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Efile State Tax Free

Efile state tax free Index A Abandonment of home, Abandonment. Efile state tax free Absence, temporary, Temporary absence. Efile state tax free Abstract fees, Settlement fees or closing costs. Efile state tax free Address, change of, Reminders Adjusted basis, Adjusted Basis, Adjusted Basis Definition of, Determining Basis Worksheet 1 to figure, Determining Basis, Worksheet 1. Efile state tax free Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 1. Efile state tax free Adjusted Basis of Home Sold—Illustrated Example 3 for Emily White, Worksheet 1 Instructions. Efile state tax free Adjusted Basis of Home Sold Adoption Adjusted basis of home for credit claimed, Decreases to Basis Advertising fees, Selling expenses. Efile state tax free Amount realized, Amount Realized Appraisal fees, Settlement fees or closing costs. Efile state tax free Architect's fees, Construction. Efile state tax free Armed forces Ownership and use tests, Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. Efile state tax free Assistance (see Tax help) B Back interest, Settlement fees or closing costs. Efile state tax free Basis Adjusted basis (see Adjusted basis) Determination of, Determining Basis, Adjusted Basis Other than cost, Basis Other Than Cost Building permit fees, Construction. Efile state tax free Business use of home, Business Use or Rental of Home, Use test met for business part (with no business use in year of sale). Efile state tax free C Casualties Amounts spent after to restore damaged property, Increases to Basis Deductible casualty losses, Decreases to Basis Disaster as cause of, Specific event safe harbors. Efile state tax free Insurance payments for casualty losses, Decreases to Basis Change of address, Reminders Closing costs, Settlement fees or closing costs. Efile state tax free Commissions, Selling expenses. Efile state tax free , Settlement fees or closing costs. Efile state tax free Community property Basis determination, Community property. Efile state tax free Condemnation Gain exclusion, Home destroyed or condemned. Efile state tax free Ownership and use test when previous home condemned, Previous home destroyed or condemned. Efile state tax free Condominiums As main home, Main Home Basis determination, Condominium. Efile state tax free Construction costs, Construction. Efile state tax free Built by you, Built by you. Efile state tax free Cooperative apartments As main home, Main Home Basis determination, Cooperative apartment. Efile state tax free Ownership and use tests, Cooperative apartment. Efile state tax free Cost as basis, Cost As Basis Credit reports Cost of obtaining, Settlement fees or closing costs. Efile state tax free D Date of sale, Date of sale. Efile state tax free Death Sale due to, Specific event safe harbors. Efile state tax free Spouse's death before sale, ownership and use tests, Sale of main home by surviving spouse. Efile state tax free Decreases to basis, Decreases to Basis Depreciation After May 6, 1997, Depreciation after May 6, 1997. Efile state tax free Home used for business or rental purposes, Decreases to Basis Destroyed homes Gain exclusion, Home destroyed or condemned. Efile state tax free Ownership and use test when previous home destroyed, Previous home destroyed or condemned. Efile state tax free Disabilities, individuals with Ownership and use test, Exception for individuals with a disability. Efile state tax free Disasters, Specific event safe harbors. Efile state tax free Discharge of qualified principal residence indebtedness, Adjusted Basis Divorce Home received from spouse, Home received from spouse. Efile state tax free Home transferred to spouse, Transfer to spouse. Efile state tax free Ownership and use tests, Home transferred from spouse. Efile state tax free Sale due to, Specific event safe harbors. Efile state tax free Transfers after July 18, 1984, Transfers after July 18, 1984. Efile state tax free Transfers before July 19, 1984, Transfers before July 19, 1984. Efile state tax free Use of home after divorce, Use of home after divorce. Efile state tax free Doctor's recommendation for sale, Doctor's recommendation safe harbor. Efile state tax free E Easements, Decreases to Basis Employee of the intelligence community, Employee of the intelligence community. Efile state tax free Employment Change in place of employment, Change in Place of Employment Payment by employer, when job transfer involved, Payment by employer. Efile state tax free Energy Conservation subsidies, Decreases to Basis Credit, Decreases to Basis Exclusion