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Ez 40 Tax Form

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Ez 40 Tax Form

Ez 40 tax form Publication 936 - Main Content Table of Contents Part I. Ez 40 tax form Home Mortgage InterestSecured Debt Qualified Home Special Situations Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement How To Report Special Rule for Tenant-Stockholders in Cooperative Housing Corporations Part II. Ez 40 tax form Limits on Home Mortgage Interest DeductionHome Acquisition Debt Home Equity Debt Grandfathered Debt Table 1 Instructions How To Get Tax HelpLow Income Taxpayer Clinics Part I. Ez 40 tax form Home Mortgage Interest This part explains what you can deduct as home mortgage interest. Ez 40 tax form It includes discussions on points, mortgage insurance premiums, and how to report deductible interest on your tax return. Ez 40 tax form Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). Ez 40 tax form The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. Ez 40 tax form You can deduct home mortgage interest if all the following conditions are met. Ez 40 tax form You file Form 1040 and itemize deductions on Schedule A (Form 1040). Ez 40 tax form The mortgage is a secured debt on a qualified home in which you have an ownership interest. Ez 40 tax form Secured Debt and Qualified Home are explained later. Ez 40 tax form  Both you and the lender must intend that the loan be repaid. Ez 40 tax form Fully deductible interest. Ez 40 tax form   In most cases, you can deduct all of your home mortgage interest. Ez 40 tax form How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. Ez 40 tax form   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. Ez 40 tax form (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. Ez 40 tax form ) If one or more of your mortgages does not fit into any of these categories, use Part II of this publication to figure the amount of interest you can deduct. Ez 40 tax form   The three categories are as follows. Ez 40 tax form Mortgages you took out on or before October 13, 1987 (called grandfathered debt). Ez 40 tax form Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Ez 40 tax form Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). Ez 40 tax form The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. Ez 40 tax form   See Part II for more detailed definitions of grandfathered, home acquisition, and home equity debt. Ez 40 tax form    You can use Figure A to check whether your home mortgage interest is fully deductible. Ez 40 tax form This image is too large to be displayed in the current screen. Ez 40 tax form Please click the link to view the image. Ez 40 tax form Figure A. Ez 40 tax form Is My Home Mortgage Interest Fully Deductible? Secured Debt You can deduct your home mortgage interest only if your mortgage is a secured debt. Ez 40 tax form A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that: Makes your ownership in a qualified home security for payment of the debt, Provides, in case of default, that your home could satisfy the debt, and Is recorded or is otherwise perfected under any state or local law that applies. Ez 40 tax form In other words, your mortgage is a secured debt if you put your home up as collateral to protect the interests of the lender. Ez 40 tax form If you cannot pay the debt, your home can then serve as payment to the lender to satisfy (pay) the debt. Ez 40 tax form In this publication, mortgage will refer to secured debt. Ez 40 tax form Debt not secured by home. Ez 40 tax form   A debt is not secured by your home if it is secured solely because of a lien on your general assets or if it is a security interest that attaches to the property without your consent (such as a mechanic's lien or judgment lien). Ez 40 tax form   A debt is not secured by your home if it once was, but is no longer secured by your home. Ez 40 tax form Wraparound mortgage. Ez 40 tax form   This is not a secured debt unless it is recorded or otherwise perfected under state law. Ez 40 tax form Example. Ez 40 tax form Beth owns a home subject to a mortgage of $40,000. Ez 40 tax form She sells the home for $100,000 to John, who takes it subject to the $40,000 mortgage. Ez 40 tax form Beth continues to make the payments on the $40,000 note. Ez 40 tax form John pays $10,000 down and gives Beth a $90,000 note secured by a wraparound mortgage on the home. Ez 40 tax form Beth does not record or otherwise perfect the $90,000 mortgage under the state law that applies. Ez 40 tax form Therefore, the mortgage is not a secured debt and John cannot deduct any of the interest he pays on it as home mortgage interest. Ez 40 tax form Choice to treat the debt as not secured by your home. Ez 40 tax form   You can choose to treat any debt secured by your qualified home as not secured by the home. Ez 40 tax form This treatment begins with the tax year for which you make the choice and continues for all later tax years. Ez 40 tax form You can revoke your choice only with the consent of the Internal Revenue Service (IRS). Ez 40 tax form   You may want to treat a debt as not secured by your home if the interest on that debt is fully deductible (for example, as a business expense) whether or not it qualifies as home mortgage interest. Ez 40 tax form This may allow you, if the limits in Part II apply, more of a deduction for interest on other debts that are deductible only as home mortgage interest. Ez 40 tax form Cooperative apartment owner. Ez 40 tax form   If you own stock in a cooperative housing corporation, see the Special Rule for Tenant-Stockholders in Cooperative Housing Corporations , near the end of this Part I. Ez 40 tax form Qualified Home For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. Ez 40 tax form This means your main home or your second home. Ez 40 tax form A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities. Ez 40 tax form The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Ez 40 tax form Otherwise, it is considered personal interest and is not deductible. Ez 40 tax form Main home. Ez 40 tax form   You can have only one main home at any one time. Ez 40 tax form This is the home where you ordinarily live most of the time. Ez 40 tax form Second home. Ez 40 tax form   A second home is a home that you choose to treat as your second home. Ez 40 tax form Second home not rented out. Ez 40 tax form   If you have a second home that you do not hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. Ez 40 tax form You do not have to use the home during the year. Ez 40 tax form Second home rented out. Ez 40 tax form   If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. Ez 40 tax form You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. Ez 40 tax form If you do not use the home long enough, it is considered rental property and not a second home. Ez 40 tax form For information on residential rental property, see Publication 527. Ez 40 tax form More than one second home. Ez 40 tax form   If you have more than one second home, you can treat only one as the qualified second home during any year. Ez 40 tax form However, you can change the home you treat as a second home during the year in the following situations. Ez 40 tax form If you get a new home during the year, you can choose to treat the new home as your second home as of the day you buy it. Ez 40 tax form If your main home no longer qualifies as your main home, you can choose to treat it as your second home as of the day you stop using it as your main home. Ez 40 tax form If your second home is sold during the year or becomes your main home, you can choose a new second home as of the day you sell the old one or begin using it as your main home. Ez 40 tax form Divided use of your home. Ez 40 tax form   The only part of your home that is considered a qualified home is the part you use for residential living. Ez 40 tax form If you use part of your home for other than residential living, such as a home office, you must allocate the use of your home. Ez 40 tax form You must then divide both the cost and fair market value of your home between the part that is a qualified home and the part that is not. Ez 40 tax form Dividing the cost may affect the amount of your home acquisition debt, which is limited to the cost of your home plus the cost of any improvements. Ez 40 tax form (See Home Acquisition Debt in Part II. Ez 40 tax form ) Dividing the fair market value may affect your home equity debt limit, also explained in Part II . Ez 40 tax form Renting out part of home. Ez 40 tax form   If you rent out part of a qualified home to another person (tenant), you can treat the rented part as being used by you for residential living only if all of the following conditions apply. Ez 40 tax form The rented part of your home is used by the tenant primarily for residential living. Ez 40 tax form The rented part of your home is not a self-contained residential unit having separate sleeping, cooking, and toilet facilities. Ez 40 tax form You do not rent (directly