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Free Tax Form 1040ez

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Free Tax Form 1040ez

Free tax form 1040ez Index Symbols 529 program (see Qualified tuition program (QTP)) A Academic period American opportunity credit, Academic period. Free tax form 1040ez Lifetime learning credit, Academic period. Free tax form 1040ez Student loan interest deduction, Academic period. Free tax form 1040ez Tuition and fees deduction, Academic period. Free tax form 1040ez Accountable plans, Accountable Plans, Allocating your reimbursements for meals. Free tax form 1040ez Additional tax Coverdell ESA On excess contributions, Additional Tax on Excess Contributions, Figuring and reporting the additional tax. Free tax form 1040ez On taxable distributions, Additional Tax on Taxable Distributions IRA distributions, education exception, Education Exception to Additional Tax on Early IRA Distributions Qualified tuition program (QTP), on taxable distributions, Additional Tax on Taxable Distributions Adjusted qualified education expenses (see Qualified education expenses) American opportunity credit Adjustments to qualified education expenses, Adjustments to Qualified Education Expenses Claiming dependent's expenses, Who Can Claim a Dependent's Expenses, Tuition reduction. Free tax form 1040ez Tuition reduction, Tuition reduction. Free tax form 1040ez Claiming the credit, Can You Claim the Credit, Who Cannot Claim the Credit, Claiming the Credit Qualifying to claim (Figure 2-1), Coordination with Coverdell ESA distributions, Figuring the Taxable Portion of a Distribution Coordination with qualified tuition program (QTP) distributions, Coordination With American Opportunity and Lifetime Learning Credits Eligible educational institution, Eligible educational institution. Free tax form 1040ez Eligible student, Who Is an Eligible Student Requirements (Figure 2-2), Expenses qualifying for, What Expenses Qualify, Adjustments to Qualified Education Expenses Figuring the credit, Figuring the Credit Income level, effect on amount of credit, Effect of the Amount of Your Income on the Amount of Your Credit, Phaseout. Free tax form 1040ez Income limits, Effect of the Amount of Your Income on the Amount of Your Credit, Phaseout. Free tax form 1040ez Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Free tax form 1040ez Worksheet 2-1, Claiming the Credit Overview of American opportunity credit (Table 2-1), Introduction Phaseout, Phaseout. Free tax form 1040ez Qualified education expenses, Qualified Education Expenses Tax benefit of, What is the tax benefit of the American opportunity credit. Free tax form 1040ez Armed Forces Health Professions Scholarship and Financial Assistance Program, Exceptions. Free tax form 1040ez Assistance (see Tax help) Athletic scholarships, Athletic Scholarships B Bar review course, Bar or CPA Review Course Bonds, education savings (see Education savings bond program) Business deduction for work-related education, Business Deduction for Work-Related Education, Illustrated Example Accountable plans, Accountable Plans, Allocating your reimbursements for meals. Free tax form 1040ez Adjustments to qualifying work-related education expenses, Adjustments to Qualifying Work-Related Education Expenses Allocating meal reimbursements, Allocating your reimbursements for meals. Free tax form 1040ez Deductible education expenses, What Expenses Can Be Deducted, Adjustments to Qualifying Work-Related Education Expenses Deducting business expenses, Deducting Business Expenses, Impairment-Related Work Expenses Double benefit not allowed, No Double Benefit Allowed Education required by employer or by law, Education Required by Employer or by Law Education to maintain or improve skills, Education To Maintain or Improve Skills Education to meet minimum requirements, Education To Meet Minimum Requirements, Certification in a new state. Free tax form 1040ez Education to qualify for new trade or business, Education That Qualifies You for a New Trade or Business, Teaching and Related Duties Excess expenses, accountable plan, Excess expenses. Free tax form 1040ez , Allocating your reimbursements for meals. Free tax form 1040ez Indefinite absence, Education during indefinite absence. Free tax form 1040ez Maintaining skills vs. Free tax form 1040ez qualifying for new job, Maintaining skills vs. Free tax form 1040ez qualifying for new job. Free tax form 1040ez Nonaccountable plans, Nonaccountable Plans Nondeductible expenses, Nondeductible expenses. Free tax form 1040ez Qualified education expenses, What Expenses Can Be Deducted, Adjustments to Qualifying Work-Related Education Expenses Recordkeeping requirements, Recordkeeping, Examples of records to keep. Free tax form 1040ez Reimbursements, treatment of, How To Treat Reimbursements, Reimbursements for nondeductible expenses. Free tax form 1040ez Tax benefit of, What is the tax benefit of taking a business deduction for work-related education. Free tax form 1040ez Tax-free educational assistance, Tax-free educational assistance. Free tax form 1040ez Teachers, Requirements for Teachers, Teaching and Related Duties Temporary absence to acquire education, Education during temporary absence. Free tax form 1040ez Transportation expenses, Transportation Expenses, Using your car. Free tax form 1040ez Travel expenses, Travel Expenses C Cancellation of student loan (see Student loan cancellation) Candidate for a degree Scholarships and fellowships, Candidate for a degree. Free tax form 1040ez Change of designated beneficiary Coverdell ESA, Changing the Designated Beneficiary Qualified tuition program, Changing the Designated Beneficiary Collapsed loans, Interest on refinanced student loans. Free tax form 1040ez Comprehensive or bundled fees American opportunity credit, Comprehensive or bundled fees. Free tax form 1040ez Lifetime learning credit, Comprehensive or bundled fees. Free tax form 1040ez Tuition and fees deduction, Comprehensive or bundled fees. Free tax form 1040ez Consolidated loans used to refinance student loans, Interest on refinanced student loans. Free tax form 1040ez Conventions outside U. Free tax form 1040ez S. Free tax form 1040ez , Cruises and conventions. Free tax form 1040ez Coverdell education savings account (ESA), Coverdell Education Savings Account (ESA), Figuring the Taxable Portion of a Distribution, Coordination With American Opportunity and Lifetime Learning Credits, Worksheet 7-3. Free tax form 1040ez Coverdell ESA—Taxable Distributions and Basis Additional tax On excess contributions, Additional Tax on Excess Contributions, Figuring and reporting the additional tax. Free tax form 1040ez On taxable distributions, Additional Tax on Taxable Distributions Assets to be distributed at age 30 or death of beneficiary, When Assets Must Be Distributed Contribution limits, Contribution Limits, Figuring the limit. Free tax form 1040ez Figuring the limit (Worksheet 6-2), Figuring the limit. Free tax form 1040ez Contributions to, Contributions, Figuring and reporting the additional tax. Free tax form 1040ez Table 7-2, Contributions Coordination with American opportunity and lifetime learning credits, Coordination With American Opportunity and Lifetime Learning Credits Coordination with qualified tuition program (QTP), Coordination With Qualified Tuition Program (QTP) Distributions Defined, What Is a Coverdell ESA Distributions, Distributions, How To Figure the Taxable Earnings Overview (Table 7-3), Distributions Divorce, transfer due to, Transfer Because of Divorce Eligible educational institution, Eligible Educational Institution Figuring taxable portion of distribution, Figuring the Taxable Portion of a Distribution Worksheet 7-3, Worksheet 7-3. Free tax form 1040ez Coverdell ESA—Taxable Distributions and Basis Figuring the taxable earnings in required distribution, How To Figure the Taxable Earnings Losses, Losses on Coverdell ESA Investments Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Free tax form 1040ez , MAGI when using Form 1040NR-EZ. Free tax form 1040ez Worksheet 6-1, Worksheet 7-1. Free tax form 1040ez MAGI for a Coverdell ESA Overview (Table 6-1), Coverdell Education Savings Account (ESA) Qualified education expenses, Qualified Education Expenses, Qualified Elementary and Secondary Education Expenses Rollovers, Rollovers Tax benefit of, What is the tax benefit of the Coverdell ESA. Free tax form 1040ez Tax-free distributions, Tax-Free Distributions Taxable distributions, Taxable Distributions, Figuring the additional tax. Free tax form 1040ez Worksheet 7-3 to figure, Worksheet 7-3. Free tax form 1040ez Coverdell ESA—Taxable Distributions and Basis Transfers, Rollovers CPA review course, Bar or CPA Review Course Credits American opportunity (see American opportunity credit) Lifetime learning (see Lifetime