of gain, Excluding the Gain, Nonqualified Use Reduced maximum exclusion, Reduced Maximum Exclusion Expatriates, Expatriates. Efile state tax free F Federal mortgage subsidies Recapture of, Recapturing (Paying Back) a Federal Mortgage Subsidy Figuring gain or loss, Figuring Gain or Loss, More information. Efile state tax free Fire insurance premiums, Settlement fees or closing costs. Efile state tax free Foreclosure, Foreclosure or repossession. Efile state tax free Foreign Service, Foreign Service member. Efile state tax free Ownership and use tests, Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. Efile state tax free Form 1040 Reporting sale of home, Reporting the Sale Seller-financed mortgages, Seller-financed mortgage. Efile state tax free Form 1040, Schedule A Real estate taxes, Real estate taxes. Efile state tax free Form 1040, Schedule D Reporting sale of home, Reporting the Sale Form 1099-S Proceeds from real estate transactions, Date of sale. Efile state tax free , Form 1099-S. Efile state tax free , Form 1099-S. Efile state tax free Form 2119 Sale of home, Adjusted Basis Form 6252 Installment sale income, Installment sale. Efile state tax free Form 8828 Recapture tax, How to figure and report the recapture. Efile state tax free Form 8960 Net Investment Income Tax, Net Investment Income Tax (NIIT). Efile state tax free NIIT, Net Investment Income Tax (NIIT). Efile state tax free Form 982 Discharge of indebtedness, Adjusted Basis Free tax services, Free help with your tax return. Efile state tax free Future developments, Future Developments G Gain or loss Basis determination, Determining Basis, Adjusted Basis Exclusion of gain, Excluding the Gain Exclusion of gain, nonqualified use, Nonqualified Use Gain on sale, Gain on sale. Efile state tax free Loss on sale, Loss on sale. Efile state tax free Postponed from sale of previous home before May 7, 1997, Decreases to Basis Worksheet 2 to figure, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home—Completed Example 1 for Amy, Worksheet 1. Efile state tax free Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home—Illustrated Example 2 for Peter and Betty Clark, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home—Illustrated Example 3 for Emily White, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home Gifts Home received as, Home received as gift. Efile state tax free H Health Sale of home due to, Health Help (see Tax help) Homebuyer credit Recapture, Recapture of the post-2008 first-time homebuyer credit. Efile state tax free Houseboats As main home, Main Home I Important reminders Change of address, Reminders Home sold with undeducted points, Reminders Improvements Adjusted basis determination, Improvements. Efile state tax free Charges for, Settlement fees or closing costs. Efile state tax free Receipts and other records, Adjusted Basis Useful life of more than 1 year, Increases to Basis Increases to basis, Increases to Basis Individual taxpayer identification numbers (ITINs), Individual taxpayer identification number (ITIN). Efile state tax free Inheritance Home received as, Home acquired from a decedent who died before or after 2010. Efile state tax free Installment sales, Installment sale. Efile state tax free Involuntary conversion, Specific event safe harbors. Efile state tax free ITINs (Individual taxpayer identification numbers), Individual taxpayer identification number (ITIN). Efile state tax free J Joint owners not married, Joint owners not married. Efile state tax free Joint returns, Jointly owned home. Efile state tax free Ownership and use tests, Married Persons L Land Sale of land on which home located, Land. Efile state tax free Sale of vacant land, Vacant land. Efile state tax free Legal fees, Selling expenses. Efile state tax free , Settlement fees or closing costs. Efile state tax free , Construction. Efile state tax free Legal separation Sale due to, Specific event safe harbors. Efile state tax free Like-kind exchange, Sale of home acquired in a like-kind exchange. Efile state tax free Living expenses, Reasonable basic living expenses. Efile state tax free Loan assumption fees, Settlement fees or closing costs. Efile state tax free Loan placement fees, Selling expenses. Efile state tax free Loss (see Gain or loss) M Main home Defined, Main Home Factors used to determine, Factors used to determine main home. Efile state tax free Property used partly as, Property used partly as your main home. Efile state tax free , Property Used Partly for Business or Rental Married taxpayers (see Joint returns) Maximum exclusion, Maximum Exclusion Reduced, Reduced