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Free Tax Software 2012

Free tax software 2012 Index A Accidentes, Pérdidas deducibles. Free tax software 2012 , Pérdidas no deducibles. Free tax software 2012 Agencia Federal para el Manejo de Emergencias (FEMA) , cómo comunicarse con la, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Ajustes a la base, Ajuste a la base de los bienes de una sociedad anónima. Free tax software 2012 , Ajustes a la Base Aplazamiento de la declaración de una ganancia, Aplazamiento de la Declaración de una Ganancia Bienes de reposición adquiridos antes de presentar la declaración de impuestos, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. Free tax software 2012 Bienes de reposición adquiridos después de haber presentado la declaración de impuestos, Bienes de reposición adquiridos después de haber presentado la declaración de impuestos. Free tax software 2012 Cambio de idea, Si cambia de idea. Free tax software 2012 Declaración enmendada, Declaración enmendada. Free tax software 2012 Documento escrito requerido, Documento escrito requerido. Free tax software 2012 Límite de 3 años, Límite de 3 años. Free tax software 2012 Sustitución de los bienes de reposición, Sustitución de los bienes de reposición. Free tax software 2012 Asistencia (see Ayuda con los impuestos) Automóviles Accidentes, Pérdidas deducibles. Free tax software 2012 Valor justo de mercado de, Valor de automóviles. Free tax software 2012 Ayuda (see Ayuda con los impuestos) Ayuda con los impuestos, Cómo Obtener Ayuda con los Impuestos B Base Ajustada, Base Ajustada Ajustes a, Ajuste a la base de los bienes de una sociedad anónima. Free tax software 2012 , Ajustes a la Base Propiedad de Reposición, Base de la propiedad de reposición. Free tax software 2012 Base ajustada, Base Ajustada Bienes de reposición, Bienes de Reposición Ajuste a la base de los bienes de una sociedad anónima, Ajuste a la base de los bienes de una sociedad anónima. Free tax software 2012 Aplazamiento de la declaración de una ganancia, Bienes de reposición adquiridos antes de presentar la declaración de impuestos. Free tax software 2012 Pago adelantado, Pago adelantado. Free tax software 2012 Vivienda principal Ubicada en zona de desastre, Vivienda principal en una zona de desastre. Free tax software 2012 Bienes de uso personal Cómo declarar pérdidas y ganancias, Bienes de uso personal. Free tax software 2012 Bienes extraviados o perdidos, Bienes extraviados o perdidos. Free tax software 2012 Bienes muebles Deducción de pérdidas, cálculo de, Bienes muebles. Free tax software 2012 Bienes raíces de uso personal, Excepción en el caso de bienes inmuebles de uso personal. Free tax software 2012 Bienes robados (see Pérdidas por robo) Bienes robados recuperados, Bienes robados recuperados. Free tax software 2012 C Comentarios sobre la publicación, Comentarios y sugerencias. Free tax software 2012 Cómo aplazar la declaración de una ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular una ganancia, Propiedad usada en parte para fines comerciales y en parte para fines personales. Free tax software 2012 Cómo calcular una pérdida, Comprobación de las pérdidas por robo. Free tax software 2012 Base ajustada, Base Ajustada Pérdidas en zonas de desastre, Cómo calcular la deducción de pérdidas. Free tax software 2012 Seguro y otros reembolsos, Seguro y Otros Reembolsos Cómo Calcular una Pérdida, Cómo Calcular la Deducción Cómo declarar pérdidas y ganancias, Declaración de una ganancia. Free tax software 2012 , Cómo Declarar Pérdidas y Ganancias Adquiridos antes o después de presentar la declaración de impuestos, Cuándo Declarar Pérdidas y Ganancias Base, ajustes a la, Ajustes a la Base Bienes de uso personal, Bienes de uso personal. Free tax software 2012 Deducciones mayores al ingreso, Si las Deducciones son Mayores que el Ingreso Depósitos monetarios, Cómo se declaran las pérdidas de depósitos monetarios. Free tax software 2012 Tabla 1, Tabla 1. Free tax software 2012 Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. Free tax software 2012 Propiedad comercial y de generación de ingresos, Bienes comerciales y de generación de ingresos. Free tax software 2012 Comprobación de las Pérdidas, Comprobación de las Pérdidas Contribuyentes casados Límites de la deducción, Contribuyentes casados. Free tax software 2012 , Contribuyentes casados. Free tax software 2012 Costos Fotografías tomadas después de la pérdida, Costos de fotografías y tasaciones. Free tax software 2012 Gastos imprevistos, Gastos afines. Free tax software 2012 Jardines, Jardines. Free tax software 2012 Limpieza, Costos de limpieza y reparaciones. Free tax software 2012 Protección, Costos de protección. Free tax software 2012 Reparaciones, Costos de limpieza y reparaciones. Free tax software 2012 Reposición, Costos de reposición. Free tax software 2012 Tasaciones, Costos de fotografías y tasaciones. Free tax software 2012 Costos de limpieza, Costos de limpieza y reparaciones. Free tax software 2012 Costos de protección, Costos de protección. Free tax software 2012 Costos de reparación, Costos de limpieza y reparaciones. Free tax software 2012 Costos de reposición, Costos de reposición. Free tax software 2012 D Declaración enmendada, Declaración enmendada. Free tax software 2012 Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. Free tax software 2012 Desastres declarados por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. Free tax software 2012 , Pérdidas en Zonas de Desastre Deudas incobrables, Deudas incobrables no relacionadas con los negocios. Free tax software 2012 Deudas incobrables no relacionadas con los negocios, Deudas incobrables no relacionadas con los negocios. Free tax software 2012 Documentación de la pérdida, Comprobación de las pérdidas por robo. Free tax software 2012 Donaciones en efectivo, Donaciones en efectivo. Free tax software 2012 E Entidad afín, compra de bienes de reposición de una, Compra de bienes de reposición de una entidad afín. Free tax software 2012 Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). Free tax software 2012 Expropiaciones forzosas, Expropiaciones forzosas. Free tax software 2012 F Fallecimiento de un contribuyente Aplazamiento de la declaración de una ganancia, Fallecimiento de un contribuyente. Free tax software 2012 Fines comerciales, propiedad usada en parte para, Propiedad usada en parte para fines comerciales y en parte para fines personales. Free tax software 2012 Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. Free tax software 2012 Formulario 1040, Anexo A, Bienes de uso personal. Free tax software 2012 Formulario 1040, Anexo D, Bienes de uso personal. Free tax software 2012 Formulario 1040X Pérdidas en zonas de desastre, Cómo declarar la pérdida en el Formulario 1040X. Free tax software 2012 Formulario 4684 Cómo declarar pérdidas y ganancias en bienes de uso personal, Bienes de uso personal. Free tax software 2012 Fotografías Documentación de la pérdida, Costos de fotografías y tasaciones. Free tax software 2012 G Ganancias Aplazamiento de, Aplazamiento de la Declaración de una Ganancia, Cómo Aplazar la Declaración de una Ganancia Cómo calcular, Cómo Calcular una Ganancia Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Cuándo declarar, Si cambia de idea. Free tax software 2012 Reembolsos, Ganancias por reembolsos. Free tax software 2012 Gastos afines, Gastos afines. Free tax software 2012 Gastos imprevistos, Gastos afines. Free tax software 2012 I Información adicional (see Ayuda con los impuestos) J Jardines, Jardines. Free tax software 2012 L Límites de la deducción, Límites de la Deducción Límites de la Deducción Regla de los $100, Regla de los $100 Regla del 10%, Regla del 10% Regla del 2%, Regla del 2% N Niños desaparecidos, fotografías de, Recordatorios P Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. Free tax software 2012 Pagos del seguro por gastos de manutención, Pagos del seguro por gastos de manutención. Free tax software 2012 Paneles de Yeso (Drywall) Corrosivos, Procedimiento Especial Correspondiente a