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Free Federal And State Tax Filing For Students

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Free Federal And State Tax Filing For Students

Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Free federal and state tax filing for students Any forgiven tax liability owed to the IRS will not have to be paid. Free federal and state tax filing for students Any forgiven tax liability that has already been paid will be refunded. Free federal and state tax filing for students (See Refund of Taxes Paid, later. Free federal and state tax filing for students ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Free federal and state tax filing for students Then read Amount of Tax Forgiven. Free federal and state tax filing for students Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Free federal and state tax filing for students Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Free federal and state tax filing for students See Minimum Amount of Relief later under Amount of Tax Forgiven. Free federal and state tax filing for students Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Free federal and state tax filing for students Oklahoma City attack. Free federal and state tax filing for students   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 federal and state tax filing for students Example 1. Free federal and state tax filing for students A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Free federal and state tax filing for students His income tax is forgiven for 1994 and 1995. Free federal and state tax filing for students Example 2. Free federal and state tax filing for students A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Free federal and state tax filing for students She subsequently died of her wounds in 1996. Free federal and state tax filing for students Her income tax is forgiven for 1994, 1995, and 1996. Free federal and state tax filing for students September 11 attacks and anthrax attacks. Free federal and state tax filing for students   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 federal and state tax filing for students Example 1. Free federal and state tax filing for students A Pentagon employee died in the September 11 attack. Free federal and state tax filing for students Her income tax is forgiven for 2000 and 2001. Free federal and state tax filing for students Example 2. Free federal and state tax filing for students A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Free federal and state tax filing for students His income tax liability is forgiven for 2000, 2001, and 2002. Free federal and state tax filing for students Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Free federal and state tax filing for students On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Free federal and state tax filing for students To figure the tax to be forgiven, use the following worksheets. Free federal and state tax filing for students 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 federal and state tax filing for students Use Worksheet B for any eligible year the decedent filed a joint return. Free federal and state tax filing for students See the illustrated Worksheet B near the end of this publication. Free federal and state tax filing for students Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Free federal and state tax filing for students Instead, complete Worksheet C and file a return for the decedent's last tax year. Free federal and state tax filing for students See Minimum Amount of Relief, later. Free federal and state tax filing for students If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Free federal and state tax filing for students In English–7 a. Free federal and state tax filing for students m. Free federal and state tax filing for students to 10 p. Free federal and state tax filing for students m. Free federal and state tax filing for students local time. Free federal and state tax filing for students In Spanish–8 a. Free federal and state tax filing for students m. Free federal and state tax filing for students to 9:30 p. Free federal and state tax filing for students m. Free federal and state tax filing for students local time. Free federal and state tax filing for students Both spouses died. Free federal and state tax filing for students   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 federal and state tax filing for students Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Free federal and state tax filing for students 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 federal and state tax filing for students However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Free federal and state tax filing for students 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 federal and state tax filing for students Residents of community property states. Free federal and state tax filing for students   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 federal and state tax filing for students 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 federal and state tax filing for students Worksheet B. Free federal and state tax filing for students 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 federal and state tax filing for students 1       2 Enter the decedent's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 2       3 Enter the decedent's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 4       5 Subtract line 4 from line 3. Free federal and state tax filing for students 5       6 Enter the surviving spouse's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 6       7 Enter the surviving spouse's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free federal and state tax filing for students 8       9 Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Add lines 5 and 9. Free federal and state tax filing for students 10       11 Enter the total tax from the joint return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 11       12 Add lines 4 and 8. Free federal and state tax filing for students 12       13 Subtract line 12 from line 11. Free federal and state tax filing for students 13       14 Divide line 5 by line 10. Free federal and state tax filing for students Enter the result as a decimal. Free federal and state tax filing for students 14       15 Tax to be forgiven. Free federal and state tax filing for students Multiply line 13 by line 14 and enter the result. Free federal and state tax filing for students 15       Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Worksheet B. Free federal and state tax filing for students 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 federal and state tax filing for students 1       2 Enter the decedent's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 2       3 Enter the decedent's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 4       5 Subtract line 4 from line 3. Free federal and state tax filing for students 5       6 Enter the surviving spouse's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 6       7 Enter the surviving spouse's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free federal and state tax filing for students 8       9 Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Add lines 5 and 9. Free federal and state tax filing for students 10       11 Enter the total tax from the joint return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 11       12 Add lines 4 and 8. Free federal and state tax filing for students 12       13 Subtract line 12 from line 11. Free federal and state tax filing for students 13       14 Divide line 5 by line 10. Free federal and state tax filing for students Enter the result as a decimal. Free federal and state tax filing for students 14       15 Tax to be forgiven. Free federal and state tax filing for students Multiply line 13 by line 14 and enter the result. Free federal and state tax filing for students 15       Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Instructions for Worksheet B Table 1. Free federal and state tax filing for students 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 federal and state tax filing for students * 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 federal and state tax filing for students ** File Form 4506 to get a transcript of the decedent's account. Free federal and state tax filing for students Table 1. Free federal and state tax filing for students 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 federal and state tax filing for students * 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 federal and state tax filing for students ** File Form 4506 to get a transcript of the decedent's account. Free federal and state tax filing for students Lines 2 and 6. Free federal and state tax filing for students   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Free federal and state tax filing for students   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Free federal and state tax filing for students Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Free federal and state tax filing for students 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 federal and state tax filing for students   Allocate business deductions to the owner of the business. Free federal and state tax filing for students 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 federal and state tax filing for students Lines 3 and 7. Free federal and state tax filing for students   Figure the total tax as if a separate return had been filed. