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H And R Block For Military

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H And R Block For Military

H and r block for military Publication 596 - Introductory Material Table of Contents Future Developments What is the EIC? Can I Claim the EIC? Do I Need This Publication? Do I Have To Have A Child To Qualify For The EIC? How Do I Figure the Amount of EIC? How Can I Quickly Locate Specific information? Is There Help Online? What's New for 2013 Reminders Future Developments For the latest information about developments related to Publication 596, such as legislation enacted after it was published, go to www. H and r block for military irs. H and r block for military gov/pub596. H and r block for military What is the EIC? The earned income credit (EIC) is a tax credit for certain people who work and have earned income under $51,567. H and r block for military A tax credit usually means more money in your pocket. H and r block for military It reduces the amount of tax you owe. H and r block for military The EIC may also give you a refund. H and r block for military Can I Claim the EIC? To claim the EIC, you must meet certain rules. H and r block for military These rules are summarized in Table 1. H and r block for military Table 1. H and r block for military Earned Income Credit in a Nutshell First, you must meet all the rules in this column. H and r block for military Second, you must meet all the rules in one of these columns, whichever applies. H and r block for military Third, you must meet the rule in this column. H and r block for military Chapter 1. H and r block for military  Rules for Everyone Chapter 2. H and r block for military  Rules If You Have a Qualifying Child Chapter 3. H and r block for military  Rules If You Do Not Have a Qualifying Child Chapter 4. H and r block for military  Figuring and Claiming the EIC 1. H and r block for military Your adjusted gross income (AGI) must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or   • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. H and r block for military 2. H and r block for military You must have a valid social security number. H and r block for military   3. H and r block for military Your filing status cannot be Married filing separately. H and r block for military   4. H and r block for military You must be a U. H and r block for military S. H and r block for military citizen or resident alien all year. H and r block for military   5. H and r block for military You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). H and r block for military   6. H and r block for military Your investment income must be $3,300 or less. H and r block for military    7. H and r block for military You must have earned income. H and r block for military 8. H and r block for military Your child must meet the relationship, age, residency, and joint return tests. H and r block for military   9. H and r block for military Your qualifying child cannot be used by more than one person to claim the EIC. H and r block for military   10. H and r block for military You cannot be a qualifying child of another person. H and r block for military 11. H and r block for military You must be at least age 25 but under age 65. H and r block for military    12. H and r block for military You cannot be the dependent of another person. H and r block for military   13. H and r block for military You cannot be a qualifying child of another person. H and r block for military   14. H and r block for military You must have lived in the United States more than half of the year. H and r block for military 15. H and r block for military Your earned income must be less than:  • $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children,  • $43,038 ($48,378 for married filing jointly) if you have two qualifying children,  • $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  • $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. H and r block for military Do I Need This Publication? Certain people who file Form 1040 must use Worksheet 1 in this publication, instead of Step 2 in their Form 1040 instructions, when they are checking whether they can take the EIC. H and r block for military You are one of those people if any of the following statements are true for 2013. H and r block for military You are filing Schedule E (Form 1040). H and r block for military You are reporting income from the rental of personal property not used in a trade or business. H and r block for military You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child's interest and dividends). H and r block for military You are reporting an amount on Form 1040, line 13, that includes an amount from Form 4797. H and r block for military If none of the statements above apply to you, your tax form instructions have all the information you need to find out if you can claim the EIC and to figure the amount of your EIC. H and r block for military You do not need this publication. H and r block for military But you can read it to find out whether you can take the EIC and to learn more about the EIC. H and r block for military Do I Have To Have A Child To Qualify For The EIC? No, you can qualify for the EIC without a qualifying child if you are at least age 25 but under age 65 and your earned income is less than $14,340 ($19,680 if married filing jointly). H and r block for military See chapter 3. H and r block for military How Do I Figure the Amount of EIC? If you can claim the EIC, you can either have the IRS figure the amount of your credit, or you can figure it yourself. H and r block for military To figure it yourself, you can complete a worksheet in the instructions for the form you file. H and r block for military To find out how to have the IRS figure it for you, see chapter 4. H and r block for military How Can I Quickly Locate Specific information? You can