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Free State Tax Return File

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Free State Tax Return File

Free state tax return file Publication 501 - Main Content Table of Contents Who Must FileSelf-employed persons. Free state tax return file Filing Requirements for Most Taxpayers Dependents Other Situations Who Should File Filing StatusMarital Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) With Dependent Child ExemptionsForm 1040EZ filers. Free state tax return file Form 1040A filers. Free state tax return file Form 1040 filers. Free state tax return file More information. Free state tax return file Personal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Free state tax return file Taxpayer identification numbers for aliens. Free state tax return file Taxpayer identification numbers for adoptees. Free state tax return file Standard DeductionStandard Deduction Amount Standard Deduction for Dependents Who Should Itemize How To Get Tax HelpLow Income Taxpayer Clinics Who Must File If you are a U. Free state tax return file S. Free state tax return file citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent. Free state tax return file For details, see Table 1 and Table 2. Free state tax return file You also must file if one of the situations described in Table 3 applies. Free state tax return file The filing requirements apply even if you owe no tax. Free state tax return file Table 1. Free state tax return file 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Free state tax return file . Free state tax return file . Free state tax return file AND at the end of 2013 you were. Free state tax return file . Free state tax return file . Free state tax return file * THEN file a return if your gross income was at least. Free state tax return file . Free state tax return file . Free state tax return file ** single under 65  $10,000 65 or older $11,500 head of household under 65 $12,850 65 or older $14,350 married, filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married, filing separately any age  $3,900 qualifying widow(er) with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. Free state tax return file ** Gross income means all income you receive in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Free state tax return file Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Free state tax return file If (a) or (b) applies, see the Form 1040 instructions to figure the taxable part of social security benefits you must include in gross income. Free state tax return file Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Free state tax return file Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Free state tax return file But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Free state tax return file *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Free state tax return file You may have to pay a penalty if you are required to file a return but fail to do so. Free state tax return file If you willfully fail to file a return, you may be subject to criminal prosecution. Free state tax return file For information on what form to use — Form 1040EZ, Form 1040A, or Form 1040 — see the instructions for your tax return. Free state tax return file Gross income. Free state tax return file    Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. Free state tax return file If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. Free state tax return file For a list of community property states, see Community property states under Married Filing Separately, later. Free state tax return file Self-employed persons. Free state tax return file    If you are self-employed in a business that provides services (where products are not a factor), your gross income from that business is the gross receipts. Free state tax return file If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. Free state tax return file In either case, you must add any income from investments and from incidental or outside operations or sources. Free state tax return file    You must file Form 1040 if you owe any self-employment tax. Free state tax return file Filing status. Free state tax return file    Your filing status generally depends on whether you are single or married. Free state tax return file Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. Free state tax return file Filing status is discussed in detail later in this publication. Free state tax return file Age. Free state tax return file    Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. Free state tax return file For 2013, you are 65 or older if you were born before January 2, 1949. Free state tax return file Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. Free state tax return file Dependents should see Table 2 instead. Free state tax return file Deceased Persons You must file an income tax return for a decedent (a person who died) if both of the following are true. Free state tax return file You are the surviving spouse, executor, administrator, or legal representative. Free state tax return file The decedent met the filing requirements described in this publication at the time of his or her death. Free state tax return file For more information, see Final Income Tax Return for Decedent — Form 1040 in Publication 559. Free state tax return file Table 2. Free state tax return file 2013 Filing Requirements for Dependents See Exemptions for Dependents to find out if you are a dependent. Free state tax return file If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Free state tax return file  In this table, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Free state tax return file It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Free state tax return file Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Free state tax return file Gross income is the total of your unearned and earned income. Free state tax return file If your gross income was $3,900 or more, you usually cannot be claimed as a dependent unless you are a qualifying child. Free state tax return file For details, see Exemptions for Dependents. Free state tax return file Single dependents—Were you either age 65 or older or blind? □ No. Free state tax return file You must file a return if any of the following apply. Free state tax return file Your unearned income was more than $1,000. Free state tax return file Your earned income was more than $6,100. Free state tax return file Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750) plus $350. Free state tax return file     □ Yes. Free state tax return file You must file a return if any of the following apply. Free state tax return file Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Free state tax return file Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Free state tax return file Your gross income was more than the larger of—  $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Free state tax return file     Married dependents—Were you either age 65 or older or blind? □ No. Free state tax return file You must file a return if any of the following apply. Free state tax return file Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Free state tax return file Your unearned income was more than $1,000. Free state tax return file Your earned income was more than $6,100. Free state tax return file Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750 plus $350. Free state tax return file     □ Yes. Free state tax return file You must file a return if any of the following apply. Free state tax return file Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Free state tax return file Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Free state tax return file Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Free state tax return file Your gross income was more than the larger of— $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Free state tax return file     U. Free state tax return file S. Free state tax return file Citizens or Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you earned or received abroad, including any income you can exclude under the foreign earned income exclusion. Free state tax return file For more information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Free state tax return file S. Free state tax return file Citizens and Resident Aliens Abroad. Free state tax return file Residents of Puerto Rico If you are a U. Free state tax return file S. Free state tax return file citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Free state tax return file S. Free state tax return file income tax return for any year in which you meet the income requirements. Free state tax return file This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Free state tax return file If you are a bona fide resident of Puerto Rico for the whole year, your U. Free state tax return file S. Free state tax return file gross income does not include income from sources within Puerto Rico. Free state tax return file It does, however, include any income you received for your services as an employee of the United States or any U. Free state tax return file S. Free state tax return file agency. Free state tax return file If you receive income from Puerto Rican sources that is not subject to U. Free state tax return file S. Free state tax return file tax, you must reduce your standard deduction, which reduces the amount of income you can have before you must file a U. Free state tax return file S. Free state tax return file income tax return. Free state tax return file For more information, see Publication 570, Tax Guide for Individuals With Income From U. Free state tax return file S. Free state tax return file Possessions. Free state tax return file Individuals With Income From U. Free state tax return file S. Free state tax return file Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Free state tax return file S. Free state tax return file Virgin Islands, special rules may apply when determining whether you must file a U. Free state tax return file S. Free state tax return file federal income tax return. Free state tax return file In addition, you may have to file a return with the individual possession government. Free state tax return file See Publication 570 for more information. Free