Maximum Exclusion Military (see Armed forces) Missing children, photographs of, Reminders Mobile homes As main home, Main Home More than one home, More than one home. Efile state tax free Mortgage fees, Settlement fees or closing costs. Efile state tax free Mortgage insurance premiums, Settlement fees or closing costs. Efile state tax free Mortgage subsidies Recapturing (paying back) federal mortgage subsidy, Recapturing (Paying Back) a Federal Mortgage Subsidy Mortgages, seller-financed, Seller-financed mortgage. Efile state tax free Moving expense, Settlement fees or closing costs. Efile state tax free Multiple births Sale due to, Specific event safe harbors. Efile state tax free N Nonqualified use, Nonqualified Use Nonresident aliens Spouse as, transfer of home to, Exception. Efile state tax free O Option to buy home, Option to buy. Efile state tax free Ownership and use tests, Ownership and Use Tests, Ownership and use tests met at different times. Efile state tax free P Partly used for business, Property Used Partly for Business or Rental Personal property Selling price of home not to include, Personal property. Efile state tax free Points, Selling expenses. Efile state tax free Home sold with undeducted points, Reminders Seller-paid, Seller-paid points. Efile state tax free Publications (see Tax help) R Real estate taxes, Settlement fees or closing costs. Efile state tax free , Real estate taxes. Efile state tax free Deducting in year of sale, Deducting Taxes in the Year of Sale Recapture of federal mortgage subsidy, Recapturing (Paying Back) a Federal Mortgage Subsidy Recapture of first-time homebuyer credit, Recapture of First-Time Homebuyer Credit Recording fees, Settlement fees or closing costs. Efile state tax free Recordkeeping, Adjusted Basis Reduced maximum exclusion, Reduced Maximum Exclusion Worksheet 3, Worksheet 3. Efile state tax free Reduced Maximum Exclusion Refinancing, Settlement fees or closing costs. Efile state tax free Relatives Sale of home to, Exception for sales to related persons. Efile state tax free Remainder interest Sale of, Sale of remainder interest. Efile state tax free Remodeling, Improvements. Efile state tax free , Exception. Efile state tax free (see also Improvements) Rental of home, Business Use or Rental of Home, Use test met for business part (with no business use in year of sale). Efile state tax free Before closing, by buyer, Settlement fees or closing costs. Efile state tax free Partial use, Property Used Partly for Business or Rental Repairs, Settlement fees or closing costs. Efile state tax free , Improvements. Efile state tax free , Repairs. Efile state tax free (see also Improvements) Reporting the sale, Reporting the Sale, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home—Illustrated Example 3 for Emily White Repossession, Foreclosure or repossession. Efile state tax free Right-of-ways, Decreases to Basis S Safe harbors Distance safe harbor, Distance safe harbor. Efile state tax free Doctor's recommendation for sale, Doctor's recommendation safe harbor. Efile state tax free Unforeseeable events, Specific event safe harbors. Efile state tax free Sales commissions, Selling expenses. Efile state tax free , Settlement fees or closing costs. Efile state tax free Sales to related persons, Exception for sales to related persons. Efile state tax free Self-employed persons Change in status causing inability to pay basic expenses, Specific event safe harbors. Efile state tax free Seller-financed mortgages, Seller-financed mortgage. Efile state tax free Seller-paid points, Seller-paid points. Efile state tax free Selling expenses, Selling expenses. Efile state tax free Selling price, Selling Price Separate returns, Separate returns. Efile state tax free Settlement fees, Settlement fees or closing costs. Efile state tax free Spouse Death of (see Surviving spouse) Divorce, transfers subsequent to (see Divorce) Survey fees, Settlement fees or closing costs. Efile state tax free Surviving spouse Basis determination, Surviving spouse. Efile state tax free Ownership and use tests, Sale of main home by surviving spouse. Efile state tax free T Tax help, How To Get Tax Help Temporary absence, Temporary absence. Efile state tax free Temporary housing, Temporary housing. Efile state tax free Title insurance, Settlement fees or closing costs. Efile state tax free Title search fees, Settlement fees or closing costs. Efile state tax free Trading homes, Trading (exchanging) homes. Efile state tax free , Home received as trade. Efile state tax free Transfer taxes, Settlement fees or closing costs. Efile state tax