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Free Efile Tax Return 2013

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Free Efile Tax Return 2013

Free efile tax return 2013 Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Free efile tax return 2013 Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Free efile tax return 2013 Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Free efile tax return 2013 Any forgiven tax liability owed to the IRS will not have to be paid. Free efile tax return 2013 Any forgiven tax liability that has already been paid will be refunded. Free efile tax return 2013 (See Refund of Taxes Paid, later. Free efile tax return 2013 ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Free efile tax return 2013 Then read Amount of Tax Forgiven. Free efile tax return 2013 Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Free efile tax return 2013 Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Free efile tax return 2013 See Minimum Amount of Relief later under Amount of Tax Forgiven. Free efile tax return 2013 Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Free efile tax return 2013 Oklahoma City attack. Free efile tax return 2013   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Free efile tax return 2013 Example 1. Free efile tax return 2013 A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Free efile tax return 2013 His income tax is forgiven for 1994 and 1995. Free efile tax return 2013 Example 2. Free efile tax return 2013 A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Free efile tax return 2013 She subsequently died of her wounds in 1996. Free efile tax return 2013 Her income tax is forgiven for 1994, 1995, and 1996. Free efile tax return 2013 September 11 attacks and anthrax attacks. Free efile tax return 2013   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Free efile tax return 2013 Example 1. Free efile tax return 2013 A Pentagon employee died in the September 11 attack. Free efile tax return 2013 Her income tax is forgiven for 2000 and 2001. Free efile tax return 2013 Example 2. Free efile tax return 2013 A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Free efile tax return 2013 His income tax liability is forgiven for 2000, 2001, and 2002. Free efile tax return 2013 Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Free efile tax return 2013 On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Free efile tax return 2013 To figure the tax to be forgiven, use the following worksheets. Free efile tax return 2013 Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Free efile tax return 2013 Use Worksheet B for any eligible year the decedent filed a joint return. Free efile tax return 2013 See the illustrated Worksheet B near the end of this publication. Free efile tax return 2013 Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Free efile tax return 2013 Instead, complete Worksheet C and file a return for the decedent's last tax year. Free efile tax return 2013 See Minimum Amount of Relief, later. Free efile tax return 2013 If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Free efile tax return 2013 In English–7 a. Free efile tax return 2013 m. Free efile tax return 2013 to 10 p. Free efile tax return 2013 m. Free efile tax return 2013 local time. Free efile tax return 2013 In Spanish–8 a. Free efile tax return 2013 m. Free efile tax return 2013 to 9:30 p. Free efile tax return 2013 m. Free efile tax return 2013 local time. Free efile tax return 2013 Both spouses died. Free efile tax return 2013   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Free efile tax return 2013 Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Free efile tax return 2013 If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Free efile tax return 2013 However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Free efile tax return 2013 The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Free efile tax return 2013 Residents of community property states. Free efile tax return 2013   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Free efile tax return 2013 Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Free efile tax return 2013 Worksheet B. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free efile tax return 2013 1       2 Enter the decedent's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 2       3 Enter the decedent's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free efile tax return 2013 See the instructions. Free efile tax return 2013 4       5 Subtract line 4 from line 3. Free efile tax return 2013 5       6 Enter the surviving spouse's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 6       7 Enter the surviving spouse's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free efile tax return 2013 8       9 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Add lines 5 and 9. Free efile tax return 2013 10       11 Enter the total tax from the joint return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 11       12 Add lines 4 and 8. Free efile tax return 2013 12       13 Subtract line 12 from line 11. Free efile tax return 2013 13       14 Divide line 5 by line 10. Free efile tax return 2013 Enter the result as a decimal. Free efile tax return 2013 14       15 Tax to be forgiven. Free efile tax return 2013 Multiply line 13 by line 14 and enter the result. Free efile tax return 2013 15       Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Worksheet B. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free efile tax return 2013 1       2 Enter the decedent's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 2       3 Enter the decedent's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free efile tax return 2013 See the instructions. Free efile tax return 2013 4       5 Subtract line 4 from line 3. Free efile tax return 2013 5       6 Enter the surviving spouse's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 6       7 Enter the surviving spouse's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free efile tax return 2013 8       9 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Add lines 5 and 9. Free efile tax return 2013 10       11 Enter the total tax from the joint return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 11       12 Add lines 4 and 8. Free efile tax return 2013 12       13 Subtract line 12 from line 11. Free efile tax return 2013 13       14 Divide line 5 by line 10. Free efile tax return 2013 Enter the result as a decimal. Free efile tax return 2013 14       15 Tax to be forgiven. Free efile tax return 2013 Multiply line 13 by line 14 and enter the result. Free efile tax return 2013 15       Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Instructions for Worksheet B Table 1. Free efile tax return 2013 Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free efile tax return 2013 * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free efile tax return 2013 ** File Form 4506 to get a transcript of the decedent's account. Free efile tax return 2013 Table 1. Free efile tax return 2013 Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free efile tax return 2013 * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free efile tax return 2013 ** File Form 4506 to get a transcript of the decedent's account. Free efile tax return 2013 Lines 2 and 6. Free efile tax return 2013   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Free efile tax return 2013   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Free efile tax return 2013 Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Free efile tax return 2013 Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free efile tax return 2013   Allocate business deductions to the owner of the business. Free efile tax return 2013 Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free efile tax return 2013 Lines 3 and 7. Free efile tax return 2013   Figure the total tax as if a separate return had been filed. Free efile tax return 2013 The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Free efile tax return 2013 When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Free efile tax return 2013   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Free efile tax return 2013 If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Free efile tax return 2013 Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Free efile tax return 2013 Line 4. Free efile tax return 2013   Enter the total, if any, of the following taxes. Free efile tax return 2013 Self-employment tax. Free efile tax return 2013 Social security and Medicare tax on tip income not reported to employer. Free efile tax return 2013 Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free efile tax return 2013 Tax on excess accumulation in qualified retirement plans. Free efile tax return 2013 Household employment taxes. Free efile tax return 2013 Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free efile tax return 2013 Tax on golden parachute payments. Free efile tax return 2013 Minimum Amount of Relief The minimum amount of relief is $10,000. Free efile tax return 2013 If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Free efile tax return 2013 The IRS will refund the difference as explained under Refund of Taxes Paid. Free efile tax return 2013 Use Worksheet C to figure the additional tax payment. Free efile tax return 2013 But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Free efile tax return 2013 Example 1. Free efile tax return 2013 An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Free efile tax return 2013 The $6,400 is eligible for forgiveness. Free efile tax return 2013 The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Free efile tax return 2013 Example 2. Free efile tax return 2013 A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Free efile tax return 2013 The IRS will treat $10,000 as a tax payment for 2001. Free efile tax return 2013 Income received after date of death. Free efile tax return 2013   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Free efile tax return 2013 Examples are the final paycheck or dividends on stock owned by the decedent. Free efile tax return 2013 However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Free efile tax return 2013 Nonqualifying income. Free efile tax return 2013   The following income is not exempt from tax. Free efile tax return 2013 The tax on it is not eligible for forgiveness. Free efile tax return 2013 Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Free efile tax return 2013 Amounts that would not