use the index to look up specific information. H and r block for military In most cases, index entries will point you to headings, tables, or a worksheet. H and r block for military Is There Help Online? Yes. H and r block for military You can use the EITC Assistant at www. H and r block for military irs. H and r block for military gov/eitc to find out if you may be eligible for the credit. H and r block for military The EITC Assistant is available in English and Spanish. H and r block for military What's New for 2013 Earned income amount is more. H and r block for military The maximum amount of income you can earn and still get the credit has increased. H and r block for military You may be able to take the credit if: You have three or more qualifying children and you earned less than $46,227 ($51,567 if married filing jointly), You have two qualifying children and you earned less than $43,038 ($48,378 if married filing jointly), You have one qualifying child and you earned less than $37,870 ($43,210 if married filing jointly), or You do not have a qualifying child and you earned less than $14,340 ($19,680 if married filing jointly). H and r block for military Your adjusted gross income also must be less than the amount in the above list that applies to you. H and r block for military For details, see Rules 1 and 15. H and r block for military Investment income amount is more. H and r block for military The maximum amount of investment income you can have and still get the credit has increased to $3,300. H and r block for military See Rule 6—Your Investment Income Must Be $3,300 or Less . H and r block for military Reminders Increased EIC on certain joint returns. H and r block for military . H and r block for military  A married person filing a joint return may get more EIC than someone with the same income but a different filing status. H and r block for military As a result, the EIC table has different columns for married persons filing jointly than for everyone else. H and r block for military When you look up your EIC in the EIC Table, be sure to use the correct column for your filing status and the number of children you have. H and r block for military Earned income credit has no effect on certain welfare benefits. H and r block for military  Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. H and r block for military These programs include the following. H and r block for military Temporary Assistance for Needy Families (TANF). H and r block for military Medicaid. H and r block for military Supplemental security income (SSI). H and r block for military Supplemental Nutrition Assistance Program (food stamps). H and r block for military Low-income housing. H and r block for military In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. H and r block for military Check with your local benefit coordinator to find out if your refund will affect your benefits. H and r block for military Do not overlook your state credit. H and r block for military  If you can claim the EIC on your federal income tax return, you may be able to take a similar credit on your state or local income tax return. H and r block for military For a list of states that offer a state EIC, go to www. H and r block for military irs. H and r block for military gov/eitc. H and r block for military EIC questioned by IRS. H and r block for military  The IRS may ask you to provide documents to prove you are entitled to claim the EIC. H and r block for military We will tell you what documents to send us. H and r block for military These may include: birth certificates, school records, etc. H and r block for military The process of establishing your eligibility will delay your refund. H and r block for military Spanish version of Publication 596. H and r block for military  You can order Publicación 596SP, Crédito por Ingreso del Trabajo, from the IRS. H and r block for military It is a Spanish translation of Publication 596. H and r block for military See How To Get Tax Help to find out how to order this and other IRS forms and publications. H and r block for military Photographs of missing children. H and r block for military  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. H and r block for military Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. H and r block for military You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. H and r block for military Comments and suggestions. H and r block for military  We welcome your comments about this publication and your suggestions for future editions. H and r block for military You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch 1111 Constitution Ave. H and r block for military NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. H and r block for military Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. H and r block for military You can send your comments from www. H and r block for military irs. H and r block for military gov/formspubs/. H and r block for military Click on “More Information” and then on “Comment on Tax Forms and Publications. H and r block for military ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. H and r block for military Ordering forms and publications. H and r block for military  Visit www. H and r block for military irs. H and r block for military gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. H and r block for military  Internal Revenue Service 1201 N. H and r block for military Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. H and r block for military  If you have a tax question, check the information available on IRS. H and r block for military gov or call 1-800-829-1040. H and r block for military We cannot answer tax questions sent to either of the above addresses. H and r block for military Prev  Up  Next   Home   More Online Publications
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Understanding Your CP171 Notice