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students   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 federal and state tax filing for students If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Free federal and state tax filing for students 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 federal and state tax filing for students Line 4. Free federal and state tax filing for students   Enter the total, if any, of the following taxes. Free federal and state tax filing for students Self-employment tax. Free federal and state tax filing for students Social security and Medicare tax on tip income not reported to employer. Free federal and state tax filing for students Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free federal and state tax filing for students Tax on excess accumulation in qualified retirement plans. Free federal and state tax filing for students Household employment taxes. Free federal and state tax filing for students Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free federal and state tax filing for students Tax on golden parachute payments. Free federal and state tax filing for students Minimum Amount of Relief The minimum amount of relief is $10,000. Free federal and state tax filing for students 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 federal and state tax filing for students The IRS will refund the difference as explained under Refund of Taxes Paid. Free federal and state tax filing for students Use Worksheet C to figure the additional tax payment. Free federal and state tax filing for students But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Free federal and state tax filing for students Example 1. Free federal and state tax filing for students An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Free federal and state tax filing for students The $6,400 is eligible for forgiveness. Free federal and state tax filing for students 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 federal and state tax filing for students Example 2. Free federal and state tax filing for students A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Free federal and state tax filing for students The IRS will treat $10,000 as a tax payment for 2001. Free federal and state tax filing for students Income received after date of death. Free federal and state tax filing for students   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 federal and state tax filing for students Examples are the final paycheck or dividends on stock owned by the decedent. Free federal and state tax filing for students 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 federal and state tax filing for students Nonqualifying income. Free federal and state tax filing for students   The following income is not exempt from tax. Free federal and state tax filing for students The tax on it is not eligible for forgiveness. Free federal and state tax filing for students Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Free federal and state tax filing for students Amounts that would not have been payable but for an action taken after September 11, 2001. Free federal and state tax filing for students The following are examples of nonqualifying income. Free federal and state tax filing for students Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students Interest on savings bonds cashed by the beneficiary of the decedent. Free federal and state tax filing for students If you are responsible for the estate of a decedent, see Publication 559. Free federal and state tax filing for students Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Free federal and state tax filing for students Instructions for lines 2–9 of Worksheet C. Free federal and state tax filing for students   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 federal and state tax filing for students To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Free federal and state tax filing for students Or, if special requirements are met, you can use the alternative computation instead. Free federal and state tax filing for students See Alternative computation, later. Free federal and state tax filing for students   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 federal and state tax filing for students Use Form 1041 to figure what the taxable income would be without including the exempt income. Free federal and state tax filing for students 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 federal and state tax filing for students Alternative computation. Free federal and state tax filing for students   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 federal and state tax filing for students 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 federal and state tax filing for students The estate claimed an income distribution deduction on line 18 (Form 1041). Free federal and state tax filing for students Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students Complete the rest of Worksheet C to determine the additional payment allowed. Free federal and state tax filing for students Worksheet C. Free federal and state tax filing for students Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free federal and state tax filing for students Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free federal and state tax filing for students 1 Minimum relief amount. Free federal and state tax filing for students Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free federal and state tax filing for students 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 federal and state tax filing for students 3       4 Add lines 2 and 3. Free federal and state tax filing for students 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 5       6 Add lines 4 and 5. Free federal and state tax filing for students 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free federal and state tax filing for students 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free federal and state tax filing for students 8       9 Tax on exempt income. Free federal and state tax filing for students Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free federal and state tax filing for students If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free federal and state tax filing for students 10       11 Add lines 9 and 10. Free federal and state tax filing for students 11   12 Additional payment allowed. Free federal and state tax filing for students If line 11 is $10,000 or more, enter -0- and stop here. Free federal and state tax filing for students No additional amount is allowed as a tax payment. Free federal and state tax filing for students Otherwise, subtract line 11 from line 1 and enter the result. Free federal and state tax filing for students 12   Note. Free federal and state tax filing for students The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free federal and state tax filing for students 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 federal and state tax filing for students If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free federal and state tax filing for students Write "Sec. Free federal and state tax filing for students 692(d)(2) Payment" and the amount to the right of the entry space. Free federal and state tax filing for students Also indicate whether a Form 1041 is being filed for the decedent's estate. Free federal and state tax filing for students If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free federal and state tax filing for students Write “Sec. Free federal and state tax filing for students 692(d)(2) Payment” on the dotted line to the left of the entry space. Free federal and state tax filing for students Worksheet C. Free federal and state tax filing for students Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free federal and state tax filing for students Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free federal and state tax filing for students 1 Minimum relief amount. Free federal and state tax filing for students Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free federal and state tax filing for students 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 federal and state tax filing for students 3       4 Add lines 2 and 3. Free federal and state tax filing for students 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 5       6 Add lines 4 and 5. Free federal and state tax filing for students 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free federal and state tax filing for students 