have been payable but for an action taken after September 11, 2001. Free efile tax return 2013 The following are examples of nonqualifying income. Free efile tax return 2013 Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Free efile tax return 2013 Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Free efile tax return 2013 Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Free efile tax return 2013 Interest on savings bonds cashed by the beneficiary of the decedent. Free efile tax return 2013 If you are responsible for the estate of a decedent, see Publication 559. Free efile tax return 2013 Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Free efile tax return 2013 Instructions for lines 2–9 of Worksheet C. Free efile tax return 2013   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Free efile tax return 2013 To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Free efile tax return 2013 Or, if special requirements are met, you can use the alternative computation instead. Free efile tax return 2013 See Alternative computation, later. Free efile tax return 2013   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Free efile tax return 2013 Use Form 1041 to figure what the taxable income would be without including the exempt income. Free efile tax return 2013 Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Free efile tax return 2013 Alternative computation. Free efile tax return 2013   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Free efile tax return 2013 You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Free efile tax return 2013 The estate claimed an income distribution deduction on line 18 (Form 1041). Free efile tax return 2013 Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Free efile tax return 2013 If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Free efile tax return 2013 If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Free efile tax return 2013 Complete the rest of Worksheet C to determine the additional payment allowed. Free efile tax return 2013 Worksheet C. Free efile tax return 2013 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free efile tax return 2013 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free efile tax return 2013 1 Minimum relief amount. Free efile tax return 2013 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free efile tax return 2013 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free efile tax return 2013 3       4 Add lines 2 and 3. Free efile tax return 2013 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 5       6 Add lines 4 and 5. Free efile tax return 2013 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free efile tax return 2013 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free efile tax return 2013 8       9 Tax on exempt income. Free efile tax return 2013 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free efile tax return 2013 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free efile tax return 2013 10       11 Add lines 9 and 10. Free efile tax return 2013 11   12 Additional payment allowed. Free efile tax return 2013 If line 11 is $10,000 or more, enter -0- and stop here. Free efile tax return 2013 No additional amount is allowed as a tax payment. Free efile tax return 2013 Otherwise, subtract line 11 from line 1 and enter the result. Free efile tax return 2013 12   Note. Free efile tax return 2013 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free efile tax return 2013 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free efile tax return 2013 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free efile tax return 2013 Write "Sec. Free efile tax return 2013 692(d)(2) Payment" and the amount to the right of the entry space. Free efile tax return 2013 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free efile tax return 2013 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free efile tax return 2013 Write “Sec. Free efile tax return 2013 692(d)(2) Payment” on the dotted line to the left of the entry space. Free efile tax return 2013 Worksheet C. Free efile tax return 2013 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free efile tax return 2013 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free efile tax return 2013 1 Minimum relief amount. Free efile tax return 2013 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free efile tax return 2013 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free efile tax return 2013 3       4 Add lines 2 and 3. Free efile tax return 2013 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 5       6 Add lines 4 and 5. Free efile tax return 2013 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free efile tax return 2013 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free efile tax return 2013 8       9 Tax on exempt income. Free efile tax return 2013 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free efile tax return 2013 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free efile tax return 2013 10       11 Add lines 9 and 10. Free efile tax return 2013 11   12 Additional payment allowed. Free efile tax return 2013 If line 11 is $10,000 or more, enter -0- and stop here. Free efile tax return 2013 No additional amount is allowed as a tax payment. Free efile tax return 2013 Otherwise, subtract line 11 from line 1 and enter the result. Free efile tax return 2013 12   Note. Free efile tax return 2013 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free efile tax return 2013 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free efile tax return 2013 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free efile tax return 2013 Write "Sec. Free efile tax return 2013 692(d)(2) Payment" and the amount to the right of the entry space. Free efile tax return 2013 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free efile tax return 2013 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free efile tax return 2013 Write “Sec. Free efile tax return 2013 692(d)(2) Payment” on the dotted line to the left of the entry space. Free efile tax return 2013 Worksheet D. Free efile tax return 2013 Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free efile tax return 2013 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free efile tax return 2013 5   6 Estate's tax on exempt income. Free efile tax return 2013 Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free efile tax return 2013 Figure the total tax that would have been payable by all beneficiaries. Free efile tax return 2013 Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free efile tax return 2013 Add the amounts by which each beneficiary's income tax is increased. Free efile tax return 2013 7   8 Add lines 6 and 7. Free efile tax return 2013 Enter this amount on line 9 of Worksheet C. Free efile tax return 2013 8   Worksheet D. Free efile tax return 2013 Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free efile tax return 2013 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free efile tax return 2013 5   6 Estate's tax on exempt income. Free efile tax return 2013 Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free efile tax return 2013 Figure the total tax that would have been payable by all beneficiaries. Free efile tax return 2013 Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free efile tax return 2013 Add the amounts by which each beneficiary's income tax is increased. Free efile tax return 2013 7   8 Add lines 6 and 7. Free efile tax return 2013 Enter this amount on line 9 of Worksheet C. Free efile tax return 2013 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Free efile tax return 2013 Income tax liabilities that have been paid. Free efile tax return 2013 Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Free efile tax return 2013 See Minimum Amount of Relief, earlier. Free efile tax return 2013 Example 1. Free efile tax return 2013 A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Free efile tax return 2013 The total, $14,000, is eligible for tax forgiveness. Free efile tax return 2013 However, he paid only $13,000 of that amount. Free efile tax return 2013 The IRS will refund the $13,000 paid. Free efile tax return 2013 Example 2. Free efile tax return 2013 A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Free efile tax return 2013 The child qualifies for the minimum relief of $10,000. Free efile tax return 2013 The $10,000 is treated as a tax payment for 2001 and will be refunded. Free efile tax return 2013 Period for filing a claim for credit or refund. Free efile tax return 2013   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Free efile tax return 2013 For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Free efile tax return 2013 To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Free efile tax return 2013 Extension of time for victims of Oklahoma City attack. Free efile tax return 2013   The period described above has been extended for victims of the Oklahoma City attack. Free efile tax return 2013 Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Free efile tax return 2013 How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Free efile tax return 2013 Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Free efile tax return 2013 Return required but not yet filed. Free efile tax return 2013   File Form 1040 if the decedent was a U. Free efile tax return 2013 S. Free efile tax return 2013 citizen or resident. Free efile tax return 2013 File Form 1040NR if the decedent was a nonresident alien. Free efile tax return 2013 A nonresident alien is someone who is not a U. Free efile tax return 2013 S. Free efile tax return 2013 citizen or resident. Free efile tax return 2013 Return required and already filed. Free efile tax return 2013   File a separate Form 1040X for each year you are claiming tax relief. Free efile tax return 2013 Return not required and not filed. Free efile tax return 2013   File Form 1040 only for the year of death if the decedent was a U. Free efile tax return 2013 S. Free efile tax return 2013 citizen or resident. Free efile tax return 2013 File Form 1040NR if the decedent was a nonresident alien. Free efile tax return 2013 Return not required but already filed. Free efile tax return 2013   File Form 1040X only for the year of death. Free efile tax return 2013 How to complete the returns. Free efile tax return 2013   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Free efile tax return 2013 Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Free efile tax return 2013 