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Free tax filing online state 4. Free tax filing online state   Other Section 501(c) Organizations Table of Contents Introduction 501(c)(4) - Civic Leagues and Social Welfare OrganizationsSpecific Organizations 501(c)(5) - Labor, Agricultural and Horticultural OrganizationsLabor Organizations Agricultural and Horticultural Organizations 501(c)(6) - Business Leagues, etc. Free tax filing online state Line of business. Free tax filing online state Examples. Free tax filing online state Improvement of business conditions. Free tax filing online state Exception for local legislation. Free tax filing online state De minimis exception. Free tax filing online state Grass roots lobbying. Free tax filing online state 501(c)(7) - Social and Recreation ClubsLimited membership. Free tax filing online state Support. Free tax filing online state Facilities open to public. Free tax filing online state Gross receipts from nonmembership sources. Free tax filing online state Gross receipts. Free tax filing online state Nontraditional activities. Free tax filing online state 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal SocietiesFraternal Beneficiary Societies (501(c)(8)) Domestic Fraternal Societies (501(c)(10)) 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' AssociationsLocal Employees' Associations (501(c)(4)) Voluntary Employees' Beneficiary Associations (501(c)(9)) Supplemental Unemployment Benefit Trusts (501(c)(17)) 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like OrganizationsMembership. Free tax filing online state Losses and expenses. Free tax filing online state Distributions of proceeds. Free tax filing online state The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. Free tax filing online state Perpetual care organization. Free tax filing online state Care of individual plots. Free tax filing online state 501(c)(14) - Credit Unions and Other Mutual Financial OrganizationsState-Chartered Credit Unions Other Mutual Financial Organizations 501(c)(19) - Veterans' Organizations 501(c)(20) - Group Legal Services Plan Organizations 501(c)(21) - Black Lung Benefit TrustsExcise taxes. Free tax filing online state 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. Free tax filing online state Waiver of payment of income. Free tax filing online state 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent CorporationsUnrelated Business Income 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations 501(c)(29) - CO-OP Health Insurance Issuers New Guidance for IRC 501(c)(29) Qualified Nonprofit Health Insurance Issuers General Requirements for Exemption under 501(c)(29) and Annual Filing Requirement Additional Guidance for Prospective 501(c)(29) Organizations Introduction This chapter contains specific information for certain organizations described in section 501(c), other than those organizations that are described in section 501(c)(3). Free tax filing online state Section 501(c)(3) organizations are covered in chapter 3 of this publication. Free tax filing online state The Table of Contents at the beginning of this publication, as well as the Organization Reference Chart, may help you locate at a glance the type of organization discussed in this chapter. Free tax filing online state 501(c)(4) - Civic Leagues and Social Welfare Organizations If your organization is not organized for profit and will be operated primarily to promote social welfare to benefit the community, you should file Form 1024 to apply for recognition of exemption from federal income tax under section 501(c)(4). Free tax filing online state The discussion that follows describes the information you must provide when applying. Free tax filing online state For application procedures, see chapter 1. Free tax filing online state To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. Free tax filing online state In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. Free tax filing online state If the organization provides an excess benefit to certain persons, an excise tax may be imposed. Free tax filing online state See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. Free tax filing online state Examples. Free tax filing online state   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. Free tax filing online state Nonprofit operation. Free tax filing online state   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. Free tax filing online state However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose. Free tax filing online state Social welfare. Free tax filing online state   To establish that your organization is organized primarily to promote social welfare, you should submit evidence with your application showing that your organization will operate primarily to further (in some way) the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements). Free tax filing online state   An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. Free tax filing online state It therefore does not qualify as a section 501(c)(4) organization. Free tax filing online state Similarly, an organization formed to represent member-tenants of an apartment complex does not qualify, since its activities benefit the member-tenants and not all tenants in the community. Free tax filing online state However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization. Free tax filing online state Political activity. Free tax filing online state   Promoting social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. Free tax filing online state However, if you submit proof that your organization is organized primarily to promote social welfare, it can obtain exemption even if it participates legally in some political activity on behalf of or in opposition to candidates for public office. Free tax filing online state See the discussion in chapter 2 under Political Organization Income Tax Return . Free tax filing online state Social or recreational activity. Free tax filing online state   If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501(c)(7). Free tax filing online state Retirement benefit program. Free tax filing online state   An organization established by its members that has as its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries does not qualify as an exempt social welfare organization. Free tax filing online state It may qualify under another paragraph of section 501(c) depending on all the facts. Free tax filing online state   However, a nonprofit association that is established, maintained, and funded by a local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4). Free tax filing online state Tax treatment of donations. Free tax filing online state   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. Free tax filing online state Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. Free tax filing online state They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. Free tax filing online state However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Free tax filing online state for more information. Free tax filing online state For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. Free tax filing online state gov. Free tax filing online state Specific Organizations The following information should be contained in the application form and accompanying statements of certain types of civic leagues or social welfare organizations. Free tax filing online state Volunteer fire companies. Free tax filing online state   If your organization wishes to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that its members are actively engaged in fire fighting and similar disaster assistance, whether it actually owns the fire fighting equipment, and whether it provides any assistance for its members, such as death and medical benefits in case of injury to them. Free tax filing online state   If your organization does not have an independent social purpose, such as providing recreational facilities for members, it may be exempt under section 501(c)(3). Free tax filing online state In this event, your organization should file Form 1023. Free tax filing online state Homeowners' associations. Free tax filing online state   A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. Free tax filing online state The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Free tax filing online state Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Free tax filing online state Even if an area represented by an association is not a community, the association can still qualify for exemption if its activities benefit a community. Free tax filing online state   The association should submit evidence that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own members. Free tax filing online state It also must show that it does not engage in exterior maintenance of private homes. Free tax filing online state   A homeowners' association that is not exempt under section 501(c)(4) and that is a condominium management association, a residential real estate management association, or a timeshare association generally can elect under the provisions of section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income. Free tax filing online state Other organizations. Free tax filing online state   Other nonprofit organizations that qualify as social welfare organizations include: An organization operating an airport that is on land owned by a local government, which supervises the airport's operation, and that serves the general public in an area with no other airport, A community association that works to improve public services, housing, and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs, and meetings; and contracts with a private security service to patrol the community, A community association devoted to preserving the community's traditions, architecture, and appearance by representing it before the local legislature and administrative agencies in zoning, traffic, and parking matters, An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area, and An organization that holds an annual festival of regional customs and traditions. Free tax filing online state 501(c)(5) - Labor, Agricultural and Horticultural Organizations If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. Free tax filing online state You must indicate in your application for exemption and accompanying statements that no part of the organization's net earnings will inure to the benefit of any member. Free tax filing online state In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Free tax filing online state Submit any additional information that may be required, as described in this section. Free tax filing online state Tax treatment of donations. Free tax filing online state   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. Free tax filing online state However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer's trade or business. Free tax filing online state For more information about certain limits affecting the deductibility of these business expenses, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Free tax filing online state Labor Organizations A labor organization is an association of workers who have combined to protect and promote the interests of the members by bargaining collectively with their employers to secure better working conditions. Free tax filing online state To show that your organization has the purpose of a labor organization, you should include in the articles of organization or accompanying statements (submitted with your exemption application) information establishing that the organization is organized to better the conditions of workers, improve the grade of their products, and develop a higher degree of efficiency in their respective occupations. Free tax filing online state In addition, no net earnings of the organization can inure to the benefit of any member. Free tax filing online state Composition of membership. Free tax filing online state   While a labor organization generally is composed of employees or representatives of the employees (in the form of collective bargaining agents) and similar employee groups, evidence that an organization's membership consists mainly of workers does not in itself indicate an exempt purpose. Free tax filing online state You must show in your application that your organization has the purposes described in the preceding paragraph. Free tax filing online state These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. Free tax filing online state Benefits to members. Free tax filing online state   The payment by a labor organization of death, sick, accident, and similar benefits to its individual members with funds contributed by its members, if made under a plan to better the conditions of the members, does not preclude exemption as a labor organization. Free tax filing online state However, an organization does not qualify for exemption as a labor organization if it has no authority to represent members in job-related matters, even if it provides weekly income to its members in the event of a lawful strike by the members' union, in return for an annual payment by the member. Free tax filing online state   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. Free tax filing online state gov. Free tax filing online state Agricultural and Horticultural Organizations Agricultural and horticultural organizations are connected with raising livestock, forestry, cultivating land, raising and harvesting crops or aquatic resources, cultivating useful or ornamental plants, and similar pursuits. Free tax filing online state For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. Free tax filing online state The term harvesting, in this case, includes fishing and related pursuits. Free tax filing online state Agricultural organizations can be quasi-public in character and are often designed to encourage the development of better agricultural and horticultural products through a system of awards, using income from entry fees, gate receipts, and donations to meet the necessary expenses of upkeep and operation. Free tax filing online state When the activities are directed toward the improvement of marketing or other business conditions in one or more lines of business, rather than the improvement of production techniques or the betterment of the conditions of persons engaged in agriculture, the organization must qualify for exemption as a business league, board of trade, or other organization, as discussed next in the section on 501(c)(6) organizations. Free tax filing online state The primary purpose of exempt agricultural and horticultural organizations must be to better the conditions of those engaged in agriculture or horticulture, develop more efficiency in agriculture or horticulture, or improve the products. Free tax filing online state The following list contains some examples of activities that show an agricultural or horticultural purpose. Free tax filing online state Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. Free tax filing online state Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. Free tax filing online state Testing soil for members and nonmembers of the farm bureau on a cost basis, the results of the tests and other recommendations being furnished to the community members to educate them in soil treatment. Free tax filing online state Guarding the purity of a specific breed of livestock. Free tax filing online state Encouraging improvements in the production of fish on privately owned fish farms. Free tax filing online state Negotiating with processors for the price to be paid to members for their crops. Free tax filing online state For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. Free tax filing online state gov. Free tax filing online state 501(c)(6) - Business Leagues, etc. Free tax filing online state If your association wants to apply for recognition of exemption from federal income tax as a nonprofit business league, chamber of commerce, real estate board, or board of trade, it should file Form 1024. Free tax filing online state For a discussion of the procedure to follow, see chapter 1. Free tax filing online state Your organization must indicate in its application form and attached statements that no part of its net earnings will inure to the benefit of any private shareholder or individual and that it is not organized for profit or organized