You received this notice to remind you of the amount you owe in tax, penalty and interest.


What you need to do

  • Read your notice carefully ― it will explain how much money you owe on your taxes.

You may want to...


Answers to Common Questions

  • Am I charged interest on the money I owe?
    Yes, interest accrues on your unpaid balance until you pay it in full.

  • Do I receive a penalty if I cannot pay the full amount?
    Yes, you receive a late payment penalty.

  • What happens if I cannot pay the full amount I owe?
    You can arrange to make a payment plan with us if you cannot pay the full amount you owe.

  • How can I set up a payment plan?
    Call the toll-free number listed on the top right corner of your notice to discuss payment options or learn more about payment arrangements here.

  •  


  • Tips for next year

    Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions for which you may qualify. In many cases, you can file free. Learn more about how to file electronically here.


    Understanding your notice

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

    Notice CP171, Page 1

    Notice CP171, Page 2

    Notice CP171, Page 3

Page Last Reviewed or Updated: 09-Dec-2013

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The H And R Block For Military

H and r block for military 37. H and r block for military   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. H and r block for military  The maximum adoption credit is $12,970 for 2013. H and r block for military See Adoption Credit . H and r block for military Plug-in electric vehicle credit. H and r block for military  This credit has expired. H and r block for military Credit for prior year minimum tax. H and r block for military  The refundable portion of the credit for prior year minimum tax has expired. H and r block for military Excess withholding of social security and railroad retirement tax. H and r block for military  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. H and r block for military 2% of wages up to $113,700. H and r block for military If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. H and r block for military See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . H and r block for military Introduction This chapter discusses the following nonrefundable credits. H and r block for military Adoption credit. H and r block for military Alternative motor vehicle credit. H and r block for military Alternative fuel vehicle refueling property credit. H and r block for military Credit to holders of tax credit bonds. H and r block for military Foreign tax credit. H and r block for military Mortgage interest credit. H and r block for military Nonrefundable credit for prior year minimum tax. H and r block for military Plug-in electric drive motor vehicle credit. H and r block for military Residential energy credits. H and r block for military Retirement savings contributions credit. H and r block for military This chapter also discusses the following refundable credits. H and r block for military Credit for tax on undistributed capital gain. H and r block for military Health coverage tax credit. H and r block for military Credit for excess social security tax or railroad retirement tax withheld. H and r block for military Several other credits are discussed in other chapters in this publication. H and r block for military Child and dependent care credit (chapter 32). H and r block for military Credit for the elderly or the disabled (chapter 33). H and r block for military Child tax credit (chapter 34). H and r block for military Education credits (chapter 35). H and r block for military Earned income credit (chapter 36). H and r block for military Nonrefundable credits. H and r block for military   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. H and r block for military These credits may reduce your tax to zero. H and r block for military If these credits are more than your tax, the excess is not refunded to you. H and r block for military Refundable credits. H and r block for military   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. H and r block for military These credits are added to the federal income tax withheld and any estimated tax payments you made. H and r block for military If this total is more than your total tax, the excess will be refunded to you. H and r block for military Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. H and r block for military However, if the total of these credits is more than your tax, the excess is not refunded to you. H and r block for military Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. H and r block for military The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. H and r block for military If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. H and r block for military If your modified AGI is $234,580 or more, you cannot take the credit. H and r block for military Qualified adoption expenses. H and r block for military   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. H and r block for military These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. H and r block for military Nonqualified expenses. H and r block for military   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. H and r block for military Eligible child. H and r block for military   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. H and r block for military Child with special needs. H and r block for military   An eligible child is a child with special needs if all three of the following apply. H and r block for military The child was a citizen or resident of the United States (including U. H and r block for military S. H and r block for military possessions) at the time the adoption process began. H and r block for military A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. H and r block for military The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. H and r block for military Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. H and r block for military When to take the credit. H and r block for military   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. H and r block for military If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. H and r block for military See the Instructions for Form 8839 for more specific information on when to take the credit. H and r block for military Foreign child. H and r block for military   If the child is not a U. H and r block for military S. H and r block for military citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. H and r block for military You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. H and r block for military How to take the credit. H and r block for military   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. H and r block for military Include the credit in your total for Form 1040, line 53. H and r block for military Check box c and enter “8839” on the line next to that box. H and r block for military More information. H and r block for military   For more information, see the Instructions for Form 8839. H and r block for military Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. H and r block for military Amount of credit. H and r block for military   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. H and r block for military In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. H and r block for military   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. H and r block for military How to take the credit. H and r block for military   To take the credit, you must complete