free , Transfer taxes. Efile state tax free Transfer to spouse, Transfer to spouse. Efile state tax free After July 18, 1984, Transfers after July 18, 1984. Efile state tax free Before July 19, 1984, Transfers before July 19, 1984. Efile state tax free TTY/TDD information, How To Get Tax Help U Unemployment, Specific event safe harbors. Efile state tax free Unforeseen circumstances, Unforeseen Circumstances Uniformed services (see Armed forces) Use tests, Ownership and Use Tests, Ownership and use tests met at different times. Efile state tax free Utilities Charges for installing, Settlement fees or closing costs. Efile state tax free Charges related to occupancy of house before closing, Settlement fees or closing costs. Efile state tax free Energy conservation subsidy, Decreases to Basis Meter and connection charges for construction, Construction. Efile state tax free V Vacant land Sale of, Vacant land. Efile state tax free W Worksheets, Worksheets. Efile state tax free Adjusted basis (Worksheet 1), Determining Basis, Worksheet 1. Efile state tax free Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 1. Efile state tax free Adjusted Basis of Home Sold—Illustrated Example 3 for Emily White, Worksheet 1 Instructions. Efile state tax free Adjusted Basis of Home Sold Gain (or loss), exclusion, and taxable gain (Worksheet 2), Worksheet 2. Efile state tax free Taxable Gain on Sale of Home—Completed Example 1 for Amy, Worksheet 1. Efile state tax free Adjusted Basis of Home Sold—Illustrated Example 1 for Peter and Betty Clark, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home—Illustrated Example 2 for Peter and Betty Clark, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home—Illustrated Example 3 for Emily White, Worksheet 2. Efile state tax free Taxable Gain on Sale of Home Recordkeeping and, Adjusted Basis Reduced maximum exclusion (Worksheet 3), Worksheet 3. Efile state tax free Reduced Maximum Exclusion Prev  Up     Home   More Online Publications
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How to Apply for an EIN

Applying for an EIN is a free service offered by the Internal Revenue Service. Beware of Web sites on the Internet that charge for this free service.

If you are a home-care service recipient who has a previously assigned EIN either as a sole proprietor or as a household employer, do not apply for a new EIN. Use the EIN previously provided. If you can not locate your EIN for any reason, follow the instructions on the Lost or Misplaced Your EIN? Web page.

Apply Online
The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately. The online application process is available for all entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S. Territories. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to use the online application.

Apply By FAX
Taxpayers can FAX the completed Form SS-4 (PDF) application to their state FAX number (see Where to File - Business Forms and Filing Addresses), after ensuring that the Form SS-4 contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type. If the taxpayer's fax number is provided, a fax will be sent back with the EIN within four (4) business days.

Apply By Mail
The processing timeframe for an EIN application received by mail is four weeks. Ensure that the Form SS-4 (PDF) contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type and mailed to the taxpayer. Find out where to mail Form SS-4 on the "Where to File Your Taxes" (for Form SS-4) page.

Apply by Telephone – International Applicants
International applicants may call 267-941-1099 (not a toll-free number) 6:00 a.m. to 11:00 p.m. (Eastern Time) Monday through Friday to obtain their EIN. The person making the call must be authorized to receive the EIN and answer questions concerning the Form SS-4 (PDF), Application for Employer Identification Number. Complete the Third Party Designee section only if you want to authorize the named individual to receive the entity’s EIN and answer questions about the completion of Form SS-4. The designee’s authority terminates at the time the EIN is assigned and released to the designee. You must complete the signature area for the authorization to be valid.

Other Important Information

Daily Limitation of an Employer Identification Number
Effective May 21, 2012, to ensure fair and equitable treatment for all taxpayers, the Internal Revenue Service will limit Employer Identification Number (EIN) issuance to one per responsible party per day. This limitation is applicable to all requests for EINs whether online or by fax or mail. We apologize for any inconvenience this may cause.