to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining). Free tax filing online state In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. Free tax filing online state It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. Free tax filing online state A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Free tax filing online state Trade associations and professional associations are considered business leagues. Free tax filing online state Chamber of commerce. Free tax filing online state   A chamber of commerce usually is composed of the merchants and traders of a city. Free tax filing online state Board of trade. Free tax filing online state   A board of trade often consists of persons engaged in similar lines of business. Free tax filing online state For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers, and buyers is a board of trade. Free tax filing online state   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. Free tax filing online state Real estate board. Free tax filing online state   A real estate board consists of members interested in improving the business conditions in the real estate field. Free tax filing online state It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. Free tax filing online state Professional football leagues. Free tax filing online state   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). Free tax filing online state They are exempt whether or not they administer a pension fund for football players. Free tax filing online state General purpose. Free tax filing online state   You must indicate in the material submitted with your application that your organization will be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. Free tax filing online state It must be shown that the conditions of a particular trade or the interests of the community will be advanced. Free tax filing online state Merely indicating the name of the organization or the object of the local statute under which it is created is not enough to demonstrate the required general purpose. Free tax filing online state Line of business. Free tax filing online state   This term generally refers either to an entire industry or to all components of an industry within a geographic area. Free tax filing online state It does not include a group composed of businesses that market a particular brand within an industry. Free tax filing online state Common business interest. Free tax filing online state   A common business interest of all members of the organization must be established by the application documents. Free tax filing online state Examples. Free tax filing online state   Activities that would tend to illustrate a common business interest are: Promotion of higher business standards and better business methods and encouragement of uniformity and cooperation by a retail merchants association, Education of the public in the use of credit, Establishment of uniform casualty rates and compilation of statistical information by an insurance rating bureau operated by casualty insurance companies, Establishment and maintenance of the integrity of a local commercial market, Operation of a trade publication primarily intended to benefit an entire industry, and Encouragement of the use of goods and services of an entire industry (such as a lawyer referral service whose main purpose is to introduce individuals to the use of the legal profession in the hope that they will enter into lawyer-client relationships on a paying basis as a result). Free tax filing online state Improvement of business conditions. Free tax filing online state   Generally, this must be shown to be the purpose of the organization. Free tax filing online state This is not established by evidence of particular services that provide a convenience or economy to individual members in their businesses, such as advertising that carries the name of members, interest-free loans, assigning exclusive franchise areas, operation of a real estate multiple listing system, or operation of a credit reporting agency. Free tax filing online state Stock or commodity exchange. Free tax filing online state   A stock or commodity exchange is not a business league, chamber of commerce, real estate board, or board of trade and is not exempt under section 501(c)(6). Free tax filing online state Legislative activity. Free tax filing online state   An organization that is exempt under section 501(c)(6) can work for the enactment of laws to advance the common business interests of the organization's members. Free tax filing online state Deduction not allowed for dues used for political or legislative activities. Free tax filing online state   A taxpayer cannot deduct the part of dues or other payments to a business league, trade association, labor union, or similar organization that is reported to the taxpayer by the organization as having been used for any of the following activities. Free tax filing online state Influencing legislation. Free tax filing online state Participating or intervening in a political campaign for, or against, any candidate for public office. Free tax filing online state Trying to influence the general public, or part of the general public, with respect to elections, legislative matters, or referendums (also known as grass roots lobbying). Free tax filing online state Communicating directly with certain executive branch officials to try to influence their official actions or positions. Free tax filing online state See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. Free tax filing online state Exception for local legislation. Free tax filing online state   Members can deduct dues (or assessments) to an organization that are for expenses of: Appearing before, submitting statements to, or sending communications to members of a local council or similar governing body with respect to legislation or proposed legislation of direct interest to the member, or Communicating information between the member and the organization with respect to local legislation or proposed legislation of direct interest to the organization or the member. Free tax filing online state Legislation or proposed legislation is of direct interest to a taxpayer if it will, or can reasonably be expected to, affect the taxpayer's trade or business. Free tax filing online state De minimis exception. Free tax filing online state   In-house expenditures of $2,000 or less for the year for activities (1) – (4) listed earlier will not prevent a deduction for dues if the dues meet all other tests to be deductible as a business expense. Free tax filing online state Grass roots lobbying. Free tax filing online state   A tax-exempt trade association, labor union, or similar organization is considered to be engaging in grass roots lobbying if it contacts prospective members or calls upon its own members to contact their employees and customers for the purpose of urging such persons to communicate with their elected state or Congressional representatives to support the promotion, defeat, or repeal of legislation that is of direct interest to the organization. Free tax filing online state Any dues or assessments directly related to such activities are not deductible by the taxpayer, since the individuals being contacted, who are not members of the organization, are a segment of the general public. Free tax filing online state Tax treatment of donations. Free tax filing online state   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. Free tax filing online state They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. Free tax filing online state   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. Free tax filing online state gov. Free tax filing online state 501(c)(7) - Social and Recreation Clubs If your club is organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities are for these purposes, it should file Form 1024 to apply for recognition of exemption from federal income tax. Free tax filing online state In applying for recognition of exemption, you should submit the information described in this section. Free tax filing online state Also see chapter 1 for the procedures to follow. Free tax filing online state Typical organizations that should file for recognition of exemption as social clubs include: College alumni associations that are not described in chapter 3 under Alumni association , College fraternities or sororities operating chapter houses for students, Country clubs, Amateur hunting, fishing, tennis, swimming, and other sport clubs, Dinner clubs that provide a meeting place, library, and dining room for members, Hobby clubs, Garden clubs, and Variety clubs. Free tax filing online state Discrimination prohibited. Free tax filing online state   Your organization will not be recognized as tax exempt if its charter, bylaws, or other governing instrument, or any written policy statement provides for discrimination against any person on the basis of race, color, or religion. Free tax filing online state   However, a club that in good faith limits its membership to the members of a particular religion to further the teachings or principles of that religion and not to exclude individuals of a particular race or color will not be considered as discriminating on the basis of religion. Free tax filing online state Also, the restriction on religious discrimination does not apply to a club that is an auxiliary of a fraternal beneficiary society (discussed later) if that society is described in section 501(c)(8) and exempt from tax under section 501(a) and limits its membership to the members of a particular religion. Free tax filing online state Private benefit prohibited. Free tax filing online state   No part of the organization's net earnings can inure to the benefit of any person having a personal and private interest in the activities of the organization. Free tax filing online state For purposes of this requirement, it is not necessary that net earnings be actually distributed. Free tax filing online state Even undistributed earnings can benefit members. Free tax filing online state Examples of this include a decrease in membership dues or an increase in the services the club provides to its members without a corresponding increase in dues or other fees paid for club support. Free tax filing online state However, fixed-fee payments to members who bring new members into the club are not an inurement of the club's net earnings, if the payments are reasonable compensation for performance of a necessary administrative service. Free tax filing online state Purposes. Free tax filing online state   To show that your organization possesses the characteristics of a club within the meaning of the exemption law, you should submit evidence with your application that personal contact, commingling, and fellowship exist among members. Free tax filing online state You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. Free tax filing online state   Fellowship need not be present between each member and every other member of a club if it is a material part in the life of the organization. Free tax filing online state A statewide or nationwide organization that is made up of individual members, but is divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group. Free tax filing online state   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. Free tax filing online state For example, a club that, in addition to its social activities, has a plan for the payment of sick and death benefits is not operating exclusively for pleasure, recreation, and other nonprofitable purposes. Free tax filing online state Limited membership. Free tax filing online state   The membership in a social club must be limited. Free tax filing online state To show that your organization has a purpose that would characterize it as a club, you should submit evidence with your application that there are limits on admission to membership consistent with the character of the club. Free tax filing online state   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. Free tax filing online state Corporate members of a club are not the kind of members contemplated by the law. Free tax filing online state Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. Free tax filing online state See Gross receipts from nonmembership sources , later. Free tax filing online state Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. Free tax filing online state   The fact that a social club may have an associate (nonvoting) class of membership will not be, in and of itself, a cause for nonrecognition of exemption. Free tax filing online state However, if one membership class pays substantially lower dues and fees than another membership class, although both classes enjoy the same rights and privileges in using the club facilities, there may be an inurement of income to the benefited class, resulting in a denial of the club's exemption. Free tax filing online state Support. Free tax filing online state   In general, your club should be supported solely by membership fees, dues, and assessments. Free tax filing online state However, if otherwise entitled to exemption, your club will not be disqualified because it raises revenue from members through the use of club facilities or in connection with club activities. Free tax filing online state Business activities. Free tax filing online state   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. Free tax filing online state However, evidence submitted with your application form that your organization will provide meals, refreshments, or services related to its exempt purposes only to its own members or their dependents or guests will not cause denial of exemption. Free tax filing online state Facilities open to public. Free tax filing online state   Evidence that your club's facilities will be open to the general public (persons other than members or their dependents or guests) may cause denial of exemption. Free tax filing online state This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. Free tax filing online state Gross receipts from nonmembership sources. Free tax filing online state   A section 501(c)(7) organization can receive up to 35% of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. Free tax filing online state Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. Free tax filing online state Of the 35% gross receipts listed above, up to 15% of the gross receipts can be derived from the use of the club's facilities or services by the general public. Free tax filing online state If an organization has outside income that is more than these limits, all the facts and circumstances will be taken into account in determining whether the organization qualifies for exempt status. Free tax filing online state Gross receipts. Free tax filing online state   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. Free tax filing online state These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. Free tax filing online state Receipts do not include initiation fees and capital contributions. Free tax filing online state Unusual amounts of income, such as from the sale of a clubhouse or similar facility, are not included in gross receipts or in figuring the percentage limits. Free tax filing online state Nontraditional activities. Free tax filing online state   Activities conducted by a social club need to further its exempt purposes. Free tax filing online state Traditional business activities are those that further a social club's exempt purposes. Free tax filing online state Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. Free tax filing online state Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. Free tax filing online state Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. Free tax filing online state Fraternity foundations. Free tax filing online state   If your organization is a foundation formed for the exclusive purpose of acquiring and leasing a chapter house to a local fraternity chapter or sorority chapter maintained at an educational institution and does not engage in any social or recreational activities, it may be a title holding corporation (discussed later under section 501(c)(2) organizations and under section 501(c)(25) organizations) rather than a social club. Free tax filing online state Tax treatment of donations. Free tax filing online state   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. Free tax filing online state 