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Free tax return 6. Free tax return   Retail Tax on Heavy Trucks, Trailers, and Tractors Table of Contents Highway vehicle. Free tax return Vehicles not considered highway vehicles. Free tax return Idling reduction device. Free tax return Separate purchase. Free tax return Leases. Free tax return Exported vehicle. Free tax return Tax on resale of tax-paid trailers and semitrailers. Free tax return Use treated as sale. Free tax return Sale. Free tax return Long-term lease. Free tax return Short-term lease. Free tax return Related person. Free tax return Exclusions from tax base. Free tax return Sales not at arm's length. Free tax return Installment sales. Free tax return Repairs and modifications. Free tax return Further manufacture. Free tax return Rail trailers and rail vans. Free tax return Parts and accessories. Free tax return Trash containers. Free tax return House trailers. Free tax return Camper coaches or bodies for self-propelled mobile homes. Free tax return Farm feed, seed, and fertilizer equipment. Free tax return Ambulances and hearses. Free tax return Truck-tractors. Free tax return Concrete mixers. Free tax return Registration requirement. Free tax return Further manufacture. Free tax return A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles. Free tax return Truck chassis and bodies. Free tax return Truck trailer and semitrailer chassis and bodies. Free tax return Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. Free tax return A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it is equipped to tow a vehicle, such as a trailer or semitrailer. Free tax return A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. Free tax return A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing. Free tax return A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body. Free tax return The seller is liable for the tax. Free tax return Chassis or body. Free tax return   A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer. Free tax return Highway vehicle. Free tax return   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Free tax return Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Free tax return A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Free tax return A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Free tax return A special kind of cargo, goods, supplies, or materials. Free tax return Some off-highway task unrelated to highway transportation, except as discussed next. Free tax return Vehicles not considered highway vehicles. Free tax return   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the retail tax. Free tax return Specially designed mobile machinery for nontransportation functions. Free tax return A self-propelled vehicle is not a highway vehicle if all the following apply. Free tax return The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Free tax return The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Free tax return The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Free tax return Vehicles specially designed for off-highway transportation. Free tax return A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired. Free tax return To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Free tax return It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Free tax return Nontransportation trailers and semitrailers. Free tax return A trailer or semitrailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Free tax return For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Free tax return Gross vehicle weight. Free tax return   The tax does not apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight (defined below) of 33,000 pounds or less. Free tax return It also does not apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. Free tax return Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax. Free tax return   The following four classifications of truck body types meet the suitable for use standard and will be excluded from the retail excise tax. Free tax return Platform truck bodies 21 feet or less in length. Free tax return Dry freight and refrigerated truck van bodies 24 feet or less in length. Free tax return Dump truck bodies with load capacities of 8 cubic yards or less. Free tax return Refuse packer truck bodies with load capacities of 20 cubic yards or less. Free tax return For more information on these classifications, see Revenue Procedure 2005-19, which is on page 832 of I. Free tax return R. Free tax return B. Free tax return 2005-14 at www. Free tax return irs. Free tax return gov/pub/irs-irbs/irb05-14. Free tax return pdf. Free tax return   The gross vehicle weight means the maximum total weight of a loaded vehicle. Free tax return Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. Free tax return The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. Free tax return The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. Free tax return See Regulations section 145. Free tax return 4051-1(e)(3) for more information. Free tax return Parts or accessories. Free tax return   The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. Free tax return For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. Free tax return The tax applies in this case whether or not the retailer bills the parts or accessories separately. Free tax return   If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they are shipped separately, at the same time, or on a different date. Free tax return The tax applies unless there is evidence to the contrary. Free tax return For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. Free tax return The tax does not apply to parts and accessories that are spares or replacements. Free tax return   The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories (discussed next) for the taxable articles listed earlier do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch. Free tax return Idling reduction device. Free tax return   An idling reduction device is any device or system of devices that provide the tractor with services, such as heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. Free tax return The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. Free tax return The EPA discusses idling reduction technologies on its website at www. Free tax return epa. Free tax return gov/smartway/technology/idling. Free tax return htm. Free tax return Separate purchase. Free tax return   The tax generally applies to the price of a part or accessory and its installation if the following conditions are met. Free tax return The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle. Free tax return The installation occurs within 6 months after the vehicle is first placed in service. Free tax return   The owners of the trade or business installing the parts or accessories are secondarily liable for the tax. Free tax return   A vehicle is placed in service on the date the owner takes actual possession of the vehicle. Free tax return This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner. Free tax return   The tax does not apply if the installed part or accessory is a replacement part or accessory. Free tax return The tax also does not apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. Free tax return However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period. Free tax return Example. Free tax return You bought a taxable vehicle and placed it in service on April 8. Free tax return On May 3, you bought and installed parts and accessories at a cost of $850. Free tax return On July 15, you bought and installed parts and accessories for $300. Free tax return Tax of $138 (12% of $1,150) applies on July 15. Free tax return Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8. Free tax return First retail sale defined. Free tax return   The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies. Free tax return There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers, later). Free tax return The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax, later). Free tax return The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis. Free tax return There is no registration