Responsible Party
In order to identify the correct individuals and entities applying for EINs, language changes have been made to the EIN process. Refer to Responsible Parties and Nominees to learn about these important changes before applying for an EIN.

Third Party Authorization
The Third Party Designee section must be completed at the bottom of the Form SS-4. The Form SS-4 must also be signed by the taxpayer for the third party designee authorization to be valid. The Form SS-4 must be mailed or faxed to the appropriate service center. The third party designee's authority terminates at the time the EIN is assigned and released to the designee.

Page Last Reviewed or Updated: 03-Jan-2014

The Efile State Tax Free

Efile state tax free 31. Efile state tax free   Tax on Unearned Income of Certain Children Table of Contents What's New Introduction Useful Items - You may want to see: Which Parent's Return To UseParents Who Do Not File a Joint Return 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. Efile state tax free Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Efile state tax free Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Efile state tax free Figuring the Child's Tax (Form 8615, Part III) What's New Net Investment Income Tax. Efile state tax free . Efile state tax free  For tax years beginning after December 31, 2012, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax (NIIT). Efile state tax free NIIT is a 3. Efile state tax free 8% tax on the lesser of the net investment income or the excess of the child's modified adjusted gross income (MAGI) over the threshold amount. Efile state tax free Use Form 8960, Net Investment Income Tax, to figure this tax. Efile state tax free For more information on NIIT, go to www. Efile state tax free irs. Efile state tax free gov and enter “Net Investment Income Tax” in the search box. Efile state tax free Introduction This chapter discusses the following two rules that may affect the tax on unearned income of certain children. Efile state tax free 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. Efile state tax free (See Parent's Election To Report Child's Interest and Dividends , later. Efile state tax free ) 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. Efile state tax free (See Tax for Certain Children Who Have Unearned Income , later. Efile state tax free ) For these rules, the term “child” includes a legally adopted child and a stepchild. Efile state tax free These rules apply whether or not the child is a dependent. Efile state tax free Useful Items - You may want to see: Publication 929 Tax Rules for Children and Dependents Form (and Instructions) 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends 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. Efile state tax free 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 . Efile state tax free 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. Efile state tax free Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Efile state tax free Parents are married. Efile state tax free   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Efile state tax free Parents not living together. Efile state tax free   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. Efile state tax free If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Efile state tax free   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in chapter 2. Efile state tax free Parents are divorced. Efile state tax free   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. Efile state tax free Custodial parent remarried. Efile state tax free   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Efile state tax free Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Efile state tax free Do not use the return of the noncustodial parent. Efile state tax free   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Efile state tax free If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Efile state tax free Parents never married. Efile state tax free   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. Efile state tax free If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Efile state tax free Widowed parent remarried. Efile state tax free   If a widow or widower remarries, the new spouse is treated as the child's other parent. Efile state tax free The rules explained earlier under Custodial parent remarried apply. Efile state tax free 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. Efile state tax free If you do, your child will not have to file a return. Efile state tax free You can make this election only if all the following conditions are met. Efile state tax free Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Efile state tax free Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Efile state tax free The child's gross income was less than $10,000. Efile state tax free The child is required to file a return unless you make this election. Efile state tax free The child does not file a joint return for the year. Efile state tax free 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. Efile state tax free No federal income tax was taken out of your child's income under the backup withholding rules. Efile state tax free You are the parent whose return must be used when applying the special tax rules for children. Efile state tax free (See Which Parent's Return To Use , earlier. Efile state tax free ) These conditions are also shown in Figure 31-A. Efile state tax free Certain January 1 birthdays. Efile state tax free   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Efile state tax free You cannot make this election for such a child unless the child was a full-time student. Efile state tax free   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Efile state tax free You cannot make this election for such a child. Efile state tax free Full-time student. Efile state tax free   A full-time student is a child who