Daños Ocasionados por Paneles de Yeso (Drywall) Corrosivos Pérdida de inventario, Pérdida de inventario. Free tax software 2012 Pérdidas en zonas de desastre, Pérdida de inventario por desastre. Free tax software 2012 Pérdida de madera en pie, Pérdida de madera en pie. Free tax software 2012 Pérdidas Calcular la cantidad (see Cómo calcular una pérdida) Cómo declarar, Cómo Comunicarse con la Agencia Federal para el Manejo de Emergencias (FEMA) Comprobación de las, Recuperación de pérdida deducida. Free tax software 2012 Cuándo declarar, Si cambia de idea. Free tax software 2012 (Tabla 3), Tabla 3. Free tax software 2012 Cuándo deducir una pérdida por hecho fortuito o robo Depósitos monetarios (see Pérdidas de depósitos) Documentación de, Comprobación de las pérdidas por robo. Free tax software 2012 Hecho Fortuito (see Pérdidas por hecho fortuito) Robo (see Pérdidas por robo) Zonas de desastre (see Pérdidas en zonas de desastre) Pérdidas de Depósitos Declaración de (Tabla 1), Tabla 1. Free tax software 2012 Cómo Declarar la Pérdida de Depósitos Monetarios Pérdidas de depósitos monetarios, Bienes extraviados o perdidos. Free tax software 2012 , Tabla 3. Free tax software 2012 Cuándo deducir una pérdida por hecho fortuito o robo Cuándo declarar, Pérdidas de depósitos monetarios. Free tax software 2012 Pérdidas deducibles, Pérdidas deducibles. Free tax software 2012 Pérdidas en Zonas de Desastre Cómo calcular la deducción de pérdidas, Cómo calcular la deducción de pérdidas. Free tax software 2012 Cómo deducir la pérdida del año anterior, Cómo deducir la pérdida del año anterior. Free tax software 2012 Cuándo deducir, Cuándo deducir la pérdida. Free tax software 2012 Tabla 3, Tabla 3. Free tax software 2012 Cuándo deducir una pérdida por hecho fortuito o robo Declaración en una declaración enmendada, Declaración de pérdida por desastre en declaración de impuestos enmendada. Free tax software 2012 Desastre declarado por el gobierno federal, Propiedad comercial o de generación de ingresos ubicada en una zona de desastre declarada por el gobierno federal. Free tax software 2012 , Pérdidas en Zonas de Desastre Documentación, Documentación. Free tax software 2012 Formulario 1040X, Cómo declarar la pérdida en el Formulario 1040X. Free tax software 2012 Inventario, Pérdida de inventario por desastre. Free tax software 2012 Pagos calificados de asistencia en caso de desastre, Pagos calificados de asistencia en caso de desastre. Free tax software 2012 Pagos calificados para mitigación de desastres, Pagos calificados para mitigación de desastres. Free tax software 2012 Plazos Tributarios Aplazados, Zona de desastre con cobertura. Free tax software 2012 Préstamo federal cancelado, Préstamo federal cancelado. Free tax software 2012 Reglas para vivienda principal, Vivienda principal en zona de desastre. Free tax software 2012 , Ganancias. Free tax software 2012 Vivienda inhabitable, Vivienda inhabitable por desastre. Free tax software 2012 Pérdidas en zonas de desastre, Pérdida del inquilino. Free tax software 2012 Pérdidas no deducibles, Pérdidas no deducibles. Free tax software 2012 Pérdidas por hecho fortuito, Tabla 3. Free tax software 2012 Cuándo deducir una pérdida por hecho fortuito o robo Comprobación de las, Comprobación de las pérdidas por hecho fortuito. Free tax software 2012 Cuándo declarar, Pérdidas. Free tax software 2012 Definición, Hecho Fortuito Depósitos monetarios, pérdidas de, Pérdida ordinaria o por hechos fortuitos. Free tax software 2012 Deterioro progresivo, Deterioro progresivo. Free tax software 2012 Pérdidas deducibles, Pérdidas deducibles. Free tax software 2012 Pérdidas no deducibles, Pérdidas no deducibles. Free tax software 2012 Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. Free tax software 2012 Pérdidas por robo, Robo Bienes extraviados o perdidos, Bienes extraviados o perdidos. Free tax software 2012 Comprobación de las, Comprobación de las pérdidas por robo. Free tax software 2012 Cuándo declarar, Pérdidas. Free tax software 2012 Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 3. Free tax software 2012 Cuándo deducir una pérdida por hecho fortuito o robo Esquemas de inversión de tipo Ponzi , Pérdidas provenientes de esquemas de inversión de tipo Ponzi (Ponzi-type schemes). Free tax software 2012 Registros para el cálculo de, Registros para el cálculo de pérdidas por hecho fortuito y robo. Free tax software 2012 Valor justo de mercado de los bienes robados, Valor justo de mercado de los bienes robados. Free tax software 2012 Plazo de reposición, Plazo de Reposición Prórroga de, Prórroga. Free tax software 2012 Plazos Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Plazos Tributarios Aplazados, Plazos Tributarios Aplazados Propiedad alquilada, Propiedad alquilada. Free tax software 2012 Cuándo declarar, Pérdida del inquilino. Free tax software 2012 Propiedad comercial o de generación de ingresos, Propiedad comercial o de generación de ingresos. Free tax software 2012 Propiedad de reposición Base de, Base de la propiedad de reposición. Free tax software 2012 Vivienda principal, Vivienda principal repuesta. Free tax software 2012 Publicaciones (see Ayuda con los impuestos) R Reducción de intereses, Reducción de intereses y multas. Free tax software 2012 Reducción de intereses y multas, Reducción de intereses y multas. Free tax software 2012 Reducción de multas, Reducción de intereses y multas. Free tax software 2012 Reembolsos Asistencia en caso de desastre, Asistencia en caso de desastre. Free tax software 2012 Donaciones en efectivo, Donaciones en efectivo. Free tax software 2012 Falta de presentación de una solicitud, Falta de presentación de una solicitud de reembolso. Free tax software 2012 Fondo de emergencia del empleador en caso de desastre, Fondo de emergencia del empleador en caso de desastre. Free tax software 2012 Recibido después de la deducción de una pérdida, Reembolso Recibido Después de la Deducción de una Pérdida Tipos de, Tipos de Reembolsos Registros para el cálculo de pérdidas por hecho fortuito y robo, Registros para el cálculo de pérdidas por hecho fortuito y robo. Free tax software 2012 S Seguros, Seguro y Otros Reembolsos Gastos de manutención, pagos del seguro por, Pagos del seguro por gastos de manutención. Free tax software 2012 Servicio del Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. Free tax software 2012 Servicios gratuitos para los impuestos, Cómo Obtener Ayuda con los Impuestos Subsidios de asistencia en caso de desastre, Asistencia en caso de desastre. Free tax software 2012 Subsidios estales de asistencia por desastres para empresas, Subsidios estatales de asistencia por desastre para empresas. Free tax software 2012 Subsidios federales de asistencia en caso de desastre, Subsidios federales de asistencia en caso de desastre. Free tax software 2012 Sugerencias para la publicación, Comentarios y sugerencias. Free tax software 2012 T Tablas y figuras Cómo Declarar la Pérdida de Depósitos Monetarios (Tabla 1), Tabla 1. Free tax software 2012 Cómo Declarar la Pérdida de Depósitos Monetarios Cuándo Deducir una Pérdida por Hecho Fortuito (Tabla 3), Tabla 1. Free tax software 2012 Cómo Declarar la Pérdida de Depósitos Monetarios , Tabla 3. Free tax software 2012 Cuándo deducir una pérdida por hecho fortuito o robo Tasaciones, Tasaciones. Free tax software 2012 , Costos de fotografías y tasaciones. Free tax software 2012 V Valor justo de mercado Cálculo de la disminución de, Disminución del Valor Justo de Mercado Puntos a no tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a No Tener en Cuenta Puntos a tener en cuenta, Cómo Calcular la Disminución del Valor Justo de Mercado —Puntos a Tener en Cuenta Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores, Disminución del valor de mercado de la propiedad en la zona del hecho fortuito o en sus alrededores. Free tax software 2012 Valor sentimental, Valor sentimental. Free tax software 2012 Prev  Up     Home   More Online Publications
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Understanding your CP259D Notice