learning credit) Cruises, educational, Cruises and conventions. Free tax form 1040ez D Deductions (see Business deduction for work-related education) Designated beneficiary Coverdell ESA, What Is a Coverdell ESA, Changing the Designated Beneficiary Qualified tuition program (QTP), Designated beneficiary. Free tax form 1040ez , Changing the Designated Beneficiary Disabilities, persons with Impairment-related work expenses, Impairment-Related Work Expenses Distributions (see specific benefit ) Divorce Coverdell ESA transfer due to, Transfer Because of Divorce Expenses paid under decree American opportunity credit, Expenses paid by dependent. Free tax form 1040ez Lifetime learning credit, Expenses paid by dependent. Free tax form 1040ez Tuition and fees deduction, Expenses paid under divorce decree. Free tax form 1040ez Double benefit not allowed American opportunity credit, No Double Benefit Allowed Lifetime learning credit, No Double Benefit Allowed Student loan interest deduction, No Double Benefit Allowed Tuition and fees deduction, No Double Benefit Allowed Work-related education, No Double Benefit Allowed E Early distributions from IRAs, Education Exception to Additional Tax on Early IRA Distributions, Reporting Early Distributions Eligible educational institution, Eligible educational institution. Free tax form 1040ez Figuring amount not subject to 10% tax, Figuring the Amount Not Subject to the 10% Tax Qualified education expenses, Qualified education expenses. Free tax form 1040ez Reporting, Reporting Early Distributions Education IRA (see Coverdell education savings account (ESA)) Education loans (see Student loan interest deduction) Education savings account (see Coverdell education savings account (ESA)) Education savings bond program Cashing in bonds tax free, Who Can Cash In Bonds Tax Free, MAGI when using Form 1040. Free tax form 1040ez Claiming dependent's exemption, Dependent for whom you claim an exemption. Free tax form 1040ez Claiming exclusion, Claiming the Exclusion Eligible educational institution, Eligible educational institution. Free tax form 1040ez Figuring tax-free amount, Figuring the Tax-Free Amount Income level, effect on amount of exclusion, Effect of the Amount of Your Income on the Amount of Your Exclusion Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Free tax form 1040ez , MAGI when using Form 1040. Free tax form 1040ez Phaseout, Effect of the Amount of Your Income on the Amount of Your Exclusion Qualified education expenses, Qualified education expenses. Free tax form 1040ez Educational assistance, employer-provided (see Employer-provided educational assistance) Eligible educational institution American opportunity credit, Eligible educational institution. Free tax form 1040ez Cancellation of student loan, Eligible educational institution. Free tax form 1040ez Coverdell ESA, Eligible Educational Institution Early distributions from IRAs, Eligible educational institution. Free tax form 1040ez Education savings bond program, Eligible educational institution. Free tax form 1040ez Lifetime learning credit, Eligible educational institution. Free tax form 1040ez Qualified tuition program (QTP), Eligible educational institution. Free tax form 1040ez Qualified tuition reduction, Qualified Tuition Reduction Scholarships and fellowships, Eligible educational institution. Free tax form 1040ez , Eligible educational institution. Free tax form 1040ez Student loan cancellation, Eligible educational institution. Free tax form 1040ez Student loan interest deduction, Eligible educational institution. Free tax form 1040ez Tuition and fees deduction, Eligible educational institution. Free tax form 1040ez Eligible elementary or secondary school Coverdell ESA, Eligible elementary or secondary school. Free tax form 1040ez Eligible student American opportunity credit, Who Is an Eligible Student Lifetime learning credit, Who Is an Eligible Student Student loan interest deduction, Eligible student. Free tax form 1040ez Tuition and fees deduction, Who Is an Eligible Student Employees Deducting work-related education expenses, Employees Employer-provided educational assistance, Employer-Provided Educational Assistance, Working condition fringe benefit. Free tax form 1040ez ESAs (see Coverdell education savings account (ESA)) Estimated tax, Reminders Excess contributions Coverdell ESA, Additional Tax on Excess Contributions, Figuring and reporting the additional tax. Free tax form 1040ez Excess expenses, accountable plan, Excess expenses. Free tax form 1040ez , Allocating your reimbursements for meals. Free tax form 1040ez Expenses (see specific benefit ) F Family members, beneficiary Coverdell ESA, Members of the beneficiary's family. Free tax form 1040ez Qualified tuition program (QTP), Members of the beneficiary's family. Free tax form 1040ez Fee-basis officials, work-related education deduction, Performing Artists and Fee-Basis Officials Fellowships (see Scholarships and fellowships) Figures (see Tables and figures) Financial aid (see Scholarships and fellowships) Form 1098-E Student loan interest deduction, Loan origination fee. Free tax form 1040ez , Form 1098-E. Free tax form 1040ez Form 1098-T, Reminders American opportunity credit, Form 1098-T. Free tax form 1040ez Lifetime learning credit, Form 1098-T. Free tax form 1040ez Tuition and fees deduction, Form 1098-T. Free tax form 1040ez Form 1099-Q Coverdell ESA, Exceptions. Free tax form 1040ez , Earnings and basis. Free tax form 1040ez Qualified tuition program (QTP), Earnings and return of investment. Free tax form 1040ez Form 1099-R Early distributions from IRAs, Reporting Early Distributions Form 2106, 50% limit on meals. Free tax form 1040ez , Form 2106 or 2106-EZ. Free tax form 1040ez Form 2106-EZ, 50% limit on meals. Free tax form 1040ez , Form 2106 or 2106-EZ. Free tax form 1040ez , Using Form 2106-EZ. Free tax form 1040ez Filled-in example, Form 5329 Coverdell ESA, Figuring the additional tax. Free tax form 1040ez Early distributions from IRAs, Reporting Early Distributions Qualified tuition program (QTP), Figuring the additional tax. Free tax form 1040ez Form 8815, MAGI when using Form 1040. Free tax form 1040ez , Claiming the Exclusion Form 8863 Filled-in examples, Form 8917 Filled-in examples, Form W-9S, Form 1098-T. Free tax form 1040ez , Form 1098-T. Free tax form 1040ez , Form 1098-E. Free tax form 1040ez , Form 1098-T. Free tax form 1040ez Free tax services, Free help with your tax return. Free tax form 1040ez Fulbright grants, Fulbright Grants G Glossary, Glossary. Free tax form 1040ez , Glossary, Transfer: Graduate education tuition reduction, Graduate Education Grants Fulbright, Fulbright Grants Pell, Pell Grants and Other Title IV Need-Based Education Grants Title IV need-based education, Pell Grants and Other Title IV Need-Based Education Grants H Half-time student American opportunity credit, Enrolled at least half-time. Free tax form 1040ez Coverdell ESA, Half-time student. Free tax form 1040ez Early distributions from IRAs, Half-time student. Free tax form 1040ez Student loan interest deduction, Enrolled at least half-time. Free tax form 1040ez Help (see Tax help) I Illustrated example of education credits (Appendix A), Appendix A. Free tax form 1040ez Illustrated Example of Education Credits, Impairment-related work expenses Work-related education deduction, Impairment-Related Work Expenses Individual retirement arrangements (IRAs), Coverdell Education Savings Account (ESA) Early distributions (see Early distributions from IRAs) L Lifetime learning credit, Differences between the American opportunity and lifetime learning credits. Free tax form 1040ez Academic period, Academic period. Free tax form 1040ez Adjustments to qualified education expenses, Adjustments to Qualified Education Expenses Claiming dependent's expenses, Who Can Claim a Dependent's Expenses Tuition reduction, Tuition reduction. Free tax form 1040ez Claiming the credit, Can You Claim the Credit, Who Cannot Claim the Credit, Claiming the Credit Qualifying to claim (Figure 3-1), Coordination with Coverdell ESA distributions, Figuring the Taxable Portion of a Distribution, Coordination With American Opportunity and Lifetime Learning Credits Coordination with qualified tuition program (QTP) distributions, Coordination With American Opportunity and Lifetime Learning Credits Eligible educational institution, Eligible educational institution. Free tax form 1040ez Eligible student, Who Is an Eligible Student Expenses qualifying for, What Expenses Qualify, Amounts that do not reduce qualified education expenses. Free tax form 1040ez Figuring the credit, Figuring the Credit, Claiming the Credit Income level, effect on amount of credit, Effect of the Amount of Your Income on the Amount of Your Credit Income limits, Effect of the Amount of Your Income on the Amount of