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File An Amended Tax Return Online

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File An Amended Tax Return Online

File an amended tax return online 1. File an amended tax return online   Scholarships, Fellowships, Grants, and Tuition Reductions Table of Contents Reminder Introduction Scholarships and FellowshipsTax-Free Scholarships and Fellowships Taxable Scholarships and Fellowships Reporting Scholarships and Fellowships Other Types of Educational AssistanceFulbright Grants Pell Grants and Other Title IV Need-Based Education Grants Payment to Service Academy Cadets Veterans' Benefits Qualified Tuition Reduction Reminder Individual retirement arrangements (IRAs). File an amended tax return online  You can set up and make contributions to an IRA if you receive taxable compensation. File an amended tax return online Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. File an amended tax return online For more information about IRAs, see Publication 590. File an amended tax return online Introduction This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. File an amended tax return online The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. File an amended tax return online Included are discussions of: Scholarships, Fellowships, Need-based education grants, such as a Pell Grant, and Qualified tuition reductions. File an amended tax return online Many types of educational assistance are tax free if they meet the requirements discussed here. File an amended tax return online Special rules apply to U. File an amended tax return online S. File an amended tax return online citizens and resident aliens who have received scholarships or fellowships for studying, teaching, or researching abroad. File an amended tax return online For information about these rules, see Publication 54, Tax Guide for U. File an amended tax return online S. File an amended tax return online Citizens and Resident Aliens Abroad. File an amended tax return online Scholarships and Fellowships A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. File an amended tax return online A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. File an amended tax return online Amount of scholarship or fellowship. File an amended tax return online   The amount of a scholarship or fellowship includes the following: The value of contributed services and accommodations. File an amended tax return online This includes such services and accommodations as room (lodging), board (meals), laundry service, and similar services or accommodations that are received by an individual as a part of a scholarship or fellowship. File an amended tax return online The amount of tuition, matriculation, and other fees that are paid or remitted to the student to aid the student in pursuing study or research. File an amended tax return online Any amount received in the nature of a family allowance as a part of a scholarship or fellowship. File an amended tax return online Tax-Free Scholarships and Fellowships A scholarship or fellowship is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. File an amended tax return online A scholarship or fellowship is tax free only to the extent: It does not exceed your expenses; It is not designated or earmarked for other purposes (such as room and board), and does not require (by its terms) that it cannot be used for qualified education expenses; and It does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship. File an amended tax return online (But for exceptions, see Payment for services,later. File an amended tax return online Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income. File an amended tax return online Candidate for a degree. File an amended tax return online   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an educational institution that: Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency. File an amended tax return online Eligible educational institution. File an amended tax return online   An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. File an amended tax return online Qualified education expenses. File an amended tax return online   For purposes of tax-free scholarships and fellowships, these are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. File an amended tax return online These items must be required of all students in your course of instruction. File an amended tax return online Expenses that do not qualify. File an amended tax return online   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. File an amended tax return online Payment for services. File an amended tax return online   Generally, you cannot exclude from your gross income the part of any scholarship or fellowship that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. File an amended tax return online This applies even if all candidates for a degree must perform the services to receive the degree. File an amended tax return online (See exceptions next. File an amended tax return online ) Exceptions. File an amended tax return online   You do not have to treat as payment for services the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. File an amended tax return online Example 1. File an amended tax return online You received a scholarship of $2,500. File an amended tax return online The scholarship was not received under either of the exceptions mentioned above. File an amended tax return online As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. File an amended tax return online Of the $2,500 scholarship, $1,000 represents payment for teaching. File an amended tax return online The provider of your scholarship gives you a Form W-2 showing $1,000 as income. File an amended tax return online Your qualified education expenses were at least $1,500. File an amended tax return online Assuming that all other conditions are met, $1,500 of your scholarship is tax free. File an amended tax return online The $1,000 you received for teaching is taxable. File an amended tax return online Example 2. File an amended tax return online You are a candidate for a degree at a medical school. File an amended tax return online You receive a scholarship (not under either of the exceptions mentioned above) for your medical education and training. File an amended tax return online The terms of your scholarship require you to