state tax return file Dependents A person who is a dependent may still have to file a return. Free state tax return file It depends on his or her earned income, unearned income, and gross income. Free state tax return file For details, see Table 2. Free state tax return file A dependent must also file if one of the situations described in Table 3 applies. Free state tax return file Responsibility of parent. Free state tax return file    If a dependent child must file an income tax return but cannot file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. Free state tax return file If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Free state tax return file ” Earned income. Free state tax return file    Earned income includes salaries, wages, professional fees, and other amounts received as pay for work you actually perform. Free state tax return file Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a scholarship that you must include in your gross income. Free state tax return file See chapter 1 of Publication 970, Tax Benefits for Education, for more information on taxable and nontaxable scholarships. Free state tax return file Child's earnings. Free state tax return file    Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Free state tax return file This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Free state tax return file But if the child does not pay the tax due on this income, the parent is liable for the tax. Free state tax return file Unearned income. Free state tax return file    Unearned income includes income such as interest, dividends, and capital gains. Free state tax return file Trust distributions of interest, dividends, capital gains, and survivor annuities are also considered unearned income. Free state tax return file Election to report child's unearned income on parent's return. Free state tax return file    You may be able to include your child's interest and dividend income on your tax return. Free state tax return file If you do this, your child will not have to file a return. Free state tax return file To make this election, all of the following conditions must be met. Free state tax return file Your child was under age 19 (or under age 24 if a student) at the end of 2013. Free state tax return file (A child born on January 1, 1995, is considered to be age 19 at the end of 2013; you cannot make the election for this child unless the child was a student. Free state tax return file Similarly, a child born on January 1, 1990, is considered to be age 24 at the end of 2013; you cannot make the election for this child. Free state tax return file ) Your child had gross income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Free state tax return file The interest and dividend income was less than $10,000. Free state tax return file Your child is required to file a return for 2013 unless you make this election. Free state tax return file Your child does not file a joint return for 2013. Free state tax return file No estimated tax payment was made for 2013 and no 2012 overpayment was applied to 2013 under your child's name and social security number. Free state tax return file No federal income tax was withheld from your child's income under the backup withholding rules. Free state tax return file You are the parent whose return must be used when making the election to report your child's unearned income. Free state tax return file   For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Publication 929. Free state tax return file Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. Free state tax return file See Table 3 for those other situations when you must file. Free state tax return file Table 3. Free state tax return file Other Situations When You Must File a 2013 Return If any of the four conditions listed below applied to you for 2013, you must file a return. Free state tax return file 1. Free state tax return file You owe any special taxes, including any of the following. Free state tax return file   a. Free state tax return file Alternative minimum tax. Free state tax return file (See Form 6251. Free state tax return file )   b. Free state tax return file Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Free state tax return file (See Publication 590, Individual Retirement Arrangements (IRAs), and Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Free state tax return file ) But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Free state tax return file   c. Free state tax return file Social security or Medicare tax on tips you did not report to your employer (see Publication 531, Reporting Tip Income) or on wages you received from an employer who did not withhold these taxes (see Form 8919). Free state tax return file   d. Free state tax return file Write-in taxes, including uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings accounts. Free state tax return file (See Publication 531, Publication 969, and the Form 1040 instructions for line 60. Free state tax return file )   e. Free state tax return file Household employment taxes. Free state tax return file But if you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself. Free state tax return file   f. Free state tax return file Recapture taxes. Free state tax return file (See the Form 1040 instructions for lines 44, 59b, and 60. Free state tax return file ) 2. Free state tax return file You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account distributions. Free state tax return file 3. Free state tax return file You had net earnings from self-employment of at least $400. Free state tax return file (See Schedule SE (Form 1040) and its instructions. Free state tax return file ) 4. Free state tax return file You had wages of $108. Free state tax return file 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Free state tax return file (See Schedule SE (Form 1040) and its instructions. Free state tax return file ) Who Should File Even if you do not have to file, you should file a tax return if you can get money back. Free state tax return file For example, you should file if one of the following applies. Free state tax return file You had income tax withheld from your pay. Free state tax return file You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. Free state tax return file You qualify for the earned income credit. Free state tax return file See Publication 596, Earned Income Credit (EIC), for more information. Free state tax return file You qualify for the additional child tax credit. Free state tax return file See the instructions for the tax form you file (Form 1040 or 1040A) for more information. Free state tax return file You qualify for the refundable American opportunity education credit. Free state tax return file See Form 8863, Education Credits. Free state tax return file You qualify for the health coverage tax credit. Free state tax return file For information about this credit, see Form 8885, Health Coverage Tax Credit. Free state tax return file You qualify for the credit for federal tax on fuels. Free state tax return file See Form 4136, Credit for Federal Tax Paid on Fuels. Free state tax return file Form 1099-B received. Free state tax return file    Even if you are not required to file a return, you should consider filing if all of the following apply. Free state tax return file You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement). Free state tax return file The amount in box 2a of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you. Free state tax return file Box 3 of Form 1099-B (or substitute statement) is blank. Free state tax return file In this case, filing a return may keep you from getting a notice from the IRS. Free state tax return file Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. Free state tax return file You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. Free state tax return file There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. Free state tax return file If more than one filing status applies to you, choose the one that will give you the lowest tax. Free state tax return file Marital Status In general, your filing status depends on whether you are considered unmarried or married. Free state tax return file Unmarried persons. Free state tax return file    You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. Free state tax return file   State law governs whether you are married or legally separated under a divorce or separate maintenance decree. Free state tax return file Divorced persons. Free state tax return file    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. Free state tax return file Divorce and remarriage. Free state tax return file    If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. Free state tax return file Annulled marriages. Free state tax return file    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. Free state tax return file You must file amended returns (Form 1040X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. Free state tax return file Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Free state tax return file If you filed your original tax return early (for example, March 1), your return is considered filed on the due date (generally April 15). Free state tax return file However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. Free state tax return file Head of household or qualifying widow(er) with dependent child. Free state tax return file    If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. Free state tax return file See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. Free state tax return file Married persons. Free state tax return file    If you are considered married, you and your spouse can file a joint return or separate returns. Free state tax return file Considered married. Free state tax return file    You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. Free state tax return file You are married and living together. Free state tax return file You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. Free state tax return file You are married and living apart but not legally separated under a decree of divorce or separate maintenance. Free state tax return file You are separated under an interlocutory (not final) decree of divorce. Free state tax return