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies This section describes the information to be provided upon application for recognition of exemption by two types of fraternal societies: beneficiary and domestic. Free tax filing online state The major distinction is that fraternal beneficiary societies provide for the payment of life, sick, accident, or other benefits to their members or their dependents, while domestic fraternal societies do not provide these benefits but rather devote their earnings to fraternal, religious, charitable, etc. Free tax filing online state , purposes. Free tax filing online state The procedures to follow in applying for recognition of exemption are described in chapter 1. Free tax filing online state If your organization is controlled by a central organization, you should check with your controlling organization to determine whether your unit has been included in a group exemption letter or can be added. Free tax filing online state If so, your organization need not apply for individual recognition of exemption. Free tax filing online state For more information, see Group Exemption Letter in chapter 1 of this publication. Free tax filing online state Tax treatment of donations. Free tax filing online state   Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Free tax filing online state Fraternal Beneficiary Societies (501(c)(8)) A fraternal beneficiary society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Free tax filing online state The application and accompanying statements should establish that the organization: Is a fraternal organization, Operates under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system, and Provides for the payment of life, sick, accident, or other benefits to the members of the society, order, or association or their dependents. Free tax filing online state Lodge system. Free tax filing online state   Operating under the lodge system means carrying on activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. Free tax filing online state Payment of benefits. Free tax filing online state   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. Free tax filing online state An organization can qualify for exemption if most of its members are eligible for benefits, and the benefits are paid from contributions or dues paid by those members. Free tax filing online state   The benefits must be limited to members and their dependents. Free tax filing online state If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. Free tax filing online state Whole-life insurance. Free tax filing online state   Whole-life insurance constitutes a life benefit under section 501(c)(8) even though the policy may contain investment features such as a cash surrender value or a policy loan. Free tax filing online state Reinsurance pool. Free tax filing online state   Payments by a fraternal beneficiary society into a state-sponsored reinsurance pool that protects participating insurers against excessive losses on major medical health and accident insurance will not preclude exemption as a fraternal beneficiary society. Free tax filing online state Domestic Fraternal Societies (501(c)(10)) A domestic fraternal society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Free tax filing online state The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. Free tax filing online state S. Free tax filing online state , Operates under the lodge system, Devotes its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and Does not provide for the payment of life, sick, accident, or other benefits to its members. Free tax filing online state The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. Free tax filing online state 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations This section describes the information to be provided upon application for recognition of exemption by the following types of employees' associations: A voluntary employees' beneficiary association (including federal employees' associations) organized to pay life, sick, accident, and similar benefits to members or their dependents, or designated beneficiaries, if no part of the net earnings of the association inures to the benefit of any private shareholder or individual, and A supplemental unemployment benefit trust whose primary purpose is providing for payment of supplemental unemployment benefits. Free tax filing online state Both the application form to file and the information to provide are discussed later under the section that describes your employee association. Free tax filing online state Chapter 1 describes the procedures to follow in applying for exemption. Free tax filing online state Tax treatment of donations. Free tax filing online state   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. Free tax filing online state Local Employees' Associations (501(c)(4)) A local association of employees whose membership is limited to employees of a designated person or persons in a particular municipality, and whose income will be devoted exclusively to charitable, educational, or recreational purposes. Free tax filing online state A local employees' association must apply for recognition of exemption by filing Form 1024. Free tax filing online state The organization must submit evidence that: It is of a purely local character, Its membership is limited to employees of a designated person or persons in a particular locality, and Its net earnings will be devoted exclusively to charitable, educational, or recreational purposes. Free tax filing online state A local association of employees that has established a system of paying retirement or death benefits, or both, to its members will not qualify for exemption since the payment of these benefits is not considered as being for charitable, educational, or recreational purposes. Free tax filing online state Similarly, a local association of employees that is operated primarily as a cooperative buying service for its members in order to obtain discount prices on merchandise, services, and activities does not qualify for exemption. Free tax filing online state Voluntary Employees' Beneficiary Associations (501(c)(9)) An application for recognition of exemption as a voluntary employees' beneficiary association must be filed on Form 1024. Free tax filing online state The material submitted with the application must show that your organization: Is a voluntary association of employees, Will provide for payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries and substantially all of its operations are for this purpose, and Will not allow any of its net earnings to inure to the benefit of any private individual or shareholder except in the form of scheduled benefit payments. Free tax filing online state To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Free tax filing online state Note. Free tax filing online state Under section 4976, the reversion of funds from a section 501(c)(9) organization to the employer who created the beneficiary association may subject the employer to a 100% penalty excise tax on the amount of the reversion. Free tax filing online state Notice requirement. Free tax filing online state   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Free tax filing online state The organization gives notice by filing Form 1024. Free tax filing online state If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before notice is given. Free tax filing online state An extension of time for filing the notice can be granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Free tax filing online state Membership. Free tax filing online state   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. Free tax filing online state This common bond can be a common employer (or affiliated employers), coverage under one or more collective bargaining agreements, membership in a labor union, or membership in one or more locals of a national or international labor union. Free tax filing online state   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. Free tax filing online state For example, the owner of a business whose employees are members of the association can be a member. Free tax filing online state An association will be considered composed of employees if 90% of its total membership on one day of each quarter of its tax year consists of employees. Free tax filing online state Employees. Free tax filing online state   Employees include individuals who became entitled to membership because they are or were employees. Free tax filing online state For example, an individual will qualify as an employee even though the individual is on a leave of absence or has been terminated due to retirement, disability, or layoff. Free tax filing online state   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. Free tax filing online state Conversely, membership is involuntary if the designation as a member is due to employee status. Free tax filing online state However, an association will be considered voluntary if employees are required to be members of the organization as a condition of their employment and they do not incur a detriment (such as a payroll deduction) as a result of their membership. Free tax filing online state An employer has not imposed involuntary membership on the employee if membership is required as the result of a collective bargaining agreement or as an incident of membership in a labor organization. Free tax filing online state Payment of benefits. Free tax filing online state   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. Free tax filing online state The benefits can be provided directly by your association or indirectly by your association through the payments of premiums to an insurance company (or fees to a medical clinic). Free tax filing online state Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. Free tax filing online state Nondiscrimination requirements. Free tax filing online state   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. Free tax filing online state However, if the organization is part of a plan that is a collective bargaining agreement that was the subject of good faith bargaining between employee organizations and employers, the plan need not meet these requirements for the organization to qualify as tax exempt. Free tax filing online state   A plan meets the nondiscrimination requirements only if both of the following statements are true. Free tax filing online state Each class of benefits under the plan is provided under a classification of employees that is set forth in the plan and does not discriminate in favor of employees who are highly compensated individuals. Free tax filing online state The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. Free tax filing online state A life insurance, disability, severance pay, or supplemental unemployment compensation benefit does not discriminate in favor of highly compensated individuals merely because the benefits available bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of employees covered by the plan. Free tax filing online state   For purposes of determining whether a plan meets the nondiscrimination requirements, the employer can elect to exclude all disability or severance payments payable to individuals who are in pay status as of January 1, 1985. Free tax filing online state This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. Free tax filing online state   If a plan provides a benefit for which there is a nondiscrimination provision provided under Chapter 1 of the Internal Revenue Code as a condition of that benefit being excluded from gross income, these nondiscrimination requirements do not apply. Free tax filing online state The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. Free tax filing online state For example, benefits provided under a medical reimbursement plan would meet the nondiscrimination requirements for an association, if the benefits meet the nondiscrimination requirements of section 105(h)(3) and 105(h)(4). Free tax filing online state Excluded employees. Free tax filing online state   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. Free tax filing online state These include employees: Who have not completed 3 years of service, Who have not attained age 21, Who are seasonal or less than half-time employees, Who are not in the plan and who are included in a unit of employees covered by a collective bargaining agreement if the class of benefits involved was the subject of good faith bargaining, or Who are nonresident aliens and who receive no earned income from the employer that has United States source income. Free tax filing online state Highly compensated individual. Free tax filing online state   A highly compensated individual is one who: Owned 5 percent or more of the employer at any time during the current year or the preceding year, Received more than $115,000 in compensation from the employer for the preceding year (the amount is annualized for inflation. Free tax filing online state Go to IRS. Free tax filing online state gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. Free tax filing online state However, the employer can choose not to have (3) apply. Free tax filing online state Aggregation rules. Free tax filing online state   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. Free tax filing online state Employees of controlled groups of corporations, trades, or businesses under common control, or members of an affiliated service group, are treated as employees of a single employer. Free tax filing online state Leased employees are treated as employees of the recipient. Free tax filing online state One employee. Free tax filing online state   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). Free tax filing online state Supplemental Unemployment Benefit Trusts (501(c)(17)) A trust or trusts forming part of a written plan (established and maintained by an employer, his or her employees, or both) providing solely for the payment of supplemental unemployment compensation benefits must file the application for recognition of exemption on Form 1024. Free tax filing online state The trust must be a valid, existing trust under local law and must be evidenced by an executed document. Free tax filing online state A conformed copy of the plan of which the trust is a part should be attached to the application. Free tax filing online state To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Free tax filing online state Note. Free tax filing online state Under section 4976, the reversion of funds from a section 501(c)(17) organization to the employer who created the supplemental unemployment benefit trust may subject the employer to a 100% penalty excise tax on the amount of the reversion. Free tax filing online state Notice requirement. Free tax filing online state   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Free tax filing online state The organization gives notice by filing Form 1024. Free tax filing online state If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before such notice is given. Free tax filing online state An extension of time for filing the notice is granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Free tax filing online state Types of payments. Free tax filing online state   You must show that the supplemental unemployment compensation benefits will be benefits paid to an employee because of the employee's involuntary separation from employment (whether or not the separation is temporary) resulting directly from a reduction-in-force, discontinuance of a plant or operation, or other similar conditions. Free tax filing online state In addition, sickness and accident benefits (but not vacation, retirement, or death benefits) may be included in the plan if these are subordinate to the unemployment compensation benefits. Free tax filing online state Diversion of funds. Free tax filing online state   It must be impossible under the plan (at any time before the satisfaction of all liabilities with respect to employees under the plan) to use or to divert any of the corpus or income of the trust to any purpose other than the payment of supplemental unemployment compensation benefits (or sickness or accident benefits to the extent just explained). Free tax filing online state Discrimination in benefits. Free tax filing online state   Neither the terms of the plan nor the actual payment of benefits can be discriminatory in favor of