or by sublease) the same or different parts of your home to more than two tenants at any time during the tax year. Ez 40 tax form If two persons (and dependents of either) share the same sleeping quarters, they are treated as one tenant. Ez 40 tax form Office in home. Ez 40 tax form   If you have an office in your home that you use in your business, see Publication 587, Business Use of Your Home. Ez 40 tax form It explains how to figure your deduction for the business use of your home, which includes the business part of your home mortgage interest. Ez 40 tax form Home under construction. Ez 40 tax form   You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it is ready for occupancy. Ez 40 tax form   The 24-month period can start any time on or after the day construction begins. Ez 40 tax form Home destroyed. Ez 40 tax form   You may be able to continue treating your home as a qualified home even after it is destroyed in a fire, storm, tornado, earthquake, or other casualty. Ez 40 tax form This means you can continue to deduct the interest you pay on your home mortgage, subject to the limits described in this publication. Ez 40 tax form   You can continue treating a destroyed home as a qualified home if, within a reasonable period of time after the home is destroyed, you: Rebuild the destroyed home and move into it, or Sell the land on which the home was located. Ez 40 tax form   This rule applies to your main home and to a second home that you treat as a qualified home. Ez 40 tax form Time-sharing arrangements. Ez 40 tax form   You can treat a home you own under a time-sharing plan as a qualified home if it meets all the requirements. Ez 40 tax form A time-sharing plan is an arrangement between two or more people that limits each person's interest in the home or right to use it to a certain part of the year. Ez 40 tax form Rental of time-share. Ez 40 tax form   If you rent out your time-share, it qualifies as a second home only if you also use it as a home during the year. Ez 40 tax form See Second home rented out , earlier, for the use requirement. Ez 40 tax form To know whether you meet that requirement, count your days of use and rental of the home only during the time you have a right to use it or to receive any benefits from the rental of it. Ez 40 tax form Married taxpayers. Ez 40 tax form   If you are married and file a joint return, your qualified home(s) can be owned either jointly or by only one spouse. Ez 40 tax form Separate returns. Ez 40 tax form   If you are married filing separately and you and your spouse own more than one home, you can each take into account only one home as a qualified home. Ez 40 tax form However, if you both consent in writing, then one spouse can take both the main home and a second home into account. Ez 40 tax form Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. Ez 40 tax form It also describes certain special situations that may affect your deduction. Ez 40 tax form Late payment charge on mortgage payment. Ez 40 tax form   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. Ez 40 tax form Mortgage prepayment penalty. Ez 40 tax form   If you pay off your home mortgage early, you may have to pay a penalty. Ez 40 tax form You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Ez 40 tax form Sale of home. Ez 40 tax form   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of the sale. Ez 40 tax form Example. Ez 40 tax form John and Peggy Harris sold their home on May 7. Ez 40 tax form Through April 30, they made home mortgage interest payments of $1,220. Ez 40 tax form The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. Ez 40 tax form Their mortgage interest deduction is $1,270 ($1,220 + $50). Ez 40 tax form Prepaid interest. Ez 40 tax form   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Ez 40 tax form You can deduct in each year only the interest that qualifies as home mortgage interest for that year. Ez 40 tax form However, there is an exception that applies to points, discussed later. Ez 40 tax form Mortgage interest credit. Ez 40 tax form    You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. Ez 40 tax form Figure the credit on Form 8396, Mortgage Interest Credit. Ez 40 tax form If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. Ez 40 tax form   See Form 8396 and Publication 530 for more information on the mortgage interest credit. Ez 40 tax form Ministers' and military housing allowance. Ez 40 tax form   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. Ez 40 tax form Hardest Hit Fund and Emergency Homeowners' Loan Programs. Ez 40 tax form   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Ez 40 tax form You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Ez 40 tax form You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Ez 40 tax form If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098–MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums), and box 5 (other information including real property taxes paid). Ez 40 tax form However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Ez 40 tax form Mortgage assistance payments under section 235 of the National Housing Act. Ez 40 tax form   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. Ez 40 tax form You cannot deduct the interest that is paid for you. Ez 40 tax form No other effect on taxes. Ez 40 tax form   Do not include these mortgage assistance payments in your income. Ez 40 tax form Also, do not use these payments to reduce other deductions, such as real estate taxes. Ez 40 tax form Divorced or separated individuals. Ez 40 tax form   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. Ez 40 tax form See the discussion of Payments for jointly-owned home under Alimony in Publication 504, Divorced or Separated Individuals. Ez 40 tax form Redeemable ground rents. Ez 40 tax form   In some states (such as Maryland), you can buy your home subject to a ground rent. Ez 40 tax form A ground rent is an obligation you assume to pay a fixed amount per year on the property. Ez 40 tax form Under this arrangement, you are leasing (rather than buying) the land on which your home is located. Ez 40 tax form   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. Ez 40 tax form   A ground rent is a redeemable ground rent if all of the following are true. Ez 40 tax form Your lease, including renewal periods, is for more than 15 years. Ez 40 tax form You can freely assign the lease. Ez 40 tax form You have a present or future right (under state or local law) to end the lease and buy the lessor's entire interest in the land by paying a specific amount. Ez 40 tax form The lessor's interest in the land is primarily a security interest to protect the rental payments to which he or she is entitled. Ez 40 tax form   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. Ez 40 tax form Nonredeemable ground rents. Ez 40 tax form   Payments on a nonredeemable ground rent are not mortgage interest. Ez 40 tax form You can deduct them as rent if they are a business expense or if they are for rental property. Ez 40 tax form Reverse mortgages. Ez 40 tax form   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. Ez 40 tax form With a reverse mortgage, you retain title to your home. Ez 40 tax form Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Ez 40 tax form Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. Ez 40 tax form Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until you actually pay it, which is usually when you pay off the loan in full. Ez 40 tax form Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Part II. Ez 40 tax form Rental payments. Ez 40 tax form   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. Ez 40 tax form This is true even if the settlement papers call them interest. Ez 40 tax form You cannot deduct these payments as home mortgage interest. Ez 40 tax form Mortgage proceeds invested in tax-exempt securities. Ez 40 tax form   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. Ez 40 tax form “Grandfathered debt” and “home equity debt” are defined in Part II of this publication. Ez 40 tax form Refunds of interest. Ez 40 tax form   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. Ez 40 tax form If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. Ez 40 tax form However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. Ez 40 tax form This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. Ez 40 tax form If you need to include the refund in income, report it on Form 1040, line 21. Ez 40 tax form   If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. Ez 40 tax form For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. Ez 40 tax form   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in Publication 525, Taxable and Nontaxable Income. Ez 40 tax form Cooperative apartment owner. Ez 40 tax form   If you own a cooperative apartment, you must reduce your home mortgage interest deduction by your share of any cash portion of a patronage dividend that the cooperative receives. Ez 40 tax form The