file Same-sex marriage. Free state tax return file    For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Free state tax return file The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Free state tax return file However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. Free state tax return file   The word “state” as used here includes the District of Columbia, Puerto Rico, and U. Free state tax return file S. Free state tax return file territories and possessions. Free state tax return file It means any domestic jurisdiction that has the legal authority to sanction marriages. Free state tax return file The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. Free state tax return file   If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. Free state tax return file However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status, as explained later. Free state tax return file   For more details, see Answers to Frequently Asked Questions For Individuals of the Same Sex Who Are Married Under State Law on IRS. Free state tax return file gov. Free state tax return file Spouse died during the year. Free state tax return file    If your spouse died during the year, you are considered married for the whole year for filing status purposes. Free state tax return file   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Free state tax return file For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . Free state tax return file   If you remarried before the end of the tax year, you can file a joint return with your new spouse. Free state tax return file Your deceased spouse's filing status is married filing separately for that year. Free state tax return file Married persons living apart. Free state tax return file    If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. Free state tax return file If you qualify to file as head of household instead of as married filing separately, your standard deduction will be higher. Free state tax return file Also, your tax may be lower, and you may be able to claim the earned income credit. Free state tax return file See Head of Household , later. Free state tax return file Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Free state tax return file To determine your marital status, see Marital Status , earlier. Free state tax return file Widow(er). Free state tax return file    Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. Free state tax return file You may, however, be able to use another filing status that will give you a lower tax. Free state tax return file See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. Free state tax return file How to file. Free state tax return file    You can file Form 1040. Free state tax return file If you have taxable income of less than $100,000, you may be able to file Form 1040A. Free state tax return file If, in addition, you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Free state tax return file If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. Free state tax return file Use the Single column of the Tax Table, or Section A of the Tax Computation Worksheet, to figure your tax. Free state tax return file Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. Free state tax return file On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. Free state tax return file You can file a joint return even if one of you had no income or deductions. Free state tax return file If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Free state tax return file Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. Free state tax return file If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Free state tax return file You can choose the method that gives the two of you the lower combined tax. Free state tax return file How to file. Free state tax return file    If you file as married filing jointly, you can use Form 1040. Free state tax return file If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. Free state tax return file If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Free state tax return file If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Free state tax return file Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax. Free state tax return file Spouse died. Free state tax return file    If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. Free state tax return file See Spouse died during the year , under Married persons, earlier. Free state tax return file   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. Free state tax return file Divorced persons. Free state tax return file    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. Free state tax return file Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. Free state tax return file Accounting period. Free state tax return file    Both of you must use the same accounting period, but you can use different accounting methods. Free state tax return file Joint responsibility. Free state tax return file    Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Free state tax return file This means that if one spouse does not pay the tax due, the other may have to. Free state tax return file Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. Free state tax return file One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. Free state tax return file   You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. Free state tax return file Divorced taxpayer. Free state tax return file    You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. Free state tax return file This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Free state tax return file Relief from joint responsibility. Free state tax return file    In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Free state tax return file You can ask for relief no matter how small the liability. Free state tax return file   There are three types of relief available. Free state tax return file Innocent spouse relief. Free state tax return file Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date the election for this relief is filed). Free state tax return file Equitable relief. Free state tax return file    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. Free state tax return file Publication 971, Innocent Spouse Relief, explains the kinds of relief and who may qualify for them. Free state tax return file Signing a joint return. Free state tax return file    For a return to be considered a joint return, both spouses generally must sign the return. Free state tax return file Spouse died before signing. Free state tax return file    If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. Free state tax return file If neither you nor anyone else has been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. Free state tax return file Spouse away from home. Free state tax return file    If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so it can be filed on time. Free state tax return file Injury or disease prevents signing. Free state tax return file    If your spouse cannot sign because of injury or disease and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). Free state tax return file ” Be sure to also sign in the space provided for your signature. Free state tax return file Attach a dated statement, signed by you, to the return. Free state tax return file The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. Free state tax return file Signing as guardian of spouse. Free state tax return file    If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Free state tax return file Spouse in combat zone. Free state tax return file    You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. Free state tax return file Attach a signed statement to your return explaining that your spouse is serving in a combat zone. Free state tax return file For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. Free state tax return file Other reasons spouse cannot sign. Free state tax return file    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). Free state tax return file Attach the power of attorney (or a copy of it) to your tax return. Free state tax return file You can use Form 2848. Free state tax return file Nonresident alien or dual-status alien. Free state tax return file    Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. Free state tax return file However, if one spouse was a nonresident alien or dual-status alien who was married to a U. Free state tax return file S. Free state tax return file citizen or resident alien at the end of the year, the spouses can choose to file a joint return. Free state tax return file If you do file a joint return, you and your spouse are both treated as U. Free state tax return file S. Free state tax return file residents for the entire tax year. Free state tax return file See chapter 1 of Publication 519. Free state tax return file Married Filing Separately You can choose married filing separately as your filing status if you are married. Free state tax return file This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Free state tax return file If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. Free state tax return file You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). Free state tax return file This can apply to you even if you are not divorced or legally separated. Free state tax return file If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. Free state tax return file The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. Free state tax return file See Head of Household , later, for more information. Free state tax return file You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. Free state tax return file However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). Free state tax return file This way you can make sure you are using the filing status that results in the lowest combined tax. Free state tax return file When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. Free state tax return file How to file. Free state tax return file    If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. Free state tax return file You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. Free state tax return file   You can file Form 1040. Free state tax return file If your taxable income is less than $100,000, you