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free federal and state tax filing for students 8       9 Tax on exempt income. Free federal and state tax filing for students Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free federal and state tax filing for students If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free federal and state tax filing for students 10       11 Add lines 9 and 10. Free federal and state tax filing for students 11   12 Additional payment allowed. Free federal and state tax filing for students If line 11 is $10,000 or more, enter -0- and stop here. Free federal and state tax filing for students No additional amount is allowed as a tax payment. Free federal and state tax filing for students Otherwise, subtract line 11 from line 1 and enter the result. Free federal and state tax filing for students 12   Note. Free federal and state tax filing for students The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free federal and state tax filing for students 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 federal and state tax filing for students If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free federal and state tax filing for students Write "Sec. Free federal and state tax filing for students 692(d)(2) Payment" and the amount to the right of the entry space. Free federal and state tax filing for students Also indicate whether a Form 1041 is being filed for the decedent's estate. Free federal and state tax filing for students If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free federal and state tax filing for students Write “Sec. Free federal and state tax filing for students 692(d)(2) Payment” on the dotted line to the left of the entry space. Free federal and state tax filing for students Worksheet D. Free federal and state tax filing for students 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 federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free federal and state tax filing for students 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free federal and state tax filing for students 5   6 Estate's tax on exempt income. Free federal and state tax filing for students Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free federal and state tax filing for students Figure the total tax that would have been payable by all beneficiaries. Free federal and state tax filing for students 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 federal and state tax filing for students Add the amounts by which each beneficiary's income tax is increased. Free federal and state tax filing for students 7   8 Add lines 6 and 7. Free federal and state tax filing for students Enter this amount on line 9 of Worksheet C. Free federal and state tax filing for students 8   Worksheet D. Free federal and state tax filing for students 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 federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free federal and state tax filing for students 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free federal and state tax filing for students 5   6 Estate's tax on exempt income. Free federal and state tax filing for students Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free federal and state tax filing for students Figure the total tax that would have been payable by all beneficiaries. Free federal and state tax filing for students 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 federal and state tax filing for students Add the amounts by which each beneficiary's income tax is increased. Free federal and state tax filing for students 7   8 Add lines 6 and 7. Free federal and state tax filing for students Enter this amount on line 9 of Worksheet C. Free federal and state tax filing for students 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Free federal and state tax filing for students Income tax liabilities that have been paid. Free federal and state tax filing for students Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Free federal and state tax filing for students See Minimum Amount of Relief, earlier. Free federal and state tax filing for students Example 1. Free federal and state tax filing for students 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 federal and state tax filing for students The total, $14,000, is eligible for tax forgiveness. Free federal and state tax filing for students However, he paid only $13,000 of that amount. Free federal and state tax filing for students The IRS will refund the $13,000 paid. Free federal and state tax filing for students Example 2. Free federal and state tax filing for students A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Free federal and state tax filing for students The child qualifies for the minimum relief of $10,000. Free federal and state tax filing for students The $10,000 is treated as a tax payment for 2001 and will be refunded. Free federal and state tax filing for students Period for filing a claim for credit or refund. Free federal and state tax filing for students   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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students Extension of time for victims of Oklahoma City attack. Free federal and state tax filing for students   The period described above has been extended for victims of the Oklahoma City attack. Free federal and state tax filing for students Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Free federal and state tax filing for students How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Free federal and state tax filing for students 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 federal and state tax filing for students Return required but not yet filed. Free federal and state tax filing for students   File Form 1040 if the decedent was a U. Free federal and state tax filing for students S. Free federal and state tax filing for students citizen or resident. Free federal and state tax filing for students File Form 1040NR if the decedent was a nonresident alien. Free federal and state tax filing for students A nonresident alien is someone who is not a U. Free federal and state tax filing for students S. Free federal and state tax filing for students citizen or resident. Free federal and state tax filing for students Return required and already filed. Free federal and state tax filing for students   File a separate Form 1040X for each year you are claiming tax relief. Free federal and state tax filing for students Return not required and not filed. Free federal and state tax filing for students   File Form 1040 only for the year of death if the decedent was a U. Free federal and state tax filing for students S. Free federal and state tax filing for students citizen or resident. Free federal and state tax filing for students File Form 1040NR if the decedent was a nonresident alien. Free federal and state tax filing for students Return not required but already filed. Free federal and state tax filing for students   File Form 1040X only for the year of death. Free federal and state tax filing for students How to complete the returns. Free federal and state tax filing for students   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 federal and state tax filing for students Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Free federal and state tax filing for students If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Free federal and state tax filing for students 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 federal and state tax filing for students Also, please write one of the following across the top of page 1 of each return. Free federal and state tax filing for students KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Free federal and state tax filing for students ” 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 federal and state tax filing for students If you need a copy, use Form 4506. Free federal and state tax filing for students The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Free federal and state tax filing for students Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Free federal and state tax filing for students Send Form 4506 to the address shown in the form instructions. Free federal and state tax filing for students Taxpayer identification number. Free federal and state tax filing for students   A taxpayer identification number must be furnished on the decedent's returns. Free federal and state tax filing for students This is usually the decedent's social security number (SSN). Free federal and state tax filing for students However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Free federal and state tax filing for students If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Free federal and state tax filing for students S. Free federal and state tax filing for students income tax return for any tax year, do not apply for an ITIN. Free federal and state tax filing for students You may claim a refund by filing Form 1040NR without an SSN or ITIN. Free federal and