patronage dividend is a partial refund to the cooperative housing corporation of mortgage interest it paid in a prior year. Ez 40 tax form   If you receive a Form 1098 from the cooperative housing corporation, the form should show only the amount you can deduct. Ez 40 tax form Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Ez 40 tax form Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. Ez 40 tax form This image is too large to be displayed in the current screen. Ez 40 tax form Please click the link to view the image. Ez 40 tax form Figure B. Ez 40 tax form Are My Points Fully Deductible This Year? A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Ez 40 tax form See Points paid by the seller , later. Ez 40 tax form General Rule You generally cannot deduct the full amount of points in the year paid. Ez 40 tax form Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. Ez 40 tax form See Deduction Allowed Ratably , next. Ez 40 tax form For exceptions to the general rule, see Deduction Allowed in Year Paid , later. Ez 40 tax form Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. Ez 40 tax form You use the cash method of accounting. Ez 40 tax form This means you report income in the year you receive it and deduct expenses in the year you pay them. Ez 40 tax form Most individuals use this method. Ez 40 tax form Your loan is secured by a home. Ez 40 tax form (The home does not need to be your main home. Ez 40 tax form ) Your loan period is not more than 30 years. Ez 40 tax form If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. Ez 40 tax form Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. Ez 40 tax form Example. Ez 40 tax form You use the cash method of accounting. Ez 40 tax form In 2013, you took out a $100,000 loan payable over 20 years. Ez 40 tax form The terms of the loan are the same as for other 20-year loans offered in your area. Ez 40 tax form You paid $4,800 in points. Ez 40 tax form You made 3 monthly payments on the loan in 2013. Ez 40 tax form You can deduct $60 [($4,800 ÷ 240 months) x 3 payments] in 2013. Ez 40 tax form In 2014, if you make all twelve payments, you will be able to deduct $240 ($20 x 12). Ez 40 tax form Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. Ez 40 tax form (You can use Figure B as a quick guide to see whether your points are fully deductible in the year paid. Ez 40 tax form ) Your loan is secured by your main home. Ez 40 tax form (Your main home is the one you ordinarily live in most of the time. Ez 40 tax form ) Paying points is an established business practice in the area where the loan was made. Ez 40 tax form The points paid were not more than the points generally charged in that area. Ez 40 tax form You use the cash method of accounting. Ez 40 tax form This means you report income in the year you receive it and deduct expenses in the year you pay them. Ez 40 tax form Most individuals use this method. Ez 40 tax form The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Ez 40 tax form The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Ez 40 tax form The funds you provided are not required to have been applied to the points. Ez 40 tax form They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Ez 40 tax form You cannot have borrowed these funds from your lender or mortgage broker. Ez 40 tax form You use your loan to buy or build your main home. Ez 40 tax form The points were computed as a percentage of the principal amount of the mortgage. Ez 40 tax form The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. Ez 40 tax form The points may be shown as paid from either your funds or the seller's. Ez 40 tax form Note. Ez 40 tax form If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. Ez 40 tax form Home improvement loan. Ez 40 tax form   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. Ez 40 tax form Second home. Ez 40 tax form You cannot fully deduct in the year paid points you pay on loans secured by your second home. Ez 40 tax form You can deduct these points only over the life of the loan. Ez 40 tax form Refinancing. Ez 40 tax form   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. Ez 40 tax form This is true even if the new mortgage is secured by your main home. Ez 40 tax form   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Ez 40 tax form You can deduct the rest of the points over the life of the loan. Ez 40 tax form Example 1. Ez 40 tax form In 1998, Bill Fields got a mortgage to buy a home. Ez 40 tax form In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. Ez 40 tax form The mortgage is secured by his home. Ez 40 tax form To get the new loan, he had to pay three points ($3,000). Ez 40 tax form Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. Ez 40 tax form Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. Ez 40 tax form The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. Ez 40 tax form Bill's first payment on the new loan was due July 1. Ez 40 tax form He made six payments on the loan in 2013 and is a cash basis taxpayer. Ez 40 tax form Bill used the funds from the new mortgage to repay his existing mortgage. Ez 40 tax form Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. Ez 40 tax form He cannot deduct all of the points in 2013. Ez 40 tax form He can deduct two points ($2,000) ratably over the life of the loan. Ez 40 tax form He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. Ez 40 tax form The other point ($1,000) was a fee for services and is not deductible. Ez 40 tax form Example 2. Ez 40 tax form The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Ez 40 tax form Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. Ez 40 tax form His deduction is $500 ($2,000 × 25%). Ez 40 tax form Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. Ez 40 tax form This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. Ez 40 tax form The total amount Bill deducts in 2013 is $550 ($500 + $50). Ez 40 tax form Special Situations This section describes certain special situations that may affect your deduction of points. Ez 40 tax form Original issue discount. Ez 40 tax form   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. Ez 40 tax form This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. Ez 40 tax form Amounts charged for services. Ez 40 tax form    Amounts charged by the lender for specific services connected to the loan are not interest. Ez 40 tax form Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Ez 40 tax form  You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Ez 40 tax form Points paid by the seller. Ez 40 tax form   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Ez 40 tax form Treatment by seller. Ez 40 tax form   The seller cannot deduct these fees as interest. Ez 40 tax form But they are a selling expense that reduces the amount realized by the seller. Ez 40 tax form See Publication 523 for information on selling your home. Ez 40 tax form Treatment by buyer. Ez 40 tax form   The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. Ez 40 tax form If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. Ez 40 tax form If any of those tests are not met, the buyer deducts the points over the life of the loan. Ez 40 tax form   If you need information about the basis of your home, see Publication 523 or Publication 530. Ez 40 tax form Funds provided are less than points. Ez 40 tax form   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. Ez 40 tax form In addition, you can deduct any points paid by the seller. Ez 40 tax form Example 1. Ez 40 tax form When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Ez 40 tax form You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. Ez 40 tax form Of the $1,000 charged for points, you can deduct $750 in the year paid. Ez 40 tax form You spread the remaining $250 over the life of the mortgage. Ez 40 tax form Example 2. Ez 40 tax form The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Ez 40 tax form In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Ez 40 tax form You spread the remaining $250 over the life of the mortgage. Ez 40 tax form You must reduce the basis of your home by the $1,000 paid by the seller. Ez 40 tax form Excess points. Ez 40 tax form   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. Ez 40 tax form You must spread any additional points over the life of the mortgage. Ez 40 tax form Mortgage ending early. Ez 40 tax form   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Ez 40 tax form However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. Ez 40 tax form Instead, deduct the remaining balance over the term of the new loan. Ez 40 tax form   A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Ez 40 tax form Example. Ez 40 tax form Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. Ez 40 tax form He deducts $200 points per year. Ez 40 tax form Through 2012, Dan has deducted $2,200 of the points. Ez 40 tax form Dan prepaid his mortgage in full in 2013. Ez 40 tax form He can deduct the remaining $800 of points in 2013. Ez 40 tax form Limits on