Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

E File 2012 Federal Taxes

How Do I File An Amended Tax Return For 2009How Do I File A 1040xAmended Federal Tax Return 2011E-file Back Taxes Free For Past 3 Years TaxeHow To Amend Federal Tax ReturnFill Out 1040ez OnlineFile A 1040x Online For FreeIrsFiling Tax ExtensionTurbotax Amended Return 2012Irs Forms 1040ezFree Federal Tax FilingForm 1040ez 20111099xFile Past Years Taxes1040 Ez FormI Need To File My State Taxes OnlyHow To File 2012 Taxes NowIrs Gov Form 1040x2012 Tax Forms 1040ez2012 Tax Return FilingFree 1040ezE File State Taxes FreeNeed 2010 Taxes1040ez Tax Form And Booklet2011 Income TaxesIrs Tax Form 1040ez 20112010 Tax Form 10402007 Free Tax SoftwareSchool Tax FormsFree 2010 TurbotaxFiling A 1040xEfile 2012Efile TaxesIrs 1040ez 2013Free 1040x Forms Prepared OnlineOhio Free File1040ez BookHow Can I File My 2012 Taxes OnlineHow To File 2011 Taxes Online For Free

E File 2012 Federal Taxes

E file 2012 federal taxes 2. E file 2012 federal taxes   Foreclosures and Repossessions Table of Contents Amount realized and ordinary income on a recourse debt. E file 2012 federal taxes Amount realized on a nonrecourse debt. E file 2012 federal taxes If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. E file 2012 federal taxes The foreclosure or repossession is treated as a sale from which you may realize gain or loss. E file 2012 federal taxes This is true even if you voluntarily return the property to the lender. E file 2012 federal taxes If the outstanding loan balance was more than the FMV of the property and the lender cancels all or part of the remaining loan balance, you also may realize ordinary income from the cancellation of debt. E file 2012 federal taxes You must report this income on your return unless certain exceptions or exclusions apply. E file 2012 federal taxes See chapter 1 for more details. E file 2012 federal taxes Borrower's gain or loss. E file 2012 federal taxes    You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale. E file 2012 federal taxes The gain is the difference between the amount realized and your adjusted basis in the transferred property (amount realized minus adjusted basis). E file 2012 federal taxes The loss is the difference between your adjusted basis in the transferred property and the amount realized (adjusted basis minus amount realized). E file 2012 federal taxes For more information on figuring gain or loss from the sale of property, see Gain or Loss From Sales and Exchanges in Publication 544. E file 2012 federal taxes You can use Table 1-1 to figure your ordinary income from the cancellation of debt and your gain or loss from a foreclosure or repossession. E file 2012 federal taxes Amount realized and ordinary income on a recourse debt. E file 2012 federal taxes    If you are personally liable for the debt, the amount realized on the foreclosure or repossession includes the smaller of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The FMV of the transferred property. E file 2012 federal taxes The amount realized also includes any proceeds you received from the foreclosure sale. E file 2012 federal taxes If the FMV of the transferred property is less than the total outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, the difference is ordinary income from the cancellation of debt. E file 2012 federal taxes You must report this income on your return unless certain exceptions or exclusions apply. E file 2012 federal taxes See chapter 1 for more details. E file 2012 federal taxes       Example 1. E file 2012 federal taxes Tara bought a new car for $15,000. E file 2012 federal taxes She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. E file 2012 federal taxes Tara is personally liable for the loan (recourse debt) and the car is pledged as security for the loan. E file 2012 federal taxes On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. E file 2012 federal taxes The balance due after taking into account the payments Tara made was $10,000. E file 2012 federal taxes The FMV of the car when it was repossessed was $9,000. E file 2012 federal taxes On November 15, 2013, the credit company forgave the remaining $1,000 balance on the loan due to insufficient assets. E file 2012 federal taxes In this case, the amount Tara realizes is $9,000. E file 2012 federal taxes This is the smaller of: The $10,000 outstanding debt immediately before the repossession reduced by the $1,000 for which she remains personally liable immediately after the repossession ($10,000 − $1,000 = $9,000), or The $9,000 FMV of the car. E file 2012 federal taxes Tara figures her gain or loss on the repossession by comparing the $9,000 amount realized with her $15,000 adjusted basis. E file 2012 federal taxes She has a $6,000 nondeductible loss. E file 2012 federal taxes After the cancellation of the remaining balance on the loan in November, Tara also has ordinary income from cancellation of debt in the amount of $1,000 (the remaining balance on the $10,000 loan after the $9,000 amount satisfied by the FMV of the repossessed car). E file 2012 federal taxes Tara must report this $1,000 on her return unless one of the exceptions or exclusions described in chapter 1 applies. E file 2012 federal taxes Example 2. E file 2012 federal taxes Lili paid $200,000 for her home. E file 2012 federal taxes She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. E file 2012 federal taxes Lili is personally liable for the mortgage loan and the house secures the loan. E file 2012 federal taxes In 2013, the bank foreclosed on the mortgage because Lili stopped making payments. E file 2012 federal taxes When the bank foreclosed the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. E file 2012 federal taxes At the