may be able to file Form 1040A. Free state tax return file Select this filing status by checking the box on line 3 of either form. Free state tax return file Enter your spouse's full name and SSN or ITIN in the spaces provided. Free state tax return file If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. Free state tax return file Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. Free state tax return file Special Rules If you choose married filing separately as your filing status, the following special rules apply. Free state tax return file Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. Free state tax return file Your tax rate generally is higher than on a joint return. Free state tax return file Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. Free state tax return file You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). Free state tax return file If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Free state tax return file See Joint Return Test in Publication 503, Child and Dependent Care Expenses, for more information. Free state tax return file You cannot take the earned income credit. Free state tax return file You cannot take the exclusion or credit for adoption expenses in most cases. Free state tax return file You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. Free state tax return file You cannot exclude any interest income from qualified U. Free state tax return file S. Free state tax return file savings bonds you used for higher education expenses. Free state tax return file If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. Free state tax return file The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. Free state tax return file Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Free state tax return file If your spouse itemizes deductions, you cannot claim the standard deduction. Free state tax return file If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. Free state tax return file Adjusted gross income (AGI) limits. Free state tax return file    If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. Free state tax return file Individual retirement arrangements (IRAs). Free state tax return file    You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. Free state tax return file Your deduction is reduced or eliminated if your income is more than a certain amount. Free state tax return file This amount is much lower for married individuals who file separately and lived together at any time during the year. Free state tax return file For more information, see How Much Can You Deduct? in chapter 1 of Publication 590. Free state tax return file Rental activity losses. Free state tax return file    If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income up to $25,000. Free state tax return file This is called a special allowance. Free state tax return file However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. Free state tax return file Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. Free state tax return file See Rental Activities in Publication 925, Passive Activity and At-Risk Rules. Free state tax return file Community property states. Free state tax return file    If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. Free state tax return file See Publication 555, Community Property. Free state tax return file Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. Free state tax return file You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. Free state tax return file This does not include any extensions. Free state tax return file A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. Free state tax return file Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Free state tax return file Exception. Free state tax return file    A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Free state tax return file The personal representative has 1 year from the due date (including extensions) of the return to make the change. Free state tax return file See Publication 559 for more information on filing income tax returns for a decedent. Free state tax return file Head of Household You may be able to file as head of household if you meet all the following requirements. Free state tax return file You are unmarried or considered unmarried on the last day of the year. Free state tax return file See Marital Status , earlier, and Considered Unmarried , later. Free state tax return file You paid more than half the cost of keeping up a home for the year. Free state tax return file A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). Free state tax return file However, if the qualifying person is your dependent parent, he or she does not have to live with you. Free state tax return file See Special rule for parent , later, under Qualifying Person. Free state tax return file If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. Free state tax return file You will also receive a higher standard deduction than if you file as single or married filing separately. Free state tax return file How to file. Free state tax return file    If you file as head of household, you can use Form 1040. Free state tax return file If you have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Free state tax return file Indicate your choice of this filing status by checking the box on line 4 of either form. Free state tax return file Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. Free state tax return file Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. Free state tax return file You are considered unmarried on the last day of the tax year if you meet all the following tests. Free state tax return file You file a separate return (defined earlier under Joint Return After Separate Returns ). Free state tax return file You paid more than half the cost of keeping up your home for the tax year. Free state tax return file Your spouse did not live in your home during the last 6 months of the tax year. Free state tax return file Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Free state tax return file See Temporary absences , later. Free state tax return file Your home was the main home of your child, stepchild, or foster child for more than half the year. Free state tax return file (See Home of qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. Free state tax return file ) You must be able to claim an exemption for the child. Free state tax return file However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. Free state tax return file The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents . Free state tax return file If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. Free state tax return file See Publication 555 for more information. Free state tax return file Nonresident alien spouse. Free state tax return file    You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. Free state tax return file However, your spouse is not a qualifying person for head of household purposes. Free state tax return file You must have another qualifying person and meet the other tests to be eligible to file as a head of household. Free state tax return file Choice to treat spouse as resident. Free state tax return file    You are considered married if you choose to treat your spouse as a resident alien. Free state tax return file See chapter 1 of Publication 519. Free state tax return file Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. Free state tax return file You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 1. Free state tax return file Worksheet 1. Free state tax return file Cost of Keeping Up a Home         Amount You  Paid Total  Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $       Minus total amount you paid   ()       Amount others paid   $       If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Free state tax return file Costs you include. Free state tax return file    Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Free state tax return file   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. Free state tax return file However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Free state tax return file Costs you do not include. Free state tax return file    Do not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation. Free state tax return file Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. Free state tax return file Qualifying Person See Table 4 to see who is a qualifying person. Free state tax return file Any person not described in Table 4 is not a qualifying person. Free state tax return file Example 1—child. Free state tax return file Your unmarried son lived with you all year and was 18 years old at the end of the year. Free state tax return file He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. Free state tax return file As a result, he is your qualifying child (see Qualifying Child , later) and, because he is single, your qualifying person for head of household purposes. Free state tax return file Example 2—child who is not qualifying person. Free state tax return file The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. Free state tax return file Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. Free state tax return file Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. Free state tax return file As a result, he is not your qualifying person for head of household purposes. Free state tax return file Example 3—girlfriend. Free state tax return file Your girlfriend lived with you all year. Free state tax return file Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you . Free state tax return file See Table 4. Free state tax return file Example 4—girlfriend's child. Free state tax return file The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. Free state tax return file He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test , later). Free state tax return file As a result, he is not your qualifying person for head of household purposes. Free state tax return file Home of qualifying person. Free state tax return file    Generally, the qualifying person must live with you for more than half of the year. Free state tax return file Special rule for parent. Free state tax return file    If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Free state tax return