requirement. Free tax return Leases. Free tax return   A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. Free tax return The tax is imposed on the lessor at the time of the lease. Free tax return   A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. Free tax return The tax is imposed on the lessor at the time of the lease. Free tax return Exported vehicle. Free tax return   A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation. Free tax return Tax on resale of tax-paid trailers and semitrailers. Free tax return   The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. Free tax return The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. Free tax return The credit cannot exceed the tax on the resale. Free tax return See Regulations section 145. Free tax return 4052-1(a)(4) for information on the conditions to allowance for the credit. Free tax return Use treated as sale. Free tax return   If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. Free tax return Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. Free tax return The tax attaches when the use begins. Free tax return   If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use. Free tax return   If the seller of an article does not regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles. Free tax return   If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax is not incurred on the later sale or lease. Free tax return Presumptive retail sales price. Free tax return   There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. Free tax return If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following discussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. Free tax return Table 6-1 outlines the appropriate tax base calculation for various transactions. Free tax return   The presumed markup percentage to be used for trucks and truck-tractors is 4%. Free tax return But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero. Free tax return Sale. Free tax return   For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage times that sales price. Free tax return Long-term lease. Free tax return   In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage times the constructive sales price. Free tax return Short-term lease. Free tax return   When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles generally are sold in the ordinary course of trade by retailers. Free tax return   But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use. Free tax return   If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage. Free tax return Related person. Free tax return   A related person is any member of the same controlled group as the manufacturer, producer, or importer. Free tax return Do not treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. Free tax return Table 6-1. Free tax return Tax Base IF the transaction is a. Free tax return . Free tax return . Free tax return THEN figuring the base by using the. Free tax return . Free tax return . Free tax return Sale by the manufacturer, producer, importer, or related person Sales price plus (presumed markup percentage × sales price) Sale by the dealer Total consideration paid for the item including any charges incident to placing it in a condition ready for use Long-term lease by the manufacturer, producer, importer, or related person Constructive sales price plus (presumed markup percentage × constructive sales price) Short-term lease by the manufacturer, producer, importer, or related person Constructive sales price at which such or similar articles are sold Short-term lease by a lessor other than the manufacturer, producer, importer, or related person Price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor plus a presumed markup percentage Short-term lease where the articles are regularly sold at arm's length Lowest established retail price in effect at the time of the taxable use General rule for sales by dealers to the consumer. Free tax return   For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base. Free tax return   When you sell an article to the consumer, generally you do not add a presumed markup to the tax base. Free tax return However, you do add a markup if all the following apply. Free tax return You do not perform any significant activities relating to the processing of the sale of a taxable article. Free tax return The main reason for processing the sale through you is to avoid or evade the presumed markup. Free tax return You do not have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage. Free tax return In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage times that selling price. Free tax return Determination of tax base. Free tax return   These rules apply to both normal retail sales price and presumptive retail sales price computations. Free tax return To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. Free tax return However, see Presumptive retail sales price, earlier. Free tax return Exclusions from tax base. Free tax return   Exclude from the tax base the retail excise tax imposed on the sale. Free tax return Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. Free tax return Also exclude the value of any used component of the article furnished by the first user of the article. Free tax return   Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. Free tax return These expenses are those incurred in delivery from the retail dealer to the customer. Free tax return In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges do not exceed what it would have cost to ship the article to the dealer. Free tax return   Exclude amounts charged for machinery or equipment that does not contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. Free tax return For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. Free tax return Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe. Free tax return Sales not at arm's length. Free tax return   For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the price for which similar articles are sold at retail in the ordinary course of trade. Free tax return   A sale is not at arm's length if either of the following apply. Free tax return One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price. Free tax return The sale is made under special arrangements between a seller and a purchaser. Free tax return Installment sales. Free tax return   If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. Free tax return The tax is figured on the entire sales price. Free tax return No part of the tax is deferred because the sales price is paid in installments. Free tax return Repairs and modifications. Free tax return   The tax does not apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. Free tax return This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. Free tax return However, this exception generally does not apply to an article that was not subject to the tax when it was new. Free tax return Further manufacture. Free tax return   The tax does not apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. Free tax return Do not treat a person as engaged in the manufacture of any article merely because that person combines the article with a: Coupling device (including any fifth wheel); Wrecker crane; Loading and unloading equipment (including any crane, hoist, winch, or power liftgate); Aerial ladder or tower; Ice and snow control equipment; Earth moving, excavation, and construction equipment; Spreader; Sleeper cab; Cab shield; or Wood or metal floor. Free tax return Combining an article with an item in this list does not give rise to taxability. Free tax return However, see Parts or accessories discussed earlier. Free tax return Articles exempt from tax. Free tax return   The tax on heavy trucks, trailers, and tractors does not apply to sales of the articles described in the following discussions. Free tax return Rail trailers and rail vans. Free tax return   This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). Free tax return Do not treat a piggyback trailer or semitrailer as designed for use as a railroad car. Free tax return Parts and accessories. Free tax return   This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase. Free