We sent you this notice because our records indicate you did not file a required Form 990-T, Exempt Organization Business Income Tax Return.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).
 


What you need to do

  • Disregard this notice if you have filed the return within the last four weeks using the same name and EIN listed on the notice.
  • Otherwise, file your required Form 990-T immediately according to the instructions on the notice.
    • If you don't think you need to file, complete the Response form enclosed with your notice and mail it to us using the envelope provided.
    • If you filed more than four weeks ago or used a different name or EIN, complete the Response form enclosed with your notice and mail it to us in the envelope provided along with a signed and dated copy of the return.

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Answers to Common Questions

Who must file a Form 990-T?
Form 990-T must be filed by any organization that is tax-exempt under section 501(a) or section 529(a), if it has gross unrelated business income of $1,000 or more for a given tax year. A list of other entities who must file Form 990-T is shown in the Who Must File section of the General Instructions of Form 990-T.

When is the Form 990-T due?
For an employees' trust defined in section 401(a), an IRA (including SEPs and SIMPLEs), a Roth IRA, a Coverdell ESA, or an Archer MSA, the Form 990-T is due by the 15th day of the 4th month after the end of its tax year. All other organizations must file Form 990-T by the 15th day of the 5th month after the end of their tax year. If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day.

Can I get help over the phone?
If you have questions and/or need help completing this form, please call 1-877-829-5500. Personal assistance is available Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.

Where can I go for more information about tax-exempt organizations?
For more information on tax-exempt organizations see Tax Information for Charities & Other Non-Profits.


Tips for next year

Review the tax-exempt organization resources at Form 990 Resources and Tools for Exempt Organizations.