state tax filing for students Necessary Documents Please attach the following documents to the return or amended return. Free federal and state tax filing for students Proof of death. Free federal and state tax filing for students   Attach a copy of the death certificate. Free federal and state tax filing for students If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Free federal and state tax filing for students Form 1310. Free federal and state tax filing for students   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Free federal and state tax filing for students You are a surviving spouse filing an original or amended joint return with the decedent. Free federal and state tax filing for students 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 federal and state tax filing for students A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Free federal and state tax filing for students A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Free federal and state tax filing for students      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 federal and state tax filing for students Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Free federal and state tax filing for students Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Free federal and state tax filing for students Use one of the addresses shown below. Free federal and state tax filing for students Where you file the returns or claims depends on whether you use the U. Free federal and state tax filing for students S. Free federal and state tax filing for students Postal Service or a private delivery service. Free federal and state tax filing for students Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Free federal and state tax filing for students U. Free federal and state tax filing for students S. Free federal and state tax filing for students Postal Service. Free federal and state tax filing for students   If you use the U. Free federal and state tax filing for students S. Free federal and state tax filing for students Postal Service, file these returns and claims at the following address. Free federal and state tax filing for students Internal Revenue Service P. Free federal and state tax filing for students O. Free federal and state tax filing for students Box 4053 Woburn, MA 01888 Private delivery service. Free federal and state tax filing for students   Private delivery services cannot deliver items to P. Free federal and state tax filing for students O. Free federal and state tax filing for students boxes. Free federal and state tax filing for students If you use a private delivery service, file these returns and claims at the following address. Free federal and state tax filing for students Internal Revenue Service Stop 661 310 Lowell St. Free federal and state tax filing for students Andover, MA 01810 Designated private delivery services. Free federal and state tax filing for students   You can use the following private delivery services to file these returns and claims. Free federal and state tax filing for students Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Free federal and state tax filing for students DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Free federal and state tax filing for students Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Free federal and state tax filing for students United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Free federal and state tax filing for students M. Free federal and state tax filing for students , UPS Worldwide Express Plus, and UPS Worldwide Express. Free federal and state tax filing for students The private delivery service can tell you how to get written proof of the mailing date. Free federal and state tax filing for students Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Free federal and state tax filing for students September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Free federal and state tax filing for students Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Free federal and state tax filing for students These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free federal and state tax filing for students No withholding applies to these payments. Free federal and state tax filing for students Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Free federal and state tax filing for students Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Free federal and state tax filing for students Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Free federal and state tax filing for students (A personal residence can be a rented residence or one you own. Free federal and state tax filing for students ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Free federal and state tax filing for students Qualified disaster relief payments also include the following. Free federal and state tax filing for students 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 federal and state tax filing for students Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students If that period has expired, you are granted an extension. Free federal and state tax filing for students You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Free federal and state tax filing for students On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Free federal and state tax filing for students 102(b)(2). Free federal and state tax filing for students ” 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 federal and state tax filing for students The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Free federal and state tax filing for students 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 federal and state tax filing for students Bureau of Justice Assistance payments. Free federal and state tax filing for students   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 federal and state tax filing for students Government plan annuity. Free federal and state tax filing for students   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 federal and state tax filing for students This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Free federal and state tax filing for students For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Free federal and state tax filing for students More information. Free federal and state tax filing for students   For more information, see Publication 559. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students Affected taxpayers. Free federal and state tax filing for students   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free federal and state tax filing for students Any individual whose main home is located in a covered area (defined later). Free federal and state tax filing for students Any business entity or sole proprietor whose principal place of business is located in a covered area. Free federal and state tax filing for students Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Free federal and state tax filing for students The main home or principal place of business does not have to be located in the covered area. Free federal and state tax filing for students Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Free federal and state tax filing for students Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Free federal and state tax filing for students The spouse on a joint return with a taxpayer who is eligible for postponements. Free federal and state tax filing for students Any other person determined by the IRS to be affected by a terrorist attack. Free federal and state tax filing for students Covered area. Free federal and state tax filing for students   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 federal and state tax filing for students Abatement of interest. Free federal and state tax filing for students   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Free federal and state tax filing for students 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 federal and state tax filing for students You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Free federal and state tax filing for students The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Free federal and state tax filing for students The due date (with extensions) for the 2000 return. Free federal and state tax filing for students For more information about disaster area losses, see Publication 547. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Free federal and state tax filing for students These credits may reduce or eliminate the estate tax due. Free federal and state tax filing for students 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 federal and state tax filing for students Recovery from the September 11th Victim Compensation Fund. Free federal and state tax filing for students   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Free federal and state tax filing for students 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 federal and state tax filing for students Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Free federal and state tax filing for students Which estates must file a return. Free federal and state tax filing for students   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Free federal and state tax filing for students S. Free federal and state tax filing for students citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Free federal and state tax filing for students 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 federal and state tax filing for students Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Free federal and state tax filing for students S. Free federal and state tax filing for students Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Free federal and state tax filing for students Where to file. Free federal and state tax filing for students   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 federal and state tax filing for students Internal Revenue Service E & G Department/Stop 824T 201 W. Free federal and state tax filing for students Rivercenter Blvd. Free federal and state tax filing for students Covington, KY 41011 More information. Free federal and state tax filing for students   For more information on the federal estate tax, see the instructions for Form 706. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Free federal and state tax filing for students For information about these requirements, see Internal Revenue Code section 5891. Free federal and state tax filing for students Worksheet B Illustrated. Free federal and state tax filing for students 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 federal and state tax filing for students 1 2000 2001   2 Enter the decedent's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 2 $17,259 $14,295   3 Enter the decedent's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 4 3,532 3,109   5 Subtract line 4 from line 3. Free federal and state tax filing for students 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions for line 2. Free federal and state tax filing for students 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 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 federal and state tax filing for students 8 0 0   9 Subtract line 8 from line 7. Free federal and state tax filing for students 9 5,277 5,391   10 Add lines 5 and 9. Free federal and state tax filing for students 10 7,868 7,532   11 Enter the total tax from the joint return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 11 10,789 9,728   12 Add lines 4 and 8. Free federal and state tax filing for students 12 3,532 3,109   13 Subtract line 12 from line 11. Free federal and state tax filing for students 13 7,257 6,619   14 Divide line 5 by line 10. Free federal and state tax filing for students Enter the result as a decimal. Free federal and state tax filing for students 14 . Free federal and state tax filing for students 329 . Free federal and state tax filing for students 284   15 Tax to be forgiven. Free federal and state tax filing for students Multiply line 13 by line 14 and enter the result. Free federal and state tax filing for students 15 $2,388 $1,880   Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Worksheet B Illustrated. Free federal and state tax filing for students 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 federal and state tax filing for students 1 2000 2001   2 Enter the decedent's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 2 $17,259 $14,295   3 Enter the decedent's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 4 3,532 3,109   5 Subtract line 4 from line 3. Free federal and state tax filing for students 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions for line 2. Free federal and state tax filing for students 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 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 federal and state tax filing for students 8 0 0   9 Subtract line 8 from line 7. Free federal and state tax filing for students 9 5,277 5,391   10 Add lines 5 and 9. Free federal and state tax filing for students 10 7,868 7,532   11 Enter the total tax from the joint return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 11 10,789 9,728   12 Add lines 4 and 8. Free federal and state tax filing for students 12 3,532 3,109   13 Subtract line 12 from line 11. Free federal and state tax filing for students 13 7,257 6,619   14 Divide line 5 by line 10. Free federal and state tax filing for students Enter the result as a decimal. Free federal and state tax filing for students 14 . Free federal and state tax filing for students 329 . Free federal and state tax filing for students 284   15 Tax to be forgiven. Free federal and state tax filing for students Multiply line 13 by line 14 and enter the result. Free federal and state tax filing for students 15 $2,388 $1,880   Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Free federal and state tax filing for students They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Free federal and state tax filing for students The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Free federal and state tax filing for students After the husband died, his estate received income of $4,000. Free federal and state tax filing for students Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Free federal and state tax filing for students This net profit is exempt from income tax as explained earlier under Income received after date of death. Free federal and state tax filing for students The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Free federal and state tax filing for students To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Free federal and state tax filing for students 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 federal and state tax filing for students To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Free federal and state tax filing for students To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Free federal and state tax filing for students   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 federal and state tax filing for students Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free federal and state tax filing for students Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free federal and state tax filing for students 1 Minimum relief amount. Free federal and state tax filing for students Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free federal and state tax filing for students 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 federal and state tax filing for students 3 0     4 Add lines 2 and 3. Free federal and state tax filing for students 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 5 1,000     6 Add lines 4 and 5. Free federal and state tax filing for students 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free federal and state tax filing for students 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free federal and state tax filing for students 8 435     9 Tax on exempt income. Free federal and state tax filing for students Subtract line 8 from line 7. Free federal and state tax filing for students 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free federal and state tax filing for students If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free federal and state tax filing for students 10 4,268     11 Add lines 9 and 10. Free federal and state tax filing for students 11 $4,543 12 Additional payment allowed. Free federal and state tax filing for students If line 11 is $10,000 or more, enter -0- and stop here. Free federal and state tax filing for students No additional amount is allowed as a tax payment. Free federal and state tax filing for students Otherwise, subtract line 11 from line 1 and enter the result. Free federal and state tax filing for students 12 $5,457 Note. Free federal and state tax filing for students The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free federal and state tax filing for students 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 federal and state tax filing for students If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free federal and state tax filing for students Write "Sec. Free federal and state tax filing for students 692(d)(2) Payment" and the amount to the right of the entry space. Free federal and state tax filing for students Also indicate whether a Form 1041 is being filed for the decedent's estate. Free federal and state tax filing for students If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free federal and state tax filing for students Write “Sec. Free federal and state tax filing for students 692(d)(2) Payment” on the dotted line to the left of the entry space. Free federal and state tax filing for students Worksheet C Illustrated. Free federal and state tax filing for students Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free federal and state tax filing for students Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free federal and state tax filing for students 1 Minimum relief amount. Free federal and state tax filing for students Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free