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Free State File

Free state file 12. Free state file   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. Free state file Name change. Free state file Penalty for underpayment of estimated tax. Free state file Who Must Pay Self-Employment Tax?Limited partner. Free state file Community property. Free state file Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. Free state file  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Free state file 4% to 12. Free state file 4%. Free state file The Medicare part of the tax remains at 2. Free state file 9%. Free state file As a result, the self-employment tax is increased from 13. Free state file 3% to 15. Free state file 3%. Free state file Additional Medicare Tax. Free state file . Free state file  For tax years beginning in 2013, a 0. Free state file 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Free state file Use Form 8959, Additional Medicare Tax, to figure this tax. Free state file For more information, see the Instructions for Form 8959. Free state file Maximum net earnings. Free state file  The maximum net self-employment earnings subject to the social security part (12. Free state file 4%) of the self-employment tax increased to $113,700 for 2013. Free state file There is no maximum limit on earnings subject to the Medicare part (2. Free state file 9%). Free state file What's New for 2014 Maximum net earnings. Free state file  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Free state file Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Free state file It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Free state file You usually have to pay SE tax if you are self-employed. Free state file You are usually self-employed if you operate your own farm on land you either own or rent. Free state file You have to figure SE tax on Schedule SE (Form 1040). Free state file Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. Free state file See chapter 13 for information on employment taxes. Free state file Self-employment tax rate. Free state file   For tax years beginning in 2013, the self-employment tax rate is 15. Free state file 3%. Free state file The rate consists of two parts: 12. Free state file 4% for social security (old-age, survivors, and disability insurance) and 2. Free state file 9% for Medicare (hospital insurance). Free state file Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. Free state file S. Free state file Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. Free state file S. Free state file Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Free state file See chapter 16 for information about getting publications and forms. Free state file Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. Free state file Your payments of SE tax contribute to your coverage under the social security system. Free state file Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Free state file How to become insured under social security. Free state file   You must be insured under the social security system before you begin receiving social security benefits. Free state file You are insured if you have the required number of credits (also called quarters of coverage). Free state file Earning credits in 2013. Free state file   You can earn a maximum of four credits per year. Free state file For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. Free state file You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. Free state file It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. Free state file For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. Free state file socialsecurity. Free state file gov. Free state file Making false statements to get or to increase social security benefits may subject you to penalties. Free state file The Social Security Administration (SSA) time limit for posting self-employment earnings. Free state file   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Free state file    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. Free state file The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. Free state file How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). Free state file This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. Free state file An ITIN does not entitle you to social security benefits. Free state file Obtaining an ITIN does not change your immigration or employment status under U. Free state file S. Free state file law. Free state file Obtaining a social security number. Free state file   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. Free state file The application is also available in Spanish. Free state file You can get this form at any Social Security office or by calling 1-800-772-1213. Free state file    You can also download Form SS-5 from the Social Security Administration website at  www. Free state file socialsecurity. Free state file gov. Free state file   If you have a social security number from the time you were an employee, you must use that number. Free state file Do not apply for a new one. Free state file Replacing a lost social security card. Free state file   If you have a number but lost your card, file Form SS-5. Free state file You will get a new card showing your original number, not a new number. Free state file Name change. Free state file   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. Free state file Obtaining an individual taxpayer identification number. Free state file   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. Free state file To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. Free state file You can get this form by calling 1-800-829-3676. Free state file For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. Free state file Form W-7 and Publication 1915 are also available in Spanish. Free state file    You can also download Form W-7 from the IRS website at IRS. Free state file gov. Free state file Paying estimated tax. Free state file   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. Free state file You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. Free state file Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. Free state file   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. Free state file For more information about estimated tax for farmers, see chapter 15. Free state file Penalty for underpayment of estimated tax. Free state file   You may have to pay a penalty if you do not pay enough estimated tax by its due date. Free state file Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. Free state file The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Free state file Aliens. Free state file   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. Free state file S. Free state file citizens. Free state file Nonresident aliens are not subject to self-employment tax. Free state file However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. Free state file S. Free state file residents for self-employment tax purposes. Free state file For more information on aliens, see Publication 519, U. Free state file S. Free state file Tax Guide for Aliens. Free state file Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. Free state file A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. Free state file Share farmer. Free state file   You are a self-employed farmer under an income-sharing arrangement if both the following apply. Free state file You produce a crop or raise livestock on land belonging to another person. Free state file Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. Free state file Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. Free state file   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. Free state file This will depend on whether the landowner has the right to direct or control your performance of services. Free state file Example. Free state file A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. Free state file Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. Free state file The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. Free state file The share farmer is provided a house in which to live. Free state file The landowner and the share farmer decide on a cropping plan. Free state file The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. Free state file The tax treatment of the landowner is discussed later under Landlord Participation in Farming. Free state file Contract farming. Free state file   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. Free state file Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. Free state file 4-H Club or FFA project. Free state file   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Free state file Report the net income as “Other income” on line 21 of Form 1040. Free state file If necessary, attach a statement showing the gross income and expenses. Free state file The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. Free state file Such a project is generally not considered a trade or business. Free state file Partners in a partnership. Free state file   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. Free state file Limited partner. Free state file   If you are a limited partner, your partnership income is generally not subject to SE tax. Free state file However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). Free state file Business Owned and Operated by Spouses. Free state file   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. Free state file You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. Free state file Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Free state file Qualified joint venture. Free state file   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Free state file For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. Free state file   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Free state file Each of you must file a separate Schedule F and a separate Schedule SE. Free state file For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). Free state file Spouse employee. Free state file   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. Free state file For more information about employment taxes, see chapter 13. Free state file Community property. Free state file   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. Free state file Do not treat any of your share as self-employment earnings of your spouse. Free state file Figuring Self-Employment Earnings Farmer. Free state file   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. Free state file Partnership income or loss. Free state file   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). Free state file Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). Free state file Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). Free state file   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. Free state file   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. Free state file   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). Free state file   For general information on partnerships, see Publication 541. Free state file More than one business. Free state file   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. Free state file A loss from one business reduces your profit from another business. Free state file However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. Free state file Community property. Free state file   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. Free state file Lost income payments. Free state file   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. Free state file These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. Free state file Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). Free state file A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. Free state file Gain or loss. Free state file   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. Free state file It does not matter whether the disposition is a sale, exchange, or involuntary conversion. Free state file For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. Free state file Investment property. Free state file Depreciable property or other fixed assets used in your trade or business. Free state file Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. Free state file Unharvested standing crops sold with land held more than 1 year. Free state file Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. Free state file   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. Free state file For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. Free state file Wages and salaries. Free state file   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. Free state file   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. Free state file Retired partner. Free state file   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. Free state file The retired partner performs no services for the partnership during the year. Free state file The retired partner is owed only the retirement payments. Free state file The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. Free state file The payments to the retired partner are lifelong periodic payments. Free state file Conservation Reserve Program (CRP) payments. Free state file   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. Free state file You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. Free state file Cost share payments you receive may qualify for the costsharing exclusion. Free state file See Cost-Sharing Exclusion (Improvements), above. Free state file CRP payments are reported to you on Form 1099G. Free state file Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. Free state file See the instructions for Schedule SE (Form 1040). Free state file Self-employed health insurance deduction. Free state file   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). Free state file Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. Free state file However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. Free state file Crop shares. Free state file   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. Free state file Feeding such crop shares to livestock is considered using them. Free state file Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. Free state file Material participation for landlords. Free state file   