perform future services. File an amended tax return online A substantial penalty applies if you do not comply. File an amended tax return online The entire amount of your grant is taxable as payment for services in the year it is received. File an amended tax return online Athletic Scholarships An athletic scholarship is tax free only if and to the extent it meets the requirements discussed later. File an amended tax return online Worksheet 1-1. File an amended tax return online    You can use Worksheet 1-1, Taxable Scholarship and Fellowship Income , later, to figure the tax-free and taxable parts of your athletic scholarship. File an amended tax return online    Worksheet 1-1. File an amended tax return online Taxable Scholarship and Fellowship Income 1. File an amended tax return online Enter the total amount of any scholarship or fellowship for 2013. File an amended tax return online See Amount of scholarship or fellowship, earlier. File an amended tax return online 1. File an amended tax return online       If you are a degree candidate at an eligible educational institution, go to line 2. File an amended tax return online If you are not a degree candidate at an eligible educational institution, stop here. File an amended tax return online The entire amount is taxable. File an amended tax return online For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowships , earlier, in this chapter. File an amended tax return online       2. File an amended tax return online Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. File an amended tax return online (Do not include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. File an amended tax return online ) 2. File an amended tax return online     3. File an amended tax return online Subtract line 2 from line 1 3. File an amended tax return online     4. File an amended tax return online Enter the amount from line 3 that your scholarship or fellowship required you to use for other than qualified education expenses 4. File an amended tax return online     5. File an amended tax return online Subtract line 4 from line 3 5. File an amended tax return online     6. File an amended tax return online Enter the amount of your qualified education expenses 6. File an amended tax return online     7. File an amended tax return online Enter the smaller of line 5 or line 6. File an amended tax return online This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship) 7. File an amended tax return online     8. File an amended tax return online Subtract line 7 from line 5 8. File an amended tax return online     9. File an amended tax return online Taxable part. File an amended tax return online Add lines 2, 4, and 8. File an amended tax return online See Reporting Scholarships and Fellowships , earlier, for how to report this amount on your tax return 9. File an amended tax return online     Taxable Scholarships and Fellowships If and to the extent your scholarship or fellowship does not meet the requirements described earlier, it is taxable and must be included in gross income. File an amended tax return online You can use Worksheet 1–1, Taxable Scholarship and Fellowship Income, later, to figure the tax-free and taxable parts of your scholarship or fellowship. File an amended tax return online Reporting Scholarships and Fellowships Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable. File an amended tax return online If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary. File an amended tax return online If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount as explained below. File an amended tax return online You must report the taxable amount whether or not you received a Form W-2. File an amended tax return online If you receive an incorrect Form W-2, ask the payer for a corrected one. File an amended tax return online For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions. File an amended tax return online How To Report How you report any taxable scholarship or fellowship income depends on which return you file. File an amended tax return online Form 1040EZ. File an amended tax return online   If you file Form 1040EZ, include the taxable amount in the total on line 1. File an amended tax return online If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1. File an amended tax return online Form 1040A. File an amended tax return online   If you file Form 1040A, include the taxable amount in the total on line 7. File an amended tax return online If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7. File an amended tax return online Form 1040. File an amended tax return online   If you file Form 1040, include the taxable amount in the total on line 7. File an amended tax return online If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. File an amended tax return online Schedule SE (Form 1040). File an amended tax return online   To determine your net earnings from self-employment, include amounts you receive under a scholarship as pay for your services that are reported to you on Form 1099-MISC, Miscellaneous Income. File an amended tax return online If your net earnings are $400 or more, you must pay self-employment tax. File an amended tax return online Use Schedule SE, Self-Employment Tax, to figure this tax. File an amended tax return online Form 1040NR. File an amended tax return online   If you file Form 1040NR, report the taxable amount on line 12. File an amended tax return online Generally, you must report the amount shown in box 2 of Form(s) 1042-S, Foreign Person's U. File an amended tax return online S. File an amended tax return online Source Income Subject to Withholding. File an amended tax return online See the Instructions for Form 1040NR for more information. File an amended tax return online Form 1040NR-EZ. File an amended tax return online   If you file Form 1040NR-EZ, report the taxable amount on line 5. File an amended tax return online Generally, you must report the amount shown in box 2 of Form(s) 1042-S. File an amended tax return online See the Instructions for Form 1040NR-EZ for more information. File an amended tax return online Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. File an amended tax return online Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship in figuring how much of the grant is tax free. File an amended tax return online Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. File