deduction. Ez 40 tax form   You cannot fully deduct points paid on a mortgage that exceeds the limits discussed in Part II . Ez 40 tax form See the Table 1 Instructions for line 10. Ez 40 tax form Form 1098. Ez 40 tax form    The mortgage interest statement you receive should show not only the total interest paid during the year, but also your deductible points paid during the year. Ez 40 tax form See Form 1098, Mortgage Interest Statement , later. Ez 40 tax form Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. Ez 40 tax form The insurance must be in connection with home acquisition debt, and the insurance contract must have been issued after 2006. Ez 40 tax form Qualified mortgage insurance. Ez 40 tax form   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Ez 40 tax form   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. Ez 40 tax form If provided by the Rural Housing Service, it is commonly known as a guarantee fee. Ez 40 tax form The funding fee and guarantee fee can either be included in the amount of the loan or paid in full at the time of closing. Ez 40 tax form These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Ez 40 tax form Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. Ez 40 tax form Special rules for prepaid mortgage insurance. Ez 40 tax form   Generally, if you paid premiums for qualified mortgage insurance that are properly allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. Ez 40 tax form You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. Ez 40 tax form No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. Ez 40 tax form This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Ez 40 tax form Example. Ez 40 tax form Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. Ez 40 tax form Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. Ez 40 tax form Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. Ez 40 tax form Ryan's adjusted gross income (AGI) for 2012 is $76,000. Ez 40 tax form Ryan can deduct $880 ($9,240 ÷ 84 x 8 months) for qualified mortgage insurance premiums in 2012. Ez 40 tax form For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 x 12 months) if his AGI is $100,000 or less. Ez 40 tax form In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). Ez 40 tax form Limit on deduction. Ez 40 tax form   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. Ez 40 tax form See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Ez 40 tax form If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Ez 40 tax form Form 1098. Ez 40 tax form   The mortgage interest statement you receive should show not only the total interest paid during the year, but also your mortgage insurance premiums paid during the year, which may qualify to be treated as deductible mortgage interest. Ez 40 tax form See Form 1098, Mortgage Interest Statement, next. Ez 40 tax form Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. Ez 40 tax form You will receive the statement if you pay interest to a person (including a financial institution or cooperative housing corporation) in the course of that person's trade or business. Ez 40 tax form A governmental unit is a person for purposes of furnishing the statement. Ez 40 tax form The statement for each year should be sent to you by January 31 of the following year. Ez 40 tax form A copy of this form will also be sent to the IRS. Ez 40 tax form The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. Ez 40 tax form However, it should not show any interest that was paid for you by a government agency. Ez 40 tax form As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. Ez 40 tax form However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. Ez 40 tax form See the earlier discussion of Points to determine whether you can deduct points not shown on Form 1098. Ez 40 tax form Prepaid interest on Form 1098. Ez 40 tax form   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. Ez 40 tax form However, you cannot deduct the prepaid amount for January 2014 in 2013. Ez 40 tax form (See Prepaid interest , earlier. Ez 40 tax form ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. Ez 40 tax form You will include the interest for January 2014 with other interest you pay for 2014. Ez 40 tax form Refunded interest. Ez 40 tax form   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. Ez 40 tax form See Refunds of interest , earlier. Ez 40 tax form Mortgage insurance premiums. Ez 40 tax form   The amount of mortgage insurance premiums you paid during 2013 may be shown in Box 4 of Form 1098. Ez 40 tax form See Mortgage Insurance Premiums , earlier. Ez 40 tax form How To Report Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. Ez 40 tax form If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. Ez 40 tax form Attach a statement explaining the difference and print “See attached” next to line 10. Ez 40 tax form Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. Ez 40 tax form If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. Ez 40 tax form The seller must give you this number and you must give the seller your TIN. Ez 40 tax form A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Ez 40 tax form Failure to meet any of these requirements may result in a $50 penalty for each failure. Ez 40 tax form The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. Ez 40 tax form If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. Ez 40 tax form Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. Ez 40 tax form More than one borrower. Ez 40 tax form   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Ez 40 tax form Show how much of the interest each of you paid, and give the name and address of the person who received the form. Ez 40 tax form Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Ez 40 tax form Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. Ez 40 tax form   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. Ez 40 tax form Let each of the other borrowers know what his or her share is. Ez 40 tax form Mortgage proceeds used for business or investment. Ez 40 tax form   If your home mortgage interest deduction is limited under the rules explained in Part II , but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 2 near the end of this publication. Ez 40 tax form It shows where to deduct the part of your excess interest that is for those activities. Ez 40 tax form The Table 1 Instructions for line 13 in Part II explain how to divide the excess interest among the activities for which the mortgage proceeds were used. Ez 40 tax form Special Rule for Tenant-Stockholders in Cooperative Housing Corporations A qualified home includes stock in a cooperative housing corporation owned by a tenant-stockholder. Ez 40 tax form This applies only if the tenant-stockholder is entitled to live in the house or apartment because of owning stock in the cooperative. Ez 40 tax form Cooperative housing corporation. Ez 40 tax form   This is a corporation that meets all of the following conditions. Ez 40 tax form Has only one class of stock outstanding, Has no stockholders other than those who own the stock that can live in a house, apartment, or house trailer owned or leased by the corporation, Has no stockholders who can receive any distribution out of capital other than on a liquidation of the corporation, and Meets at least one of the following requirements. Ez 40 tax form Receives at least 80% of its gross income for the year in which the mortgage interest is paid or incurred from tenant-stockholders. Ez 40 tax form For this purpose, gross income is all income received during the entire year, including amounts received before the corporation changed to cooperative ownership. Ez 40 tax form At all times during the year, at least 80% of the total square footage of the corporation's property is used or available for use by the tenant-stockholders for residential or residential-related use. Ez 40 tax form At least 90% of the corporation's expenditures paid or incurred during the year are for the acquisition, construction, management, maintenance, or care of corporate property for the benefit of the tenant-stockholders. Ez 40 tax form Stock used to secure debt. Ez 40 tax form   In some cases, you cannot use your cooperative housing stock to secure a debt because of either: Restrictions under local or state law, or Restrictions in the cooperative agreement (other than restrictions in which the main purpose is to permit the tenant- stockholder to treat unsecured debt as secured debt). Ez 40 tax form However, you can treat a debt as secured by the stock to the extent that the proceeds are used to buy the stock under the allocation of interest rules. Ez 40 tax form See chapter 4 of Publication 535 for details on these rules. Ez 40 tax form Figuring deductible home mortgage interest. Ez 40 tax form   Generally, if you are a tenant-stockholder, you can deduct payments you make for your share of the interest paid or incurred by the cooperative. Ez 40 tax form The interest must be on a debt to