Your Credit Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Free tax form 1040ez Worksheet 3-1, MAGI when using Form 1040. Free tax form 1040ez Overview (Table 3-1), Table 3-1. Free tax form 1040ez Overview of the Lifetime Learning Credit Phaseout, Phaseout. Free tax form 1040ez Qualified education expenses, Qualified Education Expenses, Amounts that do not reduce qualified education expenses. Free tax form 1040ez Qualifying to claim (Figure 3-1), Tax benefit of, What is the tax benefit of the lifetime learning credit. Free tax form 1040ez Loans Cancellation (see Student loan cancellation) Capitalized interest on student loan, Capitalized interest. Free tax form 1040ez Origination fees on student loan, Loan origination fee. Free tax form 1040ez Qualified education expenses paid with American opportunity credit, Academic period. Free tax form 1040ez Lifetime learning credit, Paid with borrowed funds. Free tax form 1040ez Student loan repayment assistance, Student Loan Repayment Assistance Losses, deducting Coverdell ESA, Losses on Coverdell ESA Investments Qualified tuition program (QTP), Losses on QTP Investments Luxury water transportation, Cruises and conventions. Free tax form 1040ez M Mileage deduction for work-related education, What's New, Using your car. Free tax form 1040ez Military academy cadets, Payment to Service Academy Cadets Missing children, photographs of, Reminders Modified adjusted gross income (MAGI) American opportunity credit Worksheet 2-1, Claiming the Credit Coverdell ESA, Modified adjusted gross income (MAGI). Free tax form 1040ez , MAGI when using Form 1040NR-EZ. Free tax form 1040ez Worksheet 6-1, Worksheet 7-1. Free tax form 1040ez MAGI for a Coverdell ESA Education savings bond program, Modified adjusted gross income (MAGI). Free tax form 1040ez , MAGI when using Form 1040. Free tax form 1040ez Lifetime learning credit, Modified adjusted gross income (MAGI). Free tax form 1040ez Worksheet 3-1, MAGI when using Form 1040. Free tax form 1040ez Student loan interest deduction, Modified adjusted gross income (MAGI). Free tax form 1040ez Table 4-2, Table 4-2. Free tax form 1040ez Effect of MAGI on Student Loan Interest Deduction Tuition and fees deduction, Modified adjusted gross income (MAGI). Free tax form 1040ez Table 6-2, Table 6-2. Free tax form 1040ez Effect of MAGI on Maximum Tuition and Fees Deduction Worksheet 6-1, Worksheet 6-1. Free tax form 1040ez MAGI for the Tuition and Fees Deduction N National Health Service Corps Scholarship Program, Exceptions. Free tax form 1040ez , Exceptions. Free tax form 1040ez Nonaccountable plans Work-related education, Nonaccountable Plans P Pell grants, Pell Grants and Other Title IV Need-Based Education Grants, Coordination with Pell grants and other scholarships. Free tax form 1040ez , Coordination with Pell grants and other scholarships. Free tax form 1040ez Performing artists, work-related education deduction, Performing Artists and Fee-Basis Officials Phaseout American opportunity credit, Phaseout. Free tax form 1040ez Education savings bond program, Effect of the Amount of Your Income on the Amount of Your Exclusion Lifetime learning credit, Phaseout. Free tax form 1040ez Student loan interest deduction, Phaseout. Free tax form 1040ez , Effect of the Amount of Your Income on the Amount of Your Deduction Publications (see Tax help) Q Qualified education expenses Adjustments to American opportunity credit, Adjustments to Qualified Education Expenses Coverdell ESA, Adjusted qualified education expenses. Free tax form 1040ez Education savings bond program, Adjusted qualified education expenses. Free tax form 1040ez Lifetime learning credit, Adjustments to Qualified Education Expenses Qualified tuition program (QTP), Adjusted qualified education expenses. Free tax form 1040ez Student loan interest deduction, Adjustments to Qualified Education Expenses Tuition and fees deduction, Adjustments to Qualified Education Expenses Work-related education, Adjustments to Qualifying Work-Related Education Expenses American opportunity credit, Qualified Education Expenses, Adjustments to Qualified Education Expenses Coverdell ESA, Qualified Education Expenses, Qualified Elementary and Secondary Education Expenses Early distributions from IRAs, Qualified education expenses. Free tax form 1040ez Education savings bond program, Qualified education expenses. Free tax form 1040ez Expenses not qualified American opportunity credit, Expenses That Do Not Qualify, Comprehensive or bundled fees. Free tax form 1040ez Lifetime learning credit, Expenses That Do Not Qualify Tuition and fees deduction, Expenses That Do Not Qualify Lifetime learning credit, Qualified Education Expenses, Amounts that do not reduce qualified education expenses. Free tax form 1040ez Qualified tuition program (QTP), Qualified education expenses. Free tax form 1040ez Scholarships and fellowships, Qualified education expenses. Free tax form 1040ez Student loan interest deduction, Qualified Education Expenses Tuition and fees deduction, What Expenses Qualify, Adjustments to Qualified Education Expenses Work-related education, What Expenses Can Be Deducted, Adjustments to Qualifying Work-Related Education Expenses Qualified elementary and secondary education expenses Coverdell ESAs, Qualified Elementary and Secondary Education Expenses Qualified employer plans Student loan interest deduction not allowed, Qualified employer plan. Free tax form 1040ez Qualified student loans, Qualified Student Loan, Qualified employer plan. Free tax form 1040ez Qualified tuition program (QTP), Qualified Tuition Program (QTP), Changing the Designated Beneficiary Additional tax on taxable distributions, Additional Tax on Taxable Distributions Change of designated beneficiary, Changing the Designated Beneficiary Contributions to, How Much Can You Contribute Coordination with American opportunity and lifetime learning credits, Coordination With American Opportunity and Lifetime Learning Credits Coordination with Coverdell ESA distributions, Coordination With Coverdell ESA Distributions Defined, What Is a Qualified Tuition Program Eligible educational institution, Eligible educational institution. Free tax form 1040ez Figuring taxable portion of distribution, Figuring the Taxable Portion of a Distribution, Losses on QTP Investments Losses, Losses on QTP Investments Qualified education expenses, Qualified education expenses. Free tax form 1040ez Rollovers, Rollovers and Other Transfers, Changing the Designated Beneficiary Tax benefit of, What is the tax benefit of a QTP. Free tax form 1040ez Taxability of distributions, Are Distributions Taxable, Figuring the additional tax. Free tax form 1040ez Taxable earnings, Taxable earnings. Free tax form 1040ez Transfers, Rollovers and Other Transfers, Changing the Designated Beneficiary Qualified tuition reduction, Qualified Tuition Reduction, How To Report Qualified U. Free tax form 1040ez S. Free tax form 1040ez savings bonds, Qualified U. Free tax form 1040ez S. Free tax form 1040ez savings bonds. Free tax form 1040ez Qualifying work-related education, Qualifying Work-Related Education, Teaching and Related Duties Determining if qualified (Figure 11-1), R Recapture American opportunity credit, Credit recapture. Free tax form 1040ez Lifetime learning credit, Credit recapture. Free tax form 1040ez Tuition and fees deduction, Credit recapture. Free tax form 1040ez Recordkeeping requirements Work-related education, Recordkeeping, Examples of records to keep. Free tax form 1040ez Refinanced student loans, Interest on refinanced student loans. Free tax form 1040ez , Refinanced Loan Reimbursements Nondeductible expenses, Reimbursements for nondeductible expenses. Free tax form 1040ez Work-related education, How To Treat Reimbursements, Reimbursements for nondeductible expenses. Free tax form 1040ez Related persons Coverdell ESA, Members of the beneficiary's family. Free tax form 1040ez Qualified tuition program (QTP), Members of the beneficiary's family. Free tax form 1040ez Student loan interest deduction, Related person. Free tax form 1040ez Repayment programs (see Student loan repayment assistance) Reporting American opportunity credit, Claiming the Credit Coverdell ESA, Exceptions. Free tax form 1040ez , Figuring and reporting the additional tax. Free tax form 1040ez , Figuring the Taxable Portion of a Distribution, Figuring the additional tax. Free tax form 1040ez Early distributions from IRAs, Reporting Early Distributions Education savings bond program, Claiming the Exclusion Lifetime learning credit, Claiming the Credit Qualified tuition program (QTP), Taxable earnings. Free tax form 1040ez , Losses on QTP Investments, Rollovers Scholarships and fellowships, taxable, Reporting Scholarships and Fellowships Student loan interest deduction, Claiming the Deduction Tuition and