time of the foreclosure, the bank forgave $2,000 of the $10,000 debt in excess of the FMV ($180,000 minus $170,000). E file 2012 federal taxes She remained personally liable for the $8,000 balance. E file 2012 federal taxes In this case, Lili has ordinary income from the cancellation of debt in the amount of $2,000. E file 2012 federal taxes The $2,000 income from the cancellation of debt is figured by subtracting the $170,000 FMV of the house from the $172,000 difference between her total outstanding debt immediately before the transfer of property and the amount for which she remains personally liable immediately after the transfer ($180,000 minus $8,000). E file 2012 federal taxes She is able to exclude the $2,000 of canceled debt from her income under the qualified principal residence indebtedness rules discussed earlier. E file 2012 federal taxes Lili must also determine her gain or loss from the foreclosure. E file 2012 federal taxes In this case, the amount that she realizes is $170,000. E file 2012 federal taxes This is the smaller of: (a) the $180,000 outstanding debt immediately before the transfer reduced by the $8,000 for which she remains personally liable immediately after the transfer ($180,000 − $8,000 = $172,000) or (b) the $170,000 FMV of the house. E file 2012 federal taxes Lili figures her gain or loss on the foreclosure by comparing the $170,000 amount realized with her $175,000 adjusted basis. E file 2012 federal taxes She has a $5,000 nondeductible loss. E file 2012 federal taxes Table 1-1. E file 2012 federal taxes Worksheet for Foreclosures and Repossessions Part 1. E file 2012 federal taxes Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). E file 2012 federal taxes Otherwise, go to Part 2. E file 2012 federal taxes 1. E file 2012 federal taxes Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property   2. E file 2012 federal taxes Enter the fair market value of the transferred property   3. E file 2012 federal taxes Ordinary income from the cancellation of debt upon foreclosure or repossession. E file 2012 federal taxes * Subtract line 2 from line 1. E file 2012 federal taxes If less than zero, enter zero. E file 2012 federal taxes Next, go to Part 2   Part 2. E file 2012 federal taxes Gain or loss from foreclosure or repossession. E file 2012 federal taxes   4. E file 2012 federal taxes Enter the smaller of line 1 or line 2. E file 2012 federal taxes If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property   5. E file 2012 federal taxes Enter any proceeds you received from the foreclosure sale   6. E file 2012 federal taxes Add line 4 and line 5   7. E file 2012 federal taxes Enter the adjusted basis of the transferred property   8. E file 2012 federal taxes Gain or loss from foreclosure or repossession. E file 2012 federal taxes Subtract line 7 from line 6   * The income may not be taxable. E file 2012 federal taxes See chapter 1 for more details. E file 2012 federal taxes Amount realized on a nonrecourse debt. E file 2012 federal taxes    If you are not personally liable for repaying the debt secured by the transferred property, the amount you realize includes the full amount of the outstanding debt immediately before the transfer. E file 2012 federal taxes This is true even if the FMV of the property is less than the outstanding debt immediately before the transfer. E file 2012 federal taxes Example 1. E file 2012 federal taxes Tara bought a new car for $15,000. E file 2012 federal taxes She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. E file 2012 federal taxes Tara is not personally liable for the loan (nonrecourse), but pledged the new car as security for the loan. E file 2012 federal taxes On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. E file 2012 federal taxes The balance due after taking into account the payments Tara made was $10,000. E file 2012 federal taxes The FMV of the car when it was repossessed was $9,000. E file 2012 federal taxes The amount Tara realized on the repossession is $10,000. E file 2012 federal taxes That is the outstanding amount of debt immediately before the repossession, even though the FMV of the car is less than $10,000. E file 2012 federal taxes Tara figures her gain or loss on the repossession by comparing the $10,000 amount realized with her $15,000 adjusted basis. E file 2012 federal taxes Tara has a $5,000 nondeductible loss. E file 2012 federal taxes Example 2. E file 2012 federal taxes Lili paid $200,000 for her home. E file 2012 federal taxes She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. E file 2012 federal taxes She is not personally liable for the loan, but grants the bank a mortgage. E file 2012 federal taxes The bank foreclosed on the mortgage because Lili stopped making payments. E file 2012 federal taxes When the bank foreclosed on the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. E file 2012 federal taxes The amount Lili realized on the foreclosure is $180,000, the outstanding debt immediately before the foreclosure. E file 2012 federal taxes She figures her gain or loss by comparing the $180,000 amount realized with her $175,000 adjusted basis. E file 2012 federal taxes Lili has a $5,000 realized gain. E file 2012 federal taxes See Publication 523 to figure and report any taxable amount. E file 2012 federal taxes Forms 1099-A and 1099-C. E file 2012 federal taxes    A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. E file 2012 federal taxes However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. E file 2012 federal taxes The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. E file 2012 federal taxes For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. E file 2012 federal taxes Prev  Up  Next   Home   More Online Publications
Español