during some part of each of any 5 calendar months of the year was enrolled as a full-time student at a school, or took a full-time on-farm training course given by a school or a state, county, or local government agency. Efile state tax free A school includes a technical, trade, or mechanical school. Efile state tax free It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Efile state tax free How to make the election. Efile state tax free   Make the election by attaching Form 8814 to your Form 1040. Efile state tax free (If you make this election, you cannot file Form 1040A or Form 1040EZ. Efile state tax free ) Attach a separate Form 8814 for each child for whom you make the election. Efile state tax free You can make the election for one or more children and not for others. Efile state tax free Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Efile state tax free Rate may be higher. Efile state tax free   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. Efile state tax free This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Efile state tax free 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. Efile state tax free Deductions you cannot take. Efile state tax free   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. Efile state tax free The additional standard deduction if the child is blind. Efile state tax free The deduction for a penalty on an early withdrawal of your child's savings. Efile state tax free Itemized deductions (such as your child's investment expenses or charitable contributions). Efile state tax free Reduced deductions or credits. Efile state tax free   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return including the following. Efile state tax free Deduction for contributions to a traditional individual retirement arrangement (IRA). Efile state tax free Deduction for student loan interest. Efile state tax free Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Efile state tax free Credit for child and dependent care expenses. Efile state tax free Child tax credit. Efile state tax free Education tax credits. Efile state tax free Earned income credit. Efile state tax free Penalty for underpayment of estimated tax. Efile state tax free   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. Efile state tax free 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. Efile state tax free See chapter 4 for more information. Efile state tax free Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Efile state tax free Only the amount over $2,000 is added to your income. Efile state tax free The amount over $2,000 is shown on Form 8814, line 6. Efile state tax free Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Efile state tax free Include the amount from Form 8814, line 12, on Form 1040, line 21. Efile state tax free Enter “Form 8814” on the dotted line next to line 21. Efile state tax free If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040, line 21. Efile state tax free Capital gain distributions and qualified dividends. Efile state tax free   If your child's dividend income included any capital gain distributions, see Capital gain distributions under Figuring Child's Income in Publication 929, Part 2. Efile state tax free If your child's dividend income included any qualified dividends, see Qualified dividends under Figuring Child's Income in Publication 929, Part 2. Efile state tax free 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. Efile state tax free This tax is added to the tax figured on your income. Efile state tax free This additional tax is the smaller of: 10% × (your child's gross income − $1,000), or $100. Efile state tax free Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44. Efile state tax free Check box a on Form 1040, line 44. Efile state tax free Figure 31-A. Efile state tax free Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Efile state tax free Figure 31–A. Efile state tax free Can You Include Your Child's Income On Your 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. Efile state tax free 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. Efile state tax free Attach the completed form to the child's Form 1040 or Form 1040A. Efile state tax free When Form 8615 must be filed. Efile state tax free   Form 8615 must be filed for a child if all of the following statements are true. Efile state tax free The child's investment income was more than $2,000. Efile state tax free The child is required to file a return for 2013. Efile state tax free 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. Efile state tax free At least one of the child's parents was alive at the end of 2013. Efile state tax free The child does not file a joint return for 2013. Efile state tax free These conditions are also shown in  Figure 31-B. Efile state tax free Earned income. Efile state tax free   Earned income includes salaries, wages, tips, and other payments received for personal services performed. Efile state tax free It does not include unearned income as defined later in this chapter. Efile state tax free Support. Efile state tax free   Your child's support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. Efile state tax free To figure your child's support, count support provided by you, your child, and others. Efile state tax free However, a scholarship received by your child is not considered support if your child is a full-time student. Efile state tax free See chapter 3 for details about support. Efile state tax free Certain January 1 birthdays. Efile state tax free   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Efile state tax free Figure 31-B. Efile state tax free Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Efile state tax free Figure 31-B. Efile state tax free Do You Have To Use Form 8615 To Figure Your Child's Tax?    