file However, you must be able to claim an exemption for your father or mother. Free state tax return file Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Free state tax return file   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Free state tax return file Death or birth. Free state tax return file    You may be eligible to file as head of household even if the qualifying person who qualifies you for this filing status is born or dies during the year. Free state tax return file To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. Free state tax return file Your qualifying child or qualifying relative who lived with you for more than half the part of the year he or she was alive. Free state tax return file Your parent for whom you paid, for the entire part of the year he or she was alive, more than half the cost of keeping up the home he or she lived in. Free state tax return file Example. Free state tax return file You are unmarried. Free state tax return file Your mother, for whom you can claim an exemption, lived in an apartment by herself. Free state tax return file She died on September 2. Free state tax return file The cost of the upkeep of her apartment for the year until her death was $6,000. Free state tax return file You paid $4,000 and your brother paid $2,000. Free state tax return file Your brother made no other payments towards your mother's support. Free state tax return file Your mother had no income. Free state tax return file Because you paid more than half of the cost of keeping up your mother's apartment from January 1 until her death, and you can claim an exemption for her, you can file as a head of household. Free state tax return file Temporary absences. Free state tax return file    You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Free state tax return file It must be reasonable to assume the absent person will return to the home after the temporary absence. Free state tax return file You must continue to keep up the home during the absence. Free state tax return file Kidnapped child. Free state tax return file    You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. Free state tax return file You can claim head of household filing status if all the following statements are true. Free state tax return file The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Free state tax return file In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Free state tax return file You would have qualified for head of household filing status if the child had not been kidnapped. Free state tax return file   This treatment applies for all years until the earliest of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. Free state tax return file Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. Free state tax return file The year of death is the last year for which you can file jointly with your deceased spouse. Free state tax return file See Married Filing Jointly , earlier. Free state tax return file You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. Free state tax return file For example, if your spouse died in 2012 and you have not remarried, you may be able to use this filing status for 2013 and 2014. Free state tax return file The rules for using this filing status are explained in detail here. Free state tax return file This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). Free state tax return file It does not entitle you to file a joint return. Free state tax return file How to file. Free state tax return file    If you file as a qualifying widow(er) with dependent child, you can use Form 1040. Free state tax return file If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Free state tax return file Check the box on line 5 of either form. Free state tax return file Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Free state tax return file Table 4. Free state tax return file Who Is a Qualifying Person Qualifying You To File as Head of Household?1 See the text of this publication for the other requirements you must meet to claim head of household filing status. Free state tax return file IF the person is your . Free state tax return file . Free state tax return file . Free state tax return file   AND . Free state tax return file . Free state tax return file . Free state tax return file   THEN that person is . Free state tax return file . Free state tax return file . Free state tax return file qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. Free state tax return file   he or she is married and you can claim an exemption for him or her   a qualifying person. Free state tax return file   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. Free state tax return file 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. Free state tax return file 6   you cannot claim an exemption for him or her   not a qualifying person. Free state tax return file qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests). Free state tax return file   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you , later, and you can claim an exemption for him or her5   a qualifying person. Free state tax return file   he or she did not live with you more than half the year   not a qualifying person. Free state tax return file   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you , later, and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. Free state tax return file   you cannot claim an exemption for him or her   not a qualifying person. Free state tax return file 1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Free state tax return file 2 The term “qualifying child” is defined under Exemptions for Dependents, later. Free state tax return file Note: If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child, later. Free state tax return file If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Free state tax return file 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Free state tax return file 4 The term “qualifying relative” is defined under Exemptions for Dependents, later. Free state tax return file 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Free state tax return file See Multiple Support Agreement . Free state tax return file 6 See Special rule for parent . Free state tax return file Eligibility rules. Free state tax return file    You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all the following tests. Free state tax return file You were entitled to file a joint return with your spouse for the year your spouse died. Free state tax return file It does not matter whether you actually filed a joint return. Free state tax return file Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Free state tax return file You have a child or stepchild for whom you can claim an exemption. Free state tax return file This does not include a foster child. Free state tax return file This child lived in your home all year, except for temporary absences. Free state tax return file See Temporary absences , earlier, under Head of Household. Free state tax return file There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. Free state tax return file You paid more than half the cost of keeping up a home for the year. Free state tax return file See Keeping Up a Home , earlier, under Head of Household. Free state tax return file Example. Free state tax return file John's wife died in 2011. Free state tax return file John has not remarried. Free state tax return file He has continued during 2012 and 2013 to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. Free state tax return file For 2011 he was entitled to file a joint return for himself and his deceased wife. Free state tax return file For 2012 and 2013, he can file as a qualifying widower with a dependent child. Free state tax return file After 2013, he can file as head of household if he qualifies. Free state tax return file Death or birth. Free state tax return file    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. Free state tax return file You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. Free state tax return file Kidnapped child. Free state tax return file    You may be eligible to file as a qualifying widow(er) with dependent child even if the child who qualifies you for this filing status has been kidnapped. Free state tax return file You can claim qualifying widow(er) with dependent child filing status if all the following statements are true. Free state tax return file The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Free state tax return file In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Free state tax return file You would have qualified for qualifying widow(er) with dependent child filing status if the child had not been kidnapped. Free state tax return file As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. Free state tax return file Exemptions Exemptions reduce your taxable income. Free state tax return file You can deduct $3,900 for each exemption you claim in 2013. Free state tax return file If you are entitled to two exemptions for 2013, you can deduct $7,800 ($3,900 × 2). Free state tax return file But you may lose the benefit of part or all of your exemptions if your adjusted gross income is above a certain amount. Free state tax return file See Phaseout of Exemptions , later. Free state tax return file Types of exemptions. Free state tax return file    There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Free state tax return file While each is worth the same amount ($3,900 for 2013), different rules, discussed later, apply to each type. Free state tax return file Dependent cannot claim a personal exemption. Free state tax return file    If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim a personal exemption on his or her own tax return. Free state tax return file How to claim exemptions. Free state tax return file    How you claim an exemption on your tax return depends on which form you file. Free state tax return file Form 1040EZ filers. Free state tax return file    If you file Form 1040EZ, the exemption amount is combined with the standard deduction and entered on line 5. Free state tax return file Form 1040A filers. Free state tax return file    If you file Form 1040A, complete lines 6a through 6d. Free state tax return file The total number of exemptions