Form 8910 and attach it to your Form 1040. H and r block for military Include the credit in your total for Form 1040, line 53. H and r block for military Check box c and enter “8910” on the line next to that box. H and r block for military More information. H and r block for military   For more information on the credit, see the Instructions for Form 8910. H and r block for military Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. H and r block for military Qualified alternative fuel vehicle refueling property. H and r block for military   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. H and r block for military To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. H and r block for military To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. H and r block for military   The following are alternative fuels. H and r block for military Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. H and r block for military Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. H and r block for military Electricity. H and r block for military Amount of the credit. H and r block for military   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. H and r block for military For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. H and r block for military How to take the credit. H and r block for military   To take the credit, you must complete Form 8911 and attach it to your Form 1040. H and r block for military Include the credit in your total for Form 1040, line 53. H and r block for military Check box c and enter “8911” on the line next to that box. H and r block for military More information. H and r block for military   For more information on the credit, see the Form 8911 instructions. H and r block for military Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. H and r block for military You may be able to take a credit if you are a holder of one of the following bonds. H and r block for military Clean renewable energy bonds (issued before 2010). H and r block for military New clean renewable energy bonds. H and r block for military Qualified energy conservation bonds. H and r block for military Qualified school construction bonds. H and r block for military Qualified zone academy bonds. H and r block for military Build America bonds. H and r block for military In some instances, an issuer may elect to receive a credit for interest paid on the bond. H and r block for military If the issuer makes this election, you cannot also claim a credit. H and r block for military Interest income. H and r block for military   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. H and r block for military How to take the credit. H and r block for military   Complete Form 8912 and attach it to your Form 1040. H and r block for military Include the credit in your total for Form 1040, line 53. H and r block for military Check box c and enter “8912” on the line next to that box. H and r block for military More information. H and r block for military   For more information, see the Instructions for Form 8912. H and r block for military Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. H and r block for military S. H and r block for military possession as a credit against your U. H and r block for military S. H and r block for military income tax. H and r block for military Or, you can deduct them as an itemized deduction (see chapter 22). H and r block for military You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. H and r block for military S. H and r block for military tax under any of the following. H and r block for military Foreign earned income exclusion. H and r block for military Foreign housing exclusion. H and r block for military Income from Puerto Rico exempt from U. H and r block for military S. H and r block for military tax. H and r block for military Possession exclusion. H and r block for military Limit on the credit. H and r block for military   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. H and r block for military S. H and r block for military tax liability (Form 1040, line 44), multiplied by a fraction. H and r block for military The numerator of the fraction is your taxable income from sources outside the United States. H and r block for military The denominator is your total taxable income from U. H and r block for military S. H and r block for military and foreign sources. H and r block for military See Publication 514 for more information. H and r block for military How to take the credit. H and r block for military   Complete Form 1116 and attach it to your Form 1040. H and r block for military Enter the credit on Form 1040, line 47. H and r block for military Exception. H and r block for military   You do not have to complete Form 1116 to take the credit if all of the following apply. H and r block for military All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). H and r block for military If you had dividend income from shares of stock, you held those shares for at least 16 days. H and r block for military You are not filing Form 4563 or excluding income from sources within Puerto Rico. H and r block for military The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). H and r block for military All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. H and r block for military More information. H and r block for military   For more information on the credit and these requirements, see the Instructions for Form 1116. H and r block for military Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. H and r block for military If you qualify, you can take the credit each year for part of the home mortgage interest you pay. H and r block for military Who qualifies. H and r block for military   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. H and r block for military Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. H and r block for military Amount of credit. H and r block for military   Figure your credit on Form 8396. H and r block for military If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. H and r block for military   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. H and r block for military To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. H and r block for military      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. H and r block for military   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. H and r block for military If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. H and r block for military See Publication 530 for more information. H and r block for military Carryforward. H and r block for military   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. H and r block for military If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. H and r block for military   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). H and r block for military How to take the credit. H and r block for military    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. H and r block for military Be sure to include any credit carryforward from 2010, 2011, and 2012. H and r block for military   Include the credit in your total for Form 1040, line 53. H and r block for military Check box c and enter “8396” on the line next to that box. H and r block for military Reduced home mortgage interest deduction. H and r block for military   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. H and r block for military You must do this even if part of that amount is to be carried forward to 2014. H and r block for military For more information about the home mortgage interest