fees deduction, Claiming the Deduction Tuition reduction, taxable, How To Report Work-related education expenses, Deducting Business Expenses, Impairment-Related Work Expenses Revolving lines of credit, interest on, Interest on revolving lines of credit. Free tax form 1040ez Rollovers Coverdell ESA, Rollovers Qualified tuition program (QTP), Rollovers and Other Transfers, Changing the Designated Beneficiary S Scholarships and fellowships, Scholarships and Fellowships, Form 1040NR-EZ. Free tax form 1040ez , Coordination with Pell grants and other scholarships. Free tax form 1040ez , Coordination with Pell grants and other scholarships. Free tax form 1040ez Athletic scholarships, Athletic Scholarships Eligible educational institution, Eligible educational institution. Free tax form 1040ez , Eligible educational institution. Free tax form 1040ez Figuring tax-free and taxable parts (Worksheet 1-1), Worksheet 1-1. Free tax form 1040ez Qualified education expenses, Qualified education expenses. Free tax form 1040ez Reporting, Reporting Scholarships and Fellowships Scholarship, defined, Scholarships and Fellowships Tax treatment of (Table 1-1), Tax-Free Scholarships and Fellowships Tax-free, Tax-Free Scholarships and Fellowships, Athletic Scholarships Taxable, Taxable Scholarships and Fellowships Section 501(c)(3) organizations (see Student loan cancellation) Section 529 program (see Qualified tuition program (QTP)) Self-employed persons Deducting work-related education expenses, Self-Employed Persons Service academy cadets, Payment to Service Academy Cadets Sports, games, hobbies, and noncredit courses American opportunity credit, Sports, games, hobbies, and noncredit courses. Free tax form 1040ez Education savings bond program, Qualified education expenses. Free tax form 1040ez Lifetime learning credit, Sports, games, hobbies, and noncredit courses. Free tax form 1040ez Tuition and fees deduction, Sports, games, hobbies, and noncredit courses. 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Free tax form 1040ez Figuring the deduction, Figuring the Deduction, Which Worksheet To Use Include as interest, Include As Interest Income level, effect on amount of deduction, Effect of the Amount of Your Income on the Amount of Your Deduction Loan repayment assistance, Do Not Include As Interest Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Free tax form 1040ez , Which Worksheet To Use Table 4-2, Table 4-2. Free tax form 1040ez Effect of MAGI on Student Loan Interest Deduction Not included as interest, Do Not Include As Interest Phaseout, Phaseout. Free tax form 1040ez , Effect of the Amount of Your Income on the Amount of Your Deduction Qualified education expenses, Qualified Education Expenses Qualified employer plans, Qualified employer plan. Free tax form 1040ez Qualified student loans, Qualified Student Loan, Qualified employer plan. Free tax form 1040ez Reasonable period of time, Reasonable period of time. Free tax form 1040ez Related persons, Related person. Free tax form 1040ez Student loan interest, defined, Student Loan Interest Defined, When Must Interest Be Paid Third party interest payments, Interest paid by others. Free tax form 1040ez When interest must be paid, When Must Interest Be Paid Worksheet 4-1, Worksheet 4-1. Free tax form 1040ez Student Loan Interest Deduction Worksheet Student loan repayment assistance, Student Loan Repayment Assistance Surviving spouse Coverdell ESA transfer to, Exception for Transfer to Surviving Spouse or Family Member T Tables and figures American opportunity credit Eligible student requirements (Figure 2-2), Overview (Table 2-1), Introduction Qualifying to claim (Figure 2-1), Comparison of education tax benefits (Appendix B), Coverdell ESAs Contributions to (Table 7-2), Contribution Limits Distributions (Table 7-3), Distributions Overview (Table 6-1), Coverdell Education Savings Account (ESA) Education credits Overview of American opportunity credit (Table 2-1), Introduction Overview of lifetime learning credit (Table 3-1), Table 3-1. Free tax form 1040ez Overview of the Lifetime Learning Credit Lifetime learning credit Overview (Table 3-1), Table 3-1. Free tax form 1040ez Overview of the Lifetime Learning Credit Qualifying to claim (Figure 3-1), Scholarships and fellowships, taxability of (Table 1-1), Tax-Free Scholarships and Fellowships Student loan interest deduction MAGI, effect of (Table 4-2), Table 4-2. Free tax form 1040ez Effect of MAGI on Student Loan Interest Deduction Overview (Table 4-1), Table 4-1. Free tax form 1040ez Student Loan Interest Deduction at a Glance Summary chart of differences between education tax benefits (Appendix B), Tuition and fees deduction MAGI, effect of (Table 6-2), Table 6-2. Free tax form 1040ez Effect of MAGI on Maximum Tuition and Fees Deduction Overview (Table 6-1), Table 6-1. Free tax form 1040ez Tuition and Fees Deduction at a Glance Work-related education, qualifying (Figure 112-1), Tax help, How To Get Tax Help Tax-free educational assistance American opportunity credit, Tax-free educational assistance. Free tax form 1040ez Coverdell ESA, Adjusted qualified education expenses. Free tax form 1040ez Early distributions from IRAs, Figuring the Amount Not Subject to the 10% Tax Education savings bond program, Adjusted qualified education expenses. Free tax form 1040ez Lifetime learning credit, Tax-free educational assistance. Free tax form 1040ez Qualified tuition program (QTP), Adjusted qualified education expenses. Free tax form 1040ez Tuition and fees deduction, Tax-free educational assistance. Free tax form 1040ez Work-related education, Tax-free educational assistance. Free tax form 1040ez Taxable scholarships and fellowships, Taxable Scholarships and Fellowships Teachers, Requirements for Teachers, Teaching and Related Duties Temporary-basis student, transportation expenses of, Temporary basis. Free tax form 1040ez Title IV need-based education grants, Pell Grants and Other Title IV Need-Based Education Grants Transfers Coverdell ESA, Rollovers Qualified tuition program (QTP), Rollovers and Other Transfers, Changing the Designated Beneficiary Transportation expenses Work-related education, Transportation Expenses, Using your car. Free tax form 1040ez Travel expenses 50% limit on meals, 50% limit on meals. Free tax form 1040ez Not deductible as form of education, Travel as Education Work-related education, Travel Expenses TTY/TDD information, How To Get Tax Help Tuition and fees deduction, Tuition and Fees Deduction, Illustrated Example Academic period, Academic period. Free tax form 1040ez Adjustments to qualified education expenses, Adjustments to Qualified Education Expenses Can you claim the deduction, Can You Claim the Deduction Claiming dependent's expenses, Who Can Claim a Dependent's Expenses Claiming the deduction, Claiming the Deduction Double benefit not allowed, No Double Benefit Allowed Eligible educational institution, Eligible educational institution. Free tax form 1040ez Eligible student, Who Is an Eligible Student Expenses not qualifying for, Expenses That Do Not Qualify Expenses qualifying for, What Expenses Qualify, Adjustments to Qualified Education Expenses Figuring the deduction, Figuring the Deduction, MAGI when using Form 1040. Free tax form 1040ez Income level, effect on amount of deduction, Effect of the Amount of Your Income on the Amount of Your Deduction Loan used to pay tuition and fees, Paid with borrowed funds. Free tax form 1040ez Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Free tax form 1040ez Table 6-2, Table 6-2. Free tax form 1040ez Effect of MAGI on Maximum Tuition and Fees Deduction Worksheet 6-1, Worksheet 6-1. Free tax form 1040ez MAGI for the Tuition and Fees Deduction Overview (Table 4-1), Table 4-1. Free tax form 1040ez Student Loan Interest Deduction at a Glance Overview (Table 6-1), Table 6-1. Free tax form 1040ez Tuition and Fees Deduction at a Glance Qualified education expenses, What Expenses Qualify, Adjustments to Qualified Education Expenses Qualifying for deduction, Can You Claim the Deduction Tax benefit of, What is the tax benefit of the tuition and fees deduction. Free tax form 1040ez Tax-free educational assistance, Tax-free educational assistance. Free tax form 1040ez Tuition reduction American opportunity credit, Tuition reduction. Free tax form 1040ez Lifetime learning credit, Tuition reduction. Free tax form 1040ez Qualified, Qualified Tuition Reduction, How To Report Tuition and fees deduction, Tuition reduction. Free tax form 1040ez U U. Free tax form 1040ez S. Free tax form 1040ez savings bonds, Qualified U. Free tax form 1040ez S. Free tax form 1040ez savings bonds. Free tax form 1040ez Unclaimed reimbursement Work-related education, Unclaimed reimbursement. Free tax form 1040ez V Veterans' benefits, Veterans' Benefits Voluntary interest payments, Voluntary interest payments. Free tax form 1040ez W Withholding, Analyzing your tax withholding. Free tax form 1040ez Work-related education (see Business deduction for work-related education) Working condition fringe benefit, Working condition fringe benefit. Free tax form 1040ez Worksheets Coverdell ESA Contribution limit (Worksheet 6-2), Figuring the limit. Free tax form 1040ez MAGI, calculation of (Worksheet 6-1), Worksheet 7-1. Free tax form 1040ez MAGI for a Coverdell ESA Taxable distributions and basis (Worksheet 6-3), Worksheet 7-3. Free tax form 1040ez Coverdell ESA—Taxable Distributions and Basis Taxable distributions and basis (Worksheet 7-3), Worksheet 7-3. Free tax form 1040ez Coverdell ESA—Taxable Distributions and Basis Lifetime learning credit MAGI calculation (Worksheet 3-1), MAGI when using Form 1040. Free tax form 1040ez Scholarships and fellowships, taxable income (Worksheet 1-1), Worksheet 1-1. Free tax form 1040ez Student loan interest deduction (Worksheet 4-1), Worksheet 4-1. Free tax form 1040ez Student Loan Interest Deduction Worksheet Tuition and fees deduction, MAGI calculation (Worksheet 6-1), Worksheet 6-1. Free tax form 1040ez MAGI for the Tuition and Fees Deduction Prev  Up     Home   More Online Publications