IF a child was born on. Efile state tax free . Efile state tax free . Efile state tax free THEN, at the end of 2013, the child is considered to be. Efile state tax free . Efile state tax free . Efile state tax free January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Efile state tax free The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Efile state tax free  **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. Efile state tax free  ***Do not use Form 8615 for this child. Efile state tax free Providing Parental Information (Form 8615, lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Efile state tax free (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Efile state tax free ) On line C, check the box for the parent's filing status. Efile state tax free See Which Parent's Return To Use at the beginning of this chapter for information on which parent's return information must be used on Form 8615. Efile state tax free Parent with different tax year. Efile state tax free   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. Efile state tax free Parent's return information not known timely. Efile state tax free   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. Efile state tax free   You can use any reasonable estimate. Efile state tax free This includes using information from last year's return. Efile state tax free If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Efile state tax free    When you get the correct information, file an amended return on Form 1040X, Amended U. Efile state tax free S. Efile state tax free Individual Income Tax Return. Efile state tax free   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. Efile state tax free S. Efile state tax free Individual Income Tax Return. Efile state tax free Extensions are discussed in chapter 1. Efile state tax free Step 1. Efile state tax free 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. Efile state tax free To do that, use Form 8615, Part I. Efile state tax free Line 1 (unearned income). Efile state tax free   If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Efile state tax free Adjusted gross income is shown on Form 1040, line 38, or Form 1040A, line 22. Efile state tax free Form 1040EZ cannot be used if Form 8615 must be filed. Efile state tax free   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. Efile state tax free   However, if the child has: excluded any foreign earned income, deducted either a loss from self-employment, or deducted a net operating loss from another year, then use the Alternate Worksheet for Form 8615, Line 1, in Publication 929 to figure the amount to enter on Form 8615, line 1. Efile state tax free Unearned income defined. Efile state tax free   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. Efile state tax free It includes taxable interest, dividends (including capital gain distributions), capital gains, unemployment compensation, the taxable part of social security and pension payments, and certain distributions from trusts. Efile state tax free 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). Efile state tax free Nontaxable income. Efile state tax free   For this purpose, unearned income includes only amounts the child must include in total income. Efile state tax free Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Efile state tax free Income from property received as a gift. Efile state tax free   A child's unearned income includes all income produced by property belonging to the child. Efile state tax free 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. Efile state tax free   A child's unearned income includes income produced by property given as a gift to the child. Efile state tax free This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Efile state tax free Example. Efile state tax free Amanda Black, age 13, received the following income. Efile state tax free Dividends — $800 Wages — $2,100 Taxable interest — $1,200 Tax-exempt interest — $100 Net capital gains — $100 The dividends were qualified dividends on stock given to her by her grandparents. Efile state tax free Amanda's unearned income is $2,100. Efile state tax free This is the total of the dividends ($800), taxable interest ($1,200), and net capital gains ($100). Efile state tax free Her wages are earned (not unearned) income because they are received for work actually done. Efile state tax free Her tax-exempt interest is not included because it is nontaxable. Efile state tax free Trust income. Efile state tax free   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. Efile state tax free   However, for purposes of completing Form 8615, a taxable distribution from a qualified disability trust is considered earned income, not unearned income. Efile state tax free Line 2 (deductions). Efile state tax free   If the child does not itemize deductions on Schedule A (Form 1040), enter $2,000 on line 2. Efile state tax free   If the child does itemize 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, that are directly connected with the production of unearned income entered on line 1, or $2,000. Efile state tax free Directly connected. Efile state tax free   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. Efile state tax free These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Efile state tax free   These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Efile state tax free Only the amount greater than 2% of the child's adjusted gross income can be deducted. Efile state tax free See chapter 28 for more information. Efile state tax free Example 1. Efile state tax free 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% limit) that are directly connected with his unearned income. Efile state tax free His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Efile state tax free 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. Efile state tax free Example 2. Efile state tax free Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Efile state tax free She has no other income. Efile state tax free She has