the company's officers, stockholders, supervisors, or highly paid employees. Free tax filing online state However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. Free tax filing online state Prohibited transactions and exemption. Free tax filing online state   If your organization is a supplemental unemployment benefit trust and has received a denial of exemption because it engaged in a prohibited transaction, as defined by section 503(b), it can file a claim for exemption in any tax year following the tax year in which the notice of denial was issued. Free tax filing online state It must file the claim on Form 1024. Free tax filing online state The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. Free tax filing online state An authorized principal officer of your organization must make this declaration under the penalties of perjury. Free tax filing online state   If your organization has satisfied all requirements as a supplemental unemployment benefit trust described in section 501(c)(17), it will be notified in writing that it has been recognized as exempt. Free tax filing online state However, the organization will be exempt only for those tax years after the tax year in which the claim for exemption (Form 1024) is filed. Free tax filing online state Tax year in this case means the established annual accounting period of the organization or, if the organization has not established an annual accounting period, the calendar year. Free tax filing online state For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. Free tax filing online state 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations Each of the following organizations apply for recognition of exemption from federal income tax by filing Form 1024. Free tax filing online state Benevolent life insurance associations of a purely local character and like organizations. Free tax filing online state Mutual ditch or irrigation companies and like organizations. Free tax filing online state Mutual or cooperative telephone companies and like organizations. Free tax filing online state A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. Free tax filing online state The information to be provided upon application by each of these organizations is described in this section. Free tax filing online state For information as to the procedures to follow in applying for exemption, see chapter 1. Free tax filing online state General requirements. Free tax filing online state   These organizations must use their income solely to cover losses and expenses, with any excess being returned to members or retained to cover future losses and expenses. Free tax filing online state They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. Free tax filing online state Mutual character. Free tax filing online state   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. Free tax filing online state They are associations of persons or organizations, or both, banded together to provide themselves a mutually desirable service approximately at cost and on a mutual basis. Free tax filing online state To maintain the mutual characteristic of democratic ownership and control, they must be so organized and operated that their members have the right to choose the management, to receive services at cost, to receive a return of any excess of payments over losses and expenses, and to share in any assets upon dissolution. Free tax filing online state   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. Free tax filing online state Upon dissolution, gains from the sale of appreciated assets must be distributed to all persons who were members during the period the assets were owned by the organization in proportion to the amount of business done during that period. Free tax filing online state The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. Free tax filing online state Membership. Free tax filing online state   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. Free tax filing online state In a stock company, the stockholders are members. Free tax filing online state However, a mutual life insurance organization cannot have policyholders other than its members. Free tax filing online state Losses and expenses. Free tax filing online state   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. Free tax filing online state Any excess income not retained in reasonable reserves for future losses and expenses belongs to members in proportion to their patronage or business done with the organization. Free tax filing online state If such patronage refunds are retained in reasonable amounts for purposes of expanding and improving facilities, retiring capital indebtedness, acquiring other assets, and unexpected expenses, the organization must maintain records sufficient to reflect the equity of each member in the assets acquired with the funds. Free tax filing online state Distributions of proceeds. Free tax filing online state   The cooperative may distribute the unexpended balance of collections or assessments remaining on hand at the end of the year to members or patrons prorated on the basis of their patronage or business done with the cooperative. Free tax filing online state Such distribution represents a refund in the costs of services rendered to the member. Free tax filing online state The 85% Requirement All of the organizations listed above must submit evidence with their application that they receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses. Free tax filing online state Nevertheless, certain items of income are excluded from the computation of the 85% requirement if the organization is a mutual or cooperative telephone or electric company. Free tax filing online state Mutual or cooperative telephone company. Free tax filing online state   A mutual or cooperative telephone company will exclude from the computation of the 85% requirement any income received or accrued from: A nonmember telephone company for the performance of communication services involving the completion of long distance calls to, from, or between members of the mutual or cooperative telephone company, Qualified pole rentals, The sale of display listings in a directory furnished to its members, or The prepayment of a loan created in 1987, 1988, or 1989, under section 306A, 306B, or 311 of the Rural Electrification Act of 1936. Free tax filing online state Mutual or cooperative electric company. Free tax filing online state   A mutual or cooperative electric company will exclude from the computation of the 85% requirement any income received or accrued from: Qualified pole rentals, Any provision or sale of electric energy transmission services or ancillary service if the services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by the Federal Energy Regulatory Commission (FERC) or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), The provision or sale of electric energy distribution services or ancillary services if the services are provided on a nondiscriminatory open-access basis to distribute electric energy not owned by the mutual or electric cooperative company: To end-users who are served by distribution facilities not owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), or Generated by a generation facility not owned or leased by the company or any of its members and which is directly connected to distribution facilities owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), Any nuclear decommissioning transaction, or Any asset exchange or conversion transaction. Free tax filing online state   An electric cooperative's sale of excess fuel at cost in the year of purchase is not income for purposes of determining compliance with the 85% requirement. Free tax filing online state Qualified pole rental. Free tax filing online state   The term qualified pole rental means any rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that are used by the company in providing telephone or electric services to its members, and Pursuant to the rental to support one or more wires (in addition to wires described in (1)) for use in connection with the transmission by wire of electricity or of telephone or other communications. Free tax filing online state   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). Free tax filing online state The 85% requirement is applied on the basis of an annual accounting period. Free tax filing online state Failure of an organization to meet the requirement in a particular year precludes exemption for that year, but has no effect upon exemption for years in which the 85% requirement is met. Free tax filing online state Gain from the sale or conversion of the organization's property is not considered an amount received from members in determining whether the organization's income consists of amounts collected from members. Free tax filing online state Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. Free tax filing online state Example. Free tax filing online state   The books of an organization reflect the following for the calendar year. Free tax filing online state Collections from members $2,400 Short-term capital gains 600 Short-term capital losses 400 Other income None Gross income ($2,400 + $600 =$3000) 100% Collected from members ($2,400) 80%   Since amounts collected from members do not constitute at least 85% of gross income, the organization is not entitled to exemption from federal income tax for the year. Free tax filing online state   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. Free tax filing online state   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. Free tax filing online state   If the 85% test is not met, your organization, if classifiable under this section, will not qualify for exemption as any other type of organization described in this publication. Free tax filing online state Tax treatment of donations. Free tax filing online state   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. Free tax filing online state Local Life Insurance Associations A benevolent life insurance association or an organization seeking recognition of exemption on grounds of similarity to a benevolent life insurance association must submit evidence upon applying for recognition of exemption that it will be of a purely local character, that its excess funds will be refunded to members or retained in reasonable reserves to meet future losses and expenses, and that it meets the 85% income requirement. Free tax filing online state If an organization issues policies for stipulated cash premiums, or if it requires advance deposits to cover the cost of the insurance and maintains investments from which more than 15% of its income is derived, it will not be entitled to exemption. Free tax filing online state To establish that your organization is of a purely local character, it should show that its activities will be confined to a particular community, place, or district irrespective of political subdivisions. Free tax filing online state If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. Free tax filing online state A benevolent life insurance association that does not terminate membership when a member moves from the local area in which the association operates will qualify for exemption if it meets the other requirements. Free tax filing online state A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. Free tax filing online state Organizations similar to local benevolent life insurance companies. Free tax filing online state   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. Free tax filing online state However, an organization that pays only sick, accident, or health benefits, but not life insurance benefits, is not an organization similar to a benevolent life insurance association and should not apply for recognition of exemption as described in this section. Free tax filing online state Burial and funeral benefit insurance organization. Free tax filing online state   This type of organization can apply for recognition of exemption as an organization similar to a benevolent life insurance company if it establishes that the benefits are paid in cash and if it is not engaged directly in the manufacture of funeral supplies or the performance of funeral services. Free tax filing online state An organization that provides its benefits in the form of supplies and service is not a life insurance company. Free tax filing online state Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. Free tax filing online state Mutual or Cooperative Associations Mutual ditch or irrigation companies, mutual or cooperative telephone companies, and like organizations need not establish that they are of a purely local character. Free tax filing online state They can serve noncontiguous areas. Free tax filing online state Like organization. Free tax filing online state   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. Free tax filing online state Examples include the following: cooperatives that provide protection of river banks to prevent erosion, water and sewer services, cable television, satellite, television, cellular phone services, two-way radio service, or natural gas services. Free tax filing online state 501(c)(13) - Cemetery Companies If your organization wishes to obtain recognition of exemption from federal income tax as a cemetery company or a corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, it must file an application on Form 1024. Free tax filing online state For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. Free tax filing online state A nonprofit mutual cemetery company that seeks recognition of exemption should submit evidence with its application that it is owned and operated exclusively for the benefit of its lot owners who hold lots for bona fide burial purposes and not for purposes of resale. Free tax filing online state A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. Free tax filing online state The fact that a mutual cemetery company limits its membership to a particular class of individuals, such as members of a family, will not affect its status as mutual so long as all the other requirements of section 501(c)(13) are met. Free tax filing online state If your organization is a nonprofit corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, you should show that it is not permitted by its charter to engage in any business not necessarily incident to that purpose. Free tax filing online state Operating a mortuary is not permitted. Free tax filing online state However, selling monuments, markers, vaults, and flowers solely for use in the cemetery is permitted if the profits from these sales are used to maintain the cemetery as a whole. Free tax filing online state How income can be used. Free tax filing online state   You should show that your organization's earnings are or will be used only in one or more of the following ways. Free tax filing online state To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. Free tax filing online state To buy cemetery property. Free tax filing online state To create a fund that will provide a source of income for the perpetual care of the cemetery or a reasonable reserve for any ordinary or necessary purpose. Free tax filing online state No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. Free tax filing online state Ordinary and necessary expenses in connection with the operation, management, maintenance, and improvement of the cemetery are permitted, as are reasonable fees for the services of a manager. Free tax filing online state Buying cemetery property. Free tax filing online state   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. Free tax filing online state You must show the method used to finance the purchase of the cemetery property and that the purchase price of the land at the time of its sale to the cemetery was not unreasonable. Free tax filing online state   Except for holders of preferred stock (discussed later), no person can have any interest in the net earnings of a tax-exempt cemetery company or crematorium. Free tax filing online state Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not
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Department of Housing and Urban Development (HUD)

The Department of Housing and Urban Development administers programs that provide housing and community development assistance. The Department also works to ensure fair and equal housing opportunity for all.