If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Free efile tax return 2013 If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Free efile tax return 2013 Also, please write one of the following across the top of page 1 of each return. Free efile tax return 2013 KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Free efile tax return 2013 ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Free efile tax return 2013 If you need a copy, use Form 4506. Free efile tax return 2013 The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Free efile tax return 2013 Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Free efile tax return 2013 Send Form 4506 to the address shown in the form instructions. Free efile tax return 2013 Taxpayer identification number. Free efile tax return 2013   A taxpayer identification number must be furnished on the decedent's returns. Free efile tax return 2013 This is usually the decedent's social security number (SSN). Free efile tax return 2013 However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Free efile tax return 2013 If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Free efile tax return 2013 S. Free efile tax return 2013 income tax return for any tax year, do not apply for an ITIN. Free efile tax return 2013 You may claim a refund by filing Form 1040NR without an SSN or ITIN. Free efile tax return 2013 Necessary Documents Please attach the following documents to the return or amended return. Free efile tax return 2013 Proof of death. Free efile tax return 2013   Attach a copy of the death certificate. Free efile tax return 2013 If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Free efile tax return 2013 Form 1310. Free efile tax return 2013   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Free efile tax return 2013 You are a surviving spouse filing an original or amended joint return with the decedent. Free efile tax return 2013 You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Free efile tax return 2013 A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Free efile tax return 2013 A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Free efile tax return 2013      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Free efile tax return 2013 Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Free efile tax return 2013 Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Free efile tax return 2013 Use one of the addresses shown below. Free efile tax return 2013 Where you file the returns or claims depends on whether you use the U. Free efile tax return 2013 S. Free efile tax return 2013 Postal Service or a private delivery service. Free efile tax return 2013 Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Free efile tax return 2013 U. Free efile tax return 2013 S. Free efile tax return 2013 Postal Service. Free efile tax return 2013   If you use the U. Free efile tax return 2013 S. Free efile tax return 2013 Postal Service, file these returns and claims at the following address. Free efile tax return 2013 Internal Revenue Service P. Free efile tax return 2013 O. Free efile tax return 2013 Box 4053 Woburn, MA 01888 Private delivery service. Free efile tax return 2013   Private delivery services cannot deliver items to P. Free efile tax return 2013 O. Free efile tax return 2013 boxes. Free efile tax return 2013 If you use a private delivery service, file these returns and claims at the following address. Free efile tax return 2013 Internal Revenue Service Stop 661 310 Lowell St. Free efile tax return 2013 Andover, MA 01810 Designated private delivery services. Free efile tax return 2013   You can use the following private delivery services to file these returns and claims. Free efile tax return 2013 Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Free efile tax return 2013 DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Free efile tax return 2013 Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Free efile tax return 2013 United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Free efile tax return 2013 M. Free efile tax return 2013 , UPS Worldwide Express Plus, and UPS Worldwide Express. Free efile tax return 2013 The private delivery service can tell you how to get written proof of the mailing date. Free efile tax return 2013 Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Free efile tax return 2013 September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Free efile tax return 2013 Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Free efile tax return 2013 These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free efile tax return 2013 No withholding applies to these payments. Free efile tax return 2013 Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Free efile tax return 2013 Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Free efile tax return 2013 Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Free efile tax return 2013 (A personal residence can be a rented residence or one you own. Free efile tax return 2013 ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Free efile tax return 2013 Qualified disaster relief payments also include the following. Free efile tax return 2013 Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Free efile tax return 2013 Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Free efile tax return 2013 Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Free efile tax return 2013 Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Free efile tax return 2013 Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Free efile tax return 2013 Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Free efile tax return 2013 However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Free efile tax return 2013 If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Free efile tax return 2013 For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Free efile tax return 2013 If that period has expired, you are granted an extension. Free efile tax return 2013 You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Free efile tax return 2013 On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Free efile tax return 2013 102(b)(2). Free efile tax return 2013 ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Free efile tax return 2013 The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Free efile tax return 2013 Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Free efile tax return 2013 Bureau of Justice Assistance payments. Free efile tax return 2013   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Free efile tax return 2013 Government plan annuity. Free efile tax return 2013   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Free efile tax return 2013 This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Free efile tax return 2013 For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Free efile tax return 2013 More information. Free efile tax return 2013   For more information, see Publication 559. Free efile tax return 2013 Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Free efile tax return 2013 The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free efile tax return 2013 If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free efile tax return 2013 Affected taxpayers. Free efile tax return 2013   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free efile tax return 2013 Any individual whose main home is located in a covered area (defined later). Free efile tax return 2013 Any business entity or sole proprietor whose principal place of business is located in a covered area. Free efile tax return 2013 Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Free efile tax return 2013 The main home or principal place of business does not have to be located in the covered area. Free efile tax return 2013 Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Free efile tax return 2013 Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Free efile tax return 2013 The spouse on a joint return with a taxpayer who is eligible for postponements. Free efile tax return 2013 Any other person determined by the IRS to be affected by a terrorist attack. Free efile tax return 2013 Covered area. Free efile tax return 2013   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Free efile tax return 2013 Abatement of interest. Free efile tax return 2013   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Free efile tax return 2013 Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Free efile tax return 2013 You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Free efile tax return 2013 The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Free efile tax return 2013 The due date (with extensions) for the 2000 return. Free efile tax return 2013 For more information about disaster area losses, see Publication 547. Free efile tax return 2013 Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Free efile tax return 2013 The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Free efile tax return 2013 The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Free efile tax return 2013 These credits may reduce or eliminate the estate tax due. Free efile tax return 2013 A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Free efile tax return 2013 Recovery from the September 11th Victim Compensation Fund. Free efile tax return 2013   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Free efile tax return 2013 However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Free efile tax return 2013 Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Free efile tax return 2013 Which estates must file a return. Free efile tax return 2013   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Free efile tax return 2013 S. Free efile tax return 2013 citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Free efile tax return 2013 Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Free efile tax return 2013 Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Free efile tax return 2013 S. Free efile tax return 2013 Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Free efile tax return 2013 Where to file. Free efile tax return 2013   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Free efile tax return 2013 Internal Revenue Service E & G Department/Stop 824T 201 W. Free efile tax return 2013 Rivercenter Blvd. Free efile tax return 2013 Covington, KY 41011 More information. Free efile tax return 2013   For more information on the federal estate tax, see the instructions for Form 706. Free efile tax return 2013 Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Free efile tax return 2013 The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Free efile tax return 2013 However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Free efile tax return 2013 For information about these requirements, see Internal Revenue Code section 5891. Free efile tax return 2013 Worksheet B Illustrated. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free efile tax return 2013 1 2000 2001   2 Enter the decedent's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 2 $17,259 $14,295   3 Enter the decedent's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free efile tax return 2013 See the instructions. Free efile tax return 2013 4 3,532 3,109   5 Subtract line 4 from line 3. Free efile tax return 2013 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions for line 2. Free efile tax return 2013 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free efile tax return 2013 8 0 0   9 Subtract line 8 from line 7. Free efile tax return 2013 9 5,277 5,391   10 Add lines 5 and 9. Free efile tax return 2013 10 7,868 7,532   11 Enter the total tax from the joint return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 11 10,789 9,728   12 Add lines 4 and 8. Free efile tax return 2013 12 3,532 3,109   13 Subtract line 12 from line 11. Free efile tax return 2013 13 7,257 6,619   14 Divide line 5 by line 10. Free efile tax return 2013 Enter the result as a decimal. Free efile tax return 2013 14 . Free efile tax return 2013 329 . Free efile tax return 2013 284   15 Tax to be forgiven. Free efile tax return 2013 Multiply line 13 by line 14 and enter the result. Free efile tax return 2013 15 $2,388 $1,880   Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Worksheet B Illustrated. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free efile tax return 2013 1 2000 2001   2 Enter the decedent's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 2 $17,259 $14,295   3 Enter the decedent's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free efile tax return 2013 See the instructions. Free efile tax return 2013 4 3,532 3,109   5 Subtract line 4 from line 3. Free efile tax return 2013 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions for line 2. Free efile tax return 2013 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free efile tax return 2013 8 0 0   9 Subtract line 8 from line 7. Free efile tax return 2013 9 5,277 5,391   10 Add lines 5 and 9. Free efile tax return 2013 10 7,868 7,532   11 Enter the total tax from the joint return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 11 10,789 9,728   12 Add lines 4 and 8. Free efile tax return 2013 12 3,532 3,109   13 Subtract line 12 from line 11. Free efile tax return 2013 13 7,257 6,619   14 Divide line 5 by line 10. Free efile tax return 2013 Enter the result as a decimal. Free efile tax return 2013 14 . Free efile tax return 2013 329 . Free efile tax return 2013 284   15 Tax to be forgiven. Free efile tax return 2013 Multiply line 13 by line 14 and enter the result. Free efile tax return 2013 15 $2,388 $1,880   Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Free efile tax return 2013 They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Free efile tax return 2013 The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Free efile tax return 2013 After the husband died, his estate received income of $4,000. Free efile tax return 2013 Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Free efile tax return 2013 This net profit is exempt from income tax as explained earlier under Income received after date of death. Free efile tax return 2013 The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Free efile tax return 2013 To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Free efile tax return 2013 She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Free efile tax return 2013 To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Free efile tax return 2013 To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Free efile tax return 2013   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Free efile tax return 2013 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free efile tax return 2013 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free efile tax return 2013 1 Minimum relief amount. Free efile tax return 2013 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free efile tax return 2013 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free efile tax return 2013 3 0     4 Add lines 2 and 3. Free efile tax return 2013 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 5 1,000     6 Add lines 4 and 5. Free efile tax return 2013 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free efile tax return 2013 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free efile tax return 2013 8 435     9 Tax on exempt income. Free efile tax return 2013 Subtract line 8 from line 7. Free efile tax return 2013 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free efile tax return 2013 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free efile tax return 2013 10 4,268     11 Add lines 9 and 10. Free efile tax return 2013 11 $4,543 12 Additional payment allowed. Free efile tax return 2013 If line 11 is $10,000 or more, enter -0- and stop here. Free efile tax return 2013 No additional amount is allowed as a tax payment. Free efile tax return 2013 Otherwise, subtract line 11 from line 1 and enter the result. Free efile tax return 2013 12 $5,457 Note. Free efile tax return 2013 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free efile tax return 2013 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free efile tax return 2013 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free efile tax return 2013 Write "Sec. Free efile tax return 2013 692(d)(2) Payment" and the amount to the right of the entry space. Free efile tax return 2013 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free efile tax return 2013 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free efile tax return 2013 Write “Sec. Free efile tax return 2013 692(d)(2) Payment” on the dotted line to the left of the entry space. Free efile tax return 2013 Worksheet C Illustrated. Free efile tax return 2013 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free efile tax return 2013 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free efile tax return 2013 1 Minimum relief amount. Free efile tax return 2013 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free efile tax return 2013 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free efile tax return 2013 3 0     4 Add lines 2 and 3. Free efile tax return 2013 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 5 1,000     6 Add lines 4 and 5. Free efile tax return 2013 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free efile tax return 2013 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free efile tax return 2013 8 435     9 Tax on exempt income. Free efile tax return 2013 Subtract line 8 from line 7. Free efile tax return 2013 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free efile tax return 2013 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free efile tax return 2013 10 4,268     11 Add lines 9 and 10. Free efile tax return 2013 11 $4,543 12 Additional payment allowed. Free efile tax return 2013 If line 11 is $10,000 or more, enter -0- and stop here. Free efile tax return 2013 No additional amount is allowed as a tax payment. Free efile tax return 2013 Otherwise, subtract line 11 from line 1 and enter the result. Free efile tax return 2013 12 $5,457 Note. Free efile tax return 2013 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free efile tax return 2013 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free efile tax return 2013 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free efile tax return 2013 Write "Sec. Free efile tax return 2013 692(d)(2) Payment" and the amount to the right of the entry space. Free efile tax return 2013 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free efile tax return 2013 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free efile tax return 2013 Write “Sec. Free efile tax return 2013 692(d)(2) Payment” on the dotted line to the left of the entry space. Free efile tax return 2013 Additional Worksheets The following additional worksheets are provided for your convenience. Free efile tax return 2013 Worksheet A. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free efile tax return 2013 1       2 Enter the total tax from the decedent's income tax return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free efile tax return 2013 (These taxes are not eligible for forgiveness. Free efile tax return 2013 )           a Self-employment tax. Free efile tax return 2013 3a         b Social security and Medicare tax on tip income not reported to employer. Free efile tax return 2013 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free efile tax return 2013 3c         d Tax on excess accumulation in qualified retirement plans. Free efile tax return 2013 3d         e Household employment taxes. Free efile tax return 2013 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free efile tax return 2013 3f         g Tax on golden parachute payments. Free efile tax return 2013 3g       4 Add lines 3a through 3g. Free efile tax return 2013 4       5 Tax to be forgiven. Free efile tax return 2013 Subtract line 4 from line 2. Free efile tax return 2013 5       Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Worksheet A. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free efile tax return 2013 1       2 Enter the total tax from the decedent's income tax return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free efile tax return 2013 (These taxes are not eligible for forgiveness. Free efile tax return 2013 )           a Self-employment tax. Free efile tax return 2013 3a         b Social security and Medicare tax on tip income not reported to employer. Free efile tax return 2013 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free efile tax return 2013 3c         d Tax on excess accumulation in qualified retirement plans. Free efile tax return 2013 3d         e Household employment taxes. Free efile tax return 2013 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free efile tax return 2013 3f         g Tax on golden parachute payments. Free efile tax return 2013 3g       4 Add lines 3a through 3g. Free efile tax return 2013 4       5 Tax to be forgiven. Free efile tax return 2013 Subtract line 4 from line 2. Free efile tax return 2013 5       Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Worksheet B. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free efile tax return 2013 1       2 Enter the decedent's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 2       3 Enter the decedent's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free efile tax return 2013 See the instructions. Free efile tax return 2013 4       5 Subtract line 4 from line 3. Free efile tax return 2013 5       6 Enter the surviving spouse's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 6       7 Enter the surviving spouse's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free efile tax return 2013 8       9 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Add lines 5 and 9. Free efile tax return 2013 10       11 Enter the total tax from the joint return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 11       12 Add lines 4 and 8. Free efile tax return 2013 12       13 Subtract line 12 from line 11. Free efile tax return 2013 13       14 Divide line 5 by line 10. Free efile tax return 2013 Enter the result as a decimal. Free efile tax return 2013 14       15 Tax to be forgiven. Free efile tax return 2013 Multiply line 13 by line 14 and enter the result. Free efile tax return 2013 15       Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Worksheet B. Free efile tax return 2013 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free efile tax return 2013 1       2 Enter the decedent's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 2       3 Enter the decedent's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free efile tax return 2013 See the instructions. Free efile tax return 2013 4       5 Subtract line 4 from line 3. Free efile tax return 2013 5       6 Enter the surviving spouse's taxable income. Free efile tax return 2013 Figure taxable income as if a separate return had been filed. Free efile tax return 2013 See the instructions. Free efile tax return 2013 6       7 Enter the surviving spouse's total tax. Free efile tax return 2013 See the instructions. Free efile tax return 2013 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free efile tax return 2013 8       9 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Add lines 5 and 9. Free efile tax return 2013 10       11 Enter the total tax from the joint return. Free efile tax return 2013 See Table 1 on page 5 for the line number for years before 2002. Free efile tax return 2013 11       12 Add lines 4 and 8. Free efile tax return 2013 12       13 Subtract line 12 from line 11. Free efile tax return 2013 13       14 Divide line 5 by line 10. Free efile tax return 2013 Enter the result as a decimal. Free efile tax return 2013 14       15 Tax to be forgiven. Free efile tax return 2013 Multiply line 13 by line 14 and enter the result. Free efile tax return 2013 15       Note. Free efile tax return 2013 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free efile tax return 2013 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free efile tax return 2013 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free efile tax return 2013 The IRS will determine the amount to be refunded. Free efile tax return 2013 Worksheet C. Free efile tax return 2013 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free efile tax return 2013 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free efile tax return 2013 1 Minimum tax forgiveness. Free efile tax return 2013 Note. Free efile tax return 2013 Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free efile tax return 2013 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free efile tax return 2013 3       4 Add lines 2 and 3. Free efile tax return 2013 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 5       6 Add lines 4 and 5. Free efile tax return 2013 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free efile tax return 2013 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free efile tax return 2013 8       9 Tax on exempt income. Free efile tax return 2013 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free efile tax return 2013 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free efile tax return 2013 10       11 Add lines 9 and 10. Free efile tax return 2013 11   12 Additional payment allowed. Free efile tax return 2013 If line 11 is $10,000 or more, enter -0- and stop here. Free efile tax return 2013 No additional amount is allowed as a tax payment. Free efile tax return 2013 Otherwise, subtract line 11 from line 1 and enter the result. Free efile tax return 2013 12   Note. Free efile tax return 2013 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free efile tax return 2013 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free efile tax return 2013 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free efile tax return 2013 Write "Sec. Free efile tax return 2013 692(d)(2) Payment" and the amount to the right of the entry space. Free efile tax return 2013 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free efile tax return 2013 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free efile tax return 2013 Write “Sec. Free efile tax return 2013 692(d)(2) Payment” on the dotted line to the left of the entry space. Free efile tax return 2013 Worksheet C. Free efile tax return 2013 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free efile tax return 2013 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free efile tax return 2013 1 Minimum tax forgiveness. Free efile tax return 2013 Note. Free efile tax return 2013 Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free efile tax return 2013 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free efile tax return 2013 3       4 Add lines 2 and 3. Free efile tax return 2013 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free efile tax return 2013 (See Income received after date of death on page 5. Free efile tax return 2013 ) 5       6 Add lines 4 and 5. Free efile tax return 2013 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free efile tax return 2013 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free efile tax return 2013 8       9 Tax on exempt income. Free efile tax return 2013 Subtract line 8 from line 7. Free efile tax return 2013 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free efile tax return 2013 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free efile tax return 2013 10       11 Add lines 9 and 10. Free efile tax return 2013 11   12 Additional payment allowed. Free efile tax return 2013 If line 11 is $10,000 or more, enter -0- and stop here. Free efile tax return 2013 No additional amount is allowed as a tax payment. Free efile tax return 2013 Otherwise, subtract line 11 from line 1 and enter the result. Free efile tax return 2013 12   Note. Free efile tax return 2013 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free efile tax return 2013 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free efile tax return 2013 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free efile tax return 2013 Write "Sec. Free efile tax return 2013 692(d)(2) Payment" and the amount to the right of the entry space. Free efile tax return 2013 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free efile tax return 2013 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free efile tax return 2013 Write “Sec. Free efile tax return 2013 692(d)(2) Payment” on the dotted line to the left of the entry space. Free efile tax return 2013 How To Get Tax Help Special IRS assistance. Free efile tax return 2013   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Free efile tax return 2013 We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Free efile tax return 2013 Call 1–866–562–5227 Monday through Friday In English–7 a. Free efile tax return 2013 m. Free efile tax return 2013 to 10 p. Free efile tax return 2013 m. Free efile tax return 2013 local time In Spanish–8 a. Free efile tax return 2013 m. Free efile tax return 2013 to 9:30 p. Free efile tax return 2013 m. Free efile tax return 2013 local time   The IRS web site at www. Free efile tax return 2013 irs. Free efile tax return 2013 gov has notices and other tax relief information. Free efile tax return 2013 Check it periodically for any new guidance or to see if Congress has enacted new legislation. Free efile tax return 2013   Business taxpayers affected by the attacks can e-mail their questions to corp. Free efile tax return 2013 disaster. Free efile tax return 2013 relief@irs. Free efile tax return 2013 gov. Free efile tax return 2013   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Free efile tax return 2013 fema. Free efile tax return 2013 gov. Free efile tax return 2013 Other help from the IRS. Free efile tax return 2013   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Free efile tax return 2013 By selecting the method that is best for you, you will have quick and easy access to tax help. Free efile tax return 2013 Contacting your Taxpayer Advocate. Free efile tax return 2013   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Free efile tax return 2013   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Free efile tax return 2013 While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Free efile tax return 2013   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Free efile tax return 2013 Call the IRS at 1–800–829–1040. Free efile tax return 2013 Call, write, or fax the Taxpayer Advocate office in your area. Free efile tax return 2013 Call 1–800–829–4059 if you are a TTY/TDD user. Free efile tax return 2013   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Free efile tax return 2013 Free tax services. Free efile tax return 2013   To find out what services are available, get Publication 910, Guide to Free Tax Services. Free efile tax return 2013 It contains a list of free tax publications and an index of tax topics. Free efile tax return 2013 It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Free efile tax return 2013 Personal computer. Free efile tax return 2013 With your personal computer and modem, you can access the IRS on the Internet at www. Free efile tax return 2013 irs. Free efile tax return 2013 gov. Free efile tax return 2013 While visiting our web site, you can: Find answers to questions you may have. Free efile tax return 2013 Download forms and publications or search for forms and pub
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Understanding Your CP160 Notice

You received this notice to remind you of the amount you owe in tax, penalty and interest.


