assets, and unexpected expenses, the organization must maintain records sufficient to reflect the equity of each member in the assets acquired with the funds. Can i amend my 2010 tax return Distributions of proceeds. Can i amend my 2010 tax return   The cooperative may distribute the unexpended balance of collections or assessments remaining on hand at the end of the year to members or patrons prorated on the basis of their patronage or business done with the cooperative. Can i amend my 2010 tax return Such distribution represents a refund in the costs of services rendered to the member. Can i amend my 2010 tax return The 85% Requirement All of the organizations listed above must submit evidence with their application that they receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses. Can i amend my 2010 tax return Nevertheless, certain items of income are excluded from the computation of the 85% requirement if the organization is a mutual or cooperative telephone or electric company. Can i amend my 2010 tax return Mutual or cooperative telephone company. Can i amend my 2010 tax return   A mutual or cooperative telephone company will exclude from the computation of the 85% requirement any income received or accrued from: A nonmember telephone company for the performance of communication services involving the completion of long distance calls to, from, or between members of the mutual or cooperative telephone company, Qualified pole rentals, The sale of display listings in a directory furnished to its members, or The prepayment of a loan created in 1987, 1988, or 1989, under section 306A, 306B, or 311 of the Rural Electrification Act of 1936. Can i amend my 2010 tax return Mutual or cooperative electric company. Can i amend my 2010 tax return   A mutual or cooperative electric company will exclude from the computation of the 85% requirement any income received or accrued from: Qualified pole rentals, Any provision or sale of electric energy transmission services or ancillary service if the services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by the Federal Energy Regulatory Commission (FERC) or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), The provision or sale of electric energy distribution services or ancillary services if the services are provided on a nondiscriminatory open-access basis to distribute electric energy not owned by the mutual or electric cooperative company: To end-users who are served by distribution facilities not owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), or Generated by a generation facility not owned or leased by the company or any of its members and which is directly connected to distribution facilities owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), Any nuclear decommissioning transaction, or Any asset exchange or conversion transaction. Can i amend my 2010 tax return   An electric cooperative's sale of excess fuel at cost in the year of purchase is not income for purposes of determining compliance with the 85% requirement. Can i amend my 2010 tax return Qualified pole rental. Can i amend my 2010 tax return   The term qualified pole rental means any rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that are used by the company in providing telephone or electric services to its members, and Pursuant to the rental to support one or more wires (in addition to wires described in (1)) for use in connection with the transmission by wire of electricity or of telephone or other communications. Can i amend my 2010 tax return   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). Can i amend my 2010 tax return The 85% requirement is applied on the basis of an annual accounting period. Can i amend my 2010 tax return Failure of an organization to meet the requirement in a particular year precludes exemption for that year, but has no effect upon exemption for years in which the 85% requirement is met. Can i amend my 2010 tax return Gain from the sale or conversion of the organization's property is not considered an amount received from members in determining whether the organization's income consists of amounts collected from members. Can i amend my 2010 tax return Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. Can i amend my 2010 tax return Example. Can i amend my 2010 tax return   The books of an organization reflect the following for the calendar year. Can i amend my 2010 tax return Collections from members $2,400 Short-term capital gains 600 Short-term capital losses 400 Other income None Gross income ($2,400 + $600 =$3000) 100% Collected from members ($2,400) 80%   Since amounts collected from members do not constitute at least 85% of gross income, the organization is not entitled to exemption from federal income tax for the year. Can i amend my 2010 tax return   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. Can i amend my 2010 tax return   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. Can i amend my 2010 tax return   If the 85% test is not met, your organization, if classifiable under this section, will not qualify for exemption as any other type of organization described in this publication. Can i amend my 2010 tax return Tax treatment of donations. Can i amend my 2010 tax return   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. Can i amend my 2010 tax return Local Life Insurance Associations A benevolent life insurance association or an organization seeking recognition of exemption on grounds of similarity to a benevolent life insurance association must submit evidence upon applying for recognition of exemption that it will be of a purely local character, that its excess funds will be refunded to members or retained in reasonable reserves to meet future losses and expenses, and that it meets the 