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. Free state file You do at least three of the following. Free state file Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. Free state file Furnish at least half the tools, equipment, and livestock used in the production activities. Free state file Advise or consult with your tenant. Free state file Inspect the production activities periodically. Free state file You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. Free state file You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. Free state file You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. Free state file These tests may be used as general guides for determining whether you are a material participant. Free state file Example. Free state file Drew Houston agrees to produce a crop on J. Free state file Clarke's cotton farm, with each receiving half the proceeds. Free state file Clarke advises Houston when to plant, spray, and pick the cotton. Free state file During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. Free state file Houston furnishes all labor needed to grow and harvest the crop. Free state file The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. Free state file The income Clarke receives from his cotton farm is included in his self-employment earnings. Free state file Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. Free state file The regular method. Free state file The farm optional method. Free state file The nonfarm optional method. Free state file You must use the regular method unless you are eligible to use one or both of the optional methods. Free state file See Figure 12-1 , shown later. Free state file Figure 12-1. Free state file Can I Use the Optional Methods? Please click here for the text description of the image. Free state file Figure 12–1. Free state file Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. Free state file You want to receive credit for social security benefit coverage. Free state file You incurred child or dependent care expenses for which you could claim a credit. Free state file (An optional method may increase your earned income, which could increase your credit. Free state file ) You are entitled to the earned income credit. Free state file (An optional method may increase your earned income, which could increase your credit. Free state file ) You are entitled to the additional child tax credit. Free state file (An optional method may increase your earned income, which could increase your credit. Free state file ) Effects of using an optional method. Free state file   Using an optional method could increase your SE tax. Free state file Paying more SE tax may result in you getting higher social security disability or retirement benefits. Free state file   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. Free state file   The optional methods may be used only to figure your SE tax. Free state file To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. Free state file Regular Method Multiply your total self-employment earnings by 92. Free state file 35% (. Free state file 9235) to get your net earnings under the regular method. Free state file See Short Schedule SE, line 4, or Long Schedule SE, line 4a. Free state file Net earnings figured using the regular method are also called “actual net earnings. Free state file ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. Free state file You can use this method if you meet either of the following tests. Free state file Your gross farm income is $6,960 or less. Free state file Your net farm profits are less than $5,024. Free state file Gross farm income. Free state file   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). Free state file Net farm profits. Free state file   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). Free state file However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. Free state file For more information, see Partnership income or loss , earlier. Free state file Figuring farm net earnings. Free state file   If you meet either of the two tests explained above, use Table 12-1. Free state file Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. Free state file Table 12-1. Free state file Figuring Farm Net Earnings IF your gross farm income  is. Free state file . Free state file . Free state file THEN your net earnings are equal to. Free state file . Free state file . Free state file $6,960 or less Two-thirds of your gross farm income. Free state file More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. Free state file   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. Free state file Your actual net earnings are your net earnings figured using the regular method, explained earlier. Free state file Example. Free state file Your gross farm income is $540 and your net farm profit is $460. Free state file Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. Free state file 35% of $460). Free state file You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. Free state file Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. Free state file If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. Free state file You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. Free state file For more information about the nonfarm optional method, see Publication 334. Free state file You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. Free state file Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. Free state file You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. Free state file If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. Free state file Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. Free state file Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. Free state file Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. Free state file However, certain taxpayers must use Section B–Long Schedule SE. Free state file Use the chart on page 1 of Schedule SE to find out which one to use. Free state file If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. Free state file Deduction for employer-equivalent portion of self-employment tax. Free state file   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Free state file This deduction only affects your income tax. Free state file It does not affect either your net earnings from self-employment or your SE tax. Free state file   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. Free state file Joint return. Free state file   Even if you file a joint return, you cannot file a joint Schedule SE. Free state file This is true whether one spouse or both spouses have self-employment earnings. Free state file Your spouse is not considered self-employed just because you are. Free state file If both of you have self-employment earnings, each of you must complete a separate Schedule SE. Free state file However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. Free state file Attach both schedules to the joint return. Free state file If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . Free state file Prev  Up  Next   Home   More Online Publications
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Tax Counseling for the Elderly