What you need to do

Page Last Reviewed or Updated: 26-Mar-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free Efile Tax Return 2013

Free efile tax return 2013 4. Free efile tax return 2013   Student Loan Interest Deduction Table of Contents Introduction Student Loan Interest DefinedQualified Student Loan Qualified Education Expenses Include As Interest Do Not Include As Interest When Must Interest Be Paid Can You Claim the DeductionNo Double Benefit Allowed Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Which Worksheet To Use Claiming the Deduction Introduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. Free efile tax return 2013 However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Free efile tax return 2013 For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. Free efile tax return 2013 This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Free efile tax return 2013 The student loan interest deduction is taken as an adjustment to income. Free efile tax return 2013 This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Free efile tax return 2013 This chapter explains: What type of loan interest you can deduct, Whether you can claim the deduction, What expenses you must have paid with the student loan, Who is an eligible student, How to figure the deduction, and How to claim the deduction. Free efile tax return 2013 Table 4-1. Free efile tax return 2013 Student Loan Interest Deduction at a Glance This table summarizes the features of the student loan interest deduction. Free efile tax return 2013 Do not rely on this table alone. Free efile tax return 2013 Refer to the text for complete details. Free efile tax return 2013 Feature   Description Maximum benefit   You can reduce your income subject to tax by up to $2,500. Free efile tax return 2013 Loan qualifications   Your student loan: •must have been taken out solely to pay qualified education expenses, and •cannot be from a related person or made under a qualified employer plan. Free efile tax return 2013 Student qualifications   The student must be: •you, your spouse, or your dependent, and  •enrolled at least half-time in a degree program. Free efile tax return 2013 Time limit on deduction   You can deduct interest paid during the remaining period of your student loan. Free efile tax return 2013 Limit on modified adjusted gross income (MAGI)   $155,000 if married filing a joint return; $75,000 if single, head of household, or qualifying widow(er). Free efile tax return 2013 Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Free efile tax return 2013 It includes both required and voluntary interest payments. Free efile tax return 2013 Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period for an eligible student. Free efile tax return 2013 Loans from the following sources are not qualified student loans. Free efile tax return 2013 A related person. Free efile tax return 2013 A qualified employer plan. Free efile tax return 2013 Your dependent. Free efile tax return 2013   Generally, your dependent is someone who is either a: Qualifying child, or Qualifying relative. Free efile tax return 2013 You can find more information about dependents in Publication 501. Free efile tax return 2013 Exceptions. Free efile tax return 2013   For purposes of the student loan interest deduction, there are the following exceptions to the general rules for dependents. Free efile tax return 2013 An individual can be your dependent even if you are the dependent of another taxpayer. Free efile tax return 2013 An individual can be your dependent even if the individual files a joint return with a spouse. Free efile tax return 2013 An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). Free efile tax return 2013 Reasonable period of time. Free efile tax return 2013   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. Free efile tax return 2013   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. Free efile tax return 2013 The expenses relate to a specific academic period, and The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. Free efile tax return 2013   If neither of the above situations applies, the reasonable period of time usually is determined based on all the relevant facts and circumstances. Free efile tax return 2013 Academic period. Free efile tax return 2013   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Free efile tax return 2013 In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Free efile tax return 2013 Eligible student. Free efile tax return 2013   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Free efile tax return 2013 Enrolled at least half-time. Free efile tax return 2013   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. Free efile tax return 2013   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Free efile tax return 2013 However, the standard may not be lower than any of those established by the U. Free efile tax return 2013 S. Free efile tax return 2013 Department of Education under the Higher Education Act of 1965. Free efile tax return 2013 Related person. Free efile tax return 2013   You cannot deduct interest on a loan you get from a related person. Free efile tax return 2013 Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Free efile tax return 2013 ), Your lineal descendants (children, grandchildren, etc. Free efile tax return 2013 ), and Certain corporations, partnerships, trusts, and exempt organizations. Free efile tax return 2013 Qualified employer plan. Free efile tax return 2013   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Free efile tax return 2013 Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. Free efile tax return 2013 They include amounts paid for the following items. Free efile tax return 2013 Tuition and fees. Free efile tax return 2013 Room and board. Free efile tax return 2013 Books, supplies, and equipment. Free efile tax return 2013 Other necessary expenses (such as transportation). Free efile tax return 2013 The cost of room and board qualifies only to the extent that it is not more than the greater of: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Free efile tax return 2013 Eligible educational institution. Free efile tax return 2013   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Free efile tax return 2013 S. Free efile tax return 2013 Department of Education. Free efile tax return 2013 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Free efile tax return 2013   Certain educational institutions located outside the United States also participate in the U. Free efile tax return 2013 S. Free efile tax return 2013 Department of Education's Federal Student Aid (FSA) programs. Free efile tax return 2013   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Free efile tax return 2013   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Free efile tax return 2013 The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Free efile tax return 2013    The educational institution should be able to tell you if it is an eligible educational institution. Free efile tax return 2013 Adjustments to Qualified Education Expenses You must reduce your qualified education expenses by the total amount paid for them with the following tax-free items. Free efile tax return 2013 Employer-provided educational assistance. Free efile tax return 2013 See chapter 11, Employer-Provided Educational Assistance . Free efile tax return 2013 Tax-free distribution of earnings from a Coverdell education savings account (ESA). Free efile tax return 2013 See Tax-Free Distributions in chapter 7, Coverdell Education Savings Account. Free efile tax return 2013 Tax-free distribution of earnings from a qualified tuition program (QTP). Free efile tax return 2013 See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program. Free efile tax return 2013 U. Free efile tax return 2013 S. Free efile tax return 2013 savings bond interest that you exclude from income because it is used to pay qualified education expenses. Free efile tax return 2013 See chapter 10, Education Savings Bond Program . Free efile tax return 2013 The tax-free part of scholarships and fellowships. Free efile tax return 2013 See Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Free efile tax return 2013 Veterans' educational assistance. Free efile tax return 2013 See Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Free efile tax return 2013 Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Free efile tax return 2013 Include As Interest In addition to simple interest on the loan, if all other requirements are met, the items discussed below can be student loan interest. Free efile tax return 2013 Loan origination fee. Free efile tax return 2013   In general, this is a one-time fee charged by the lender when a loan is made. Free efile tax return 2013 To be deductible as interest, a loan origination fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. Free efile tax return 2013 A loan origination fee treated as interest accrues over the term of the loan. Free efile tax return 2013   Loan origination fees were not required to be reported on Form 1098-E, Student Loan Interest Statement, for loans made before September 1, 2004. Free efile tax return 2013 If loan origination fees are not included in the amount reported on your Form 1098-E, you can use any reasonable method to allocate the loan origination fees over the term of the loan. Free efile tax return 2013 The method shown in the example below allocates equal portions of the loan origination fee to each payment required under the terms of the loan. Free efile tax return 2013 A method that results in the double deduction of the same portion of a loan origination fee would not be reasonable. Free efile tax return 2013 Example. Free efile tax return 2013 In August 2004, Bill took out a student loan for $16,000 to pay the tuition for his senior year of college. Free efile