buy, build, change, improve, or maintain the cooperative's housing, or on a debt to buy the land. Ez 40 tax form   Figure your share of this interest by multiplying the total by the following fraction. Ez 40 tax form      Your shares of stock in the cooperative   The total shares of stock in the cooperative Limits on deduction. Ez 40 tax form   To figure how the limits discussed in Part II apply to you, treat your share of the cooperative's debt as debt incurred by you. Ez 40 tax form The cooperative should determine your share of its grandfathered debt, its home acquisition debt, and its home equity debt. Ez 40 tax form (Your share of each of these types of debt is equal to the average balance of each debt multiplied by the fraction just given. Ez 40 tax form ) After your share of the average balance of each type of debt is determined, you include it with the average balance of that type of debt secured by your stock. Ez 40 tax form Form 1098. Ez 40 tax form    The cooperative should give you a Form 1098 showing your share of the interest. Ez 40 tax form Use the rules in this publication to determine your deductible mortgage interest. Ez 40 tax form Part II. Ez 40 tax form Limits on Home Mortgage Interest Deduction This part of the publication discusses the limits on deductible home mortgage interest. Ez 40 tax form These limits apply to your home mortgage interest expense if you have a home mortgage that does not fit into any of the three categories listed at the beginning of Part I under Fully deductible interest . Ez 40 tax form Your home mortgage interest deduction is limited to the interest on the part of your home mortgage debt that is not more than your qualified loan limit. Ez 40 tax form This is the part of your home mortgage debt that is grandfathered debt or that is not more than the limits for home acquisition debt and home equity debt. Ez 40 tax form Table 1 can help you figure your qualified loan limit and your deductible home mortgage interest. Ez 40 tax form Home Acquisition Debt Home acquisition debt is a mortgage you took out after October 13, 1987, to buy, build, or substantially improve a qualified home (your main or second home). Ez 40 tax form It also must be secured by that home. Ez 40 tax form If the amount of your mortgage is more than the cost of the home plus the cost of any substantial improvements, only the debt that is not more than the cost of the home plus improvements qualifies as home acquisition debt. Ez 40 tax form The additional debt may qualify as home equity debt (discussed later). Ez 40 tax form Home acquisition debt limit. Ez 40 tax form   The total amount you can treat as home acquisition debt at any time on your main home and second home cannot be more than $1 million ($500,000 if married filing separately). Ez 40 tax form This limit is reduced (but not below zero) by the amount of your grandfathered debt (discussed later). Ez 40 tax form Debt over this limit may qualify as home equity debt (also discussed later). Ez 40 tax form Refinanced home acquisition debt. Ez 40 tax form   Any secured debt you use to refinance home acquisition debt is treated as home acquisition debt. Ez 40 tax form However, the new debt will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing. Ez 40 tax form Any additional debt not used to buy, build, or substantially improve a qualified home is not home acquisition debt, but may qualify as home equity debt (discussed later). Ez 40 tax form Mortgage that qualifies later. Ez 40 tax form   A mortgage that does not qualify as home acquisition debt because it does not meet all the requirements may qualify at a later time. Ez 40 tax form For example, a debt that you use to buy your home may not qualify as home acquisition debt because it is not secured by the home. Ez 40 tax form However, if the debt is later secured by the home, it may qualify as home acquisition debt after that time. Ez 40 tax form Similarly, a debt that you use to buy property may not qualify because the property is not a qualified home. Ez 40 tax form However, if the property later becomes a qualified home, the debt may qualify after that time. Ez 40 tax form Mortgage treated as used to buy, build, or improve home. Ez 40 tax form   A mortgage secured by a qualified home may be treated as home acquisition debt, even if you do not actually use the proceeds to buy, build, or substantially improve the home. Ez 40 tax form This applies in the following situations. Ez 40 tax form You buy your home within 90 days before or after the date you take out the mortgage. Ez 40 tax form The home acquisition debt is limited to the home's cost, plus the cost of any substantial improvements within the limit described below in (2) or (3). Ez 40 tax form (See Example 1 later. Ez 40 tax form ) You build or improve your home and take out the mortgage before the work is completed. Ez 40 tax form The home acquisition debt is limited to the amount of the expenses incurred within 24 months before the date of the mortgage. Ez 40 tax form You build or improve your home and take out the mortgage within 90 days after the work is completed. Ez 40 tax form The home acquisition debt is limited to the amount of the expenses incurred within the period beginning 24 months before the work is completed and ending on the date of the mortgage. Ez 40 tax form (See Example 2 later. Ez 40 tax form ) Example 1. Ez 40 tax form You bought your main home on June 3 for $175,000. Ez 40 tax form You paid for the home with cash you got from the sale of your old home. Ez 40 tax form On July 15, you took out a mortgage of $150,000 secured by your main home. Ez 40 tax form You used the $150,000 to invest in stocks. Ez 40 tax form You can treat the mortgage as taken out to buy your home because you bought the home within 90 days before you took out the mortgage. Ez 40 tax form The entire mortgage qualifies as home acquisition debt because it was not more than the home's cost. Ez 40 tax form Example 2. Ez 40 tax form On January 31, John began building a home on the lot that he owned. Ez 40 tax form He used $45,000 of his personal funds to build the home. Ez 40 tax form The home was completed on October 31. Ez 40 tax form On November 21, John took out a $36,000 mortgage that was secured by the home. Ez 40 tax form The mortgage can be treated as used to build the home because it was taken out within 90 days after the home was completed. Ez 40 tax form The entire mortgage qualifies as home acquisition debt because it was not more than the expenses incurred within the period beginning 24 months before the home was completed. Ez 40 tax form This is illustrated by Figure C. Ez 40 tax form   Please click here for the text description of the image. Ez 40 tax form Figure C. Ez 40 tax form John's example Date of the mortgage. Ez 40 tax form   The date you take out your mortgage is the day the loan proceeds are disbursed. Ez 40 tax form This is generally the closing date. Ez 40 tax form You can treat the day you apply in writing for your mortgage as the date you take it out. Ez 40 tax form However, this applies only if you receive the loan proceeds within a reasonable time (such as within 30 days) after your application is approved. Ez 40 tax form If a timely application you make is rejected, a reasonable additional time will be allowed to make a new application. Ez 40 tax form Cost of home or improvements. Ez 40 tax form   To determine your cost, include amounts paid to acquire any interest in a qualified home or to substantially improve the home. Ez 40 tax form   The cost of building or substantially improving a qualified home includes the costs to acquire real property and building materials, fees for architects and design plans, and required building permits. Ez 40 tax form Substantial improvement. Ez 40 tax form   An improvement is substantial if it: Adds to the value of your home, Prolongs your home's useful life, or Adapts your home to new uses. Ez 40 tax form    Repairs that maintain your home in good condition, such as repainting your home, are not substantial improvements. Ez 40 tax form However, if you paint your home as part of a renovation that substantially improves your qualified home, you can include the painting costs in the cost of the improvements. Ez 40 tax form Acquiring an interest in a home because of a divorce. Ez 40 tax form   If you incur debt to acquire the interest of a spouse or former spouse in a home, because of a divorce or legal separation, you can treat that debt as home acquisition debt. Ez 40 tax form Part of home not a qualified home. Ez 40 tax form    To figure your home acquisition debt, you must divide the cost of your home and improvements between the part of your home that is a qualified home and any part that is not a qualified home. Ez 40 tax form See Divided use of your home under Qualified Home in Part I. Ez 40 tax form Home Equity Debt If you took out a loan for reasons other than to buy, build, or substantially improve your home, it may qualify as home equity debt. Ez 40 tax form In addition, debt