tax return Trash containers. Free tax return   This is any box, container, receptacle, bin, or similar article that meets all the following conditions. Free tax return It is designed to be used as a trash container. Free tax return It is not designed to carry freight other than trash. Free tax return It is not designed to be permanently mounted on or affixed to a truck chassis or body. Free tax return House trailers. Free tax return   This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks. Free tax return Camper coaches or bodies for self-propelled mobile homes. Free tax return   This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. Free tax return Further, the tax does not apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies. Free tax return Farm feed, seed, and fertilizer equipment. Free tax return   This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. Free tax return This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted. Free tax return Ambulances and hearses. Free tax return   This is any ambulance, hearse, or combination ambulance-hearse. Free tax return Truck-tractors. Free tax return   This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals. Free tax return Concrete mixers. Free tax return   This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. Free tax return This exemption does not apply to the chassis on which the article is mounted. Free tax return Sales exempt from tax. Free tax return   The following sales are ordinarily exempt from tax. Free tax return Sales to a state or local government for its exclusive use. Free tax return Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function. Free tax return Sales to a nonprofit educational organization for its exclusive use. Free tax return Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. Free tax return Sales for use by the purchaser for further manufacture of other taxable articles (see below). Free tax return Sales for export or for resale by the purchaser to a second purchaser for export. Free tax return Sales to the United Nations for official use. Free tax return Registration requirement. Free tax return   In general, the seller and buyer must be registered for a sale to be tax free. Free tax return See the Form 637 instructions for more information. Free tax return Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for export, and sales for resale or long term leasing. Free tax return Further manufacture. Free tax return   If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them. Free tax return Credits or refunds. Free tax return   A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. Free tax return The person using the article as a component part is eligible for the credit or refund. Free tax return   A credit or refund is allowable if, before any other use, an article is, by any person: Exported, Used or sold for use as supplies for vessels, Sold to a state or local government for its exclusive use, Sold to a nonprofit educational organization for its exclusive use, or Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the collection, storage, or transportation of blood. Free tax return A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance. Free tax return   See also Conditions to allowance in chapter 5. Free tax return Tire credit. Free tax return   A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. Free tax return The credit is equal to the manufacturers excise tax imposed on the taxable tires (discussed earlier). Free tax return This is the section 4051(d) taxable tire credit and is claimed on Schedule C (Form 720) for the same quarter for which the tax on the heavy vehicle is reported. Free tax return Prev  Up  Next   Home   More Online Publications
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The Free Tax Return

Free tax return Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Free tax return Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Free tax return Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Free tax return Any forgiven tax liability owed to the IRS will not have to be paid. Free tax return Any forgiven tax liability that has already been paid will be refunded. Free tax return (See Refund of Taxes Paid, later. Free tax return ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Free tax return Then read Amount of Tax Forgiven. Free tax return Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Free tax return Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Free tax return See Minimum Amount of Relief later under Amount of Tax Forgiven. Free tax return Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Free tax return Oklahoma City attack. Free tax return   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Free tax return Example 1. Free tax return A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Free tax return His income tax is forgiven for 1994 and 1995. Free tax return Example 2. Free tax return A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Free tax return She subsequently died of her wounds in 1996. Free tax return Her income tax is forgiven for 1994, 1995, and 1996. Free tax return September 11 attacks and anthrax attacks. Free tax return   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Free tax return Example 1. Free tax return A Pentagon employee died in the September 11 attack. Free tax return Her income tax is forgiven for 2000 and 2001. Free tax return Example 2. Free tax return A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Free tax return His income tax liability is forgiven for 2000, 2001, and 2002. Free tax return Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Free tax return On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Free tax return To figure the tax to be forgiven, use the following worksheets. Free tax return Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Free tax return Use Worksheet B for any eligible year the decedent filed a joint return. Free tax return See the illustrated Worksheet B near the end of this publication. Free tax return Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Free tax return Instead, complete Worksheet C and file a return for the decedent's last tax year. Free tax return See Minimum Amount of Relief, later. Free tax return If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Free tax return In English–7 a. Free tax return m. Free tax return to 10 p. Free tax return m. Free tax return local time. Free tax return In Spanish–8 a. Free tax return m. Free tax return to 9:30 p. Free tax return m. Free tax return local time. Free tax return Both spouses died. Free tax return   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Free tax return Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Free tax return If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Free tax return However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Free tax return The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Free tax return Residents of community property states. Free tax return   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Free tax return Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Free tax return Worksheet B. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax return 1       2 Enter the decedent's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 2       3 Enter the decedent's total tax. Free tax return See the instructions. Free tax return 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax return See the instructions. Free tax return 4       5 Subtract line 4 from line 3. Free tax return 5       6 Enter the surviving spouse's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 6       7 Enter the surviving spouse's total tax. Free tax return See the instructions. Free tax return 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax return 8       9 Subtract line 8 from line 7. Free tax return 9       10 Add lines 5 and 9. Free tax return 10       11 Enter the total tax from the joint return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 11       12 Add lines 4 and 8. Free tax return 12       13 Subtract line 12 from line 11. Free tax return 13       14 Divide line 5 by line 10. Free tax return Enter the result as a decimal. Free tax return 14       15 Tax to be forgiven. Free tax return Multiply line 13 by line 14 and enter the result. Free tax return 15       Note. Free tax return If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Worksheet B. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax return 1       2 Enter the decedent's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 2       3 Enter the decedent's total tax. Free tax return See the instructions. Free tax return 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax return See the instructions. Free tax return 4       5 Subtract line 4 from line 3. Free tax return 5       6 Enter the surviving spouse's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 6       7 Enter the surviving spouse's total tax. Free tax return See the instructions. Free tax return 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax return 8       9 Subtract line 8 from line 7. Free tax return 9       10 Add lines 5 and 9. Free tax return 10       11 Enter the total tax from the joint return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 11       12 Add lines 4 and 8. Free tax return 12       13 Subtract line 12 from line 11. Free tax return 13       14 Divide line 5 by line 10. Free tax return Enter the result as a decimal. Free tax return 14       15 Tax to be forgiven. Free tax return Multiply line 13 by line 14 and enter the result. Free tax return 15       Note. Free tax return If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Instructions for Worksheet B Table 1. Free tax return Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free tax return * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free tax return ** File Form 4506 to get a transcript of the decedent's account. Free tax return Table 1. Free tax return Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free tax return * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free tax return ** File Form 4506 to get a transcript of the decedent's account. Free tax return Lines 2 and 6. Free tax return   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Free tax return   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Free tax return Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Free tax return Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free tax return   Allocate business deductions to the owner of the business. Free tax return Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free tax return Lines 3 and 7. Free tax return   Figure the total tax as if a separate return had been filed. Free tax return The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Free tax return When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Free tax return   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Free tax return If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Free tax return Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Free tax return Line 4. Free tax return   Enter the total, if any, of the following taxes. Free tax return Self-employment tax. Free tax return Social security and Medicare tax on tip income not reported to employer. Free tax return Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free tax return Tax on excess accumulation in qualified retirement plans. Free tax return Household employment taxes. Free tax return Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free tax return Tax on golden parachute payments. Free tax return Minimum Amount of Relief The minimum amount of relief is $10,000. Free tax return If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Free tax return The IRS will refund the difference as explained under Refund of Taxes Paid. Free tax return Use Worksheet C to figure the additional tax payment. Free tax return But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Free tax return Example 1. Free tax return An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Free tax return The $6,400 is eligible for forgiveness. Free tax return The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Free tax return Example 2. Free tax return A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Free tax return The IRS will treat $10,000 as a tax payment for 2001. Free tax return Income received after date of death. Free tax return   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Free tax return Examples are the final paycheck or dividends on stock owned by the decedent. Free tax return However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Free tax return Nonqualifying income. Free tax return   The following income is not exempt from tax. Free tax return The tax on it is not eligible for forgiveness. Free tax return Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Free tax return Amounts that would not have been payable but for an action taken after September 11, 2001. Free tax return The following are examples of nonqualifying income. Free tax return Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Free tax return Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Free tax return Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Free tax return Interest on savings bonds cashed by the beneficiary of the decedent. Free tax return If you are responsible for the estate of a decedent, see Publication 559. Free tax return Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Free tax return Instructions for lines 2–9 of Worksheet C. Free tax return   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Free tax return To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Free tax return Or, if special requirements are met, you can use the alternative computation instead. Free tax return See Alternative computation, later. Free tax return   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Free tax return Use Form 1041 to figure what the taxable income would be without including the exempt income. Free tax return Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Free tax return Alternative computation. Free tax return   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Free tax return You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Free tax return The estate claimed an income distribution deduction on line 18 (Form 1041). Free tax return Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Free tax return If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Free tax return If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Free tax return Complete the rest of Worksheet C to determine the additional payment allowed. Free tax return Worksheet C. Free tax return Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax return Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax return 1 Minimum relief amount. Free tax return Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax return 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax return 3       4 Add lines 2 and 3. Free tax return 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 5       6 Add lines 4 and 5. Free tax return 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax return 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax return 8       9 Tax on exempt income. Free tax return Subtract line 8 from line 7. Free tax return 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax return If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax return 10       11 Add lines 9 and 10. Free tax return 11   12 Additional payment allowed. Free tax return If line 11 is $10,000 or more, enter -0- and stop here. Free tax return No additional amount is allowed as a tax payment. Free tax return Otherwise, subtract line 11 from line 1 and enter the result. Free tax return 12   Note. Free tax return The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax return Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax return If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax return Write "Sec. Free tax return 692(d)(2) Payment" and the amount to the right of the entry space. Free tax return Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax return If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax return Write “Sec. Free