an amended tax return online They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. File an amended tax return online Payment to Service Academy Cadets An appointment to a United States military academy is not a scholarship or fellowship. File an amended tax return online Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. File an amended tax return online Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies. File an amended tax return online Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. File an amended tax return online Do not include these payments as income on your federal tax return. File an amended tax return online If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific benefit by part or all of your VA payments. File an amended tax return online This applies only to the part of your VA payments that is required to be used for education expenses. File an amended tax return online You may want to visit the Veteran's Administration website at www. File an amended tax return online gibill. File an amended tax return online va. File an amended tax return online gov for specific information about the various VA benefits for education. File an amended tax return online Example. File an amended tax return online You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. File an amended tax return online Neither of these benefits is taxable and you do not report them on your tax return. File an amended tax return online You also want to claim an American opportunity credit on your return. File an amended tax return online You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit , later). File an amended tax return online To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. File an amended tax return online You do not subtract any amount of the BHA because it was paid to you and its use was not restricted. File an amended tax return online Qualified Tuition Reduction If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. File an amended tax return online This is called a “tuition reduction. File an amended tax return online ” You do not have to include a qualified tuition reduction in your income. File an amended tax return online A tuition reduction is qualified only if you receive it from, and use it at, an eligible educational institution. File an amended tax return online You do not have to use the tuition reduction at the eligible educational institution from which you received it. File an amended tax return online In other words, if you work for an eligible educational institution and the institution arranges for you to take courses at another eligible educational institution without paying any tuition, you may not have to include the value of the free courses in your income. File an amended tax return online The rules for determining if a tuition reduction is qualified, and therefore tax free, are different if the education provided is below the graduate level or is graduate education. File an amended tax return online You must include in your income any tuition reduction you receive that is payment for your services. File an amended tax return online Eligible educational institution. File an amended tax return online   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. File an amended tax return online Officers, owners, and highly compensated employees. File an amended tax return online   Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. File an amended tax return online This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees. File an amended tax return online The group must be defined under a reasonable classification set up by the employer. File an amended tax return online The classification must not discriminate in favor of owners, officers, or highly compensated employees. File an amended tax return online Payment for services. File an amended tax return online   Generally, you must include in income the part of any qualified tuition reduction that represents payment for teaching, research, or other services by the student required as a condition of receiving the qualified tuition reduction. File an amended tax return online This applies even if all candidates for a degree must perform the services to receive the degree. File an amended tax return online (See below for exceptions. File an amended tax return online ) Exceptions. File an amended tax return online   You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. File an amended tax return online Education Below the Graduate Level If you receive a tuition reduction for education below the graduate level (including primary, secondary, or high school), it is a qualified tuition reduction, and therefore tax free, only if your relationship to the educational institution providing the benefit is described below. File an amended tax return online You are an employee of the eligible educational institution. File an amended tax return online You were an employee of the eligible educational institution, but you retired or left on disability. File an amended tax return online You are a widow or widower of an individual who died while an employee of the eligible educational institution or who retired or left on disability. File an amended tax return online You are the dependent child or spouse of an individual described in (1) through (3), above. File an amended tax return online Child of deceased parents. File an amended tax return online   For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. File an amended tax return online Child of divorced parents. File an amended tax return online   For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. File an amended tax return online Graduate Education A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. File an amended tax return online It is provided by an eligible educational institution. File an amended tax return online You are a graduate student who performs teaching or research activities for the educational institution. File an amended tax return online You must include in income any other tuition reductions for graduate education that you receive. File an amended tax return online How To Report Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. File an amended tax return online Report the amount from Form W-2, box 1, on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). File an amended tax return online Prev  Up  Next   Home   More Online Publications