Understanding your notice

Reading your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

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Page Last Reviewed or Updated: 29-Mar-2014

The Free Tax Software 2012

Free tax software 2012 22. Free tax software 2012   Taxes Table of Contents IntroductionIndian tribal government. Free tax software 2012 Useful Items - You may want to see: Tests To Deduct Any Tax Income TaxesState and Local Income Taxes Foreign Income Taxes General Sales TaxesMotor vehicles. Free tax software 2012 Real Estate TaxesReal estate taxes for prior years. Free tax software 2012 Examples. Free tax software 2012 Form 1099-S. Free tax software 2012 Real Estate-Related Items You Cannot Deduct Personal Property Taxes Taxes and Fees You Cannot Deduct Where To Deduct Introduction This chapter discusses which taxes you can deduct if you itemize deductions on Schedule A (Form 1040). Free tax software 2012 It also explains which taxes you can deduct on other schedules or forms and which taxes you cannot deduct. Free tax software 2012 This chapter covers the following topics. Free tax software 2012 Income taxes (federal, state, local, and foreign). Free tax software 2012 General sales taxes (state and local). Free tax software 2012 Real estate taxes (state, local, and foreign). Free tax software 2012 Personal property taxes (state and local). Free tax software 2012 Taxes and fees you cannot deduct. Free tax software 2012 Use Table 22-1 as a guide to determine which taxes you can deduct. Free tax software 2012 The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. Free tax software 2012 Business taxes. Free tax software 2012   You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. Free tax software 2012 For information on these taxes, see Publication 535, Business Expenses. Free tax software 2012 State or local taxes. Free tax software 2012   These are taxes imposed by the 50 states, U. Free tax software 2012 S. Free tax software 2012 possessions, or any of their political subdivisions (such as a county or city), or by the District of Columbia. Free tax software 2012 Indian tribal government. Free tax software 2012   An Indian tribal government recognized by the Secretary of the Treasury as performing substantial government functions will be treated as a state for purposes of claiming a deduction for taxes. Free tax software 2012 Income taxes, real estate taxes, and personal property taxes imposed by that Indian tribal government (or by any of its subdivisions that are treated as political subdivisions of a state) are deductible. Free tax software 2012 General sales taxes. Free tax software 2012   These are taxes imposed at one rate on retail sales of a broad range of classes of items. Free tax software 2012 Foreign taxes. Free tax software 2012   These are taxes imposed by a foreign country or any of its political subdivisions. Free tax software 2012 Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 530 Tax Information for Homeowners Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule E (Form 1040) Supplemental Income and Loss 1116 Foreign Tax Credit Tests To Deduct Any Tax The following two tests must be met for you to deduct any tax. Free tax software 2012 The tax must be imposed on you. Free tax software 2012 You must pay the tax during your tax year. Free tax software 2012 The tax must be imposed on you. Free tax software 2012   In general, you can deduct only taxes imposed on you. Free tax software 2012   Generally, you can deduct property taxes only if you are an owner of the property. Free tax software 2012 If your spouse owns the property and pays the real estate taxes, the taxes are deductible on your spouse's separate return or on your joint return. Free tax software 2012 You must pay the tax during your tax year. Free tax software 2012   If you are a cash basis taxpayer, you can deduct only those taxes you actually paid during your tax year. Free tax software 2012 If you pay your taxes by check, the day you mail or deliver the check is the date of payment, provided the check is honored by the financial institution. Free tax software 2012 If you use a pay-by-phone account (such as a credit card or electronic funds withdrawal), the date reported on the statement of the financial institution showing when payment was made is the date of payment. Free tax software 2012 If you contest a tax liability and are a cash basis taxpayer, you can deduct the tax only in the year you actually pay it (or transfer money or other property to provide for satisfaction of the contested liability). Free tax software 2012 See Publication 538, Accounting Periods and Methods, for details. Free tax software 2012    If you use an accrual method of accounting, see Publication 538 for more information. Free tax software 2012 Income Taxes This section discusses the deductibility of state and local income taxes (including employee contributions to state benefit funds) and foreign income taxes. Free tax software 2012 State and Local Income Taxes You can deduct state and local income taxes. Free tax software 2012 However, you can elect to deduct state and local general sales taxes instead of state and local income taxes. Free tax software 2012 See General Sales Taxes , later. Free tax software 2012 Exception. Free tax software 2012    You cannot deduct state and local income taxes you pay on income that is exempt from federal income tax, unless the exempt income is interest income. Free tax software 2012 For example, you cannot deduct the part of a state's income tax that is on a cost-of-living allowance exempt from federal income tax. Free tax software 2012 What To Deduct Your deduction may be for withheld taxes, estimated tax payments, or other tax payments as follows. Free tax software 2012 Withheld taxes. Free tax software 2012   You can deduct state and local income taxes withheld from your salary in the year they are withheld. Free tax software 2012 Your Form(s) W-2 will show these amounts. Free tax software 2012 Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. Free tax software 2012 Estimated tax payments. Free tax software 2012   You can deduct estimated tax payments you made during the year to a state or local government. Free tax software 2012 However, you must have a reasonable basis for making the estimated tax payments. Free tax software 2012 Any estimated state or local tax payments that are not made in good faith at the time of payment are not deductible. Free tax software 2012 For example, you made an estimated state income tax payment. Free tax software 2012 However, the estimate of your state tax liability shows that you will get a refund of the full amount of your estimated payment. Free tax software 2012 You had no reasonable basis to believe you had any additional liability for state income taxes and you cannot deduct the estimated tax payment. Free tax software 2012 Refund applied to taxes. Free tax software 2012   You can deduct any part of a refund of prior-year state or local income taxes that you chose to have credited to your 2013 estimated state or local income taxes. Free tax software 2012    Do not reduce your deduction by either of the following items. Free tax software 2012 Any state or local income tax refund (or credit) you expect to receive for 2013. Free tax software 2012 Any refund of (or credit for) prior-year state and local income taxes you actually received in 2013. Free tax software 2012   However, part or all of this refund (or credit) may be taxable. Free tax software 2012 See Refund (or credit) of state or local income taxes , later. Free tax software 2012 Separate federal returns. Free tax software 2012   If you and your spouse file