The Free Tax Filing Online State

Free tax filing online state 31. Free tax filing online state   Impuesto sobre Ingresos No Derivados del Trabajo de Determinados Hijos Table of Contents ¿Que Hay de Nuevo? Introduction Useful Items - You may want to see: Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la MadrePadres que no Presentan la Declaración Conjunta Elección de los Padres de Declarar los Intereses y Dividendos del HijoConsecuencias de Incluir los Ingresos del Hijo Cómo Calcular los Ingresos del Hijo Cómo Calcular el Impuesto Adicional Impuesto para Determinados Hijos con Ingresos No Derivados del TrabajoCómo Facilitar Información sobre los Padres (líneas A-C del Formulario 8615) Paso 1. Free tax filing online state Cómo Calcular los Ingresos Netos No Derivados del Trabajo del Hijo (Parte I del Formulario 8615) Paso 2. Free tax filing online state Cómo Calcular el Impuesto Provisional a la Tasa Impositiva de los Padres (Parte II del Formulario 8615) Paso 3. Free tax filing online state Cómo Calcular el Impuesto del Hijo (Parte III del Formulario 8615) ¿Que Hay de Nuevo? Impuesto sobre el ingreso neto de inversiones. Free tax filing online state  Para años empezando después del 31 de diciembre de 2012, el impuesto de un hijo, el cual se calcula en el Formulario 8615, puede estar sujeto al impuesto sobre el ingreso neto de inversiones (NIIT, por sus siglas en inglés). Free tax filing online state El NIIT es un impuesto de 3. Free tax filing online state 8% sobre la cantidad menor entre el ingreso neto de inversión o el exceso del ingreso bruto ajustado modificado (MAGI) del hijo que exceda del límite superior específico. Free tax filing online state Utilice el Formulario 8960, Net Investment Income Tax (Impuesto sobre ingreso neto de inversiones), en inglés, para calcular este impuesto. Free tax filing online state Para más información sobre el NIIT, visite www. Free tax filing online state irs. Free tax filing online state gov e ingrese “Net Investment Income Tax” en la casilla de búsqueda “Search” (Buscar), en inglés. Free tax filing online state Introduction Este capítulo explica los dos requisitos siguientes, los cuales podrían afectar el impuesto sobre ingresos no derivados del trabajo de determinados hijos: Si los ingresos procedentes de intereses y dividendos del hijo (incluidas las distribuciones de ganancias de capital) totalizan menos de $10,000, el padre o la madre tal vez pueda optar por incluir dichos ingresos en la declaración de uno de los padres en vez de presentar una declaración a nombre del hijo. Free tax filing online state Vea Elección de los Padres de Declarar Intereses y Dividendos del Hijo , más adelante. Free tax filing online state Si el total de intereses, dividendos y otros ingresos no derivados del trabajo del hijo sobrepasa $2,000, una parte de dichos ingresos podría estar sujeta a la misma tasa de impuesto que la de sus padres en lugar de estar sujeta a la tasa del hijo. Free tax filing online state (Vea Impuesto para Determinados Hijos con Ingresos No Derivados del Trabajo , más adelante). Free tax filing online state En lo que concierne a estos requisitos, el término “hijo” abarca a hijos legalmente adoptados e hijastros. Free tax filing online state Estos requisitos corresponden tanto si el hijo es dependiente como si no lo es. Free tax filing online state Useful Items - You may want to see: Publicación 929 Tax Rules for Children and Dependents (Requisitos tributarios para hijos y dependientes), en inglés Formulario (e Instrucciones) 8615 Tax for Certain Children Who Have Unearned Income (Impuesto para determinados hijos con ingresos no derivados del trabajo), en inglés 8814 Parents' Election To Report Child's Interest and Dividends (Elección de los padres de declarar los intereses y dividendos del hijo), en inglés Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la Madre Si los padres del hijo están casados el uno con el otro y presentan una declaración conjunta, básese en la declaración conjunta para calcular el impuesto sobre los ingresos no derivados del trabajo de dicho hijo. Free tax filing online state La tasa impositiva y otra información de dicha declaración se utiliza para calcular el impuesto del hijo según se explica más adelante bajo Impuesto para Determinados Hijos con Ingresos No Derivados del Trabajo . Free tax filing online state Padres que no Presentan la Declaración Conjunta Para los padres que no presenten la declaración conjunta, los siguientes temas aclaran, cuál declaración de impuestos de los padres tiene que utilizar para calcular el impuesto. Free tax filing online state Sólo el padre o la madre cuya declaración se utilice puede elegir la opción descrita bajo Elección de los Padres de Declarar Intereses y Dividendos del Hijo . Free tax filing online state Padres casados. Free tax filing online state   Si los padres del hijo presentan declaraciones por separado, utilice la declaración de quien tenga el mayor ingreso tributable. Free tax filing online state Padres que no viven juntos. Free tax filing online state   Si los padres del hijo están casados el uno con el otro pero no viven juntos, y el padre o la madre con quien vive el hijo (el padre o la madre con custodia) se considera no casado, utilice la declaración del padre o de la madre con custodia. Free tax filing online state Si el padre o la madre con custodia no es considerado no casado, utilice la declaración de quien tenga el mayor ingreso tributable. Free tax filing online state   Para una explicación sobre cuándo una persona casada que vive aparte de su cónyuge es considerada no casada, vea Cabeza de Familia en el capítulo 2. Free tax filing online state Padres divorciados. Free tax filing online state   Si los padres del hijo están divorciados o legalmente separados y el padre o la madre que tuvo la custodia del hijo durante la mayor parte del año (el padre o la madre con custodia) no se ha vuelto a casar, utilice la declaración del padre o de la madre con custodia. Free tax filing online state Padre o madre con custodia que se ha vuelto a casar. Free tax filing online state   Si el padre o la madre con custodia ha vuelto a casarse, el padrastro o la madrastra (en vez del padre o la madre sin custodia) se considera el otro padre o la otra madre del hijo. Free tax filing online state Por lo tanto, si el padre o la madre con custodia y el padrastro o la madrastra presentan una declaración conjunta, utilice dicha declaración conjunta. Free tax filing online state No utilice la declaración del padre o de la madre sin custodia. Free tax filing online state   Si el padre o la madre con custodia está casado con el padrastro o la madrastra pero presentan declaraciones por separado, utilice la declaración de quien tenga el mayor ingreso tributable. Free tax filing online state Si el padre o la madre con custodia está casado con el padrastro o la madrastra pero no viven juntos, corresponde el tema anterior Padres que no viven juntos . Free tax filing online state Padres que nunca se han casado. Free tax filing online state   Si los padres del hijo nunca han estado casados el uno con el otro pero vivieron juntos durante todo el año, utilice la declaración de quien tenga el mayor ingreso tributable. Free tax filing online state Si los padres no vivieron juntos durante todo el año, corresponden los requisitos explicados anteriormente bajo Padres divorciados . Free tax filing online state Padre viudo o madre viuda que se vuelve a casar. Free tax filing online state   Si un viudo o una viuda vuelve a casarse, el nuevo cónyuge se considera el otro padre o la otra madre del hijo. Free tax filing online state En este caso, corresponden los requisitos explicados anteriormente bajo Padre o madre con custodia que se ha vuelto a casar . Free tax filing online state Elección de los Padres de Declarar los Intereses y Dividendos del Hijo Tal vez pueda optar por incluir los ingresos de su hijo procedentes de intereses y dividendos (incluidas las distribuciones de ganancias de capital) en la declaración de impuestos. Free tax filing online state En tal caso, su hijo no estará obligado a presentar una declaración. Free tax filing online state Puede elegir esta opción sólo si se cumplen todas las condiciones siguientes: Su hijo tenía menos de 19 años de edad (o tenía menos de 24 años si era estudiante a tiempo completo) al finalizar el año. Free tax filing online state Su hijo recibió ingresos sólo de intereses y dividendos (incluidas las distribuciones de ganancias de capital y dividendos del Alaska Permanent Fund (Fondo Permanente de Alaska)). Free tax filing online state Los ingresos brutos del hijo eran menos de $10,000. Free tax filing online state El hijo está obligado a presentar la declaración a no ser que usted elija incluir estos ingresos. Free tax filing online state El hijo no presenta una declaración conjunta correspondiente al año actual. Free tax filing online state No se efectuó ningún pago de impuestos estimados para el año ni se aplicó a este año ningún pago del año anterior (ni de una declaración enmendada) en exceso bajo el nombre y número de Seguro Social de su hijo. Free tax filing online state No se retuvo de los ingresos de su hijo ningún impuesto federal sobre los ingresos conforme a las reglas de la retención adicional. Free tax filing online state Usted es el padre o la madre cuya declaración se tiene que utilizar al aplicar los requisitos tributarios especiales para hijos. Free tax filing online state (Vea Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la Madre , anteriormente). Free tax filing online state Estas condiciones se hallan también en la Figura 31-A. Free tax filing online state Determinados cumpleaños el 1 de enero. Free tax filing online state   Un hijo que haya nacido el 1 de enero de 1995 se considerará de 19 años de edad al final del año 2013. Free tax filing online state Usted no puede optar por declarar los intereses y dividendos de tal hijo a menos que éste fuera estudiante a tiempo completo. Free tax filing online state   Aquel hijo que haya nacido el 1 de enero de 1990 se considerará de 24 años de edad al final del año 2013. Free tax filing online state Usted no puede optar por declarar los intereses y dividendos de tal hijo. Free tax filing online state Estudiante a tiempo completo. Free tax filing online state   Un estudiante