you can claim is the total in the box on line 6d. Free state tax return file Also complete line 26. Free state tax return file Form 1040 filers. Free state tax return file    If you file Form 1040, complete lines 6a through 6d. Free state tax return file The total number of exemptions you can claim is the total in the box on line 6d. Free state tax return file Also complete line 42. Free state tax return file If your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. Free state tax return file U. Free state tax return file S. Free state tax return file citizen or resident alien. Free state tax return file    If you are a U. Free state tax return file S. Free state tax return file citizen, U. Free state tax return file S. Free state tax return file resident alien, U. Free state tax return file S. Free state tax return file national (defined later) or a resident of Canada or Mexico, you may qualify for any of the exemptions discussed here. Free state tax return file Nonresident aliens. Free state tax return file    Generally, if you are a nonresident alien (other than a resident of Canada or Mexico, or certain residents of India or Korea), you can qualify for only one personal exemption for yourself. Free state tax return file You cannot claim exemptions for a spouse or dependents. Free state tax return file   These restrictions do not apply if you are a nonresident alien married to a U. Free state tax return file S. Free state tax return file citizen or resident alien and have chosen to be treated as a resident of the United States. Free state tax return file More information. Free state tax return file    For more information on exemptions if you are a nonresident alien, see chapter 5 in Publication 519. Free state tax return file Dual-status taxpayers. Free state tax return file    If you have been both a nonresident alien and a resident alien in the same tax year, you should see Publication 519 for information on determining your exemptions. Free state tax return file Personal Exemptions You are generally allowed one exemption for yourself. Free state tax return file If you are married, you may be allowed one exemption for your spouse. Free state tax return file These are called personal exemptions. Free state tax return file Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Free state tax return file If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Free state tax return file Your Spouse's Exemption Your spouse is never considered your dependent. Free state tax return file Joint return. Free state tax return file    On a joint return, you can claim one exemption for yourself and one for your spouse. Free state tax return file Separate return. Free state tax return file    If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Free state tax return file This is true even if the other taxpayer does not actually claim your spouse as a dependent. Free state tax return file You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Free state tax return file S. Free state tax return file tax purposes and satisfy the other conditions listed above. Free state tax return file Head of household. Free state tax return file    If you qualify for head of household filing status because you are considered unmarried, you can claim an exemption for your spouse if the conditions described in the preceding paragraph are satisfied. Free state tax return file   To claim the exemption for your spouse, check the box on line 6b of Form 1040 or Form 1040A and enter the name of your spouse in the space to the right of the box. Free state tax return file Enter the SSN or ITIN of your spouse in the space provided at the top of Form 1040 or Form 1040A. Free state tax return file Death of spouse. Free state tax return file    If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Free state tax return file If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Free state tax return file   If you remarried during the year, you cannot take an exemption for your deceased spouse. Free state tax return file   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Free state tax return file If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Free state tax return file Divorced or separated spouse. Free state tax return file    If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Free state tax return file This rule applies even if you provided all of your former spouse's support. Free state tax return file Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Free state tax return file You can claim an exemption for a dependent even if your dependent files a return. Free state tax return file The term “dependent” means: A qualifying child, or A qualifying relative. Free state tax return file The terms “ qualifying child ” and “ qualifying relative ” are defined later. Free state tax return file You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Free state tax return file Dependent taxpayer test. Free state tax return file Joint return test. Free state tax return file Citizen or resident test. Free state tax return file These three tests are explained in detail later. Free state tax return file All the requirements for claiming an exemption for a dependent are summarized in Table 5. Free state tax return file Table 5. Free state tax return file Overview of the Rules for Claiming an Exemption for a Dependent This table is only an overview of the rules. Free state tax return file For details, see the rest of this publication. Free state tax return file You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. Free state tax return file   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Free state tax return file   You cannot claim a person as a dependent unless that person is a U. Free state tax return file S. Free state tax return file citizen, U. Free state tax return file S. Free state tax return file resident alien, U. Free state tax return file S. Free state tax return file national, or a resident of Canada or Mexico. Free state tax return file 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Free state tax return file   Tests To Be a Qualifying Child Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Free state tax return file   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. Free state tax return file   The child must have lived with you for more than half of the year. Free state tax return file 2  The child must not have provided more than half of his or her own support for the year. Free state tax return file   The child is not filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid). Free state tax return file  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Free state tax return file See the Special Rule for Qualifying Child of More Than One Person described later to find out which person is the person entitled to claim the child as a qualifying child. Free state tax return file The person cannot be your qualifying child or the qualifying child of any other taxpayer. Free state tax return file   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Free state tax return file   The person's gross income for the year must be less than $3,900. Free state tax return file 3  You must provide more than half of the person's total support for the year. Free state tax return file 4  1 There is an exception for certain adopted children. Free state tax return file 2 There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Free state tax return file 3 There is an exception if the person is disabled and has income from a sheltered workshop. Free state tax return file 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Free state tax return file Dependent not allowed a personal exemption. Free state tax return file If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Free state tax return file This is true even if you do not claim the dependent's exemption on your return. Free state tax return file It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Free state tax return file Housekeepers, maids, or servants. Free state tax return file    If these people work for you, you cannot claim exemptions for them. Free state tax return file Child tax credit. Free state tax return file    You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Free state tax return file For more information, see the instructions for the tax form you file (Form 1040 or 1040A). Free state tax return file Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Free state tax return file Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Free state tax return file If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Free state tax return file Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Free state tax return file Exception. Free state tax return file    You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Free state tax return file Example 1—child files joint return. Free state tax return file You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Free state tax return file He earned $25,000 for the year. Free state tax return file The couple files a joint return. Free state tax return file You cannot take an exemption for your daughter. Free state tax return file Example 2—child files joint return only as claim for refund of withheld tax. Free state tax return file Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Free state tax return file Neither is required to file a tax return. Free state tax return file They do not have a child. Free state tax return file Taxes were taken out of their pay so they file a joint return only to get a refund of the withheld taxes. Free state tax return file The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Free state tax return file You can claim exemptions for each of them if all the other tests to do so are met. Free state tax return file Example 3—child files joint return to claim American opportunity credit. Free state tax return file The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Free state tax return file He and his wife are not required to file a tax return. Free state tax return file However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Free state tax return file Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income
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Appeals Online Self-Help Tools