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The Free Tax Form 1040ez

Free tax form 1040ez Depreciation Table of Contents Introduction Special Depreciation AllowanceQualified Property Election Not To Claim the Allowance Rules for Returns Filed Before June 1, 2002 Passenger Automobiles New York Liberty Zone BenefitsSpecial Liberty Zone Depreciation Allowance Increased Section 179 Deduction Liberty Zone Leasehold Improvement Property If you depreciate business property that you acquired and placed in service after September 10, 2001, new law contains provisions that may affect your depreciation deduction for that property. Free tax form 1040ez Publication 946, How To Depreciate Property, contains information on depreciation. Free tax form 1040ez However, Publication 946 does not contain the new provisions because it was printed before the law was enacted. Free tax form 1040ez The new provisions are in the Supplement to Publication 946, which is reprinted below. Free tax form 1040ez Supplement to Publication 946 How To Depreciate Property   Introduction After Publication 946 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. Free tax form 1040ez The new law made several changes in the tax rules explained in the publication. Free tax form 1040ez Some of the changes apply to property placed in service during 2001. Free tax form 1040ez This supplemental publication describes those changes and explains what you should do if you are affected by them. Free tax form 1040ez The situations and examples in Publication 946 do not reflect any of the changes made by the Job Creation and Worker Assistance Act of 2002. Free tax form 1040ez The new law contains the following provisions. Free tax form 1040ez 30% depreciation deductions (special depreciation allowance and special New York Liberty Zone (Liberty Zone) depreciation allowance) for the year qualified property is placed in service after September 10, 2001. Free tax form 1040ez An increased dollar limit on the section 179 deduction for qualified Liberty Zone property purchased after September 10, 2001. Free tax form 1040ez A shorter recovery period for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. Free tax form 1040ez An increase in the maximum depreciation deduction for 2001 for a qualified passenger automobile placed in service after September 10, 2001. Free tax form 1040ez If you believe you qualify for an increased deduction under any of these new rules, you must file the revised 2001 Form 4562 (dated March 2002) for 2001 calendar or fiscal years and 2000 fiscal years ending after September 10, 2001. Free tax form 1040ez If you have already filed a tax return, this supplemental publication explains how to claim these benefits and how to elect not to claim the special depreciation allowance or special Liberty Zone depreciation allowance. Free tax form 1040ez See Table 2 at the end of the supplement for an overview of the rules that apply if you filed your return before June 1, 2002. Free tax form 1040ez Special Depreciation Allowance You can take a special depreciation allowance for qualified property you place in service after September 10, 2001. Free tax form 1040ez The allowance is an additional deduction of 30% of the property's depreciable basis. Free tax form 1040ez To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. Free tax form 1040ez See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Free tax form 1040ez The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Free tax form 1040ez There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Free tax form 1040ez In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. Free tax form 1040ez Example 1. Free tax form 1040ez On November 1, 2001, you bought and placed in service in your business qualified property that cost $100,000. Free tax form 1040ez You did not elect to claim a section 179 deduction. Free tax form 1040ez You can deduct 30% of the cost ($30,000) as a special depreciation allowance for 2001. Free tax form 1040ez You use the remaining $70,000 of cost to figure your regular depreciation deduction for 2001 and later years. Free tax form 1040ez Example 2. Free tax form 1040ez The facts are the same as in Example 1, except that you choose to deduct $24,000 of the property's cost as a section 179 deduction. Free tax form 1040ez You use the remaining $76,000 of cost to figure your special depreciation allowance of $22,800 ($76,000 × 30%). Free tax form 1040ez You use the remaining $53,200 of cost to figure your regular depreciation deduction for 2001 and later years. Free tax form 1040ez Qualified Property To qualify for the special depreciation allowance, your property must meet the following requirements. Free tax form 1040ez It is new property of one of the following types. Free tax form 1040ez Property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Free tax form 1040ez See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Free tax form 1040ez Water utility property. Free tax form 1040ez See 25-year property on page 22 in Publication 946. Free tax form 1040ez Computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Free tax form 1040ez (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Free tax form 1040ez ) Qualified leasehold improvement property (defined later). Free tax form 1040ez It meets the following tests (explained later under Tests To Be Met). Free tax form 1040ez Acquisition date test. Free tax form 1040ez Placed in service date test. Free tax form 1040ez Original use test. Free tax form 1040ez It is not excepted property (explained later under Excepted Property). Free tax form 1040ez Qualified leasehold improvement property. Free tax form 1040ez    Generally, this is any improvement to an interior part of a building that is nonresidential real property, provided all of the following requirements are met. Free tax form 1040ez The improvement is made under or pursuant to a lease by the lessee (or any sublessee) or the lessor of that part of the building. Free tax form 1040ez That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. Free tax form 1040ez The improvement is placed in service more than 3 years after the date the building was first placed in service. Free tax form 1040ez   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. Free tax form 1040ez The enlargement of the building. Free tax form 1040ez Any elevator or escalator. Free tax form 1040ez Any structural component benefiting a common area. Free tax form 1040ez The internal structural framework of the building. Free tax form 1040ez   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. Free tax form 1040ez However, a binding commitment between related persons is not treated as a lease. Free tax form 1040ez Related persons. Free tax form 1040ez   For this purpose, the following are related persons. Free tax form 1040ez Members of an affiliated group. Free tax form 1040ez The persons listed in items (1) through (9) under Related persons on page 8 of Publication 946 (except that “80% or more” should be substituted for “more than 10%” each place it appears). Free tax form 1040ez An executor and a beneficiary of the same estate. Free tax form 1040ez Tests To Be Met To qualify for the special depreciation allowance, the property must meet all of the following tests. Free tax form 1040ez Acquisition date test. Free tax form 1040ez    Generally, you must have acquired the property either: After September 10, 2001, and before September 11, 2004, but only if no written binding contract for the acquisition was in effect before September 11, 2001, or Pursuant to