a tiempo completo es un hijo matriculado como tal durante alguna parte de cada uno de 5 meses del año calendario en una escuela o que asistió a tiempo completo a un curso de capacitación agrícola ofrecido sobre el terreno por una escuela, agencia del estado, condado o gobierno local. Free tax filing online state El término “escuela” abarca escuelas politécnicas, profesionales e industriales. Free tax filing online state Una escuela no incluye un curso de capacitación en el trabajo, escuela por correspondencia, ni escuelas que ofrecen cursos sólo por Internet. Free tax filing online state Cómo optar por incluir los ingresos de su hijo. Free tax filing online state   Elija incluir los ingresos de su hijo adjuntando el Formulario 8814 al Formulario 1040. Free tax filing online state (Si opta por hacer esto, no puede presentar el Formulario 1040A ni el Formulario 1040EZ). Free tax filing online state Adjunte un Formulario 8814 distinto correspondiente a cada hijo cuyos ingresos desee incluir. Free tax filing online state Puede incluir los ingresos de uno o más hijos y no incluir los ingresos de otros. Free tax filing online state Consecuencias de Incluir los Ingresos del Hijo El impuesto federal sobre los ingresos de su hijo podría ser mayor si opta por usar el Formulario 8814. Free tax filing online state La tasa impositiva podría ser más alta. Free tax filing online state   Si su hijo recibió dividendos calificados o distribuciones de ganancias de capital, usted podría pagar hasta $100 adicionales de impuestos si incluye los ingresos de su hijo en vez de presentar una declaración de impuestos por separado a nombre del hijo. Free tax filing online state Esto se debe a que la tasa impositiva que corresponde a los ingresos de su hijo entre $1,000 y $2,000 es de 10% si usted opta por incluirlos. Free tax filing online state No obstante, si presenta una declaración por separado en nombre del hijo, la tasa impositiva podría bajar hasta 0% (porcentaje de cero) debido a las tasas impositivas preferentes para dividendos calificados y distribuciones de ganancias de capital. Free tax filing online state Deducciones que no puede tomar. Free tax filing online state   Al hacer la elección de incluir estos ingresos en el Formulario 8814, no puede tomar ninguna de las deducciones siguientes a la que el hijo tendría derecho en su propia declaración. Free tax filing online state La deducción estándar adicional si el hijo es ciego. Free tax filing online state La deducción por una multa por el retiro prematuro de los ahorros de su hijo. Free tax filing online state Deducciones detalladas (como gastos de inversiones de su hijo o donaciones caritativas). Free tax filing online state Deducciones o créditos reducidos. Free tax filing online state   Si utiliza el Formulario 8814, su ingreso bruto ajustado aumentado podría reducir determinados créditos o deducciones en la declaración, incluyendo lo siguiente: Deducciones por aportaciones a una cuenta de ahorros tradicional para la jubilación (IRA, por sus siglas en inglés). Free tax filing online state Deducciones por intereses sobre un préstamo de estudios. Free tax filing online state Deducciones detalladas por gastos médicos, pérdidas por hecho fortuito y robo y ciertos gastos misceláneos. Free tax filing online state Crédito por gastos del cuidado de hijos y dependientes. Free tax filing online state Crédito tributario por hijos. Free tax filing online state Créditos tributarios por estudios. Free tax filing online state Crédito por ingreso del trabajo. Free tax filing online state Figura 31-A. Free tax filing online state ¿Puede Incluir Usted en su Declaración de Impuestos los Ingresos de su Hijo? Please click here for the text description of the image. Free tax filing online state Figura 31–A. Free tax filing online state ¿Puede Incluir Usted en su Declaración de Impuestos los Ingresos de su Hijo? Multa por pago insuficiente del impuesto estimado. Free tax filing online state   Si elige incluir estos ingresos para 2013 y no se le retuvo impuesto suficiente o no pagó suficiente impuesto estimado para saldar los impuestos adeudados, podría estar sujeto a una multa. Free tax filing online state Si piensa elegir lo mismo para 2014, es posible que necesite aumentar la retención de impuestos federales sobre el ingreso o los pagos de impuesto estimado para evitar la multa. Free tax filing online state Vea el capítulo 4 para más información. Free tax filing online state Cómo Calcular los Ingresos del Hijo Utilice la Parte I del Formulario 8814 para calcular los ingresos de su hijo procedentes de intereses y dividendos declarados por usted. Free tax filing online state A sus ingresos sólo se le añade la cantidad que sea superior a $2,000. Free tax filing online state La cantidad superior a $2,000 se indica en la línea 6 del Formulario 8814. Free tax filing online state A menos que los ingresos del hijo abarquen dividendos calificados o distribuciones de ganancias de capital (explicadas a continuación), la misma cantidad se indica en la línea 12 del Formulario 8814. Free tax filing online state Incluya la cantidad de la línea 12 del Formulario 8814 en la línea 21 del Formulario 1040. Free tax filing online state Anote en inglés “Form 8814” en la línea de puntos al lado de la línea 21. Free tax filing online state Si presenta más de un Formulario 8814, incluya el total de los montos de la línea 12 de todos los Formularios 8814 en la línea 21 del Formulario 1040. Free tax filing online state Distribuciones de ganancias de capital y dividendos calificados. Free tax filing online state   Si se incluye alguna distribución de ganancias de capital en los ingresos de dividendos de su hijo, vea Capital gain distributions (Distribuciones de ganancias de capital) bajo Figuring Child's Income (Cómo calcular los ingresos del hijo) en la Parte 2 de la Publicación 929, en inglés. Free tax filing online state Si se incluye algún dividendo calificado en los ingresos de dividendos de su hijo, vea Qualified dividends (Dividendos calificados) bajo Figuring Child's Income (Cómo calcular los ingresos del hijo) en la Parte 2 de la Publicación 929, en inglés. Free tax filing online state Cómo Calcular el Impuesto Adicional Utilice la Parte II del Formulario 8814 para calcular el impuesto sobre los $2,000 de los intereses y dividendos de su hijo que no incluya usted en sus ingresos. Free tax filing online state Este impuesto se suma al impuesto calculado sobre los ingresos suyos. Free tax filing online state Dicho impuesto adicional es la cantidad que sea menor entre: El 10% (multiplicado por la cantidad de los ingresos brutos de su hijo menos $1,000) o $100. Free tax filing online state Incluya el monto de la línea 15 de todos los Formularios 8814 en el total de la línea 44 del Formulario 1040. Free tax filing online state Marque el recuadro a de la línea 44 del Formulario 1040. Free tax filing online state Figura 31-B. Free tax filing online state ¿Tiene que Utilizar el Formulario 8615 para Calcular los Impuestos de su Hijo? Please click here for the text description of the image. Free tax filing online state Figura 31-B. Free tax filing online state ¿Tiene que Utilizar el Formulario 8615 para Calcular los Impuestos de su Hijo? Impuesto para Determinados Hijos con Ingresos No Derivados del Trabajo Si el total de intereses, dividendos y otros ingresos no derivados del trabajo de un hijo sobrepasa $2,000, una parte de dichos ingresos podría estar sujeta a la misma tasa impositiva que la de sus padres en lugar de estar sujeta a la tasa del hijo. Free tax filing online state Si el padre o la madre no elige, o no puede elegir, incluir los ingresos del hijo en su declaración, utilice el Formulario 8615 para calcular los impuestos del hijo. Free tax filing online state Adjunte el formulario completado al Formulario 1040 o al Formulario 1040A del hijo. Free tax filing online state Cuándo se tiene que presentar el Formulario 8615. Free tax filing online state   El Formulario 8615 tiene que presentarse para un hijo si se dan todas las siguientes condiciones: Los ingresos del hijo no derivados del trabajo eran superiores a $2,000. Free tax filing online state El hijo está obligado a presentar una declaración para 2013. Free tax filing online state Dicho hijo: Era menor de 18 años de edad al final del año, Tenía 18 años a finales del año y su ingreso del trabajo no constituía más de la mitad de su manutención o Era estudiante a tiempo completo mayor de 18 años y menor de 24 años al finalizar el año y su ingreso del trabajo no constituía más de la mitad de la manutención suya. Free tax filing online state Por lo menos uno de los padres del hijo estaba vivo al finalizar el año 2013. Free tax filing online state El hijo no presenta una declaración conjunta para 2013. Free tax filing online state Estas condiciones se hallan también en la Figura 31-B. Free tax filing online state Ingreso del trabajo. Free tax filing online state   El ingreso del trabajo incluye sueldos, salarios, propinas y otras remuneraciones recibidas por servicios personales que usted prestó. Free tax filing online state No incluye los ingresos no derivados del trabajo según se define más adelante en este capítulo. Free tax filing online state Manutención. Free tax filing online state   La manutención de su hijo incluye todas las cantidades gastadas para proveerle alimentos, alojamiento, ropa, educación, cuidado médico y dental, recreación, transporte y necesidades similares. Free tax filing online state Al calcular la manutención de su hijo, incluya aquélla proporcionada por usted, su hijo y otras personas. Free tax filing online state Sin embargo, no se considera como manutención una beca que su hijo haya recibido si éste es estudiante a tiempo completo. Free tax filing online state Vea el capítulo 3 para más detalles acerca de la manutención. Free tax filing online state Determinados cumpleaños el 1 de enero. Free tax filing online state   Utilice la siguiente tabla para saber si determinados hijos con cumpleaños en el 1 de enero cumplen la condición 3 bajo Cuándo se tiene que presentar el Formulario 8615. Free tax filing online state    SI un hijo nació. Free tax filing online state . Free tax filing online state . Free tax filing online state ENTONCES, al finalizar 2013, se considera que el hijo tiene. Free tax filing online