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The File An Amended Tax Return Online

File an amended tax return online 15. File an amended tax return online   Estimated Tax Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Special Estimated Tax Rules for Qualified FarmersQualified Farmer Special Rules for Qualified Farmers Estimated Tax Penalty for 2013 What's New Net Investment Income Tax. File an amended tax return online . File an amended tax return online  For tax years beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). File an amended tax return online NIIT is a 3. File an amended tax return online 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income (MAGI) over the threshold amount. File an amended tax return online NIIT may need to be included when calculating your estimated tax. File an amended tax return online For more information, see Publication 505,Tax Withholding and Estimated Tax. File an amended tax return online Additional Medicare Tax. File an amended tax return online  For tax years beginning in 2013, a 0. File an amended tax return online 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. File an amended tax return online You may need to include this amount when figuring your estimated tax. File an amended tax return online For more information, see Publication 505. File an amended tax return online Introduction Estimated tax is the method used to pay tax on income that is not subject to withholding. File an amended tax return online See Publication 505 for the general rules and requirements for paying estimated tax. File an amended tax return online If you are a qualified farmer, defined below, you are subject to the special rules covered in this chapter for paying estimated tax. File an amended tax return online Topics - This chapter discusses: Special estimated tax rules for qualified farmers Estimated tax penalty Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. File an amended tax return online S. File an amended tax return online Individual Income Tax Return 1040-ES Estimated Tax for Individuals 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 16 for information about getting publications and forms. File an amended tax return online Special Estimated Tax Rules for Qualified Farmers Special rules apply to the payment of estimated tax by individuals who are qualified farmers. File an amended tax return online If you are not a qualified farmer as defined next, see Publication 505 for the estimated tax rules that apply. File an amended tax return online Qualified Farmer An individual is a qualified farmer for 2013 if at least two-thirds of his or her gross income from all sources for 2012 or 2013 was from farming. File an amended tax return online See Gross Income , next, for information on how to figure your gross income from all sources and see Gross Income From Farming , later, for information on how to figure your gross income from farming. File an amended tax return online See also Percentage From Farming , later, for information on how to determine the percentage of your gross income from farming. File an amended tax return online Gross Income Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from income tax. File an amended tax return online On a joint return, you must add your spouse's gross income to your gross income. File an amended tax return online To decide whether two-thirds of your gross income was from farming, use as your gross income the total of the following income (not loss) amounts from your tax return. File an amended tax return online Wages, salaries, tips, etc. File an amended tax return online Taxable interest. File an amended tax return online Ordinary dividends. File an amended tax return online Taxable refunds, credits, or offsets of state and local income taxes. File an amended tax return online Alimony. File an amended tax return online Gross business income from Schedule C (Form 1040). File an amended tax return online Gross business receipts from Schedule C-EZ (Form 1040). File an amended tax return online Capital gains from Schedule D (Form 1040). File an amended tax return online Losses are not netted against gains. File an amended tax return online Gains on sales of business property. File an amended tax return online Taxable IRA distributions, pensions, annuities, and social security benefits. File an amended tax return online Gross rental income from Schedule E (Form 1040). File an amended tax return online Gross royalty income from Schedule E (Form 1040). File an amended tax return online Taxable net income from an estate or trust reported on Schedule E (Form 1040). File an amended tax return online Income from a Real Estate Mortgage Investment Conduit reported on Schedule E (Form 1040). File an amended tax return online Gross farm rental income from Form 4835. File an amended tax return online Gross farm income from Schedule F (Form 1040). File an amended tax return online Your distributive share of gross income from a partnership, or limited liability company treated as a partnership, from Schedule K-1 (Form 1065). File an amended tax return online Your pro rata share of gross income from an S corporation, from Schedule K-1 (Form 1120S). File an amended tax return online Unemployment compensation. File an amended tax return online Other income not included with any of the items listed above. File an amended tax return online Gross Income From Farming Gross income from farming is income from cultivating the soil or raising agricultural commodities. File an amended tax return online It includes the following amounts. File an amended tax return online Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. File an amended tax return online Income from a plantation, ranch, nursery, range, orchard, or oyster bed. File an amended tax return online Crop shares for the use of your land. File an amended tax return online Gains from sales of draft, breeding, dairy, or sporting livestock. File an amended tax return online Gross income from farming is the total of the following amounts from your tax return. File an amended tax return online Gross farm income from Schedule F (Form 1040). File an amended tax return online Gross farm rental income from Form 4835. File an amended tax return online Gross farm income from Schedule E (Form 