you incurred to buy, build, or substantially improve your home, to the extent it is more than the home acquisition debt limit (discussed earlier), may qualify as home equity debt. Ez 40 tax form Home equity debt is a mortgage you took out after October 13, 1987, that: Does not qualify as home acquisition debt or as grandfathered debt, and Is secured by your qualified home. Ez 40 tax form Example. Ez 40 tax form You bought your home for cash 10 years ago. Ez 40 tax form You did not have a mortgage on your home until last year, when you took out a $50,000 loan, secured by your home, to pay for your daughter's college tuition and your father's medical bills. Ez 40 tax form This loan is home equity debt. Ez 40 tax form Home equity debt limit. Ez 40 tax form   There is a limit on the amount of debt that can be treated as home equity debt. Ez 40 tax form The total home equity debt on your main home and second home is limited to the smaller of: $100,000 ($50,000 if married filing separately), or The total of each home's fair market value (FMV) reduced (but not below zero) by the amount of its home acquisition debt and grandfathered debt. Ez 40 tax form Determine the FMV and the outstanding home acquisition and grandfathered debt for each home on the date that the last debt was secured by the home. Ez 40 tax form Example. Ez 40 tax form You own one home that you bought in 2000. Ez 40 tax form Its FMV now is $110,000, and the current balance on your original mortgage (home acquisition debt) is $95,000. Ez 40 tax form Bank M offers you a home mortgage loan of 125% of the FMV of the home less any outstanding mortgages or other liens. Ez 40 tax form To consolidate some of your other debts, you take out a $42,500 home mortgage loan [(125% × $110,000) − $95,000] with Bank M. Ez 40 tax form Your home equity debt is limited to $15,000. Ez 40 tax form This is the smaller of: $100,000, the maximum limit, or $15,000, the amount that the FMV of $110,000 exceeds the amount of home acquisition debt of $95,000. Ez 40 tax form Debt higher than limit. Ez 40 tax form   Interest on amounts over the home equity debt limit (such as the interest on $27,500 [$42,500 − $15,000] in the preceding example) generally is treated as personal interest and is not deductible. Ez 40 tax form But if the proceeds of the loan were used for investment, business, or other deductible purposes, the interest may be deductible. Ez 40 tax form If it is, see the Table 1 Instructions for line 13 for an explanation of how to allocate the excess interest. Ez 40 tax form Part of home not a qualified home. Ez 40 tax form   To figure the limit on your home equity debt, you must divide the FMV of your home between the part that is a qualified home and any part that is not a qualified home. Ez 40 tax form See Divided use of your home under Qualified Home in Part I. Ez 40 tax form Fair market value (FMV). Ez 40 tax form    This is the price at which the home would change hands between you and a buyer, neither having to sell or buy, and both having reasonable knowledge of all relevant facts. Ez 40 tax form Sales of similar homes in your area, on about the same date your last debt was secured by the home, may be helpful in figuring the FMV. Ez 40 tax form Grandfathered Debt If you took out a mortgage on your home before October 14, 1987, or you refinanced such a mortgage, it may qualify as grandfathered debt. Ez 40 tax form To qualify, it must have been secured by your qualified home on October 13, 1987, and at all times after that date. Ez 40 tax form How you used the proceeds does not matter. Ez 40 tax form Grandfathered debt is not limited. Ez 40 tax form All of the interest you paid on grandfathered debt is fully deductible home mortgage interest. Ez 40 tax form However, the amount of your grandfathered debt reduces the $1 million limit for home acquisition debt and the limit based on your home's fair market value for home equity debt. Ez 40 tax form Refinanced grandfathered debt. Ez 40 tax form   If you refinanced grandfathered debt after October 13, 1987, for an amount that was not more than the mortgage principal left on the debt, then you still treat it as grandfathered debt. Ez 40 tax form To the extent the new debt is more than that mortgage principal, it is treated as home acquisition or home equity debt, and the mortgage is a mixed-use mortgage (discussed later under Average Mortgage Balance in the Table 1 instructions). Ez 40 tax form The debt must be secured by the qualified home. Ez 40 tax form   You treat grandfathered debt that was refinanced after October 13, 1987, as grandfathered debt only for the term left on the debt that was refinanced. Ez 40 tax form After that, you treat it as home acquisition debt or home equity debt, depending on how you used the proceeds. Ez 40 tax form Exception. Ez 40 tax form   If the debt before refinancing was like a balloon note (the principal on the debt was not amortized over the term of the debt), then you treat the refinanced debt as grandfathered debt for the term of the first refinancing. Ez 40 tax form This term cannot be more than 30 years. Ez 40 tax form Example. Ez 40 tax form Chester took out a $200,000 first mortgage on his home in 1986. Ez 40 tax form The mortgage was a five-year balloon note and the entire balance on the note was due in 1991. Ez 40 tax form Chester refinanced the debt in 1991 with a new 20-year mortgage. Ez 40 tax form The refinanced debt is treated as grandfathered debt for its entire term (20 years). Ez 40 tax form Line-of-credit mortgage. Ez 40 tax form    If you had a line-of-credit mortgage on October 13, 1987, and borrowed additional amounts against it after that date, then the additional amounts are either home acquisition debt or home equity debt depending on how you used the proceeds. Ez 40 tax form The balance on the mortgage before you borrowed the additional amounts is grandfathered debt. Ez 40 tax form The newly borrowed amounts are not grandfathered debt because the funds were borrowed after October 13, 1987. Ez 40 tax form See Average Mortgage Balance in the Table 1 Instructions that follow. Ez 40 tax form Table 1 Instructions Unless you are subject to the overall limit on itemized deductions, you can deduct all of the interest you paid during the year on mortgages secured by your main home or second home in either of the following two situations. Ez 40 tax form All the mortgages are grandfathered debt. Ez 40 tax form The total of the mortgage balances for the entire year is within the limits discussed earlier under Home Acquisition Debt and Home Equity Debt . Ez 40 tax form In either of those cases, you do not need Table 1. Ez 40 tax form Otherwise, you can use Table 1 to determine your qualified loan limit and deductible home mortgage interest. Ez 40 tax form Fill out only one Table 1 for both your main and second home regardless of how many mortgages you have. Ez 40 tax form Table 1. Ez 40 tax form Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Ez 40 tax form Part I Qualified Loan Limit 1. Ez 40 tax form Enter the average balance of all your grandfathered debt. Ez 40 tax form See line 1 instructions 1. Ez 40 tax form   2. Ez 40 tax form Enter the average balance of all your home acquisition debt. Ez 40 tax form See line 2 instructions 2. Ez 40 tax form   3. Ez 40 tax form Enter $1,000,000 ($500,000 if married filing separately) 3. Ez 40 tax form   4. Ez 40 tax form Enter the larger of the amount on line 1 or the amount on line 3 4. Ez 40 tax form   5. Ez 40 tax form Add the amounts on lines 1 and 2. Ez 40 tax form Enter the total here 5. Ez 40 tax form   6. Ez 40 tax form Enter the smaller of the amount on line 4 or the amount on line 5 6. Ez 40 tax form   7. Ez 40 tax form If you have home equity debt, enter the smaller of $100,000 ($50,000 if married filing separately) or your limited amount. Ez 40 tax form See the line 7 instructions for the limit which may apply to you. Ez 40 tax form 7. Ez 40 tax form   8. Ez 40 tax form Add the amounts on lines 6 and 7. Ez 40 tax form Enter the total. Ez 40 tax form This is your qualified loan limit. Ez 40 tax form 8. Ez 40 tax form   Part II Deductible Home Mortgage Interest 9. Ez 40 tax form Enter the total of the average balances of all mortgages on all qualified homes. Ez 40 tax form  See line 9 instructions 9. Ez 40 tax form     If line 8 is less than line 9, go on to line 10. Ez 40 tax form If line 8 is equal to or more than line 9, stop here. Ez 40 tax form All of your interest on all the mortgages included on line 9 is deductible as home mortgage interest on Schedule A (Form 1040). Ez 40 tax form     10. Ez 40 tax form Enter the total amount of interest that you paid. Ez 40 tax form See line 10 instructions 10. Ez 40 tax form   11. Ez 40 tax form Divide the amount on line 8 by the amount on line 9. Ez 40 tax form Enter the result as a decimal amount (rounded to three places) 11. Ez 40 tax form × . Ez 40 tax form 12. Ez 40 tax form Multiply the amount on line 10 by the decimal amount on line 11. Ez 40 