tax return 2013 The lender charged a 3% loan origination fee ($480) that was withheld from the funds Bill received. Free efile tax return 2013 Bill began making payments on his student loan in 2013. Free efile tax return 2013 Because the loan origination fee was not included in his 2013 Form 1098-E, Bill can use any reasonable method to allocate that fee over the term of the loan. Free efile tax return 2013 Bill's loan is payable in 120 equal monthly payments. Free efile tax return 2013 He allocates the $480 fee equally over the total number of payments ($480 ÷ 120 months = $4 per month). Free efile tax return 2013 Bill made 7 payments in 2013, so he paid $28 ($4 × 7) of interest attributable to the loan origination fee. Free efile tax return 2013 To determine his student loan interest deduction, he will add the $28 to the amount of other interest reported to him on Form 1098-E. Free efile tax return 2013 Capitalized interest. Free efile tax return 2013   This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Free efile tax return 2013 Capitalized interest is treated as interest for tax purposes and is deductible as payments of principal are made on the loan. Free efile tax return 2013 No deduction for capitalized interest is allowed in a year in which no loan payments were made. Free efile tax return 2013 Interest on revolving lines of credit. Free efile tax return 2013   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. Free efile tax return 2013 See Qualified Education Expenses , earlier. Free efile tax return 2013 Interest on refinanced student loans. Free efile tax return 2013   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. Free efile tax return 2013    If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. Free efile tax return 2013 Voluntary interest payments. Free efile tax return 2013   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. Free efile tax return 2013 Example. Free efile tax return 2013 The payments on Roger's student loan were scheduled to begin in June 2012, 6 months after he graduated from college. Free efile tax return 2013 He began making payments as required. Free efile tax return 2013 In September 2013, Roger enrolled in graduate school on a full-time basis. Free efile tax return 2013 He applied for and was granted deferment of his loan payments while in graduate school. Free efile tax return 2013 Wanting to pay down his student loan as much as possible, he made loan payments in October and November 2013. Free efile tax return 2013 Even though these were voluntary (not required) payments, Roger can deduct the interest paid in October and November. Free efile tax return 2013 Allocating Payments Between Interest and Principal The allocation of payments between interest and principal for tax purposes might not be the same as the allocation shown on the Form 1098-E or other statement you receive from the lender or loan servicer. Free efile tax return 2013 To make the allocation for tax purposes, a payment generally applies first to stated interest that remains unpaid as of the date the payment is due, second to any loan origination fees allocable to the payment, third to any capitalized interest that remains unpaid as of the date the payment is due, and fourth to the outstanding principal. Free efile tax return 2013 Example. Free efile tax return 2013 In August 2012, Peg took out a $10,000 student loan to pay the tuition for her senior year of college. Free efile tax return 2013 The lender charged a 3% loan origination fee ($300) that was withheld from the funds Peg received. Free efile tax return 2013 The interest (5% simple) on this loan accrued while she completed her senior year and for 6 months after she graduated. Free efile tax return 2013 At the end of that period, the lender determined the amount to be repaid by capitalizing all accrued but unpaid interest ($625 interest accrued from August 2012 through October 2013) and adding it to the outstanding principal balance of the loan. Free efile tax return 2013 The loan is payable over 60 months, with a payment of $200. Free efile tax return 2013 51 due on the first of each month, beginning November 2013. Free efile tax return 2013 Peg did not receive a Form 1098-E for 2013 from her lender because the amount of interest she paid did not require the lender to issue an information return. Free efile tax return 2013 However, she did receive an account statement from the lender that showed the following 2013 payments on her outstanding loan of $10,625 ($10,000 principal + $625 accrued but unpaid interest). Free efile tax return 2013 Payment Date   Payment   Stated Interest   Principal November 2013   $200. Free efile tax return 2013 51   $44. Free efile tax return 2013 27   $156. Free efile tax return 2013 24 December 2013   $200. Free efile tax return 2013 51   $43. Free efile tax return 2013 62   $156. Free efile tax return 2013 89 Totals   $401. Free efile tax return 2013 02   $87. Free efile tax return 2013 89   $313. Free efile tax return 2013 13 To determine the amount of interest that could be deducted on the loan for 2013, Peg starts with the total amount of stated interest she paid, $87. Free efile tax return 2013 89. Free efile tax return 2013 Next, she allocates the loan origination fee over the term of the loan ($300 ÷ 60 months = $5 per month). Free efile tax return 2013 A total of $10 ($5 of each of the two principal payments) should be treated as interest for tax purposes. Free efile tax return 2013 Peg then applies the unpaid capitalized interest ($625) to the two principal payments in the order in which they were made, and determines that the remaining amount of principal of both payments is treated as interest for tax purposes. Free efile tax return 2013 Assuming that Peg qualifies to take the student loan interest deduction, she can deduct $401. Free efile tax return 2013 02 ($87. Free efile tax return 2013 89 + $10 + $303. Free efile tax return 2013 13). Free efile tax return 2013 For 2014, Peg will continue to allocate $5 of the loan origination fee to the principal portion of each monthly payment she makes and treat that amount as interest for tax purposes. Free efile tax return 2013 She also will apply the remaining amount of capitalized interest ($625 − $303. Free efile tax return 2013 13 = $321. Free efile tax return 2013 87) to the principal payments in the order in which they are made until the balance is zero, and treat those amounts as interest for tax purposes. Free efile tax return 2013 Do Not Include As Interest You cannot claim a student loan interest deduction for any of the following items. Free efile tax return 2013 Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Free efile tax return 2013 Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Free efile tax return 2013 Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. Free efile tax return 2013 For more information, see Student Loan Repayment Assistance in chapter 5, Student Loan Cancellations and Repayment Assistance. Free efile tax return 2013 When Must Interest Be Paid You can deduct all interest you paid during the year on your student loan, including voluntary payments, until the loan is paid off. Free efile tax return 2013 Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Free efile tax return 2013 Your filing status is any filing status except married filing separately. Free efile tax return 2013 No one else is claiming an exemption for you on his or her tax return. Free efile tax return 2013 You are legally obligated to pay interest on a qualified student loan. Free efile tax return 2013 You paid interest on a qualified student loan. Free efile tax return 2013 Claiming an exemption for you. Free efile tax return 2013   Another taxpayer is claiming an exemption for you if he or she lists your name and other required information on his or her Form 1040 (or Form 1040A), line 6c, or Form 1040NR, line 7c. Free efile tax return 2013 Example 1. Free efile tax return 2013 During 2013, Josh paid $600 interest on his qualified student loan. Free efile tax return 2013 Only he is legally obligated to make the payments. Free efile tax return 2013 No one claimed an exemption for Josh for 2013. Free efile tax return 2013 Assuming all other requirements are met, Josh can deduct the $600 of interest he paid on his 2013 Form 1040 or 1040A. Free efile tax return 2013 Example 2. Free efile tax return 2013 During 2013, Jo paid $1,100 interest on her qualified student loan. Free efile tax return 2013 Only she is legally obligated to make the payments. Free efile tax return 2013 Jo's parents claimed an exemption for her on their 2013 tax return. Free efile tax return 2013 In this case, neither Jo nor her parents may deduct the student loan interest Jo paid in 2013. Free efile tax return 2013 Interest paid by others. Free efile tax return 2013   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. Free efile tax return 2013 Example 1. Free efile tax return 2013 Darla obtained a qualified student loan to attend college. Free efile tax return 2013 After Darla's graduation from college, she worked as an intern for a nonprofit organization. Free efile tax return 2013 As part of the internship program, the nonprofit organization made an interest payment on behalf of Darla. Free efile tax return 2013 This payment was treated as additional compensation and reported in box 1 of her Form W-2. Free efile tax return 2013 Assuming all other qualifications are met, Darla can deduct this payment of interest on her tax return. Free efile tax return 2013 Example 2. Free efile tax return 2013 Ethan obtained a qualified student loan to attend college. Free efile tax return 2013 After graduating from college, the first monthly payment on his loan was due in December. Free efile tax return 2013 As a gift, Ethan's mother made this payment for him. Free efile tax return 2013 No one is claiming a