85% income requirement. Can i amend my 2010 tax return If an organization issues policies for stipulated cash premiums, or if it requires advance deposits to cover the cost of the insurance and maintains investments from which more than 15% of its income is derived, it will not be entitled to exemption. Can i amend my 2010 tax return To establish that your organization is of a purely local character, it should show that its activities will be confined to a particular community, place, or district irrespective of political subdivisions. Can i amend my 2010 tax return If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. Can i amend my 2010 tax return A benevolent life insurance association that does not terminate membership when a member moves from the local area in which the association operates will qualify for exemption if it meets the other requirements. Can i amend my 2010 tax return A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. Can i amend my 2010 tax return Organizations similar to local benevolent life insurance companies. Can i amend my 2010 tax return   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. Can i amend my 2010 tax return However, an organization that pays only sick, accident, or health benefits, but not life insurance benefits, is not an organization similar to a benevolent life insurance association and should not apply for recognition of exemption as described in this section. Can i amend my 2010 tax return Burial and funeral benefit insurance organization. Can i amend my 2010 tax return   This type of organization can apply for recognition of exemption as an organization similar to a benevolent life insurance company if it establishes that the benefits are paid in cash and if it is not engaged directly in the manufacture of funeral supplies or the performance of funeral services. Can i amend my 2010 tax return An organization that provides its benefits in the form of supplies and service is not a life insurance company. Can i amend my 2010 tax return Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. Can i amend my 2010 tax return Mutual or Cooperative Associations Mutual ditch or irrigation companies, mutual or cooperative telephone companies, and like organizations need not establish that they are of a purely local character. Can i amend my 2010 tax return They can serve noncontiguous areas. Can i amend my 2010 tax return Like organization. Can i amend my 2010 tax return   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. Can i amend my 2010 tax return Examples include the following: cooperatives that provide protection of river banks to prevent erosion, water and sewer services, cable television, satellite, television, cellular phone services, two-way radio service, or natural gas services. Can i amend my 2010 tax return 501(c)(13) - Cemetery Companies If your organization wishes to obtain recognition of exemption from federal income tax as a cemetery company or a corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, it must file an application on Form 1024. Can i amend my 2010 tax return For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. Can i amend my 2010 tax return A nonprofit mutual cemetery company that seeks recognition of exemption should submit evidence with its application that it is owned and operated exclusively for the benefit of its lot owners who hold lots for bona fide burial purposes and not for purposes of resale. Can i amend my 2010 tax return A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. Can i amend my 2010 tax return The fact that a mutual cemetery company limits its membership to a particular class of individuals, such as members of a family, will not affect its status as mutual so long as all the other requirements of section 501(c)(13) are met. Can i amend my 2010 tax return If your organization is a nonprofit corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, you should show that it is not permitted by its charter to engage in any business not necessarily incident to that purpose. Can i amend my 2010 tax return Operating a mortuary is not permitted. Can i amend my 2010 tax return However, selling monuments, markers, vaults, and flowers solely for use in the cemetery is permitted if the profits from these sales are used to maintain the cemetery as a whole. Can i amend my 2010 tax return How income can be used. Can i amend my 2010 tax return   You should show that your organization's earnings are or will be used only in one or more of the following ways. Can i amend my 2010 tax return To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. Can i amend my 2010 tax return To buy cemetery property. Can i amend my 2010 tax return To create a fund that will provide a source of income for the perpetual care of the cemetery or a reasonable reserve for any ordinary or necessary purpose. Can i amend my 2010 tax return No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. Can i amend my 2010 tax return Ordinary and necessary expenses in connection with the operation, management, maintenance, and improvement of the cemetery are permitted, as are reasonable fees for the services of a manager. Can i amend my 2010 tax return Buying cemetery property. Can i amend my 2010 tax return   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. Can i amend my 2010 tax return You must show the method used to finance the purchase of the cemetery property and that the purchase price of the land at the time of its sale to the cemetery was not unreasonable. Can i amend my 2010 tax return   Except for holders of preferred stock (discussed later), no person can have any interest in the net earnings of a tax-exempt cemetery company or crematorium. Can i amend my 2010 tax return Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not