tax return 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax return Worksheet C. Free tax return Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax return Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax return 1 Minimum relief amount. Free tax return Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax return 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax return 3       4 Add lines 2 and 3. Free tax return 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 5       6 Add lines 4 and 5. Free tax return 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax return 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax return 8       9 Tax on exempt income. Free tax return Subtract line 8 from line 7. Free tax return 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax return If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax return 10       11 Add lines 9 and 10. Free tax return 11   12 Additional payment allowed. Free tax return If line 11 is $10,000 or more, enter -0- and stop here. Free tax return No additional amount is allowed as a tax payment. Free tax return Otherwise, subtract line 11 from line 1 and enter the result. Free tax return 12   Note. Free tax return The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax return Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax return If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax return Write "Sec. Free tax return 692(d)(2) Payment" and the amount to the right of the entry space. Free tax return Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax return If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax return Write “Sec. Free tax return 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax return Worksheet D. Free tax return Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free tax return 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free tax return 5   6 Estate's tax on exempt income. Free tax return Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free tax return Figure the total tax that would have been payable by all beneficiaries. Free tax return Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free tax return Add the amounts by which each beneficiary's income tax is increased. Free tax return 7   8 Add lines 6 and 7. Free tax return Enter this amount on line 9 of Worksheet C. Free tax return 8   Worksheet D. Free tax return Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free tax return 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free tax return 5   6 Estate's tax on exempt income. Free tax return Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free tax return Figure the total tax that would have been payable by all beneficiaries. Free tax return Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free tax return Add the amounts by which each beneficiary's income tax is increased. Free tax return 7   8 Add lines 6 and 7. Free tax return Enter this amount on line 9 of Worksheet C. Free tax return 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Free tax return Income tax liabilities that have been paid. Free tax return Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Free tax return See Minimum Amount of Relief, earlier. Free tax return Example 1. Free tax return A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Free tax return The total, $14,000, is eligible for tax forgiveness. Free tax return However, he paid only $13,000 of that amount. Free tax return The IRS will refund the $13,000 paid. Free tax return Example 2. Free tax return A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Free tax return The child qualifies for the minimum relief of $10,000. Free tax return The $10,000 is treated as a tax payment for 2001 and will be refunded. Free tax return Period for filing a claim for credit or refund. Free tax return   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Free tax return For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Free tax return To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Free tax return Extension of time for victims of Oklahoma City attack. Free tax return   The period described above has been extended for victims of the Oklahoma City attack. Free tax return Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Free tax return How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Free tax return Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Free tax return Return required but not yet filed. Free tax return   File Form 1040 if the decedent was a U. Free tax return S. Free tax return citizen or resident. Free tax return File Form 1040NR if the decedent was a nonresident alien. Free tax return A nonresident alien is someone who is not a U. Free tax return S. Free tax return citizen or resident. Free tax return Return required and already filed. Free tax return   File a separate Form 1040X for each year you are claiming tax relief. Free tax return Return not required and not filed. Free tax return   File Form 1040 only for the year of death if the decedent was a U. Free tax return S. Free tax return citizen or resident. Free tax return File Form 1040NR if the decedent was a nonresident alien. Free tax return Return not required but already filed. Free tax return   File Form 1040X only for the year of death. Free tax return How to complete the returns. Free tax return   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Free tax return Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Free tax return If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Free tax return If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Free tax return Also, please write one of the following across the top of page 1 of each return. Free tax return KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Free tax return ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Free tax return If you need a copy, use Form 4506. Free tax return The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Free tax return Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Free tax return Send Form 4506 to the address shown in the form instructions. Free tax return Taxpayer identification number. Free tax return   A taxpayer identification number must be furnished on the decedent's returns. Free tax return This is usually the decedent's social security number (SSN). Free tax return However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Free tax return If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Free tax return S. Free tax return income tax return for any tax year, do not apply for an ITIN. Free tax return You may claim a refund by filing Form 1040NR without an SSN or ITIN. Free tax return Necessary Documents Please attach the following documents to the return or amended return. Free tax return Proof of death. Free tax return   Attach a copy of the death certificate. Free tax return If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Free tax return Form 1310. Free tax return   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Free tax return You are a surviving spouse filing an original or amended joint return with the decedent. Free tax return You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Free tax return A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Free tax return A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Free tax return      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Free tax return Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Free tax return Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Free tax return Use one of the addresses shown below. Free tax return Where you file the returns or claims depends on whether you use the U. Free tax return S. Free tax return Postal Service or a private delivery service. Free tax return Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Free tax return U. Free tax return S. Free tax return Postal Service. Free tax return   If you use the U. Free tax return S. Free tax return Postal Service, file these returns and claims at the following address. Free tax return Internal Revenue Service P. Free tax return O. Free tax return Box 4053 Woburn, MA 01888 Private delivery service. Free