federal and state tax filing for students 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 federal and state tax filing for students 3 0     4 Add lines 2 and 3. Free federal and state tax filing for students 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 5 1,000     6 Add lines 4 and 5. Free federal and state tax filing for students 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free federal and state tax filing for students 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free federal and state tax filing for students 8 435     9 Tax on exempt income. Free federal and state tax filing for students Subtract line 8 from line 7. Free federal and state tax filing for students 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free federal and state tax filing for students If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free federal and state tax filing for students 10 4,268     11 Add lines 9 and 10. Free federal and state tax filing for students 11 $4,543 12 Additional payment allowed. Free federal and state tax filing for students If line 11 is $10,000 or more, enter -0- and stop here. Free federal and state tax filing for students No additional amount is allowed as a tax payment. Free federal and state tax filing for students Otherwise, subtract line 11 from line 1 and enter the result. Free federal and state tax filing for students 12 $5,457 Note. Free federal and state tax filing for students The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free federal and state tax filing for students 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 federal and state tax filing for students If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free federal and state tax filing for students Write "Sec. Free federal and state tax filing for students 692(d)(2) Payment" and the amount to the right of the entry space. Free federal and state tax filing for students Also indicate whether a Form 1041 is being filed for the decedent's estate. Free federal and state tax filing for students If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free federal and state tax filing for students Write “Sec. Free federal and state tax filing for students 692(d)(2) Payment” on the dotted line to the left of the entry space. Free federal and state tax filing for students Additional Worksheets The following additional worksheets are provided for your convenience. Free federal and state tax filing for students Worksheet A. Free federal and state tax filing for students 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 federal and state tax filing for students 1       2 Enter the total tax from the decedent's income tax return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free federal and state tax filing for students (These taxes are not eligible for forgiveness. Free federal and state tax filing for students )           a Self-employment tax. Free federal and state tax filing for students 3a         b Social security and Medicare tax on tip income not reported to employer. Free federal and state tax filing for students 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free federal and state tax filing for students 3c         d Tax on excess accumulation in qualified retirement plans. Free federal and state tax filing for students 3d         e Household employment taxes. Free federal and state tax filing for students 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free federal and state tax filing for students 3f         g Tax on golden parachute payments. Free federal and state tax filing for students 3g       4 Add lines 3a through 3g. Free federal and state tax filing for students 4       5 Tax to be forgiven. Free federal and state tax filing for students Subtract line 4 from line 2. Free federal and state tax filing for students 5       Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Worksheet A. Free federal and state tax filing for students 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 federal and state tax filing for students 1       2 Enter the total tax from the decedent's income tax return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free federal and state tax filing for students (These taxes are not eligible for forgiveness. Free federal and state tax filing for students )           a Self-employment tax. Free federal and state tax filing for students 3a         b Social security and Medicare tax on tip income not reported to employer. Free federal and state tax filing for students 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free federal and state tax filing for students 3c         d Tax on excess accumulation in qualified retirement plans. Free federal and state tax filing for students 3d         e Household employment taxes. Free federal and state tax filing for students 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free federal and state tax filing for students 3f         g Tax on golden parachute payments. Free federal and state tax filing for students 3g       4 Add lines 3a through 3g. Free federal and state tax filing for students 4       5 Tax to be forgiven. Free federal and state tax filing for students Subtract line 4 from line 2. Free federal and state tax filing for students 5       Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Worksheet B. Free federal and state tax filing for students 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 federal and state tax filing for students 1       2 Enter the decedent's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 2       3 Enter the decedent's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 4       5 Subtract line 4 from line 3. Free federal and state tax filing for students 5       6 Enter the surviving spouse's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 6       7 Enter the surviving spouse's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free federal and state tax filing for students 8       9 Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Add lines 5 and 9. Free federal and state tax filing for students 10       11 Enter the total tax from the joint return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 11       12 Add lines 4 and 8. Free federal and state tax filing for students 12       13 Subtract line 12 from line 11. Free federal and state tax filing for students 13       14 Divide line 5 by line 10. Free federal and state tax filing for students Enter the result as a decimal. Free federal and state tax filing for students 14       15 Tax to be forgiven. Free federal and state tax filing for students Multiply line 13 by line 14 and enter the result. Free federal and state tax filing for students 15       Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Worksheet B. Free federal and state tax filing for students 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 federal and state tax filing for students 1       2 Enter the decedent's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 2       3 Enter the decedent's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 4       5 Subtract line 4 from line 3. Free federal and state tax filing for students 5       6 Enter the surviving spouse's taxable income. Free federal and state tax filing for students Figure taxable income as if a separate return had been filed. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 6       7 Enter the surviving spouse's total tax. Free federal and state tax filing for students See the instructions. Free federal and state tax filing for students 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free federal and state tax filing for students 8       9 Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Add lines 5 and 9. Free federal and state tax filing for students 10       11 Enter the total tax from the joint return. Free federal and state tax filing for students See Table 1 on page 5 for the line number for years before 2002. Free federal and state tax filing for students 11       12 Add lines 4 and 8. Free federal and state tax filing for students 12       13 Subtract line 12 from line 11. Free federal and state tax filing for students 13       14 Divide line 5 by line 10. Free federal and state tax filing for students Enter the result as a decimal. Free federal and state tax filing for students 14       15 Tax to be forgiven. Free federal and state tax filing for students Multiply line 13 by line 14 and enter the result. Free federal and state tax filing for students 15       Note. Free federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students 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 federal and state tax filing for students The IRS will determine the amount to be refunded. Free federal and state tax filing for students Worksheet C. Free federal and state tax filing for students Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free federal and state tax filing for students Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free federal and state tax filing for