1040), Parts II and III. File an amended tax return online Gains from the sale of livestock used for draft, breeding, sport, or dairy purposes reported on Form 4797. File an amended tax return online For more information about income from farming, see chapter 3. File an amended tax return online Farm income does not include any of the following: Wages you receive as a farm employee. File an amended tax return online Income you receive from contract grain harvesting and hauling with workers and machines you furnish. File an amended tax return online Gains you receive from the sale of farm land and depreciable farm equipment. File an amended tax return online Percentage From Farming Figure your gross income from all sources, discussed earlier. File an amended tax return online Then figure your gross income from farming, discussed earlier. File an amended tax return online Divide your farm gross income by your total gross income to determine the percentage of gross income from farming. File an amended tax return online Example 1. File an amended tax return online Jane Smith had the following total gross income and farm gross income amounts in 2013. File an amended tax return online Gross Income   Total Farm Taxable interest $3,000   Dividends 500   Rental income (Sch E) 41,500   Farm income (Sch F) 75,000 $75,000 Gain (Form 4797) 5,000 5,000 Total $125,000 $80,000 Schedule D showed gain from the sale of dairy cows carried over from Form 4797 ($5,000) in addition to a loss from the sale of corporate stock ($2,000). File an amended tax return online However, that loss is not netted against the gain to figure Ms. File an amended tax return online Smith's total gross income or her gross farm income. File an amended tax return online Her gross farm income is 64% of her total gross income ($80,000 ÷ $125,000 = 0. File an amended tax return online 64). File an amended tax return online Special Rules for Qualified Farmers The following special estimated tax rules apply if you are a qualified farmer for 2013. File an amended tax return online You do not have to pay estimated tax if you file your 2013 tax return and pay all the tax due by March 3, 2014. File an amended tax return online You do not have to pay estimated tax if your 2013 income tax withholding (including any amount applied to your 2013 estimated tax from your 2012 return) will be at least 662/3% (. File an amended tax return online 6667) of the total tax shown on your 2013 tax return or 100% of the total tax shown on your 2012 return. File an amended tax return online If you must pay estimated tax, you are required to make only one estimated tax payment (your required annual payment) by January 15, 2014, using special rules to figure the amount of the payment. File an amended tax return online See Required Annual Payment , next, for details. File an amended tax return online Figure 15-1 presents an overview of the special estimated tax rules that apply to qualified farmers. File an amended tax return online Example 2. File an amended tax return online Assume the same fact as in Example 1. File an amended tax return online Ms. File an amended tax return online Smith's gross farm income is only 64% of her total income. File an amended tax return online Therefore, based on her 2013 income, she does not qualify to use the special estimated tax rules for qualified farmers. File an amended tax return online However, she does qualify if at least two-thirds of her 2012 gross income was from farming. File an amended tax return online Example 3. File an amended tax return online Assume the same facts as in Example 1 except that Ms. File an amended tax return online Smith's farm income from Schedule F was $90,000 instead of $75,000. File an amended tax return online This made her total gross income $140,000 ($3,000 + $500 + $41,500 + $90,000 + $5,000) and her farm gross income $95,000 ($90,000 + $5,000). File an amended tax return online She qualifies to use the special estimated tax rules for qualified farmers, since 67. File an amended tax return online 9% (at least two-thirds) of her gross income is from farming ($95,000 ÷ $140,000 = . File an amended tax return online 679). File an amended tax return online Required Annual Payment If you are a qualified farmer and must pay estimated tax for 2013, use the worksheet on Form 1040-ES to figure the amount of your required annual payment. File an amended tax return online Apply the following special rules for qualified farmers to the worksheet. File an amended tax return online On line 14a, multiply line 13c by 662/3% (. File an amended tax return online 6667). File an amended tax return online On line 14b, enter 100% of the tax shown on your 2012 tax return regardless of the amount of your adjusted gross income. File an amended tax return online For this purpose, the “tax shown on your 2012 tax return” is the amount on line 61 of your 2012 return modified by certain adjustments. File an amended tax return online For more information, see chapter 4 of Publication 505. File an amended tax return online Estimated Tax Penalty for 2013 If you do not pay all your required estimated tax for 2013 by January 15, 2014, or file your 2013 return and pay any tax due by March 3, 2014, you may owe a penalty. File an amended tax return online Use Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to determine if you owe a penalty. File an amended tax return online See the instructions for Form 2210-F. File an amended tax return online Figure 15-1. File an amended tax return online Estimated Tax for Farmers Please click here for the text description of the image. File an amended tax return online Figure 2–A If you receive a penalty notice, do not ignore it, even if you think it is in error. File an amended tax return online You may get a penalty notice even though you filed your return on time, attached Form 2210-F, and met the gross-income-from-farming requirement. File an amended tax return online If you receive a penalty notice for underpaying estimated tax and you think it is in error, write to the address on the notice and explain why you think the notice is in error. File an amended tax return online Include a computation similar to the one in Example 1 (earlier), showing that you met the gross income from farming requirement. File an amended tax return online Prev  Up  Next   Home   More Online Publications