a written binding contract entered into after September 10, 2001, and before September 11, 2004. Free tax form 1040ez   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001, and before September 11, 2004. Free tax form 1040ez Placed in service date test. Free tax form 1040ez   Generally, the property must be placed in service for use in your trade or business or for the production of income after September 10, 2001, and before January 1, 2005. Free tax form 1040ez   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. Free tax form 1040ez Original use test. Free tax form 1040ez   The original use of the property must have begun with you after September 10, 2001. Free tax form 1040ez “Original use” means the first use to which the property is put, whether or not by you. Free tax form 1040ez Additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test. Free tax form 1040ez Excepted Property The following property does not qualify for the special depreciation allowance. Free tax form 1040ez Property used by any person before September 11, 2001. Free tax form 1040ez Property required to be depreciated using ADS. Free tax form 1040ez This includes listed property used 50% or less in a qualified business use. Free tax form 1040ez Qualified New York Liberty Zone leasehold improvement property (defined next). Free tax form 1040ez Qualified New York Liberty Zone leasehold improvement property. Free tax form 1040ez   This is any qualified leasehold improvement property (as defined earlier) if all of the following requirements are met. Free tax form 1040ez The improvement is to a building located in the New York Liberty Zone (defined later under New York Liberty Zone Benefits). Free tax form 1040ez The improvement is placed in service after September 10, 2001, and before January 1, 2007. Free tax form 1040ez No written binding contract for the improvement was in effect before September 11, 2001. Free tax form 1040ez Election Not To Claim the Allowance You can elect not to claim the special depreciation allowance for qualified property. Free tax form 1040ez If you make this election for any property, it applies to all property in the same property class placed in service during the year. Free tax form 1040ez To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. Free tax form 1040ez When to make election. Free tax form 1040ez   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Free tax form 1040ez   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Free tax form 1040ez Attach the election statement to the amended return. Free tax form 1040ez At the top of the election statement, write “Filed pursuant to section 301. Free tax form 1040ez 9100–2. Free tax form 1040ez ” Revoking an election. Free tax form 1040ez   Once you elect not to deduct the special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Free tax form 1040ez A request to revoke the election is subject to a user fee. Free tax form 1040ez Rules for Returns Filed Before June 1, 2002 The following rules apply if you placed qualified property in service after September 10, 2001, and filed your return before June 1, 2002. Free tax form 1040ez The rules apply to returns for the following years. Free tax form 1040ez 2000 fiscal years that end after September 10, 2001. Free tax form 1040ez 2001 calendar and fiscal years. Free tax form 1040ez Claiming the allowance. Free tax form 1040ez   If you did not claim the allowance on your return and did not make the election not to claim the allowance, you can do either of the following to claim the allowance. Free tax form 1040ez File an amended return by the due date (not including extensions) of your return for the year following the year the property was placed in service. Free tax form 1040ez Write “Filed Pursuant to Rev. Free tax form 1040ez Proc. Free tax form 1040ez 2002–33” at the top of the amended return. Free tax form 1040ez File Form 3115, Application for Change in Accounting Method, with your return for the year following the year the property was placed in service. Free tax form 1040ez Your return must be filed by the due date (including extensions). Free tax form 1040ez Write “Automatic Change Filed Under Rev. Free tax form 1040ez Proc. Free tax form 1040ez 2002–33” on the appropriate line of Form 3115. Free tax form 1040ez You must also file a copy (with signature) of the completed Form 3115 with the IRS National Office no later than when you file the original with your return. Free tax form 1040ez For more information about filing Form 3115, including the address to send it to, see Revenue Procedure 2002–9, Revenue Procedure 2002–19, and Revenue Procedure 2002–33. Free tax form 1040ez Example 1. Free tax form 1040ez You are an individual and you use the calendar year. Free tax form 1040ez You placed qualified property in service for your business in December 2001. Free tax form 1040ez You filed your 2001 income tax return before April 15, 2002. Free tax form 1040ez You did not claim the special depreciation allowance for the property and did not make the election not to claim the allowance. Free tax form 1040ez You can claim the special allowance by filing an amended 2001 return by April 15, 2003, with “Filed Pursuant to Rev. Free tax form 1040ez Proc. Free tax form 1040ez 2002–33” at the top of the amended return. Free tax form 1040ez You must file an amended return by April 15, 2003, even if you get an extension of time to file your 2002 tax return. Free tax form 1040ez Example 2. Free tax form 1040ez The facts concerning your 2001 return are the same as in Example 1. Free tax form 1040ez In addition, you got an automatic 4-month extension of time (to August 15, 2003) to file your 2002 return. Free tax form 1040ez You can claim the special allowance by filing a Form 3115 (with “Filed Pursuant to Rev. Free tax form 1040ez Proc. Free tax form 1040ez 2002–33” on the appropriate line) with your 2002 return by August 15, 2003. Free tax form 1040ez You must also file a copy of this Form 3115 with the IRS National Office no later than when you file your 2002 return. Free tax form 1040ez Electing not to claim the allowance. Free tax form 1040ez   Generally, you have elected not to claim the special depreciation allowance for a class of property if you: Filed your return timely (including extensions) for the year you placed qualified property in service and indicated on a statement with the return that you are not claiming the allowance, or Filed your return timely and filed an amended return within 6 months of the due date of the original return (not including extensions) and indicated on a statement with the amended return that you are not claiming the allowance. Free tax form 1040ez The statement must indicate that you are not deducting the special depreciation allowance and the class of property to which the election applies. Free tax form 1040ez The statement can be either attached to or written on the return. Free tax form 1040ez You can, for example, write “not deducting 30%” on Form 4562. Free tax form 1040ez Deemed election. Free tax form 1040ez   If you have not followed either of the procedures described above to elect not to claim the allowance, you may still be treated as making the election. Free tax form 1040ez You will be treated as making the election if you meet both of the following conditions. Free tax form 1040ez You filed your return for the year you placed the property in service and claimed depreciation, but not the special allowance, for any class of property. Free tax form 1040ez You do not file an amended return or a Form 3115 within the time prescribed for claiming the special allowance. Free tax form 1040ez See Claiming the allowance, earlier. Free tax form 1040ez Passenger Automobiles The limit on your depreciation deduction (including any section 179 deduction) for any passenger automobile that is qualified property (defined earlier) placed in service after September 10, 2001, and for which you claim the special depreciation allowance is increased. Free tax form 1040ez Generally, the limit is increased from $3,060 to $7,660. Free tax form 1040ez However, if the automobile is a qualified electric car, the limit is increased from $9,280 to $23,080 ($22,980 if placed in service in 2002). Free tax form 1040ez Table 1 shows the maximum deduction amounts for 2001. Free tax form 1040ez Table 1. Free tax form 1040ez Maximum Deduction for 2001 Qualified Vehicle Placed in Service Before Sept. Free tax form 1040ez 11 Placed in Service After Sept. Free tax form 1040ez 10 Passenger automobile $3,060 $7,660 Electric car 9,280 23,080 1 1$22,980 if you place an electric car in service in 2002. Free tax form 1040ez Election not to claim the allowance. Free tax form 1040ez   The increased maximum depreciation deduction does not apply if you elected not to claim the special depreciation