students 1 Minimum tax forgiveness. Free federal and state tax filing for students Note. Free federal and state tax filing for students Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free federal and state tax filing for students 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 federal and state tax filing for students 3       4 Add lines 2 and 3. Free federal and state tax filing for students 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 5       6 Add lines 4 and 5. Free federal and state tax filing for students 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free federal and state tax filing for students 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free federal and state tax filing for students 8       9 Tax on exempt income. Free federal and state tax filing for students Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free federal and state tax filing for students If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free federal and state tax filing for students 10       11 Add lines 9 and 10. Free federal and state tax filing for students 11   12 Additional payment allowed. Free federal and state tax filing for students If line 11 is $10,000 or more, enter -0- and stop here. Free federal and state tax filing for students No additional amount is allowed as a tax payment. Free federal and state tax filing for students Otherwise, subtract line 11 from line 1 and enter the result. Free federal and state tax filing for students 12   Note. Free federal and state tax filing for students The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free federal and state tax filing for students 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 federal and state tax filing for students If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free federal and state tax filing for students Write "Sec. Free federal and state tax filing for students 692(d)(2) Payment" and the amount to the right of the entry space. Free federal and state tax filing for students Also indicate whether a Form 1041 is being filed for the decedent's estate. Free federal and state tax filing for students If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free federal and state tax filing for students Write “Sec. Free federal and state tax filing for students 692(d)(2) Payment” on the dotted line to the left of the entry space. Free federal and state tax filing for students Worksheet C. Free federal and state tax filing for students Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free federal and state tax filing for students Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free federal and state tax filing for students 1 Minimum tax forgiveness. Free federal and state tax filing for students Note. Free federal and state tax filing for students Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free federal and state tax filing for students 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 federal and state tax filing for students 3       4 Add lines 2 and 3. Free federal and state tax filing for students 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free federal and state tax filing for students (See Income received after date of death on page 5. Free federal and state tax filing for students ) 5       6 Add lines 4 and 5. Free federal and state tax filing for students 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free federal and state tax filing for students 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free federal and state tax filing for students 8       9 Tax on exempt income. Free federal and state tax filing for students Subtract line 8 from line 7. Free federal and state tax filing for students 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free federal and state tax filing for students If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free federal and state tax filing for students 10       11 Add lines 9 and 10. Free federal and state tax filing for students 11   12 Additional payment allowed. Free federal and state tax filing for students If line 11 is $10,000 or more, enter -0- and stop here. Free federal and state tax filing for students No additional amount is allowed as a tax payment. Free federal and state tax filing for students Otherwise, subtract line 11 from line 1 and enter the result. Free federal and state tax filing for students 12   Note. Free federal and state tax filing for students The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free federal and state tax filing for students 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 federal and state tax filing for students If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free federal and state tax filing for students Write "Sec. Free federal and state tax filing for students 692(d)(2) Payment" and the amount to the right of the entry space. Free federal and state tax filing for students Also indicate whether a Form 1041 is being filed for the decedent's estate. Free federal and state tax filing for students If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free federal and state tax filing for students Write “Sec. Free federal and state tax filing for students 692(d)(2) Payment” on the dotted line to the left of the entry space. Free federal and state tax filing for students How To Get Tax Help Special IRS assistance. Free federal and state tax filing for students   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Free federal and state tax filing for students 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 federal and state tax filing for students Call 1–866–562–5227 Monday through Friday In English–7 a. Free federal and state tax filing for students m. Free federal and state tax filing for students to 10 p. Free federal and state tax filing for students m. Free federal and state tax filing for students local time In Spanish–8 a. Free federal and state tax filing for students m. Free federal and state tax filing for students to 9:30 p. Free federal and state tax filing for students m. Free federal and state tax filing for students local time   The IRS web site at www. Free federal and state tax filing for students irs. Free federal and state tax filing for students gov has notices and other tax relief information. Free federal and state tax filing for students Check it periodically for any new guidance or to see if Congress has enacted new legislation. Free federal and state tax filing for students   Business taxpayers affected by the attacks can e-mail their questions to corp. Free federal and state tax filing for students disaster. Free federal and state tax filing for students relief@irs. Free federal and state tax filing for students gov. Free federal and state tax filing for students   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Free federal and state tax filing for students fema. Free federal and state tax filing for students gov. Free federal and state tax filing for students Other help from the IRS. Free federal and state tax filing for students   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 federal and state tax filing for students By selecting the method that is best for you, you will have quick and easy access to tax help. Free federal and state tax filing for students Contacting your Taxpayer Advocate. Free federal and state tax filing for students   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Free federal and state tax filing for students   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 federal and state tax filing for students 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 federal and state tax filing for students   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Free federal and state tax filing for students Call the IRS at 1–800–829–1040. Free federal and state tax filing for students Call, write, or fax the Taxpayer Advocate office in your area. Free federal and state tax filing for students Call 1–800–829–4059 if you are a TTY/TDD user. Free federal and state tax filing for students   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Free federal and state tax filing for students Free tax services. Free federal and state tax filing for students   To find out what services are available, get Publication 910, Guide to Free Tax Services. Free federal and state tax filing for students It contains a list of free tax publications and an index of tax topics. Free federal and state tax filing for students It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Free federal and state tax filing for students Personal computer. Free federal and state tax filing for students With your personal computer and modem, you can access the IRS on the Internet at www. Free federal and state tax filing for students irs. Free federal and state tax filing for students gov. Free federal and state tax filing for students While visiting our web site, you can: Find answers to questions you may have. Free federal and state tax filing for students Download forms and publications or search for forms and pub