separate state, local, and federal income tax returns, you each can deduct on your federal return only the amount of your own state and local income tax that you paid during the tax year. Free tax software 2012 Joint state and local returns. Free tax software 2012   If you and your spouse file joint state and local returns and separate federal returns, each of you can deduct on your separate federal return a part of the total state and local income taxes paid during the tax year. Free tax software 2012 You can deduct only the amount of the total taxes that is proportionate to your gross income compared to the combined gross income of you and your spouse. Free tax software 2012 However, you cannot deduct more than the amount you actually paid during the year. Free tax software 2012 You can avoid this calculation if you and your spouse are jointly and individually liable for the full amount of the state and local income taxes. Free tax software 2012 If so, you and your spouse can deduct on your separate federal returns the amount you each actually paid. Free tax software 2012 Joint federal return. Free tax software 2012   If you file a joint federal return, you can deduct the total of the state and local income taxes both of you paid. Free tax software 2012 Contributions to state benefit funds. Free tax software 2012    As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. Free tax software 2012 For example, certain states require employees to make contributions to state funds providing disability or unemployment insurance benefits. Free tax software 2012 Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5. Free tax software 2012 Alaska Unemployment Compensation Fund. Free tax software 2012 California Nonoccupational Disability Benefit Fund. Free tax software 2012 New Jersey Nonoccupational Disability Benefit Fund. Free tax software 2012 New Jersey Unemployment Compensation Fund. Free tax software 2012 New York Nonoccupational Disability Benefit Fund. Free tax software 2012 Pennsylvania Unemployment Compensation Fund. Free tax software 2012 Rhode Island Temporary Disability Benefit Fund. Free tax software 2012 Washington State Supplemental Workmen's Compensation Fund. Free tax software 2012    Employee contributions to private or voluntary disability plans are not deductible. Free tax software 2012 Refund (or credit) of state or local income taxes. Free tax software 2012   If you receive a refund of (or credit for) state or local income taxes in a year after the year in which you paid them, you may have to include the refund in income on Form 1040, line 10, in the year you receive it. Free tax software 2012 This includes refunds resulting from taxes that were overwithheld, applied from a prior year return, not figured correctly, or figured again because of an amended return. Free tax software 2012 If you did not itemize your deductions in the previous year, do not include the refund in income. Free tax software 2012 If you deducted the taxes in the previous year, include all or part of the refund on Form 1040, line 10, in the year you receive the refund. Free tax software 2012 For a discussion of how much to include, see Recoveries in chapter 12. Free tax software 2012 Foreign Income Taxes Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Free tax software 2012 S. Free tax software 2012 possession. Free tax software 2012 However, you cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Free tax software 2012 S. Free tax software 2012 tax under the foreign earned income exclusion or the foreign housing exclusion. Free tax software 2012 For information on these exclusions, see Publication 54, Tax Guide for U. Free tax software 2012 S. Free tax software 2012 Citizens and Resident Aliens Abroad. Free tax software 2012 For information on the foreign tax credit, see Publication 514. Free tax software 2012 General Sales Taxes You can elect to deduct state and local general sales taxes, instead of state and local income taxes, as an itemized deduction on Schedule A (Form 1040), line 5b. Free tax software 2012 You can use either your actual expenses or the state and local sales tax tables to figure your sales tax deduction. Free tax software 2012 Actual expenses. Free tax software 2012   Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) if the tax rate was the same as the general sales tax rate. Free tax software 2012 However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Free tax software 2012 If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Free tax software 2012 If you use the actual expenses method, you must have receipts to show the general sales taxes paid. Free tax software 2012 Do not include sales taxes paid on items used in your trade or business. Free tax software 2012 Motor vehicles. Free tax software 2012   For purposes of this section, motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Free tax software 2012 This also includes sales taxes on a leased motor vehicle, but not on vehicles used in your trade or business. Free tax software 2012 Optional sales tax tables. Free tax software 2012   Instead of using your actual expenses, you can figure your state and local general sales tax deduction using the state and local sales tax tables in the Instructions for Schedule A (Form 1040). Free tax software 2012 You may also be able to add the state and local general sales taxes paid on certain specified items. Free tax software 2012   Your applicable table amount is based on the state where you live, your income, and the number of exemptions claimed on your tax return. Free tax software 2012 Your income is your adjusted gross income plus any nontaxable items such as the following. Free tax software 2012 Tax-exempt interest. Free tax software 2012 Veterans' benefits. Free tax software 2012 Nontaxable combat pay. Free tax software 2012 Workers' compensation. Free tax software 2012 Nontaxable part of social security and railroad retirement benefits. Free tax software 2012 Nontaxable part of IRA, pension, or annuity distributions, excluding rollovers. Free tax software 2012 Public assistance payments. Free tax software 2012 If you lived in different states during the same tax year, you must prorate your applicable table amount for each state based on the days you lived in each state. Free tax software 2012 See the Instructions for Schedule A (Form 1040), line 5, for details. Free tax software 2012 Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real property levied for the general public welfare. Free tax software 2012 You can deduct these taxes only if they are based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority. Free tax software 2012 Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Free tax software 2012 They also do not include itemized charges for services (such as trash collection) assessed against specific property or certain people, even if the charge is paid to the taxing authority. Free tax software 2012 For more information about taxes and charges that are not deductible, see Real Estate-Related Items You Cannot Deduct , later. Free tax software 2012 Tenant-shareholders in a cooperative housing corporation. Free tax software 2012   Generally, if you are a tenant-stockholder in a cooperative housing corporation, you can deduct the amount paid to the corporation that represents your share of the real estate taxes the corporation paid or incurred for your dwelling unit. Free tax software 2012 The corporation should provide you with a statement showing your share of the taxes. Free tax software 2012 For more information, see Special Rules for Cooperatives in Publication 530. Free tax software 2012 Division of real estate taxes between buyers