state . Free tax filing online state . Free tax filing online state el 1 de enero de 1996 18 años* el 1 de enero de 1995 19 años** el 1 de enero de 1990 24 años*** *Este hijo no es menor de 18 años. Free tax filing online state El hijo cumple la condición 3 sólo si éste no tuvo ingresos derivados del trabajo superiores a más de la mitad de la manutención suya. Free tax filing online state  **El hijo cumple la condición 3 sólo si éste era estudiante a tiempo completo y no tuvo ingresos derivados del trabajo superiores a más de la mitad de la manutención suya. Free tax filing online state  ***No utilice el Formulario 8615 para este hijo. Free tax filing online state Cómo Facilitar Información sobre los Padres (líneas A-C del Formulario 8615) En las líneas A y B del Formulario 8615, escriba el nombre y número de Seguro Social de los padres. Free tax filing online state (Si los padres presentaron una declaración conjunta, escriba el nombre y número de Seguro Social que aparezca primero en la declaración conjunta). Free tax filing online state En la línea C, marque el recuadro correspondiente al estado civil para efectos de la declaración del padre o de la madre. Free tax filing online state Vea Cómo Saber si se Tiene que Utilizar la Declaración del Padre o de la Madre al principio de este capítulo para información sobre qué información de la declaración de los padres tiene que utilizar para llenar el Formulario 8615. Free tax filing online state Padre o madre con año tributario distinto. Free tax filing online state   Si el padre o la madre y el hijo no tienen el mismo año tributario, complete el Formulario 8615 utilizando la información de la declaración del padre o de la madre para el año tributario que finalice durante el año tributario del hijo. Free tax filing online state Si no se obtiene a tiempo la información de la declaración del padre o de la madre. Free tax filing online state   Si la información necesaria de la declaración de los padres no se obtiene para la fecha de vencimiento del plazo de entrega de la declaración del hijo (normalmente el 15 de abril), puede utilizar cálculos aproximados para presentar la declaración. Free tax filing online state   Puede utilizar cualquier cálculo aproximado razonable. Free tax filing online state Dicho cálculo puede derivarse de información de la declaración del año anterior. Free tax filing online state Si utiliza un cálculo aproximado en el Formulario 8615, anote en inglés, “Estimated” (Aproximado) en la línea junto a dicha cantidad. Free tax filing online state    Cuando obtenga la información correcta, presente una declaración enmendada utilizando el Formulario 1040X, Amended U. Free tax filing online state S. Free tax filing online state Individual Income Tax Return (Declaración enmendada de impuestos sobre el ingreso personal de los Estados Unidos), en inglés. Free tax filing online state   En vez de utilizar cálculos aproximados, quizás pueda conseguir una prórroga automática de 6 meses para presentar la declaración de impuestos si para la fecha de vencimiento del plazo de entrega de la misma, presenta el Formulario 4868(SP), Solicitud de Prórroga Automática para Presentar la Declaración del Impuesto sobre el Ingreso Personal de los Estados Unidos (o el Formulario 4868, en inglés). Free tax filing online state Las prórrogas se explican en el capítulo 1 . Free tax filing online state Paso 1. Free tax filing online state Cómo Calcular los Ingresos Netos No Derivados del Trabajo del Hijo (Parte I del Formulario 8615) Al calcular el impuesto de un hijo utilizando el Formulario 8615, el primer paso es calcular los ingresos netos no derivados del trabajo del hijo. Free tax filing online state Para hacerlo, utilice la Parte I del Formulario 8615. Free tax filing online state Línea 1 (ingresos no derivados del trabajo). Free tax filing online state   Si el hijo no recibió ingresos del trabajo, anote en esta línea los ingresos brutos ajustados indicados en la declaración del hijo. Free tax filing online state Los ingresos brutos ajustados aparecen en la línea 38 del Formulario 1040 o en la línea 22 del Formulario 1040A. Free tax filing online state No se puede utilizar el Formulario 1040EZ si se tiene que presentar el Formulario 8615. Free tax filing online state   Si el hijo sí recibió ingresos del trabajo, calcule la cantidad a anotar en la línea 1 del Formulario 8615 utilizando la hoja de trabajo de las instrucciones del formulario. Free tax filing online state   No obstante, si el hijo: ha excluido de la declaración algunos ingresos ganados en el extranjero, ha deducido alguna pérdida del trabajo por cuenta propia o ha deducido alguna pérdida neta de operación de otro año, utilice la Alternate Worksheet (Hoja de trabajo alternativa) para la línea 1 del Formulario 8615 que se encuentra en la Publicación 929, en inglés, para calcular la cantidad a anotar en la línea 1 del Formulario 8615. Free tax filing online state Definición de los ingresos no derivados del trabajo. Free tax filing online state   Los ingresos no derivados del trabajo generalmente son todos los ingresos que no sean sueldos, salarios ni otras cantidades recibidas como pago por trabajo que de hecho se haya realizado. Free tax filing online state Dichos ingresos abarcan los intereses tributables, dividendos (inclusive las distribuciones de ganancias de capital), ganancias de capital, compensación por desempleo, la parte sujeta a impuestos de pagos del Seguro Social y pensiones y determinadas distribuciones de fideicomisos. Free tax filing online state Además, los ingresos no derivados del trabajo abarcan cantidades derivadas de bienes que el hijo haya adquirido con ingresos del trabajo (como intereses sobre una cuenta de ahorros en la que el hijo haya depositado sueldos). Free tax filing online state Ingresos no sujetos a impuestos. Free tax filing online state   Para este fin, los ingresos no derivados del trabajo sólo abarcan cantidades que su hijo tenga que incluir en el total de ingresos. Free tax filing online state No se incluyen los ingresos no tributables no derivados del trabajo, tales como los intereses exentos de impuestos y la parte no tributable de pagos del Seguro Social y pensiones. Free tax filing online state Ingresos procedentes de bienes recibidos como regalo. Free tax filing online state   Los ingresos no derivados del trabajo de un hijo abarcan todo ingreso generado por bienes que pertenezcan al hijo. Free tax filing online state Esto es así aun si se le traspasaron los bienes al hijo, independientemente de cuándo se traspasaron o se compraron dichos bienes ni quién los traspasó. Free tax filing online state   Los ingresos no derivados del trabajo de un hijo incluyen ingresos generados por bienes dados al hijo como regalo. Free tax filing online state Esto incluye regalos dados al hijo por los abuelos o cualquier otra persona y regalos dados conforme a la Uniform Gift to Minors Act (Ley de Uniformidad Respecto a Regalos a Menores). Free tax filing online state Ejemplo. Free tax filing online state Amanda Naranjo, de 13 años de edad, recibió los siguientes ingresos: Dividendos — $800 Salarios — $2,100 Intereses tributables — $1,200 Intereses exentos de impuestos — $100 Ganancias netas de capital — $100 Los dividendos eran dividendos calificados sobre acciones que le habían regalado sus abuelos. Free tax filing online state Los ingresos no derivados del trabajo de Amanda son $2,100. Free tax filing online state Éste es el total de dividendos ($800), intereses tributables ($1,200) y ganancias netas de capital ($100). Free tax filing online state Su salario se considera ingreso del trabajo, y no de ingreso no derivado del trabajo porque se le paga por un trabajo que de hecho se ha realizado. Free tax filing online state No se incluyen los intereses exentos de impuestos porque éstos no están sujetos a impuestos. Free tax filing online state Ingresos provenientes de fideicomisos. Free tax filing online state   Si el hijo es beneficiario de un fideicomiso, las distribuciones de intereses, dividendos, ganancias de capital y otros ingresos no derivados del trabajo tributables procedentes de dicho fideicomiso se consideran ingresos no derivados del trabajo del hijo. Free tax filing online state   No obstante, para llenar el Formulario 8615, una distribución tributable de un fideicomiso calificado establecido para casos de incapacidad no se considera ingresos no derivados del trabajo sino ingresos del trabajo. Free tax filing online state Línea 2 (deducciones). Free tax filing online state   Si el hijo no detalla las deducciones en el Anexo A del Formulario 1040, anote $2,000 en la línea 2. Free tax filing online state   Si el hijo sí detalla las deducciones, anote en la línea 2 la cantidad mayor entre: $1,000 más la parte de las deducciones detalladas del hijo de la línea 29 del Anexo A del Formulario 1040 que esté directamente relacionada con la generación de ingresos no derivados del trabajo anotados en la línea 1 o $2,000. Free tax filing online state Relación directa entre las deducciones y la generación de ingresos no derivados del trabajo. Free tax filing online state   Se considera que las deducciones detalladas están directamente relacionadas con la generación de ingresos no derivados del trabajo si las mismas corresponden a gastos pagados para generar o cobrar ingresos sujetos a impuestos o para administrar, conservar o mantener bienes cuyo fin es generar ingresos. Free tax filing online state Esos gastos abarcan cargos por custodia y servicios, cargos por servicios de cobro de intereses y dividendos tributables y determinados cargos por asesoramiento sobre inversiones. Free tax filing online state   Estos gastos se suman a otras deducciones detalladas misceláneas en el Anexo A (Formulario 1040). Free tax filing online state Sólo se puede deducir la cantidad que sea superior al 2% de los ingresos brutos ajustados del hijo. Free tax filing online state Vea el capítulo 28 para más información. Free tax filing online state Ejemplo 1. Free tax filing online state Roberto, de 12 años de edad, tiene ingresos no derivados del trabajo de $8,000, sin otros ingresos ni ajustes a los ingresos. Free tax filing online state Tiene deducciones detalladas de $300 (netas del límite del 2%) que están directamente relacionadas con sus ingresos no derivados del