These tools are aids to help customers understand their appeal rights, what can be appealed, and what to expect in Appeals.

These tools deal with some of the most frequently encountered problems - the rejection of a request for innocent spouse relief; the denial of a request for abatement of certain delinquency penalties, and the rejection of an Offer in Compromise. They are simple interactive screens (decision trees) to provide assistance to customers who are not represented by tax professionals.

These tools are designed to help customers focus in on their area of dispute and help them determine if they will benefit from filing an appeal. 

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Offer in Compromise (OIC)

If your Offer in Compromise has been rejected, then use this tool to determine if you should request an Appeals conference or hearing.

Innocent Spouse

If your request for Innocent Spouse Relief was rejected, then use this tool to determine if you should request an Appeals conference or hearing.  There are several types of relief available for Innocent Spouse but only if you meet certain qualifications.

Penalty

If your request to remove a penalty was rejected, then use this tool to help you decide if you should request an Appeals conference or hearing.

Mediation Programs

If you disagree with IRS's decision or action, this self-help tool explains our different mediation programs and aims to help you understand when to discuss mediation with the IRS person assigned to your case.

Page Last Reviewed or Updated: 16-Jan-2014

The Free State Tax Return File

Free state tax return file 4. Free state tax return file   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. Free state tax return file Private communication service. Free state tax return file Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. Free state tax return file If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. Free state tax return file If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. Free state tax return file See chapter 14, later. Free state tax return file Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. Free state tax return file The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. Free state tax return file Regular method taxpayers. Free state tax return file   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. Free state tax return file Alternative method taxpayers. Free state tax return file   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. Free state tax return file See Alternative method in  chapter 11. Free state tax return file Where to file. Free state tax return file    Do not file the uncollected tax report with Form 720. Free state tax return file Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. Free state tax return file  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. Free state tax return file Local telephone service. Free state tax return file   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. Free state tax return file Local telephone service also includes any facility or services provided in connection with this service. Free state tax return file The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. Free state tax return file Local-only service. Free state tax return file   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. Free state tax return file Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. Free state tax return file Private communication service. Free state tax return file   Private communication service is not local telephone service. Free state tax return file Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. Free state tax return file However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. Free state tax return file Teletypewriter exchange service. Free state tax return file   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. Free state tax return file Figuring the tax. Free state tax return file   The tax is based on the sum of all charges for local telephone service included in the bill. Free state tax return file However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. Free state tax return file The tax on the remaining items not included in any group is based on the charge for each item separately. Free state tax return file Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. Free state tax return file Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. Free state tax return file Nontaxable service. Free state tax return file   Nontaxable service means bundled service and long distance service. Free state tax return file Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. Free state tax return file Bundled service. Free state tax return file   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. Free state tax return file Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. Free state tax return file Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. Free state tax return file If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. Free state tax return file   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. Free state tax return file Long distance service. Free state tax return file   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. Free state tax return file Pre-paid telephone cards (PTC). Free state tax return file   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. Free state tax return file Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. Free state tax return file The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. Free state tax return file The transferee is the person liable for the tax and is eligible to request a credit or refund. Free state tax return file For more information, see Regulations section 49. Free state tax return file 4251-4. Free state tax return file   The holder is the person that purchases a PTC to use and not to resell. Free state tax return file Holders are not liable for the tax and cannot request a credit or refund. Free state tax return file Pre-paid cellular telephones. Free state tax return file   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. Free state tax return file The transferee is the person eligible to request the credit or refund. Free state tax return file Installation charges. Free state tax return file   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. Free state tax return file However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. Free state tax return file Answering services. Free state tax return file   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. Free state tax return file Mobile radio telephone service. Free state tax return file   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. Free state tax return file Coin-operated telephones. Free state tax return file   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. Free state tax return file But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. Free state tax return file Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. Free state tax return file Telephone-operated security systems. Free state tax return file   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. Free state tax return file In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. Free state tax return file News services. Free state tax return file   The tax on teletypewriter exchange service does not apply to charges for the following news services. Free state tax return file Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. Free state tax return file Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. Free state tax return file This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). Free state tax return file For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. Free state tax return file Services not exempted. Free state tax return file   The tax applies to amounts paid by members of the news media for local telephone service. Free state tax return file International organizations and the American Red Cross. Free state tax return file   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. Free state tax return file Nonprofit hospitals. Free state tax return file   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. Free state tax return file Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. Free state tax return file Nonprofit educational organizations. Free state tax return file   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. Free state tax return file A nonprofit educational organization is one that satisfies all the following requirements. Free state tax return file It normally maintains a regular faculty and curriculum. Free state tax return file It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Free state tax return file It is exempt from income tax under section 501(a). Free state tax return file This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. Free state tax return file Qualified blood collector organizations. Free state tax return file   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. Free state tax return file A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. Free state tax return file Federal, state, and local government. Free state tax return file   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. Free state tax return file Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. Free state tax return file Exemption certificate. Free state tax return file   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. Free state tax return file See Regulations section 49. Free state tax return file 4253-11. Free state tax return file File the certificate with the provider of the communication services. Free state tax return file An exemption certificate is not required for nontaxable services. Free state tax return file   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. Free state tax return file The American National Red Cross and other international organizations. Free state tax return file Nonprofit hospitals. Free state tax return file Nonprofit educational organizations. Free state tax return file Qualified blood collector organizations. Free state tax return file State and local governments. Free state tax return file   The federal government does not have to file any exemption certificate. Free state tax return file   All other organizations must furnish exemption certificates when required. Free state tax return file Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Free state tax return file Alternatively, the person who paid the tax may claim a refund. Free state tax return file For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Free state tax return file Collectors. Free state tax return file   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Free state tax return file These requirements also apply to nontaxable service refunds. Free state tax return file Collectors using the regular method for deposits. Free state tax return file   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Free state tax return file Collectors using the alternative method for deposits. Free state tax return file   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Free state tax return file For more information, see the Instructions for Form 720. Free state tax return file Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. Free state tax return file Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. Free state tax return file Percentage tax. Free state tax return file   A tax of 7. Free state tax return file 5% applies to amounts paid for taxable transportation of persons by air. Free state tax return file Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. Free state tax return file Mileage