and sellers. Free tax software 2012   If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. Free tax software 2012   The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. Free tax software 2012 The seller is treated as paying the taxes up to, but not including, the date of sale. Free tax software 2012 The buyer is treated as paying the taxes beginning with the date of sale. Free tax software 2012 This applies regardless of the lien dates under local law. Free tax software 2012 Generally, this information is included on the settlement statement provided at the closing. Free tax software 2012    If you (the seller) cannot deduct taxes until they are paid because you use the cash method of accounting, and the buyer of your property is personally liable for the tax, you are considered to have paid your part of the tax at the time of the sale. Free tax software 2012 This lets you deduct the part of the tax to the date of sale even though you did not actually pay it. Free tax software 2012 However, you must also include the amount of that tax in the selling price of the property. Free tax software 2012 The buyer must include the same amount in his or her cost of the property. Free tax software 2012   You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. Free tax software 2012 Worksheet 22-1. Free tax software 2012 Figuring Your Real Estate Tax Deduction 1. Free tax software 2012 Enter the total real estate taxes for the real property tax year   2. Free tax software 2012 Enter the number of days in the real property tax year that you owned the property   3. Free tax software 2012 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free tax software 2012 4. Free tax software 2012 Multiply line 1 by line 3. Free tax software 2012 This is your deduction. Free tax software 2012 Enter it on Schedule A (Form 1040), line 6   Note. Free tax software 2012 Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. Free tax software 2012 Your total deduction is the sum of the line 4 amounts for all of the properties. Free tax software 2012 Real estate taxes for prior years. Free tax software 2012   Do not divide delinquent taxes between the buyer and seller if the taxes are for any real property tax year before the one in which the property is sold. Free tax software 2012 Even if the buyer agrees to pay the delinquent taxes, the buyer cannot deduct them. Free tax software 2012 The buyer must add them to the cost of the property. Free tax software 2012 The seller can deduct these taxes paid by the buyer. Free tax software 2012 However, the seller must include them in the selling price. Free tax software 2012 Examples. Free tax software 2012   The following examples illustrate how real estate taxes are divided between buyer and seller. Free tax software 2012 Example 1. Free tax software 2012 Dennis and Beth White's real property tax year for both their old home and their new home is the calendar year, with payment due August 1. Free tax software 2012 The tax on their old home, sold on May 7, was $620. Free tax software 2012 The tax on their new home, bought on May 3, was $732. Free tax software 2012 Dennis and Beth are considered to have paid a proportionate share of the real estate taxes on the old home even though they did not actually pay them to the taxing authority. Free tax software 2012 On the other hand, they can claim only a proportionate share of the taxes they paid on their new property even though they paid the entire amount. Free tax software 2012 Dennis and Beth owned their old home during the real property tax year for 126 days (January 1 to May 6, the day before the sale). Free tax software 2012 They figure their deduction for taxes on their old home as follows. Free tax software 2012 Worksheet 22-1. Free tax software 2012 Figuring Your Real Estate Tax Deduction — Taxes on Old Home 1. Free tax software 2012 Enter the total real estate taxes for the real property tax year $620 2. Free tax software 2012 Enter the number of days in the real property tax year that you owned the property 126 3. Free tax software 2012 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free tax software 2012 3452 4. Free tax software 2012 Multiply line 1 by line 3. Free tax software 2012 This is your deduction. Free tax software 2012 Enter it on Schedule A (Form 1040), line 6 $214 Since the buyers of their old home paid all of the taxes, Dennis and Beth also include the $214 in the selling price of the old home. Free tax software 2012 (The buyers add the $214 to their cost of the home. Free tax software 2012 ) Dennis and Beth owned their new home during the real property tax year for 243 days (May 3 to December 31, including their date of purchase). Free tax software 2012 They figure their deduction for taxes on their new home as follows. Free tax software 2012 Worksheet 22-1. Free tax software 2012 Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Free tax software 2012 Enter the total real estate taxes for the real property tax year $732 2. Free tax software 2012 Enter the number of days in the real property tax year that you owned the property 243 3. Free tax software 2012 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free tax software 2012 6658 4. Free tax software 2012 Multiply line 1 by line 3. Free tax software 2012 This is your deduction. Free tax software 2012 Enter it on Schedule A (Form 1040), line 6 $487 Since Dennis and Beth paid all of the taxes on the new home, they add $245 ($732 paid less $487 deduction) to their cost of the new home. Free tax software 2012 (The sellers add this $245 to their selling price and deduct the $245 as a real estate tax. Free tax software 2012 ) Dennis and Beth's real estate tax deduction for their old and new homes is the sum of $214 and $487, or $701. Free tax software 2012 They will enter this amount on Schedule A (Form 1040), line 6. Free tax software 2012 Example 2. Free tax software 2012 George and Helen Brown bought a new home on May 3, 2013. Free tax software 2012 Their real property tax year for the new home is the calendar year. Free tax software 2012 Real estate taxes for 2012 were assessed in their state on January 1, 2013. Free tax software 2012 The taxes became due on May 31, 2013, and October 31, 2013. Free tax software 2012 The Browns agreed to pay all taxes due after the date of purchase. Free tax software 2012 Real estate taxes for 2012 were $680. Free tax software 2012 They paid $340 on May 31, 2013, and $340 on October 31, 2013. Free tax software 2012 These taxes were for the 2012 real property tax year. Free tax software 2012 The Browns cannot deduct them since they did not own the property until 2013. Free tax software 2012 Instead, they must add $680 to the cost of their new home. Free tax software 2012 In January 2014, the Browns receive their 2013 property tax statement for $752, which they will pay in 2014. Free tax software 2012 The Browns owned their new home during the 2013 real property tax year for 243 days (May 3 to December 31). Free tax software 2012 They will figure their 2014 deduction for taxes as follows. Free tax software 2012 Worksheet 22-1. Free tax software 2012 Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Free tax software 2012 Enter the total real estate taxes for the real property tax year $752 2. Free tax software 2012 Enter the number of days in the real property tax year that you owned the property 243 3. Free tax software 2012 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Free tax software 2012 6658 4. Free tax software 2012 Multiply line 1 by line 3. Free tax software 2012 This is your deduction. Free tax software 2012 Claim it on Schedule A (Form 1040), line 6 $501 The remaining $251 ($752 paid less $501 deduction) of taxes paid in 2014, along with the $680 paid in 2013, is added to the cost of their new home. Free tax software 2012 Because the taxes up to the date of sale are considered paid by the seller on the date of sale, the seller is entitled to a 2013 tax deduction of $931. Free tax software 2012 This is the sum of the $680 for 2012 and the $251 for the 122 days the seller owned the home in 2013. Free tax software 2012 The seller must also include the $931 in the selling price when he or she figures the gain or loss on the sale. Free tax software 2012 The seller should contact the Browns in January 2014 to find out how much real estate tax is due for 2013. Free tax software 2012 Form 1099-S. Free tax software 2012   For certain sales or exchanges of real estate, the person responsible for closing the sale (generally the settlement agent) prepares Form 1099-S, Proceeds From Real Estate Transactions, to report certain information to the IRS and to the seller of the property. Free tax software 2012 Box 2 of Form 1099-S is for the gross proceeds from the sale and should include the portion of the seller's real estate tax liability that the buyer will pay after the date of sale. Free tax software 2012 The buyer includes these taxes in the cost basis of the property, and the seller both deducts this amount as a tax paid and includes it in the sales price of the property. Free tax software 2012   For a real estate transaction that involves a home, any real estate tax the seller paid in advance but that is the liability of the buyer appears on Form 1099-S, box 5. Free tax software 2012 The buyer deducts this amount as a real estate tax, and the seller reduces his or her real estate tax deduction (or includes it in income) by the same amount. Free tax software 2012 See Refund (or rebate) , later. Free tax software 2012 Taxes placed in escrow. Free tax software 2012   If your monthly mortgage payment includes an amount placed in escrow (put in the care of a third party) for real estate taxes, you may not be able to deduct the total amount placed in escrow. Free tax software 2012 You can deduct only the real estate tax that the third party actually paid to the taxing authority. Free tax software 2012 If the third party does not notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. Free tax software 2012 Tenants by the entirety. Free tax software 2012   If you and your spouse held property as tenants by the entirety and you file separate federal returns, each of you can deduct only the taxes each of you paid on the property. Free tax software 2012 Divorced individuals. Free tax software 2012   If your divorce or separation agreement states that you must pay the real estate taxes for a home owned by you and your spouse, part of your payments may be deductible as alimony and part as real estate taxes. Free tax software 2012 See Taxes and insurance in chapter 18 for more information. Free tax software 2012 Ministers' and military housing allowances. Free tax software 2012   If you are a minister or a member of the uniformed services and receive a housing allowance that you can exclude from income, you still can deduct all of the real estate taxes you pay on your home. Free tax software 2012 Refund (or rebate). Free tax software 2012   If you received a refund or rebate in 2013 of real estate taxes you paid in 2013, you must reduce your deduction by the amount refunded to you. Free tax software 2012 If you received a refund or rebate in 2013 of real estate taxes you deducted in an earlier year (either as an itemized deduction or an increase to your standard deduction), you generally must include the refund or rebate in income in the year you receive it. Free tax software 2012 However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. Free tax software 2012 For more information, see Recoveries in chapter 12. Free tax software 2012 Table 22-1. Free tax software 2012 Which Taxes Can You Deduct? Type of Tax You Can Deduct You Cannot Deduct Fees and Charges Fees and charges that are expenses of your trade or business or of producing income. Free tax software 2012 Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Cannot Deduct ). Free tax software 2012     Fines and penalties. Free tax software 2012 Income Taxes State and local income taxes. Free tax software 2012 Federal income taxes. Free tax software 2012   Foreign income taxes. Free tax software 2012     Employee contributions to state funds listed under Contributions to state benefit funds . Free tax software 2012 Employee contributions to private or voluntary disability plans. Free tax software 2012     State and local general sales taxes if you choose to deduct state and local income taxes. Free tax software 2012 General Sales Taxes State and local general sales taxes, including compensating use taxes. Free tax software 2012 State and local income taxes if you choose to deduct state and local general sales taxes. Free tax software 2012 Other Taxes Taxes that are expenses of your trade or business. Free tax software 2012 Federal excise taxes, such as tax on gasoline, that are not expenses of your trade or business or of producing income. Free tax software 2012   Taxes on property producing rent or royalty income. Free tax software 2012 Per capita taxes. Free tax software 2012   Occupational taxes. Free tax software 2012 See chapter 28. Free tax software 2012     One-half of self-employment tax paid. Free tax software 2012   Personal Property Taxes State and local personal property taxes. Free tax software 2012 Customs duties that are not expenses of your trade or business or of producing income. Free tax software 2012 Real Estate Taxes State and local real estate taxes. Free tax software 2012 Real estate taxes that are treated as imposed on someone else (see Division of real estate taxes between buyers and sellers ). Free tax software 2012   Foreign real estate taxes. Free tax software 2012 Taxes for local benefits (with exceptions). Free tax software 2012 See Real Estate-Related Items You Cannot Deduct . Free tax software 2012   Tenant's share of real estate taxes paid by  cooperative housing corporation. Free tax software 2012 Trash and garbage pickup fees (with exceptions). Free tax software 2012 See Real Estate-Related Items You Cannot Deduct . Free tax software 2012     Rent increase due to higher real estate taxes. Free tax software 2012     Homeowners' association charges. Free tax software 2012 Real Estate-Related Items You Cannot Deduct Payments for the following items generally are not deductible as real estate taxes. Free tax software 2012 Taxes for local benefits. Free tax software 2012 Itemized charges for services (such as trash and garbage pickup fees). Free tax software 2012 Transfer taxes (or stamp taxes). Free tax software 2012 Rent increases due to higher real estate taxes. Free tax software 2012 Homeowners' association charges. Free tax software 2012 Taxes for local benefits. Free tax software 2012   Deductible real estate taxes generally do not include taxes charged for local benefits and improvements tending to increase the value of your property. Free tax software 2012 These include assessments for streets, sidewalks, water mains, sewer lines, public parking facilities, and similar improvements. Free tax software 2012 You should increase the basis of your property by the amount of the assessment. Free tax software 2012   Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits. Free tax software 2012 If only a part of the taxes is for maintenance, repair, or interest, you must be able to show the amount of that part to claim the deduction. Free tax software 2012 If you cannot determine what part