trabajo. Free tax filing online state Tiene ingresos brutos ajustados de $8,000 que se anotan en la línea 38 del Formulario 1040 y en la línea 1 del Formulario 8615. Free tax filing online state En la línea 2 se anotan $2,000 porque dicha cantidad supera la suma de $1,000 más las deducciones detalladas de $300 directamente relacionadas con la generación de ingresos de inversiones. Free tax filing online state Ejemplo 2. Free tax filing online state Elena, de 8 años de edad, tiene ingresos no derivados del trabajo de $16,000 y tiene una multa de $100 por retiro prematuro. Free tax filing online state No tiene otros ingresos. Free tax filing online state Tiene deducciones detalladas de $1,050 (netas del límite del 2%) que están directamente relacionadas con la generación de sus ingresos no derivados del trabajo. Free tax filing online state Sus ingresos brutos ajustados, anotados en la línea 1, son $15,900 ($16,000 − $100). Free tax filing online state La cantidad de la línea 2 es $2,050. Free tax filing online state Ésta es la cantidad mayor de: $1,000 más los $1,050 de deducciones detalladas directamente relacionadas con la generación de ingresos de inversiones o $2,000. Free tax filing online state Línea 3. Free tax filing online state   De la línea 1 reste la línea 2 y anote el resultado en esta línea. Free tax filing online state Si es cero o menos, no llene el resto del formulario. Free tax filing online state No obstante, tiene que adjuntar el Formulario 8615 a la declaración del hijo. Free tax filing online state Calcule el impuesto sobre los ingresos tributables del hijo de manera normal. Free tax filing online state Línea 4 (ingresos tributables del hijo). Free tax filing online state   Anote en la línea 4 los ingresos tributables del hijo provenientes de la línea 43 del Formulario 1040 o de la línea 27 del Formulario 1040A. Free tax filing online state   Sin embargo, si el hijo presenta el Formulario 2555 o el Formulario 2555-EZ para declarar la exclusión de ingresos ganados en el extranjero, la exclusión por concepto de vivienda o la deducción por concepto de vivienda, vea las Instrucciones del Formulario 8615 o la Publicación 929, ambas en inglés. Free tax filing online state Línea 5 (ingresos netos no derivados del trabajo). Free tax filing online state   Los ingresos netos no derivados del trabajo del hijo no pueden sobrepasar sus ingresos tributables. Free tax filing online state Anote en la línea 5 del Formulario 8615 la cantidad de la línea 3 o la línea 4, la que sea menor. Free tax filing online state Esta cantidad corresponde a los ingresos netos no derivados del trabajo del hijo. Free tax filing online state   Si es cero o menos, no llene el resto del formulario. Free tax filing online state No obstante, tiene que adjuntar el Formulario 8615 a la declaración del hijo. Free tax filing online state Calcule el impuesto sobre los ingresos tributables del hijo de manera normal. Free tax filing online state Paso 2. Free tax filing online state Cómo Calcular el Impuesto Provisional a la Tasa Impositiva de los Padres (Parte II del Formulario 8615) El siguiente paso al llenar el Formulario 8615 es calcular un impuesto provisional sobre los ingresos netos no derivados del trabajo del hijo utilizando la tasa impositiva del padre o de la madre. Free tax filing online state El impuesto provisional a la tasa impositiva del padre o de la madre es la diferencia entre el impuesto sobre los ingresos tributables del padre o de la madre calculados con los ingresos netos no derivados del trabajo del hijo (más los ingresos netos no derivados del trabajo de cualquier otro hijo cuyo Formulario 8615 incluya la información de la declaración de impuestos del padre o de la madre) y el impuesto calculado sin dichos ingresos. Free tax filing online state Al calcular el impuesto provisional a la tasa impositiva del padre o de la madre en el Formulario 8615, no vuelva a calcular las exclusiones, deducciones ni créditos en la declaración del padre o de la madre debido a los ingresos netos no derivados del trabajo del hijo. Free tax filing online state Por ejemplo, no vuelva a calcular la deducción por gastos médicos. Free tax filing online state Calcule el impuesto provisional en las líneas 6 a 13 del Formulario 8615. Free tax filing online state Nota: Si el hijo o el padre o la madre tiene pérdidas o ganancias de capital, obtenga la Publicación 929, en inglés, para información que le será de ayuda al completar la Parte II del Formulario 8615. Free tax filing online state Línea 6 (ingresos tributables del padre o de la madre). Free tax filing online state   Anote en la línea 6 los ingresos tributables del padre o de la madre provenientes de la línea 43 del Formulario 1040, de la línea 27 del Formulario 1040A o la línea 6 del Formulario 1040EZ. Free tax filing online state   Si utilizó la Foreign Earned Income Tax Worksheet (Hoja de trabajo para el impuesto sobre los ingresos del trabajo en el extranjero) de las instrucciones del Formulario 1040 para calcular el impuesto correspondiente al padre o a la madre, anote la cantidad de la línea 3 de dicha hoja de trabajo en vez de los ingresos tributables del padre o de la madre. Free tax filing online state Línea 7 (ingresos netos no derivados del trabajo de otros hijos). Free tax filing online state   Si la información de la declaración del padre o de la madre se utiliza también en el Formulario 8615 de otro hijo, anote en la línea 7 el total de las cantidades de la línea 5 de los Formularios 8615 de todos los demás hijos. Free tax filing online state No incluya la cantidad de la línea 5 del Formulario 8615 que esté llenando. Free tax filing online state Ejemplo. Free tax filing online state Pablo y Juana del Pozo tienen tres hijos, Sandra, Geraldo y Miguel, quienes tienen que adjuntar el Formulario 8615 a sus declaraciones de impuestos respectivas. Free tax filing online state Los ingresos netos no derivados del trabajo de los hijos en la línea 5 de sus Formularios 8615 son: Sandra — $800 Geraldo — $600 Miguel — $1,000 La línea 7 del Formulario 8615 de Sandra indicará $1,600, o sea, el total de las cantidades anotadas en la línea 5 de los Formularios 8615 de Geraldo y Miguel. Free tax filing online state La línea 7 del Formulario 8615 de Geraldo indicará $1,800 ($800 + $1,000). Free tax filing online state La línea 7 del Formulario 8615 de Miguel indicará $1,400 ($800 + $600). Free tax filing online state Si no está disponible la información de los otros hijos. Free tax filing online state   Si no está disponible la cantidad de los ingresos netos no derivados del trabajo de los otros hijos antes de que venza el plazo para presentar la declaración, preséntela anotando cálculos aproximados o solicite una prórroga del plazo para presentarla. Free tax filing online state Vea Si no se obtiene a tiempo la información de la declaración del padre o de la madre , anteriormente. Free tax filing online state Línea 11 (impuesto provisional). Free tax filing online state   Reste la línea 10 de la línea 9 y anote el resultado en esta línea. Free tax filing online state Éste es el impuesto provisional. Free tax filing online state   Si la línea 7 está en blanco, ignore las líneas 12a y 12b y anote en la línea 13 la cantidad proveniente de la línea 11. Free tax filing online state Ignore asimismo el tema siguiente que trata de las líneas 12a y 12b. Free tax filing online state Líneas 12a y 12b (dividiendo el impuesto provisional). Free tax filing online state   Si anota alguna cantidad en la línea 7 (fuera de cero), divida el impuesto provisional indicado en la línea 11 entre los hijos según la participación de cada hijo en el total de los ingresos netos no derivados del trabajo. Free tax filing online state Esto se hace en las líneas 12a, 12b y 13. Free tax filing online state Sume la cantidad de la línea 7 a la de la línea 5 y anote el total en la línea 12a. Free tax filing online state Divida la cantidad de la línea 5 entre la de la línea 12a y anote el resultado, como número decimal, en la línea 12b. Free tax filing online state Ejemplo. Free tax filing online state En el ejemplo anterior bajo Línea 7 (ingresos netos no derivados del trabajo de otros hijos), el Formulario 8615 de Sandra indica $1,600 en la línea 7. Free tax filing online state La cantidad anotada en la línea 12a es $2,400, o sea, el total de las cantidades provenientes de las líneas 5 y 7 ($800 + $1,600). Free tax filing online state El número decimal en la línea 12b es . Free tax filing online state 333, calculado de la siguienta manera y redondeado hasta tres decimales:   $800 = . Free tax filing online state 333     $2,400   Paso 3. Free tax filing online state Cómo Calcular el Impuesto del Hijo (Parte III del Formulario 8615) El último paso para calcular el impuesto de su hijo utilizando el Formulario 8615 es determinar la cantidad mayor entre: El total de: La parte del impuesto provisional correspondiente al hijo basado en la tasa impositiva del padre o de la madre, más El impuesto sobre los ingresos tributables del hijo que sean superiores a los ingresos netos no derivados del trabajo, calculado a la tasa impositiva del hijo o El impuesto sobre los ingresos tributables del hijo calculado a la tasa impositiva del hijo. Free tax filing online state Éste es el impuesto del hijo. Free tax filing online state Se calcula en las líneas 14 a 18 del Formulario 8615. Free tax filing online state Impuesto mínimo alternativo. Free tax filing online state   Un hijo puede estar sujeto al impuesto mínimo alternativo (AMT, por sus siglas en inglés) si cuenta con determinados elementos que reciben un trato preferente conforme a la ley tributaria. Free tax filing online state Vea el tema titulado Impuesto Mínimo Alternativo (AMT) , en el capítulo 30. Free tax filing online state    Para información adicional acerca de quién tiene que pagar el AMT y cómo calcularlo, vea el Formulario 6251, Alternative Minimum Tax—Individuals (Impuesto mínimo alternativo—individuos), en inglés. Free tax filing online state Para información sobre límites especiales aplicables a un hijo que presente el Formulario 6251, vea Certain Children Under Age 24 (Determinados hijos menores de 24 años de edad), en las Instrucciones para el Formulario 6251, en inglés. Free tax filing online state Prev  Up  Next   Home   More Online Publications