allowance as explained earlier under Election Not To Claim the Allowance and Rules for Returns Filed Before June 1, 2002. Free tax form 1040ez New York Liberty Zone Benefits Several benefits are available for property you place in service in the New York Liberty Zone (Liberty Zone). Free tax form 1040ez They include a special depreciation allowance for the year you place the property in service, an increased section 179 deduction, and the classification of certain leasehold improvement property as 5-year property. Free tax form 1040ez Area defined. Free tax form 1040ez   The New York Liberty Zone is the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York. Free tax form 1040ez Special Liberty Zone Depreciation Allowance You can take a special depreciation allowance for qualified Liberty Zone property you place in service after September 10, 2001. Free tax form 1040ez The allowance is an additional deduction of 30% of the property's depreciable basis. Free tax form 1040ez To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. Free tax form 1040ez See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Free tax form 1040ez The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Free tax form 1040ez There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Free tax form 1040ez In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. Free tax form 1040ez You cannot claim the special Liberty Zone depreciation allowance for property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. Free tax form 1040ez Qualified property is eligible for only one special depreciation allowance. Free tax form 1040ez Example 1. Free tax form 1040ez On November 1, 2001, you bought and placed in service in your business, which is in the Liberty Zone, qualified Liberty Zone property that cost $200,000. Free tax form 1040ez You did not elect to claim a section 179 deduction. Free tax form 1040ez You can deduct 30% of the cost ($60,000) as a special Liberty Zone depreciation allowance for 2001. Free tax form 1040ez You use the remaining $140,000 of cost to figure your regular depreciation deduction for 2001 and later years. Free tax form 1040ez Example 2. Free tax form 1040ez The facts are the same as in Example 1, except that you choose to deduct $59,000 of the property's cost as a section 179 deduction. Free tax form 1040ez (See Increased Section 179 Deduction, later, for information concerning how this section 179 deduction amount is figured). Free tax form 1040ez You use the remaining $141,000 of cost to figure your special Liberty Zone depreciation allowance of $42,300 ($141,000 × 30%). Free tax form 1040ez You use the remaining $98,700 of cost to figure your regular depreciation deduction for 2001 and later years. Free tax form 1040ez Qualified Liberty Zone Property For a 2001 calendar or fiscal year and a 2000 fiscal year that ends after September 10, 2001, property qualifies for the special Liberty Zone depreciation allowance if it meets the following requirements. Free tax form 1040ez It is one of the following types of property. Free tax form 1040ez Used property depreciated under MACRS with a recovery period of 20 years or less. Free tax form 1040ez See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Free tax form 1040ez Used water utility property. Free tax form 1040ez See 25-year property on page 22 in Publication 946. Free tax form 1040ez Used computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Free tax form 1040ez (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Free tax form 1040ez ) Certain nonresidential real property and residential rental property (defined later). Free tax form 1040ez It meets the following tests (explained later under Tests to be met). Free tax form 1040ez Acquisition date test. Free tax form 1040ez Placed in service date test. Free tax form 1040ez Substantial use test. Free tax form 1040ez Original use test. Free tax form 1040ez It is not excepted property (explained later under Excepted property). Free tax form 1040ez Nonresidential real property and residential rental property. Free tax form 1040ez   This property is qualifying property only to the extent it rehabilitates real property damaged, or replaces real property destroyed or condemned, as a result of the terrorist attack of September 11, 2001. Free tax form 1040ez Property is treated as replacing destroyed or condemned property if, as part of an integrated plan, such property replaces real property included in a continuous area that includes real property destroyed or condemned. Free tax form 1040ez   For these purposes, real property is considered destroyed (or condemned) only if an entire building or structure was destroyed (or condemned) as a result of the terrorist attack. Free tax form 1040ez Otherwise, the property is considered damaged real property. Free tax form 1040ez For example, if certain structural components of a building (such as walls, floors, or plumbing fixtures) are damaged or destroyed as a result of the terrorist attack, but the building is not destroyed (or condemned), then only costs related to replacing the damaged or destroyed structural components qualify for the special Liberty Zone depreciation allowance. Free tax form 1040ez Tests to be met. Free tax form 1040ez   To qualify for the special Liberty Zone depreciation allowance, your property must meet all of the following tests. Free tax form 1040ez Acquisition date test. Free tax form 1040ez   You must have acquired the property by purchase after September 10, 2001, and there must not have been a binding written contract for the acquisition in effect before September 11, 2001. Free tax form 1040ez   For information on the acquisition of property by purchase, see Property Acquired by Purchase on page 15 of Publication 946. Free tax form 1040ez   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001. Free tax form 1040ez Placed in service date test. Free tax form 1040ez   Generally, the property must be placed in service for use in your trade or business or for the production of income before January 1, 2007 (January 1, 2010, in the case of qualifying nonresidential real property and residential rental property). Free tax form 1040ez   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. Free tax form 1040ez Substantial use test. Free tax form 1040ez   Substantially all use of the property must be in the Liberty Zone and in the active conduct of your trade or business in the Liberty Zone. Free tax form 1040ez Original use test. Free tax form 1040ez   The original use of the property in the Liberty Zone must have begun with you after September 10, 2001. Free tax form 1040ez   Used property can be qualified Liberty Zone property if it has not previously been used within the Liberty Zone. Free tax form 1040ez Also, additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test if the original use of the property in the Liberty Zone began with you. Free tax form 1040ez Excepted property. Free tax form 1040ez   The following property does not qualify for the special Liberty Zone depreciation allowance. Free tax form 1040ez Property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. Free tax form 1040ez Property required to be depreciated using ADS. Free tax form 1040ez This includes listed property used 50% or less in a qualified business use. Free tax form 1040ez Qualified New York Liberty Zone leasehold improvement property (defined earlier in Excepted Property under Special Depreciation Allowance). Free tax form 1040ez Example. Free tax form 1040ez In December 2001, you bought and placed in service in your business in the Liberty Zone the following property. Free tax form 1040ez New office furniture with a MACRS recovery period of 7 years. Free tax form 1040ez A used computer with a MACRS recovery period of 5 years. Free tax form 1040ez The computer had not previously been used within the Liberty Zone. Free tax form 1040ez Because the office furniture is new property, it qualifies for the special depreciation allowance, but not the special Liberty Zone depreciation allowance. Free tax form 1040ez Because the computer is used property that had not previously been used in the Liberty Zone, it qualifies for the special Liberty Zone depreciation allowance, but not the special depreciation allowance. Free tax form 1040ez Election Not To Claim the Liberty Zone Allowance You can elect not to claim the special Liberty Zone depreciation allowance for qualified property. Free tax form 1040ez If you make this election for any property, it applies to all property in the same property class placed in service during the year. Free tax form 1040ez To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. Free tax form 1040ez When to make the election. Free tax form 1040ez   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Free tax form 1040ez   