tax form Enter the result. Ez 40 tax form This is your deductible home mortgage interest. Ez 40 tax form Enter this amount on Schedule A (Form 1040) 12. Ez 40 tax form   13. Ez 40 tax form Subtract the amount on line 12 from the amount on line 10. Ez 40 tax form Enter the result. Ez 40 tax form This is not home mortgage interest. Ez 40 tax form See line 13 instructions 13. Ez 40 tax form   Home equity debt only. Ez 40 tax form   If all of your mortgages are home equity debt, do not fill in lines 1 through 5. Ez 40 tax form Enter zero on line 6 and complete the rest of Table 1. Ez 40 tax form Average Mortgage Balance You have to figure the average balance of each mortgage to determine your qualified loan limit. Ez 40 tax form You need these amounts to complete lines 1, 2, and 9 of Table 1. Ez 40 tax form You can use the highest mortgage balances during the year, but you may benefit most by using the average balances. Ez 40 tax form The following are methods you can use to figure your average mortgage balances. Ez 40 tax form However, if a mortgage has more than one category of debt, see Mixed-use mortgages , later, in this section. Ez 40 tax form Average of first and last balance method. Ez 40 tax form   You can use this method if all the following apply. Ez 40 tax form You did not borrow any new amounts on the mortgage during the year. Ez 40 tax form (This does not include borrowing the original mortgage amount. Ez 40 tax form ) You did not prepay more than one month's principal during the year. Ez 40 tax form (This includes prepayment by refinancing your home or by applying proceeds from its sale. Ez 40 tax form ) You had to make level payments at fixed equal intervals on at least a semi-annual basis. Ez 40 tax form You treat your payments as level even if they were adjusted from time to time because of changes in the interest rate. Ez 40 tax form    To figure your average balance, complete the following worksheet. Ez 40 tax form    1. Ez 40 tax form Enter the balance as of the first day of the year that the mortgage was secured by your qualified home during the year (generally January 1)   2. Ez 40 tax form Enter the balance as of the last day of the year that the mortgage was secured by your qualified home during the year (generally December 31)   3. Ez 40 tax form Add amounts on lines 1 and 2   4. Ez 40 tax form Divide the amount on line 3 by 2. Ez 40 tax form Enter the result   Interest paid divided by interest rate method. Ez 40 tax form   You can use this method if at all times in 2013 the mortgage was secured by your qualified home and the interest was paid at least monthly. Ez 40 tax form    Complete the following worksheet to figure your average balance. Ez 40 tax form    1. Ez 40 tax form Enter the interest paid in 2013. Ez 40 tax form Do not include points, mortgage insurance premiums, or any interest paid in 2013 that is for a year after 2013. Ez 40 tax form However, do include interest that is for 2013 but was paid in an earlier year   2. Ez 40 tax form Enter the annual interest rate on the mortgage. Ez 40 tax form If the interest rate varied in 2013, use the lowest rate for the year   3. Ez 40 tax form Divide the amount on line 1 by the amount on line 2. Ez 40 tax form Enter the result   Example. Ez 40 tax form Mr. Ez 40 tax form Blue had a line of credit secured by his main home all year. Ez 40 tax form He paid interest of $2,500 on this loan. Ez 40 tax form The interest rate on the loan was 9% (. Ez 40 tax form 09) all year. Ez 40 tax form His average balance using this method is $27,778, figured as follows. Ez 40 tax form 1. Ez 40 tax form Enter the interest paid in 2013. Ez 40 tax form Do not include points, mortgage insurance premiums, or any interest paid in 2013 that is for a year after 2013. Ez 40 tax form However, do include interest that is for 2013 but was paid in an earlier year $2,500 2. Ez 40 tax form Enter the annual interest rate on the mortgage. Ez 40 tax form If the interest rate varied in 2013, use the lowest rate for the year . Ez 40 tax form 09 3. Ez 40 tax form Divide the amount on line 1 by the amount on line 2. Ez 40 tax form Enter the result $27,778 Statements provided by your lender. Ez 40 tax form   If you receive monthly statements showing the closing balance or the average balance for the month, you can use either to figure your average balance for the year. Ez 40 tax form You can treat the balance as zero for any month the mortgage was not secured by your qualified home. Ez 40 tax form   For each mortgage, figure your average balance by adding your monthly closing or average balances and dividing that total by the number of months the home secured by that mortgage was a qualified home during the year. Ez 40 tax form   If your lender can give you your average balance for the year, you can use that amount. Ez 40 tax form Example. Ez 40 tax form Ms. Ez 40 tax form Brown had a home equity loan secured by her main home all year. Ez 40 tax form She received monthly statements showing her average balance for each month. Ez 40 tax form She can figure her average balance for the year by adding her monthly average balances and dividing the total by 12. Ez 40 tax form Mixed-use mortgages. Ez 40 tax form   A mixed-use mortgage is a loan that consists of more than one of the three categories of debt (grandfathered debt, home acquisition debt, and home equity debt). Ez 40 tax form For example, a mortgage you took out during the year is a mixed-use mortgage if you used its proceeds partly to refinance a mortgage that you took out in an earlier year to buy your home (home acquisition debt) and partly to buy a car (home equity debt). Ez 40 tax form   Complete lines 1 and 2 of Table 1 by including the separate average balances of any grandfathered debt and home acquisition debt in your mixed-use mortgage. Ez 40 tax form Do not use the methods described earlier in this section to figure the average balance of either category. Ez 40 tax form Instead, for each category, use the following method. Ez 40 tax form Figure the balance of that category of debt for each month. Ez 40 tax form This is the amount of the loan proceeds allocated to that category, reduced by your principal payments on the mortgage previously applied to that category. Ez 40 tax form Principal payments on a mixed-use mortgage are applied in full to each category of debt, until its balance is zero, in the following order: First, any home equity debt, Next, any grandfathered debt, and Finally, any home acquisition debt. Ez 40 tax form Add together the monthly balances figured in (1). Ez 40 tax form Divide the result in (2) by 12. Ez 40 tax form   Complete line 9 of Table 1 by including the average balance of the entire mixed-use mortgage, figured under one of the methods described earlier in this section. Ez 40 tax form Example 1. Ez 40 tax form In 1986, Sharon took out a $1,400,000 mortgage to buy her main home (grandfathered debt). Ez 40 tax form On March 2, 2013, when the home had a fair market value of $1,700,000 and she owed $1,100,000 on the mortgage, Sharon took out a second mortgage for $200,000. Ez 40 tax form She used $180,000 of the proceeds to make substantial improvements to her home (home acquisition debt) and the remaining $20,000 to buy a car (home equity debt). Ez 40 tax form Under the loan agreement, Sharon must make principal payments of $1,000 at the end of each month. Ez 40 tax form During 2013, her principal payments on the second mortgage totaled $10,000. Ez 40 tax form To complete Table 1, line 2, Sharon must figure a separate average balance for the part of her second mortgage that is home acquisition debt. Ez 40 tax form The January and February balances were zero. Ez 40 tax form The March through December balances were all $180,000, because none of her principal payments are applied to the home acquisition debt. Ez 40 tax form (They are all applied to the home equity debt, reducing it to $10,000 [$20,000 − $10,000]. Ez 40 tax form ) The monthly balances of the home acquisition debt total $1,800,000 ($180,000 × 10). Ez 40 tax form Therefore, the average balance of the home acquisition debt for 2013 was $150,000 ($1,800,000 ÷ 12). Ez 40 tax form Example 2. Ez 40 tax form The facts are the same as in Example 1. Ez 40 tax form In 2014, Sharon's January through October principal payments on her second mortgage are applied to the home equity debt, reducing it to zero. Ez 40 tax form The balance of the home acquisition debt remains $180,000 for each of those months. Ez 40 tax form Because her November and December principal payments are applied to the home acquisition debt, the November balance is $179,000 ($180,000 − $1,000) and the December balance is $178,000 ($180,000 − $2,000). Ez 40 tax form The monthly balances total $2,157,000 [($180,000 × 10) + $179,000 + $178,000]. Ez 40 tax form Therefore, the average balance of the home acquisition debt for 2014 is $179,750 ($2,157,000 ÷ 12). Ez 40 tax form L
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Understanding your CP504 Notice