Workplace Issues

Find information on workplace issues including back pay, child care, discrimination, disability employment, Family and Medical Leave Act, minimum wage, pensions and more.

The E File 2012 Federal Taxes

E file 2012 federal taxes Some employees may be able to deduct certain work-related expenses. The following facts from the IRS can help you determine which expenses are deductible as an employee business expense. You must be itemizing deductions on IRS Schedule A to qualify. E file 2012 federal taxes Expenses that qualify for an itemized deduction generally include: E file 2012 federal taxes Business travel away from home E file 2012 federal taxes Business use of your car E file 2012 federal taxes Business meals and entertainment E file 2012 federal taxes Travel E file 2012 federal taxes Use of your home E file 2012 federal taxes Education E file 2012 federal taxes Supplies E file 2012 federal taxes Tools E file 2012 federal taxes Miscellaneous expenses E file 2012 federal taxes You must keep records to prove the business expenses you deduct. For general information on recordkeeping, see IRS Publication 552, Recordkeeping for Individuals available on this website, or by calling 1-800-TAX-FORM (800-829-3676). E file 2012 federal taxes If your employer reimburses you under an accountable plan, you should not include the payments in your gross income, and you may not deduct any of the reimbursed amounts. E file 2012 federal taxes An accountable plan must meet three requirements: E file 2012 federal taxes You must have paid or incurred expenses that are deductible while performing services as an employee. E file 2012 federal taxes E file 2012 federal taxes You must adequately account to your employer for these expenses within a reasonable time period. E file 2012 federal taxes E file 2012 federal taxes You must return any excess reimbursement or allowance within a reasonable time period. E file 2012 federal taxes If the plan under which you are reimbursed by your employer is non-accountable, the payments you receive should be included in the wages shown on your Form W-2. You must report the income and itemize your deductions to deduct these expenses. E file 2012 federal taxes Generally, you report unreimbursed expenses on IRS Form 2106 or IRS Form 2106-EZ and attach it to Form 1040. Deductible expenses are then reported on IRS Schedule A, as a miscellaneous itemized deduction subject to a rule that limits your employee business expenses deduction to the amount that exceeds 2 percent of your adjusted gross income. E file 2012 federal taxes For more information see IRS Publication 529, Miscellaneous Deductions, which is available on this website, or by calling 1-800-TAX-FORM (800-829-3676). E file 2012 federal taxes