tax return   Private delivery services cannot deliver items to P. Free tax return O. Free tax return boxes. Free tax return If you use a private delivery service, file these returns and claims at the following address. Free tax return Internal Revenue Service Stop 661 310 Lowell St. Free tax return Andover, MA 01810 Designated private delivery services. Free tax return   You can use the following private delivery services to file these returns and claims. Free tax return Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Free tax return DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Free tax return Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Free tax return United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Free tax return M. Free tax return , UPS Worldwide Express Plus, and UPS Worldwide Express. Free tax return The private delivery service can tell you how to get written proof of the mailing date. Free tax return Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Free tax return September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Free tax return Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Free tax return These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free tax return No withholding applies to these payments. Free tax return Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Free tax return Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Free tax return Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Free tax return (A personal residence can be a rented residence or one you own. Free tax return ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Free tax return Qualified disaster relief payments also include the following. Free tax return Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Free tax return Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Free tax return Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Free tax return Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Free tax return Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Free tax return Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Free tax return However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Free tax return If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Free tax return For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Free tax return If that period has expired, you are granted an extension. Free tax return You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Free tax return On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Free tax return 102(b)(2). Free tax return ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Free tax return The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Free tax return Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Free tax return Bureau of Justice Assistance payments. Free tax return   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Free tax return Government plan annuity. Free tax return   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Free tax return This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Free tax return For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Free tax return More information. Free tax return   For more information, see Publication 559. Free tax return Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Free tax return The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free tax return If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free tax return Affected taxpayers. Free tax return   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free tax return Any individual whose main home is located in a covered area (defined later). Free tax return Any business entity or sole proprietor whose principal place of business is located in a covered area. Free tax return Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Free tax return The main home or principal place of business does not have to be located in the covered area. Free tax return Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Free tax return Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Free tax return The spouse on a joint return with a taxpayer who is eligible for postponements. Free tax return Any other person determined by the IRS to be affected by a terrorist attack. Free tax return Covered area. Free tax return   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Free tax return Abatement of interest. Free tax return   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Free tax return Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Free tax return You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Free tax return The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Free tax return The due date (with extensions) for the 2000 return. Free tax return For more information about disaster area losses, see Publication 547. Free tax return Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Free tax return The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Free tax return The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Free tax return These credits may reduce or eliminate the estate tax due. Free tax return A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Free tax return Recovery from the September 11th Victim Compensation Fund. Free tax return   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Free tax return However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Free tax return Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Free tax return Which estates must file a return. Free tax return   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Free tax return S. Free tax return citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Free tax return Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Free tax return Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Free tax return S. Free tax return Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Free tax return Where to file. Free tax return   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Free tax return Internal Revenue Service E & G Department/Stop 824T 201 W. Free tax return Rivercenter Blvd. Free tax return Covington, KY 41011 More information. Free tax return   For more information on the federal estate tax, see the instructions for Form 706. Free tax return Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Free tax return The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Free tax return However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Free tax return For information about these requirements, see Internal Revenue Code section 5891. Free tax return Worksheet B Illustrated. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax return 1 2000 2001   2 Enter the decedent's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 2 $17,259 $14,295   3 Enter the decedent's total tax. Free tax return See the instructions. Free tax return 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax return See the instructions. Free tax return 4 3,532 3,109   5 Subtract line 4 from line 3. Free tax return 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions for line 2. Free tax return 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free tax return See the instructions. Free tax return 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax return 8 0 0   9 Subtract line 8 from line 7. Free tax return 9 5,277 5,391   10 Add lines 5 and 9. Free tax return 10 7,868 7,532   11 Enter the total tax from the joint return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 11 10,789 9,728   12 Add lines 4 and 8. Free tax return 12 3,532 3,109   13 Subtract line 12 from line 11. Free tax return 13 7,257 6,619   14 Divide line 5 by line 10. Free tax return Enter the result as a decimal. Free tax return 14 . Free tax return 329 . Free tax return 284   15 Tax to be forgiven. Free tax return Multiply line 13 by line 14 and enter the result. Free tax return 15 $2,388 $1,880   Note. Free tax return If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Worksheet B Illustrated. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax return 1 2000 2001   2 Enter the decedent's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 2 $17,259 $14,295   3 Enter the decedent's total tax. Free tax return See the instructions. Free tax return 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax return See the instructions. Free tax return 4 3,532 3,109   5 Subtract line 4 from line 3. Free tax return 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions for line 2. Free tax return 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free tax return See the instructions. Free tax return 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax return 8 0 0   9 Subtract line 8 from line 7. Free tax return 9 5,277 5,391   10 Add lines 5 and 9. Free tax return 10 7,868 7,532   11 Enter the total tax from the joint return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 11 10,789 9,728   12 Add lines 4 and 8. Free tax return 12 3,532 3,109   13 Subtract line 12 from line 11. Free tax return 13 7,257 6,619   14 Divide line 5 by line 10. Free tax return Enter the result as a decimal. Free tax return 14 . Free tax return 329 . Free tax return 284   15 Tax to be forgiven. Free tax return Multiply line 13 by line 14 and enter the result. Free tax return 15 $2,388 $1,880   Note. Free tax return If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Free tax return They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Free tax return The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Free tax return After the husband died, his estate received income of $4,000. Free tax return Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Free tax return This net profit is exempt from income tax as explained earlier under Income received after date of death. Free tax return The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Free tax return To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Free tax return She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Free tax return To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Free tax return To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Free tax return   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Free tax return Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax return Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax return 1 Minimum relief amount. Free tax return Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax return 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free tax return 3 0     4 Add lines 2 and 3. Free tax return 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 5 1,000     6 Add lines 4 and 5. Free tax return 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax return 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax return 8 435     9 Tax on exempt income. Free tax return Subtract line 8 from line 7. Free tax return 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax return If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax return 10 4,268     11 Add lines 9 and 10. Free tax return 11 $4,543 12 Additional payment allowed. Free tax return If line 11 is $10,000 or more, enter -0- and stop here. Free tax return No additional amount is allowed as a tax payment. Free tax return Otherwise, subtract line 11 from line 1 and enter the result. Free tax return 12 $5,457 Note. Free tax return The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax return Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax return If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax return Write "Sec. Free tax return 692(d)(2) Payment" and the amount to the right of the entry space. Free tax return Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax return If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax return Write “Sec. Free tax return 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax return Worksheet C Illustrated. Free tax return Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax return Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax return 1 Minimum relief amount. Free tax return Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax return 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free tax return 3 0     4 Add lines 2 and 3. Free tax return 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 5 1,000     6 Add lines 4 and 5. Free tax return 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax return 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax return 8 435     9 Tax on exempt income. Free tax return Subtract line 8 from line 7. Free tax return 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax return If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax return 10 4,268     11 Add lines 9 and 10. Free tax return 11 $4,543 12 Additional payment allowed. Free tax return If line 11 is $10,000 or more, enter -0- and stop here. Free tax return No additional amount is allowed as a tax payment. Free tax return Otherwise, subtract line 11 from line 1 and enter the result. Free tax return 12 $5,457 Note. Free tax return The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax return Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax return If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax return Write "Sec. Free tax return 692(d)(2) Payment" and the amount to the right of the entry space. Free tax return Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax return If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax return Write “Sec. Free tax return 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax return Additional Worksheets The following additional worksheets are provided for your convenience. Free tax return Worksheet A. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free tax return 1       2 Enter the total tax from the decedent's income tax return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free tax return (These taxes are not eligible for forgiveness. Free tax return )           a Self-employment tax. Free tax return 3a         b Social security and Medicare tax on tip income not reported to employer. Free tax return 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free tax return 3c         d Tax on excess accumulation in qualified retirement plans. Free tax return 3d         e Household employment taxes. Free tax return 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free tax return 3f         g Tax on golden parachute payments. Free tax return 3g       4 Add lines 3a through 3g. Free tax return 4       5 Tax to be forgiven. Free tax return Subtract line 4 from line 2. Free tax return 5       Note. Free tax return If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Worksheet A. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free tax return 1       2 Enter the total tax from the decedent's income tax return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free tax return (These taxes are not eligible for forgiveness. Free tax return )           a Self-employment tax. Free tax return 3a         b Social security and Medicare tax on tip income not reported to employer. Free tax return 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free tax return 3c         d Tax on excess accumulation in qualified retirement plans. Free tax return 3d         e Household employment taxes. Free tax return 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free tax return 3f         g Tax on golden parachute payments. Free tax return 3g       4 Add lines 3a through 3g. Free tax return 4       5 Tax to be forgiven. Free tax return Subtract line 4 from line 2. Free tax return 5       Note. Free tax return If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Worksheet B. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax return 1       2 Enter the decedent's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 2       3 Enter the decedent's total tax. Free tax return See the instructions. Free tax return 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax return See the instructions. Free tax return 4       5 Subtract line 4 from line 3. Free tax return 5       6 Enter the surviving spouse's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 6       7 Enter the surviving spouse's total tax. Free tax return See the instructions. Free tax return 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax return 8       9 Subtract line 8 from line 7. Free tax return 9       10 Add lines 5 and 9. Free tax return 10       11 Enter the total tax from the joint return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 11       12 Add lines 4 and 8. Free tax return 12       13 Subtract line 12 from line 11. Free tax return 13       14 Divide line 5 by line 10. Free tax return Enter the result as a decimal. Free tax return 14       15 Tax to be forgiven. Free tax return Multiply line 13 by line 14 and enter the result. Free tax return 15       Note. Free tax return If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Worksheet B. Free tax return Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax return 1       2 Enter the decedent's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 2       3 Enter the decedent's total tax. Free tax return See the instructions. Free tax return 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax return See the instructions. Free tax return 4       5 Subtract line 4 from line 3. Free tax return 5       6 Enter the surviving spouse's taxable income. Free tax return Figure taxable income as if a separate return had been filed. Free tax return See the instructions. Free tax return 6       7 Enter the surviving spouse's total tax. Free tax return See the instructions. Free tax return 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax return 8       9 Subtract line 8 from line 7. Free tax return 9       10 Add lines 5 and 9. Free tax return 10       11 Enter the total tax from the joint return. Free tax return See Table 1 on page 5 for the line number for years before 2002. Free tax return 11       12 Add lines 4 and 8. Free tax return 12       13 Subtract line 12 from line 11. Free tax return 13       14 Divide line 5 by line 10. Free tax return Enter the result as a decimal. Free tax return 14       15 Tax to be forgiven. Free tax return Multiply line 13 by line 14 and enter the result. Free tax return 15       Note. Free tax return If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax return Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax return If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax return The IRS will determine the amount to be refunded. Free tax return Worksheet C. Free tax return Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free tax return Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax return 1 Minimum tax forgiveness. Free tax return Note. Free tax return Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax return 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax return 3       4 Add lines 2 and 3. Free tax return 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 5       6 Add lines 4 and 5. Free tax return 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax return 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax return 8       9 Tax on exempt income. Free tax return Subtract line 8 from line 7. Free tax return 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax return If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax return 10       11 Add lines 9 and 10. Free tax return 11   12 Additional payment allowed. Free tax return If line 11 is $10,000 or more, enter -0- and stop here. Free tax return No additional amount is allowed as a tax payment. Free tax return Otherwise, subtract line 11 from line 1 and enter the result. Free tax return 12   Note. Free tax return The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax return Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax return If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax return Write "Sec. Free tax return 692(d)(2) Payment" and the amount to the right of the entry space. Free tax return Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax return If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax return Write “Sec. Free tax return 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax return Worksheet C. Free tax return Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free tax return Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax return 1 Minimum tax forgiveness. Free tax return Note. Free tax return Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax return 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax return 3       4 Add lines 2 and 3. Free tax return 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax return (See Income received after date of death on page 5. Free tax return ) 5       6 Add lines 4 and 5. Free tax return 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax return 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax return 8       9 Tax on exempt income. Free tax return Subtract line 8 from line 7. Free tax return 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax return If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax return 10       11 Add lines 9 and 10. Free tax return 11   12 Additional payment allowed. Free tax return If line 11 is $10,000 or more, enter -0- and stop here. Free tax return No additional amount is allowed as a tax payment. Free tax return Otherwise, subtract line 11 from line 1 and enter the result. Free tax return 12   Note. Free tax return The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax return Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax return If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax return Write "Sec. Free tax return 692(d)(2) Payment" and the amount to the right of the entry space. Free tax return Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax return If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax return Write “Sec. Free tax return 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax return How To Get Tax Help Special IRS assistance. Free tax return   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Free tax return We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Free tax return Call 1–866–562–5227 Monday through Friday In English–7 a. Free tax return m. Free tax return to 10 p. Free tax return m. Free tax return local time In Spanish–8 a. Free tax return m. Free tax return to 9:30 p. Free tax return m. Free tax return local time   The IRS web site at www. Free tax return irs. Free tax return gov has notices and other tax relief information. Free tax return Check it periodically for any new guidance or to see if Congress has enacted new legislation. Free tax return   Business taxpayers affected by the attacks can e-mail their questions to corp. Free tax return disaster. Free tax return relief@irs. Free tax return gov. Free tax return   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Free tax return fema. Free tax return gov. Free tax return Other help from the IRS. Free tax return   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Free tax return By selecting the method that is best for you, you will have quick and easy access to tax help. Free tax return Contacting your Taxpayer Advocate. Free tax return   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Free tax return   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Free tax return While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Free tax return   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Free tax return Call the IRS at 1–800–829–1040. Free tax return Call, write, or fax the Taxpayer Advocate office in your area. Free tax return Call 1–800–829–4059 if you are a TTY/TDD user. Free tax return   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Free tax return Free tax services. Free tax return   To find out what services are available, get Publication 910, Guide to Free Tax Services. Free tax return It contains a list of free tax publications and an index of tax topics. Free tax return It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Free tax return Personal computer. Free tax return With your personal computer and modem, you can access the IRS on the Internet at www. Free tax return irs. Free tax return gov. Free tax return While visiting our web site, you can: Find answers to questions you may have. Free tax return Download forms and publications or search for forms and pub