of the tax is for maintenance, repair, or interest, none of it is deductible. Free tax software 2012    Taxes for local benefits may be included in your real estate tax bill. Free tax software 2012 If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Free tax software 2012 You should use the rules above to determine if the local benefit tax is deductible. Free tax software 2012 Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. Free tax software 2012 Itemized charges for services. Free tax software 2012    An itemized charge for services assessed against specific property or certain people is not a tax, even if the charge is paid to the taxing authority. Free tax software 2012 For example, you cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged to each homeowner for trash collection), or A flat fee charged for a single service provided by your government (such as a $30 charge for mowing your lawn because it was allowed to grow higher than permitted under your local ordinance). Free tax software 2012    You must look at your real estate tax bill to determine if any nondeductible itemized charges, such as those listed above, are included in the bill. Free tax software 2012 If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Free tax software 2012 Exception. Free tax software 2012   Service charges used to maintain or improve services (such as trash collection or police and fire protection) are deductible as real estate taxes if: The fees or charges are imposed at a like rate against all property in the taxing jurisdiction, The funds collected are not earmarked; instead, they are commingled with general revenue funds, and Funds used to maintain or improve services are not limited to or determined by the amount of these fees or charges collected. Free tax software 2012 Transfer taxes (or stamp taxes). Free tax software 2012   Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. Free tax software 2012 If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. Free tax software 2012 If paid by the buyer, they are included in the cost basis of the property. Free tax software 2012 Rent increase due to higher real estate taxes. Free tax software 2012   If your landlord increases your rent in the form of a tax surcharge because of increased real estate taxes, you cannot deduct the increase as taxes. Free tax software 2012 Homeowners' association charges. Free tax software 2012   These charges are not deductible because they are imposed by the homeowners' association, rather than the state or local government. Free tax software 2012 Personal Property Taxes Personal property tax is deductible if it is a state or local tax that is: Charged on personal property, Based only on the value of the personal property, and Charged on a yearly basis, even if it is collected more or less than once a year. Free tax software 2012 A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. Free tax software 2012 For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways. Free tax software 2012 If the tax is partly based on value and partly based on other criteria, it may qualify in part. Free tax software 2012 Example. Free tax software 2012 Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. Free tax software 2012 You paid $32 based on the value ($1,500) and weight (3,400 lbs. Free tax software 2012 ) of your car. Free tax software 2012 You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. Free tax software 2012 The remaining $17 ($. Free tax software 2012 50 × 34), based on the weight, is not deductible. Free tax software 2012 Taxes and Fees You Cannot Deduct Many federal, state, and local government taxes are not deductible because they do not fall within the categories discussed earlier. Free tax software 2012 Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them. Free tax software 2012 See Table 22-1. Free tax software 2012 Taxes and fees that are generally not deductible include the following items. Free tax software 2012 Employment taxes. Free tax software 2012 This includes social security, Medicare, and railroad retirement taxes withheld from your pay. Free tax software 2012 However, one-half of self-employment tax you pay is deductible. Free tax software 2012 In addition, the social security and other employment taxes you pay on the wages of a household worker may be included in medical expenses that you can deduct or child care expenses that allow you to claim the child and dependent care credit. Free tax software 2012 For more information, see chapters 21 and 32. Free tax software 2012 Estate, inheritance, legacy, or succession taxes. Free tax software 2012 However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. Free tax software 2012 In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. Free tax software 2012 For more information, see Publication 559, Survivors, Executors, and Administrators. Free tax software 2012 Federal income taxes. Free tax software 2012 This includes income taxes withheld from your pay. Free tax software 2012 Fines and penalties. Free tax software 2012 You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits. Free tax software 2012 Gift taxes. Free tax software 2012 License fees. Free tax software 2012 You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees). Free tax software 2012 Per capita taxes. Free tax software 2012 You cannot deduct state or local per capita taxes. Free tax software 2012 Many taxes and fees other than those listed above are also nondeductible, unless they are ordinary and necessary expenses of a business or income producing activity. Free tax software 2012 For other nondeductible items, see Real Estate-Related Items You Cannot Deduct , earlier. Free tax software 2012 Where To Deduct You deduct taxes on the following schedules. Free tax software 2012 State and local income taxes. Free tax software 2012    These taxes are deducted on Schedule A (Form 1040), line 5, even if your only source of income is from business, rents, or royalties. Free tax software 2012 Check box a on line 5. Free tax software 2012 General sales taxes. Free tax software 2012   Sales taxes are deducted on Schedule A (Form 1040), line 5. Free tax software 2012 You must check box b on line 5. Free tax software 2012 If you elect to deduct sales taxes, you cannot deduct state and local income taxes on Schedule A (Form 1040), line 5, box a. Free tax software 2012 Foreign income taxes. Free tax software 2012   Generally, income taxes you pay to a foreign country or U. Free tax software 2012 S. Free tax software 2012 possession can be claimed as an itemized deduction on Schedule A (Form 1040), line 8, or as a credit against your U. Free tax software 2012 S. Free tax software 2012 income tax on Form 1040, line 47. Free tax software 2012 To claim the credit, you may have to complete and attach Form 1116. Free tax software 2012 For more information, see chapter 37, the Form 1040 instructions, or Publication 514. Free tax software 2012 Real estate taxes and personal property taxes. Free tax software 2012    Real estate and personal property taxes are deducted on Schedule A (Form 1040), lines 6 and 7, respectively, unless they are paid on property used in your business, in which case they are deducted on Schedule C, Schedule C-EZ, or Schedule F (Form 1040). Free tax software 2012 Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). Free tax software 2012 Self-employment tax. Free tax software 2012    Deduct one-half of your self-employment tax on Form 1040, line 27. Free tax software 2012 Other taxes. Free tax software 2012    All other deductible taxes are deducted on Schedule A (Form 1040), line 8. 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