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Tax Fraud Alerts

 

IRS Wants You to Know About Schemes, Scams and Cons
"If it sounds too good to be true, it probably is!" Don't become a victim to any scheme that offers instant wealth or exemption from your obligation as a United States citizen to file tax returns and/or pay taxes. Some of these schemes can literally cost you your life savings. Others can result in your prosecution and imprisonment if you knowingly participate in them.

Abusive Return Preparer
Taxpayers should be very careful when choosing a tax preparer. While most preparers provide excellent service to their clients, a few unscrupulous return preparers file false and fraudulent tax returns and ultimately defraud their clients. It is important to know that even if someone else prepares your return, you are ultimately responsible for all the information on the tax return.

 

Abusive Tax Schemes
Abusive tax scheme originally took the structure of fraudulent domestic and foreign trust arrangements. However, these schemes have evolved into sophisticated arrangements to give the appearance that taxpayers are not in control of their money. However, the taxpayers receive their funds through debit/credit cards or fictitious loans. These schemes often involve offshore banking and sometimes establish scam corporations or entities.

 

Nonfiler Enforcement
There have always been individuals who, for a variety of reasons, argue taxes are voluntary or illegal.  The courts have repeatedly rejected their arguments as frivolous and routinely impose financial penalties for raising such frivolous arguments.  Take the time to learn the truth about frivolous tax arguments.

 

All Program and Emphasis Areas for Criminal Investigation
Criminal Investigation has categorized their investigative cases into specific program and emphasis areas of fraud. Examples of case summaries written from public record documents where cases were prosecuted can be viewed on the various program and emphasis area web pages.



Tax Scams - How to Report Them
To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of educational materials. Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. Education is the best way to avoid the pitfalls of these “too good to be true” tax scams.
 



Criminal Investigation (CI) Home Page

Report Suspected Tax Fraud Activity!
 

Page Last Reviewed or Updated: 24-Mar-2014

The Free Federal And State Tax Filing For Students

Free federal and state tax filing for students Publication 547 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Free federal and state tax filing for students Tax questions. Free federal and state tax filing for students Useful Items - You may want to see: What's New Section C of Form 4684 for Ponzi-type investment schemes. Free federal and state tax filing for students  Section C of Form 4684 is new for 2013. Free federal and state tax filing for students You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Free federal and state tax filing for students Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Free federal and state tax filing for students You do not need to complete Appendix A. Free federal and state tax filing for students For details, see Losses from Ponzi-type investment schemes , later. Free federal and state tax filing for students Reminders Future developments. Free federal and state tax filing for students   For the latest information about developments related to Publication 547, such as legislation enacted after it was published, go to www. Free federal and state tax filing for students irs. Free federal and state tax filing for students gov/pub547. Free federal and state tax filing for students Photographs of missing children. Free federal and state tax filing for students  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free federal and state tax filing for students Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free federal and state tax filing for students You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free federal and state tax filing for students Introduction This publication explains the tax treatment of casualties, thefts, and losses on deposits. Free federal and state tax filing for students A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. Free federal and state tax filing for students A theft occurs when someone steals your property. Free federal and state tax filing for students A loss on deposits occurs when your financial institution becomes insolvent or bankrupt. Free federal and state tax filing for students This publication discusses the following topics. Free federal and state tax filing for students Definitions of a casualty, theft, and loss on deposits. Free federal and state tax filing for students How to figure the amount of your gain or loss. Free federal and state tax filing for students How to treat insurance and other reimbursements you receive. Free federal and state tax filing for students The deduction limits. Free federal and state tax filing for students When and how to report a casualty or theft. Free federal and state tax filing for students The special rules for disaster area losses. Free federal and state tax filing for students Forms to file. Free federal and state tax filing for students   Generally, when you have a casualty or theft, you have to file Form 4684. Free federal and state tax filing for students You may also have to file one or more of the following forms. Free federal and state tax filing for students Schedule A (Form 1040). Free federal and state tax filing for students Form 1040NR, Schedule A (for nonresident aliens). Free federal and state tax filing for students Schedule D. Free federal and state tax filing for students Form 4797. Free federal and state tax filing for students For details on which form to use, see How To Report Gains and Losses , later. Free federal and state tax filing for students Condemnations. Free federal and state tax filing for students   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Dispositions of Assets. Free federal and state tax filing for students Workbooks for casualties and thefts. Free federal and state tax filing for students   Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property), is available to help you make a list of your stolen or damaged personal-use property and figure your loss. Free federal and state tax filing for students It includes schedules to help you figure the loss on your home and its contents, and your motor vehicles. Free federal and state tax filing for students   Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook, is available to help you make a list of your stolen or damaged business or income-producing property and figure your loss. Free federal and state tax filing for students Comments and suggestions. Free federal and state tax filing for students   We welcome your comments about this publication and your suggestions for future editions. Free federal and state tax filing for students   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free federal and state tax filing for students NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free federal and state tax filing for students Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free federal and state tax filing for students   You can send your comments from www. Free federal and state tax filing for students irs. Free federal and state tax filing for students gov/formspubs/. Free federal and state tax filing for students Click on “More Information” and then on “Comment on Tax Forms and Publications”. Free federal and state tax filing for students   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free federal and state tax filing for students Ordering forms and publications. Free federal and state tax filing for students   Visit www. Free federal and state tax filing for students irs. Free federal and state tax filing for students gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Free federal and state tax filing for students Internal Revenue Service 1201 N. Free federal and state tax filing for students Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free federal and state tax filing for students   If you have a tax question, check the information available on IRS. Free federal and state tax filing for students gov or call 1-800-829-1040. Free federal and state tax filing for students We cannot answer tax questions sent to either of the above addresses. Free federal and state tax filing for students Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 551 Basis of Assets 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and   Theft Loss Workbook Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Form 1040NR, Schedule A Itemized Deductions (for nonresident aliens) Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts 4797 Sales of Business Property See How To Get Tax Help near the end of this publication for information about getting publications and forms. Free federal and state tax filing for students Prev  Up  Next   Home   More Online Publications