The Tax Counseling for the Elderly (TCE) program offers FREE tax help to individuals who are age 60 or older. Cooperative grant agreements are entered into between IRS and eligible organizations to provide tax assistance to elderly taxpayers. The funds provided by the IRS are used by organizations to reimburse volunteers for their out-of-pocket expenses; including transportation, meals and other expenses incurred by them in providing tax counseling assistance at locations convenient to the taxpayers.  

Tax return preparation assistance is provided to elderly taxpayers during the normal period for filing Federal income tax returns, which is from January 1 to April 15 each year. However, the program activities required to make sure elderly taxpayers receive efficient and quality tax assistance can be conducted year-round.

A sponsor awarded a grant is responsible for all aspects of operating the TCE program including, but not limited to publicity, recruitment, training, site selection and management of volunteers.  

Section 163 of the Revenue Act of 1978, Public Law No. 95-600, 92 Stat. 2810, November 6, 1978, authorizes IRS to enter into cooperative agreements.

This web page serves as a resource for organizations interested in applying for a TCE grant as well as for organizations who have been awarded a grant.

Select from the following categories to get started:

 

Contact the TCE Grant Program at tce.grant.office@irs.gov

Page Last Reviewed or Updated: 11-Sep-2013

The Free State File

Free state file Publication 587 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Free state file Tax questions. Free state file Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 587, such as legislation enacted after it was published, go to www. Free state file irs. Free state file gov/pub587. Free state file What's New The IRS now provides a simplified method to determine your expenses for business use of your home. Free state file The simplified method is an alternative to calculating and substantiating actual expenses. Free state file For more information, see Using the Simplified Method under Figuring the Deduction, later. Free state file Reminders Photographs of missing children. Free state file  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free state file Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free state file 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 state file Introduction The purpose of this publication is to provide information on figuring and claiming the deduction for business use of your home. Free state file The term “home” includes a house, apartment, condominium, mobile home, boat, or similar property which provides basic living accommodations. Free state file It also includes structures on the property, such as an unattached garage, studio, barn, or greenhouse. Free state file However, it does not include any part of your property used exclusively as a hotel, motel, inn, or similar establishment. Free state file Qualifying for a Deduction gives the requirements for qualifying to deduct expenses for the business use of your home (including special rules for employees and special rules for storing inventory or product samples). Free state file For special rules that apply to daycare providers, see Daycare Facility . Free state file After you determine that you qualify for the deduction, Figuring the Deduction explains the expenses you can deduct using either your actual expenses or the simplified method. Free state file The simplified method is an alternative to calculating and substantiating actual expenses. Free state file Where To Deduct explains where a self-employed person, employee, or partner will report the deduction. Free state file This publication also includes information on the following. Free state file Selling a home that was used partly for business. Free state file Deducting expenses for furniture and equipment used in your business. Free state file Records you should keep. Free state file Finally, this publication contains worksheets to help you figure the amount of your deduction if you use your home in your farming business and you are filing Schedule F (Form 1040), you use your home for work as an employee, or you are a partner and the use of your home resulted in unreimbursed ordinary and necessary expenses that you are required to pay under the partnership agreement. Free state file If you used your home for business and you are filing Schedule C (Form 1040), you will use either Form 8829 or the Simplified Method Worksheet in your Instructions for Schedule C. Free state file The rules in this publication apply to individuals. Free state file If you need information on deductions for renting out your property, see Publication 527, Residential Rental Property. Free state file Comments and suggestions. Free state file   We welcome your comments about this publication and your suggestions for future editions. Free state file   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free state file NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free state file Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free state file   You can send your comments from www. Free state file irs. Free state file gov/formspubs/. Free state file Click on “More Information” and then on “Comment on Tax Forms and Publications. Free state file ”   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 state file Ordering forms and publications. Free state file   Visit www. Free state file irs. Free state file 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 state file Internal Revenue Service 1201 N. Free state file Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free state file   If you have a tax question, check the information available on IRS. Free state file gov or call 1-800-829-1040. Free state file We cannot answer tax questions sent to either of the above addresses. Free state file Useful Items - You may want to see: Publications 523 Selling Your Home 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Forms (and Instructions) Schedule C (Form 1040) Profit or Loss from Business 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization 8829 Expenses for Business Use of Your Home  See How To Get Tax Help , near the end of this publication for information about getting publications and forms. Free state file Prev  Up  Next   Home   More Online Publications