itemized deductions of $1,050 (net of the 2% limit) that are directly connected with the production of her unearned income. Efile state tax free Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Efile state tax free The amount on line 2 is $2,050. Efile state tax free This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Efile state tax free Line 3. Efile state tax free   Subtract line 2 from line 1 and enter the result on this line. Efile state tax free If zero or less, do not complete the rest of the form. Efile state tax free However, you must still attach Form 8615 to the child's tax return. Efile state tax free Figure the tax on the child's taxable income in the normal manner. Efile state tax free Line 4 (child's taxable income). Efile state tax free   Enter on line 4 the child's taxable income from Form 1040, line 43, or Form 1040A, line 27. Efile state tax free   However, if the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, see the Form 8615 instructions or Pub. Efile state tax free 929. Efile state tax free Line 5 (net unearned income). Efile state tax free   A child's net unearned income cannot be more than his or her taxable income. Efile state tax free Enter on Form 8615, line 5, the smaller of line 3 or line 4. Efile state tax free This is the child's net unearned income. Efile state tax free   If zero or less, do not complete the rest of the form. Efile state tax free However, you must still attach Form 8615 to the child's tax return. Efile state tax free Figure the tax on the child's taxable income in the normal manner. Efile state tax free Step 2. Efile state tax free Figuring 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. Efile state tax free 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. Efile state tax free 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. Efile state tax free For example, do not refigure the medical expense deduction. Efile state tax free Figure the tentative tax on Form 8615, lines 6 through 13. Efile state tax free Note. Efile state tax free If the child or parent has any capital gains or losses, get Publication 929 for help in completing Form 8615, Part II. Efile state tax free Line 6 (parent's taxable income). Efile state tax free   Enter on line 6 the parent's taxable income from Form 1040, line 43, Form 1040A, line 27, or Form 1040EZ, line 6. Efile state tax free   If the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) was used to figure the parent's tax, enter the amount from line 3 of that worksheet instead of the parent's taxable income. Efile state tax free Line 7 (net unearned income of other children). Efile state tax free   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. Efile state tax free Do not include the amount from line 5 of the Form 8615 being completed. Efile state tax free Example. Efile state tax free Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Efile state tax free 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. Efile state tax free Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Efile state tax free Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Efile state tax free Other children's information not available. Efile state tax free   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. Efile state tax free See Parent's return information not known timely , earlier. Efile state tax free Line 11 (tentative tax). Efile state tax free   Subtract line 10 from line 9 and enter the result on this line. Efile state tax free This is the tentative tax. Efile state tax free   If line 7 is blank, skip lines 12a and 12b and enter the amount from line 11 on line 13. Efile state tax free Also skip the discussion for lines 12a and 12b that follows. Efile state tax free Lines 12a and 12b (dividing the tentative tax). Efile state tax free   If an amount is entered on line 7, divide the tentative tax shown on line 11 among the children according to each child's share of the total net unearned income. Efile state tax free This is done on lines 12a, 12b, and 13. Efile state tax free Add the amount on line 7 to the amount on line 5 and enter the total on line 12a. Efile state tax free Divide the amount on line 5 by the amount on line 12a and enter the result, as a decimal, on line 12b. Efile state tax free Example. Efile state tax free In the earlier example under Line 7 (net unearned income of other children), Sharon's Form 8615 shows $1,600 on line 7. Efile state tax free The amount entered on line 12a is $2,400, the total of the amounts on lines 5 and 7 ($800 + $1,600). Efile state tax free The decimal on line 12b is  . Efile state tax free 333, figured as follows and rounded to three places. Efile state tax free   $800 = . Efile state tax free 333     $2,400   Step 3. Efile state tax free Figuring the Child's Tax (Form 8615, Part III) The final step in figuring a child's tax using Form 8615 is to determine the larger of: The total of: The child's share of the tentative tax based on the parent's tax rate, plus The tax on the child's taxable income in excess of net unearned income, figured at the child's tax rate, or The tax on the child's taxable income, figured at the child's tax rate. Efile state tax free This is the child's tax. Efile state tax free It is figured on Form 8615, lines 14 through 18. Efile state tax free Alternative minimum tax. Efile state tax free   A child may be subject to alternative minimum tax (AMT) if he or she has certain items given preferential treatment under the tax law. Efile state tax free See Alternative Minimum Tax (AMT) in chapter 30. Efile state tax free    For more information on who is liable for AMT and how to figure it, see Form 6251, Alternative Minimum Tax—Individuals. Efile state tax free For information on special limits that apply to a child who files Form 6251, see Certain Children Under Age 24 in the Instructions for Form 6251. Efile state tax free Prev  Up  Next   Home   More Online Publications