You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) your state income tax refund and apply it to pay the amount you owe.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

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

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


What you need to do

  • Read your notice carefully — it explains your due date, amount due, and payment options.
  • Make your payment by your due date. Go to the payments page to find out more about your payment options.

You may want to...


Answers to Common Questions

What is the notice telling me?
This notice is telling you that we intend to issue a levy against your state tax refund because you still have a balance due on one of your tax accounts. You must pay this amount immediately to avoid this. It is also telling you that we will begin searching for other assets on which to issue a levy. We may also file a Federal Tax Lien, if we have not already done so.

What do I have to do?
Pay the amount due shown on the notice. Mail us your payment in the envelope we sent you. Include the bottom part of the notice to make sure we correctly credit your account.

If you can't pay the whole amount now, call us at the number printed at the top of the notice to see if you qualify for an installment agreement.

How much time do I have?
You must pay your balance due by the due date shown on your notice.

What happens if I don't pay or contact the IRS?
If you don't pay the amount due, we may seize ("levy") any state tax refund to which you're entitled. This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).

If you still have an outstanding balance after we seize ("levy") your state tax refund, we may send you a notice giving you a right to a hearing before the IRS Office of Appeals, if you have not already received such a notice. We may then seize ("levy") or take possession of your other property or your rights to property. Property includes:

  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits

If you don't pay the amount due or call us to make payment arrangements, we can file a Notice of Federal Tax Lien on your property at any time, if we haven’t already done so.

If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.

Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.

What if I don't agree or have already taken corrective action?
If you do not agree with this notice, contact us immediately at the number printed at the top of the notice. We will do our best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 05-Mar-2014

The Ez 40 Tax Form

Ez 40 tax form 5. Ez 40 tax form   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Ez 40 tax form Free help with your tax return. Ez 40 tax form   You can get free help preparing your return nationwide from IRS-certified volunteers. Ez 40 tax form The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Ez 40 tax form The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Ez 40 tax form Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Ez 40 tax form In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Ez 40 tax form To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Ez 40 tax form gov, download the IRS2Go app, or call 1-800-906-9887. Ez 40 tax form   As part of the TCE program, AARP offers the Tax-Aide counseling program. Ez 40 tax form To find the nearest AARP Tax-Aide site, visit AARP's website at www. Ez 40 tax form aarp. Ez 40 tax form org/money/taxaide or call 1-888-227-7669. Ez 40 tax form For more information on these programs, go to IRS. Ez 40 tax form gov and enter “VITA” in the search box. Ez 40 tax form Internet. Ez 40 tax form    IRS. Ez 40 tax form gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Ez 40 tax form Download the free IRS2Go app from the iTunes app store or from Google Play. Ez 40 tax form Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Ez 40 tax form Check the status of your 2013 refund with the Where's My Refund? application on IRS. Ez 40 tax form gov or download the IRS2Go app and select the Refund Status option. Ez 40 tax form The IRS issues more than 9 out of 10 refunds in less than 21 days. Ez 40 tax form Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Ez 40 tax form You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Ez 40 tax form The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Ez 40 tax form Use the Interactive Tax Assistant (ITA) to research your tax questions. Ez 40 tax form No need to wait on the phone or stand in line. Ez 40 tax form The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Ez 40 tax form When you reach the response screen, you can print the entire interview and the final response for your records. Ez 40 tax form New subject areas are added on a regular basis. Ez 40 tax form  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Ez 40 tax form gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Ez 40 tax form You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Ez 40 tax form The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Ez 40 tax form When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Ez 40 tax form Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Ez 40 tax form You can also ask the IRS to mail a return or an account transcript to you. Ez 40 tax form Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Ez 40 tax form gov or by calling 1-800-908-9946. Ez 40 tax form Tax return and tax account transcripts are generally available for the current year and the past three years. Ez 40 tax form Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Ez 40 tax form Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Ez 40 tax form If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Ez 40 tax form Check the status of your amended return using Where's My Amended Return? Go to IRS. Ez 40 tax form gov and enter Where's My Amended Return? in the search box. Ez 40 tax form You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Ez 40 tax form It can take up to 3 weeks from the date you mailed it to show up in our system. Ez 40 tax form Make a payment using one of several safe and convenient electronic payment options available on IRS. Ez 40 tax form gov. Ez 40 tax form Select the Payment tab on the front page of IRS. Ez 40 tax form gov for more information. Ez 40 tax form Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Ez 40 tax form Figure your income tax withholding with the IRS Withholding Calculator on IRS. Ez 40 tax form gov. Ez 40 tax form Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Ez 40 tax form Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Ez 40 tax form gov. Ez 40 tax form Request an Electronic Filing PIN by going to IRS. Ez 40 tax form gov and entering Electronic Filing PIN in the search box. Ez 40 tax form Download forms, instructions and publications, including accessible versions for people with disabilities. Ez 40 tax form Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Ez 40 tax form gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Ez 40 tax form An employee can answer questions about your tax account or help you set up a payment plan. Ez 40 tax form Before you visit, check the Office Locator on IRS. Ez 40 tax form gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Ez 40 tax form If you have a special need, such as a disability, you can request an appointment. Ez 40 tax form Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Ez 40 tax form Apply for an Employer Identification Number (EIN). Ez 40 tax form Go to IRS. Ez 40 tax form gov and enter Apply for an EIN in the search box. Ez 40 tax form Read the Internal Revenue Code, regulations, or other official guidance. Ez 40 tax form Read Internal Revenue Bulletins. Ez 40 tax form Sign up to receive local and national tax news and more by email. Ez 40 tax form Just click on “subscriptions” above the search box on IRS. Ez 40 tax form gov and choose from a variety of options. Ez 40 tax form    Phone. Ez 40 tax form You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Ez 40 tax form Download the free IRS2Go app from the iTunes app store or from Google Play. Ez 40 tax form Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Ez 40 tax form gov, or download the IRS2Go app. Ez 40 tax form Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Ez 40 tax form The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Ez 40 tax form Most VITA and TCE sites offer free electronic filing. Ez 40 tax form Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Ez 40 tax form Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Ez 40 tax form Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Ez 40 tax form If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Ez 40 tax form The IRS issues more than 9 out of 10 refunds in less than 21 days. Ez 40 tax form Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Ez 40 tax form Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Ez 40 tax form The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Ez 40 tax form Note, the above information is for our automated hotline. Ez 40 tax form Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Ez 40 tax form Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Ez 40 tax form You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Ez 40 tax form It can take up to 3 weeks from the date you mailed it to show up in our system. Ez 40 tax form Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Ez 40 tax form You should receive your order within 10 business days. Ez 40 tax form Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Ez 40 tax form If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Ez 40 tax form Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Ez 40 tax form The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Ez 40 tax form These individuals can also contact the IRS through relay services such as the Federal Relay Service. Ez 40 tax form    Walk-in. Ez 40 tax form You can find a selection of forms, publications and services — in-person. Ez 40 tax form Products. Ez 40 tax form You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Ez 40 tax form Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Ez 40 tax form Services. Ez 40 tax form You can walk in to your local TAC for face-to-face tax help. Ez 40 tax form An employee can answer questions about your tax account or help you set up a payment plan. Ez 40 tax form Before visiting, use the Office Locator tool on IRS. Ez 40 tax form gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Ez 40 tax form    Mail. Ez 40 tax form You can send your order for forms, instructions, and publications to the address below. Ez 40 tax form You should receive a response within 10 business days after your request is received. Ez 40 tax form Internal Revenue Service 1201 N. Ez 40 tax form Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Ez 40 tax form The Taxpayer Advocate Service (TAS) is your voice at the IRS. Ez 40 tax form Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Ez 40 tax form   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Ez 40 tax form We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Ez 40 tax form You face (or your business is facing) an immediate threat of adverse action. Ez 40 tax form You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Ez 40 tax form   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Ez 40 tax form Here's why we can help: TAS is an independent organization within the IRS. Ez 40 tax form Our advocates know how to work with the IRS. Ez 40 tax form Our services are free and tailored to meet your needs. Ez 40 tax form We have offices in every state, the District of Columbia, and Puerto Rico. Ez 40 tax form   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Ez 40 tax form   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Ez 40 tax form If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Ez 40 tax form Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Ez 40 tax form Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Ez 40 tax form Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Ez 40 tax form Prev  Up  Next   Home   More Online Publications