awards. Free state tax return file   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. Free state tax return file For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. Free state tax return file   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. Free state tax return file Until regulations are issued, the following rules apply to mileage awards. Free state tax return file Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. Free state tax return file For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. Free state tax return file Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. Free state tax return file Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. Free state tax return file Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. Free state tax return file Domestic-segment tax. Free state tax return file   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. Free state tax return file However, see Rural airports, later. Free state tax return file A segment is a single takeoff and a single landing. Free state tax return file The amount of the domestic-segment tax is in the Instructions for Form 720. Free state tax return file Charter flights. Free state tax return file    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. Free state tax return file Rural airports. Free state tax return file   The domestic-segment tax does not apply to a segment to or from a rural airport. Free state tax return file An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. Free state tax return file   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. Free state tax return file   An updated list of rural airports can be found on the Department of Transportation website at www. Free state tax return file dot. Free state tax return file gov and enter the phrase “Essential Air Service” in the search box. Free state tax return file Taxable transportation. Free state tax return file   Taxable transportation is transportation by air that meets either of the following tests. Free state tax return file It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). Free state tax return file It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. Free state tax return file Round trip. Free state tax return file   A round trip is considered two separate trips. Free state tax return file The first trip is from the point of departure to the destination. Free state tax return file The second trip is the return trip from that destination. Free state tax return file Uninterrupted international air transportation. Free state tax return file   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. Free state tax return file For a special rule that applies to military personnel, see Exemptions, later. Free state tax return file Transportation between the continental U. Free state tax return file S. Free state tax return file and Alaska or Hawaii. Free state tax return file   This transportation is partially exempt from the tax on transportation of persons by air. Free state tax return file The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. Free state tax return file Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. Free state tax return file 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. Free state tax return file Therefore, this transportation is subject to the percentage tax on the part of the trip in U. Free state tax return file S. Free state tax return file airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. Free state tax return file Transportation within Alaska or Hawaii. Free state tax return file   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. Free state tax return file The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). Free state tax return file Package tours. Free state tax return file   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. Free state tax return file The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. Free state tax return file ” This rule also applies to the tax on the use of international air travel facilities, discussed later. Free state tax return file Liability for tax. Free state tax return file   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. Free state tax return file However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. Free state tax return file    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. Free state tax return file However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. Free state tax return file An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. Free state tax return file For more information on resellers of air transportation, see Revenue Ruling 2006-52. Free state tax return file You can find Revenue Ruling 2006-52 on page 761 of I. Free state tax return file R. Free state tax return file B. Free state tax return file 2006-43 at www. Free state tax return file irs. Free state tax return file gov/pub/irs-irbs/irb06-43. Free state tax return file pdf. Free state tax return file   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. Free state tax return file But see Certain helicopter uses, later. Free state tax return file   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. Free state tax return file   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. Free state tax return file Exemptions. Free state tax return file   The tax on transportation of persons by air does not apply in the following situations. Free state tax return file See also Special Rules on Transportation Taxes, later. Free state tax return file Military personnel on international trips. Free state tax return file   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. Free state tax return file However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. Free state tax return file The trip must begin or end outside the United States and the 225-mile zone. Free state tax return file Certain helicopter uses. Free state tax return file   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. Free state tax return file Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Free state tax return file Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Free state tax return file Providing emergency medical transportation. Free state tax return file   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Free state tax return file For item (1), treat each flight segment as a separate flight. Free state tax return file Fixed-wing aircraft uses. Free state tax return file   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. Free state tax return file Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Free state tax return file Providing emergency medical transportation. Free state tax return file The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Free state tax return file   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Free state tax return file Skydiving. Free state tax return file   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Free state tax return file Seaplanes. Free state tax return file   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. Free state tax return file Bonus tickets. Free state tax return file   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. Free state tax return file However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. Free state tax return file International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. Free state tax return file However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. Free state tax return file This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. Free state tax return file It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Free state tax return file See the Instructions for Form 720 for the tax rates. Free state tax return file Transportation of Property by Air A tax of 6. Free state tax return file 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. Free state tax return file The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. Free state tax return file The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. Free state tax return file The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. Free state tax return file Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. Free state tax return file Exemptions. Free state tax return file   The tax on transportation of property by air does not apply in the following situations. Free state tax return file See also Special Rules on Transportation Taxes, later. Free state tax return file Cropdusting and firefighting service. Free state tax return file   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. Free state tax return file Exportation. Free state tax return file    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. Free state tax return file See Form 1363 for more information. Free state tax return file Certain helicopter and fixed-wing air ambulance uses. Free state tax return file   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. Free state tax return file   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. Free state tax return file The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Free state tax return file Skydiving. Free state tax return file   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Free state tax return file Excess baggage. Free state tax return file    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. Free state tax return file Surtax on fuel used in a fractional ownership program aircraft. Free state tax return file   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Free state tax return file Alaska and Hawaii. Free state tax return file   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). Free state tax return file But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. Free state tax return file The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. Free state tax return file Liability for tax. Free state tax return file   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. Free state tax return file   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. Free state tax return file Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. Free state tax return file Aircraft used by affiliated corporations. Free state tax return file   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. Free state tax return file However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. Free state tax return file Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. Free state tax return file   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. Free state tax return file Small aircraft. Free state tax return file   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. Free state tax return file However, the taxes do apply if the aircraft is operated on an established line. Free state tax return file “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. Free state tax return file However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. Free state tax return file   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. Free state tax return file   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. Free state tax return file Mixed load of persons and property. Free state tax return file   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. Free state tax return file The allocation must be reasonable and supported by adequate records. Free state tax return file Credits or refunds. Free state tax return file   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Free state tax return file Alternatively, the person who paid the tax may claim a refund. Free state tax return file For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Free state tax return file Prev  Up  Next   Home   More Online Publications