dependency exemption for Ethan on his or her tax return. Free efile tax return 2013 Assuming all other qualifications are met, Ethan can deduct this payment of interest on his tax return. Free efile tax return 2013 No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, as home mortgage interest). Free efile tax return 2013 Figuring the Deduction Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. Free efile tax return 2013 However, the amount determined above may be gradually reduced (phased out) or eliminated based on your filing status and MAGI as explained below. Free efile tax return 2013 You can use Worksheet 4-1. Free efile tax return 2013 Student Loan Interest Deduction Worksheet (at the end of this chapter) to figure both your MAGI and your deduction. Free efile tax return 2013 Form 1098-E. Free efile tax return 2013   To help you figure your student loan interest deduction, you should receive Form 1098-E. Free efile tax return 2013 Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. Free efile tax return 2013   For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. Free efile tax return 2013 Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Free efile tax return 2013 However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Free efile tax return 2013 See Allocating Payments Between Interest and Principal , earlier. Free efile tax return 2013    The lender may ask for a completed Form W-9S, or similar statement to obtain the borrower's name, address, and taxpayer identification number. Free efile tax return 2013 The form may also be used by the borrower to certify that the student loan was incurred solely to pay for qualified education expenses. Free efile tax return 2013 Effect of the Amount of Your Income on the Amount of Your Deduction The amount of your student loan interest deduction is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). Free efile tax return 2013 You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). Free efile tax return 2013 Modified adjusted gross income (MAGI). Free efile tax return 2013   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for student loan interest. Free efile tax return 2013 However, as discussed below, there may be other modifications. Free efile tax return 2013 Table 4-2 shows how the amount of your MAGI can affect your student loan interest deduction. Free efile tax return 2013 Table 4-2. Free efile tax return 2013 Effect of MAGI on Student Loan Interest Deduction IF your filing status is. Free efile tax return 2013 . Free efile tax return 2013 . Free efile tax return 2013 AND your MAGI is. Free efile tax return 2013 . Free efile tax return 2013 . Free efile tax return 2013 THEN your student loan interest deduction is. Free efile tax return 2013 . Free efile tax return 2013 . Free efile tax return 2013 single,  head of household, or qualifying widow(er) not more than $60,000 not affected by the phaseout. Free efile tax return 2013 more than $60,000  but less than $75,000 reduced because of the phaseout. Free efile tax return 2013 $75,000 or more eliminated by the phaseout. Free efile tax return 2013 married filing joint return not more than $125,000 not affected by the phaseout. Free efile tax return 2013 more than $125,000 but less than $155,000 reduced because of the phaseout. Free efile tax return 2013 $155,000 or more eliminated by the phaseout. Free efile tax return 2013 MAGI when using Form 1040A. Free efile tax return 2013   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). Free efile tax return 2013 MAGI when using Form 1040. Free efile tax return 2013   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any amount on line 33 (student loan interest deduction), line 34 (tuition and fees deduction), or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Free efile tax return 2013 MAGI when using Form 1040NR. Free efile tax return 2013   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form figured without taking into account any amount on line 33 (student loan interest deduction) and line 34 (domestic production activities deduction). Free efile tax return 2013 MAGI when using Form 1040NR-EZ. Free efile tax return 2013   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form figured without taking into account any amount on line 9 (student loan interest deduction). Free efile tax return 2013 Phaseout. Free efile tax return 2013   If your MAGI is within the range of incomes where the credit must be reduced, you must figure your reduced deduction. Free efile tax return 2013 To figure the phaseout, multiply your interest deduction (before the phaseout) by a fraction. Free efile tax return 2013 The numerator is your MAGI minus $60,000 ($125,000 in the case of a joint return). Free efile tax return 2013 The denominator is $15,000 ($30,000 in the case of a joint return). Free efile tax return 2013 Subtract the result from your deduction (before the phaseout) to give you the amount you can deduct. Free efile tax return 2013 Example 1. Free efile tax return 2013 During 2013 you paid $800 interest on a qualified student loan. Free efile tax return 2013 Your 2013 MAGI is $145,000 and you are filing a joint return. Free efile tax return 2013 You must reduce your deduction by $533, figured as follows. Free efile tax return 2013   $800 × $145,000 − $125,000  $30,000 = $533   Your reduced student loan interest deduction is $267 ($800 − $533). Free efile tax return 2013 Example 2. Free efile tax return 2013 The facts are the same as in Example 1 except that you paid $2,750 interest. Free efile tax return 2013 Your maximum deduction for 2013 is $2,500. Free efile tax return 2013 You must reduce your maximum deduction by $1,667, figured as follows. Free efile tax return 2013   $2,500 × $145,000 − $125,000  $30,000 = $1,667   In this example, your reduced student loan interest deduction is $833 ($2,500 − $1,667). Free efile tax return 2013 Which Worksheet To Use Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR. Free efile tax return 2013 However, if you are filing Form 2555, Foreign Earned Income, Form 2555-EZ, Foreign Earned Income Exclusion, or Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1. Free efile tax return 2013 Student Loan Interest Deduction Worksheet at the end of this chapter. Free efile tax return 2013 Claiming the Deduction The student loan interest deduction is an adjustment to income. Free efile tax return 2013 To claim the deduction, enter the allowable amount on line 33 (Form 1040), line 18 (Form 1040A), line 33 (Form 1040NR), or line 9 (Form 1040NR-EZ). Free efile tax return 2013 Worksheet 4-1. Free efile tax return 2013 Student Loan Interest Deduction Worksheet Use this worksheet instead of the worksheet in the Form 1040 instructions if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Free efile tax return 2013 Before using this worksheet, you must complete Form 1040, lines 7 through 32, plus any amount to be entered on the dotted line next to line 36. Free efile tax return 2013 1. Free efile tax return 2013 Enter the total interest you paid in 2013 on qualified student loans. Free efile tax return 2013 Do not enter  more than $2,500 1. Free efile tax return 2013   2. Free efile tax return 2013 Enter the amount from Form 1040, line 22 2. Free efile tax return 2013       3. Free efile tax return 2013 Enter the total of the amounts from Form 1040,  lines 23 through 32 3. Free efile tax return 2013           4. Free efile tax return 2013 Enter the total of any amounts entered on the dotted line next to Form 1040, line 36 4. Free efile tax return 2013           5. Free efile tax return 2013 Add lines 3 and 4 5. Free efile tax return 2013       6. Free efile tax return 2013 Subtract line 5 from line 2 6. Free efile tax return 2013       7. Free efile tax return 2013 Enter any foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18) 7. Free efile tax return 2013       8. Free efile tax return 2013 Enter any foreign housing deduction (Form 2555, line 50) 8. Free efile tax return 2013       9. Free efile tax return 2013 Enter the amount of income from Puerto Rico you are excluding 9. Free efile tax return 2013       10. Free efile tax return 2013 Enter the amount of income from American Samoa  you are excluding (Form 4563, line 15) 10. Free efile tax return 2013       11. Free efile tax return 2013 Add lines 6 through 10. Free efile tax return 2013 This is your modified adjusted gross income 11. Free efile tax return 2013   12. Free efile tax return 2013 Enter the amount shown below for your filing status 12. Free efile tax return 2013     •Single, head of household, or qualifying widow(er)—$60,000       •Married filing jointly—$125,000     13. Free efile tax return 2013 Is the amount on line 11 more than the amount on line 12?       □ No. Free efile tax return 2013 Skip lines 13 and 14, enter -0- on line 15, and go to line 16. Free efile tax return 2013       □ Yes. Free efile tax return 2013 Subtract line 12 from line 11 13. Free efile tax return 2013   14. Free efile tax return 2013 Divide line 13 by $15,000 ($30,000 if married filing jointly). Free efile tax return 2013 Enter the result as a decimal  (rounded to at least three places). Free efile tax return 2013 If the result is 1. Free efile tax return 2013 000 or more, enter 1. Free efile tax return 2013 000 14. Free efile tax return 2013 . Free efile tax return 2013 15. Free efile tax return 2013 Multiply line 1 by line 14 15. Free efile tax return 2013   16. Free efile tax return 2013 Student loan interest deduction. Free efile tax return 2013 Subtract line 15 from line 1. Free efile tax return 2013 Enter the result here  and on Form 1040, line 33. Free efile tax return 2013 Do not include this amount in figuring any other  deduction on your return (such as on Schedule A, C, E, etc. Free efile tax return 2013 ) 16. Free efile tax return 2013   Prev  Up  Next   Home   More Online Publications