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Free tax form 1040ez Attach the election statement to the amended return. Free tax form 1040ez At the top of the election statement, write “Filed pursuant to section 301. Free tax form 1040ez 9100–2. Free tax form 1040ez ” Revoking an election. Free tax form 1040ez   Once you elect not to deduct the special Liberty Zone depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Free tax form 1040ez A request to revoke the election is subject to a user fee. Free tax form 1040ez Returns filed before June 1, 2002. Free tax form 1040ez   The rules that apply to the special depreciation allowance discussed earlier in Rules for Returns Filed Before June 1, 2002 under Special Depreciation Allowance also apply to the special Liberty Zone depreciation allowance. Free tax form 1040ez Increased Section 179 Deduction Under section 179 of the Internal Revenue Code, you can choose to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. Free tax form 1040ez For tax years beginning in 2000, that limit was $20,000. Free tax form 1040ez For tax years beginning in 2001 and 2002, that limit is generally $24,000. Free tax form 1040ez If the cost of qualifying section 179 property placed in service in a year is over $200,000, you must reduce the dollar limit (but not below zero) by the amount of the cost over $200,000. Free tax form 1040ez Increased Dollar Limit The dollar limit on the section 179 deduction is increased for certain property placed in service in the Liberty Zone. Free tax form 1040ez The increase is the smaller of the following amounts. Free tax form 1040ez $35,000. Free tax form 1040ez The cost of section 179 property that is qualified Liberty Zone property placed in service during the year. Free tax form 1040ez If you use the revised 2001 Form 4562 (dated March 2002) for a tax year beginning in 2000, you must reduce the section 179 dollar limit to $20,000 before adding the additional amount for qualified property. Free tax form 1040ez Qualified property. Free tax form 1040ez   To qualify for the increased section 179 deduction, your property must be section 179 property that is either: Qualified Liberty Zone property, or Property that would be qualified Liberty Zone property except that it is eligible for the special depreciation allowance. Free tax form 1040ez Qualified Liberty Zone property is explained earlier in Qualified Liberty Zone Property under Special Liberty Zone Depreciation Allowance. Free tax form 1040ez Property eligible for the special depreciation allowance is explained earlier in Qualified Property under Special Depreciation Allowance. Free tax form 1040ez For information on the requirements that must be met for property to qualify for the section 179 deduction, see What Property Qualifies? on page 14 of Publication 946. Free tax form 1040ez Example 1. Free tax form 1040ez In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $25,000. Free tax form 1040ez Because this cost is less than $35,000, the dollar limit on the section 179 deduction is increased by $25,000 to $49,000 ($24,000 + $25,000). Free tax form 1040ez Example 2. Free tax form 1040ez In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $75,000. Free tax form 1040ez Because $35,000 is less than the cost of the property you place in service, the dollar limit on the section 179 deduction you can claim is increased by $35,000 to $59,000 ($24,000 + $35,000). Free tax form 1040ez Reduced Dollar Limit Generally, you must reduce the dollar limit for a year by the cost of qualifying section 179 property placed in service in the year that is more than $200,000. Free tax form 1040ez However, if the cost of your Liberty Zone property exceeds $200,000, you take into account only 50% (instead of 100%) of the cost of qualified property placed in service in a year. Free tax form 1040ez Example. Free tax form 1040ez In 2002, you place in service in your business, which is in the Liberty Zone, qualified property costing $460,000. Free tax form 1040ez Your increased dollar limit is $59,000 ($35,000 + $24,000). Free tax form 1040ez Because 50% of the cost of the property you place in service ($230,000) is $30,000 more than $200,000, you must reduce your $59,000 dollar limit to $29,000 ($59,000 - $30,000). Free tax form 1040ez Recapture Rules Rules similar to those explained on page 20 of Publication 946 under When Must You Recapture the Deduction? apply with respect to any qualified property you stop using in the Liberty Zone. Free tax form 1040ez Returns Filed Before June 1, 2002 If you filed a return before June 1, 2002, and did not deduct the increased section 179 amount for qualified property placed in service after September 10, 2001, you can deduct the increased amount by filing an amended return by the due date (not including extensions) of the return for the year after the year the property was placed in service. Free tax form 1040ez This rule applies to returns for the following years. Free tax form 1040ez 2000 fiscal years that end after September 10, 2001. Free tax form 1040ez 2001 calendar and fiscal years. Free tax form 1040ez On the amended return, write “Filed Pursuant to Rev. Free tax form 1040ez Proc. Free tax form 1040ez 2002–33. Free tax form 1040ez ” Liberty Zone Leasehold Improvement Property Qualified Liberty Zone leasehold improvement property (described earlier in Qualified Property under Special Depreciation Allowance) is 5-year property. Free tax form 1040ez This means that it is depreciated over a recovery period of 5 years. Free tax form 1040ez For information about recovery periods, see Which Recovery Period Applies? on page 23 of Publication 946. Free tax form 1040ez The straight-line method must be used with respect to qualified Liberty Zone leasehold improvement property. Free tax form 1040ez Under ADS, the recovery period for qualified Liberty Zone leasehold improvement property is 9 years. Free tax form 1040ez Returns Filed Before June 1, 2002 If you filed either of the following returns before June 1, 2002, and did not depreciate qualified Liberty Zone leasehold improvement property placed in service during the tax year as 5-year property using the straight line method, you should file an amended return before you file your return for the year after the year the property was placed in service. Free tax form 1040ez Your 2000 fiscal year return (for a 2000 fiscal year that ends after September 10, 2001). Free tax form 1040ez Your 2001 calendar or fiscal year return. Free tax form 1040ez On the amended return, write “Filed Pursuant to Rev. Free tax form 1040ez Proc. Free tax form 1040ez 2002–33. Free tax form 1040ez ” Table 2. Free tax form 1040ez Rules for Returns Filed Before June 1, 2002 Note:This chart highlights the rules for returns affected by the Job Creation and Worker Assistance Act of 2002 that were filed before June 1, 2002, without accounting for any of the new benefits under the law. Free tax form 1040ez See the text for definitions and examples. Free tax form 1040ez Do not rely on this chart alone. Free tax form 1040ez IF you want to. Free tax form 1040ez . Free tax form 1040ez . Free tax form 1040ez THEN you. Free tax form 1040ez . Free tax form 1040ez . Free tax form 1040ez BY. Free tax form 1040ez . Free tax form 1040ez . Free tax form 1040ez claim the special depreciation allowance or special Liberty Zone depreciation allowance • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service, or • must file Form 3115, Application for Change in Accounting Method, with your return for the year after the year the property was placed in service • the due date (including extensions) of your return for the year after the year the property was placed in service, and • must file a copy of your completed Form 3115 with the IRS National Office • the date you file the original Form 3115 with your return for the year after the year the property was placed in service. Free tax form 1040ez elect not to claim the special depreciation allowance or the special Liberty Zone depreciation allowance 1 • must have filed your return timely for the year the property was placed in service, and   • must file an amended return stating you are not claiming the allowance • the date that is 6 months after the due date of the original return (not including extensions). Free tax form 1040ez deduct the increased section 179 amount • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service. Free tax form 1040ez use a 5-year recovery period for depreciating qualified Liberty Zone leasehold improvement property • should file an amended return • the date you file your return for the year after the year the property was placed in service. Free tax form 1040ez 1See also Deemed election under Rules for Returns Filed Before June 1, 2002, earlier. 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