deduction, see chapter 23. H and r block for military Recapture of federal mortgage subsidy. H and r block for military   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. H and r block for military The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. H and r block for military See the Instructions for Form 8828 and chapter 15 for more information. H and r block for military More information. H and r block for military   For more information on the credit, see the Form 8396 instructions. H and r block for military Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. H and r block for military If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. H and r block for military This is called the alternative minimum tax. H and r block for military The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. H and r block for military If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. H and r block for military You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. H and r block for military How to take the credit. H and r block for military    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. H and r block for military Include the credit in your total for Form 1040, line 53, and check box b. H and r block for military You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. H and r block for military More information. H and r block for military   For more information on the credit, see the Instructions for Form 8801. H and r block for military Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. H and r block for military Qualified plug-in electric drive motor vehicle. H and r block for military   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. H and r block for military Qualified two- or three-wheeled plug-in electric vehicle. H and r block for military   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. H and r block for military 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. H and r block for military Certification and other requirements. H and r block for military   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. H and r block for military However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. H and r block for military   The following requirements must also be met to qualify for the credit. H and r block for military You are the owner of the vehicle. H and r block for military If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. H and r block for military You placed the vehicle in service during 2013. H and r block for military The vehicle is manufactured primarily for use on public streets, roads, and highways. H and r block for military The original use of the vehicle began with you. H and r block for military You acquired the vehicle for your use or to lease to others, and not for resale. H and r block for military In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. H and r block for military You use the vehicle primarily in the United States. H and r block for military How to take the credit. H and r block for military   To take the credit, you must complete Form 8936 and attach it to your Form 1040. H and r block for military Include the credit in your total for Form 1040, line 53. H and r block for military Check box c and enter “8936” on the line next to that box. H and r block for military More information. H and r block for military   For more information on the credit, see the Form 8936 instructions. H and r block for military Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. H and r block for military Nonbusiness energy property credit. H and r block for military Residential energy efficient property credit. H and r block for military If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. H and r block for military Nonbusiness energy property credit. H and r block for military   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. H and r block for military   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. H and r block for military    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. H and r block for military   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. H and r block for military Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. H and r block for military Exterior window (including skylights). H and r block for military Exterior doors. H and r block for military Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. H and r block for military   Residential energy property is any of the following. H and r block for military Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. H and r block for military Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. H and r block for military Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. H and r block for military Residential energy efficient property credit. H and r block for military   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. H and r block for military The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. H and r block for military Basis reduction. H and r block for military   You must reduce the basis of your home by the amount of any credit allowed. H and r block for military How to take the credit. H and r block for military   Complete Form 5695 and attach it to your Form 1040. H and r block for military Enter the credit on Form 1040, line 52. H and r block for military More information. H and r block for military   For more information on these credits, see the Form 5695 instructions. H and r block for military Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. H and r block for military However, you cannot take the credit if either of the following applies. H and r block for military The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). H and r block for military The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). H and r block for military Student. H and r block for military   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. H and r block for military School. H and r block for military   A school includes a technical, trade, or mechanical school. H and r block for military It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. H and r block for military How to take the credit. H and r block for military   Figure the credit on Form 8880. H and r block for military Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. H and r block for military More information. H and r block for military   For more information on the credit, see the Form 8880 instructions. H and r block for military Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. H and r block for military If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. H and r block for military Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. H and r block for military If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. H and r block for military The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. H and r block for military How to take the credit. H and r block for military   To take the credit, attach Copy B of Form 2439 to your Form 1040. H and r block for military Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. H and r block for military More information. H and r block for military   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. H and r block for military Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. H and r block for military You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. H and r block for military You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. H and r block for military S. H and r block for military Treasury–HCTC. H and r block for military ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. H and r block for military You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). H and r block for military You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. H and r block for military S. H and r block for military military health system (TRICARE). H and r block for military You were not imprisoned under federal, state, or local authority. H and r block for military Your employer did not pay 50% or more of the cost of coverage. H and r block for military You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. H and r block for military But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. H and r block for military If you meet all of these conditions, you may be able to take a credit of up to 72. H and r block for military 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. H and r block for military You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. H and r block for military The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. H and r block for military You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. H and r block for military If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. H and r block for military TAA recipient. H and r block for military   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). H and r block for military Example. H and r block for military You received a trade adjustment allowance for January 2013. H and r block for military You were an eligible TAA recipient on the first day of January and February. H and r block for military Alternative TAA recipient. H and r block for military   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. H and r block for military Example. H and r block for military You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. H and r block for military The program was established by the Department of Labor. H and r block for military You were an eligible alternative TAA recipient on the first day of October and November. H and r block for military RTAA recipient. H and r block for military   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. H and r block for military PBGC pension recipient. H and r block for military   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. H and r block for military You were age 55 or older on the first day of the month. H and r block for military You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). H and r block for military If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. H and r block for military How to take the credit. H and r block for military   To take the credit, complete Form 8885 and attach it to your Form 1040. H and r block for military Include your credit in the total for Form 1040, line 71, and check box c. H and r block for military   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. H and r block for military For details, see Publication 502 or Form 8885. H and r block for military More information. H and r block for military   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. H and r block for military Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. H and r block for military If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. H and r block for military If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. H and r block for military If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. H and r block for military 2% rate. H and r block for military You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. H and r block for military For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. H and r block for military 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. H and r block for military 45%) or the Additional Medicare Tax rate (. H and r block for military 9%). H and r block for military The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. H and r block for military Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. H and r block for military 40 RRTA tier 2 $84,300 $3,709. H and r block for military 20 All wages are subject to Medicare tax withholding. H and r block for military   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. H and r block for military Be sure to attach a copy of all of your W-2 forms. H and r block for military Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. H and r block for military Employer's error. H and r block for military   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. H and r block for military The employer should adjust the tax for you. H and r block for military If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. H and r block for military Joint return. H and r block for military   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. H and r block for military Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. H and r block for military How to figure the credit if you did not work for a railroad. H and r block for military   If you did not work for a railroad during 2013, figure the credit as follows: 1. H and r block for military Add all social security tax withheld (but not more than $7,049. H and r block for military 40 for each employer). H and r block for military Enter the total here   2. H and r block for military Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. H and r block for military Add lines 1 and 2. H and r block for military If $7,049. H and r block for military 40 or less, stop here. H and r block for military You cannot take  the credit   4. H and r block for military Social security tax limit 7,049. H and r block for military 40 5. H and r block for military Credit. H and r block for military Subtract line 4 from line 3. H and r block for military Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. H and r block for military You are married and file a joint return with your spouse who had no gross income in 2013. H and r block for military During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. H and r block for military Social security tax of $3,720 was withheld. H and r block for military You also worked for another employer in 2013 and earned $55,000 in wages. H and r block for military $3,410 of social security tax was withheld from these wages. H and r block for military Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. H and r block for military 60 for the excess social security tax withheld. H and r block for military 1. H and r block for military Add all social security tax withheld (but not more than $7,049. H and r block for military 40 for each employer). H and r block for military Enter the total here $7,130. H and r block for military 00 2. H and r block for military Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. H and r block for military Add lines 1 and 2. H and r block for military If $7,049. H and r block for military 40 or less, stop here. H and r block for military You cannot take the credit 7,130. H and r block for military 00 4. H and r block for military Social security tax limit 7,049. H and r block for military 40 5. H and r block for military Credit. H and r block for military Subtract line 4 from line 3. H and r block for military Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. H and r block for military 60 How to figure the credit if you worked for a railroad. H and r block for military   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. H and r block for military Add all social security and tier 1 RRTA tax withheld at the 6. H and r block for military 2% rate (but not more than $7,049. H and r block for military 40 for each employer). H and r block for military Enter the total here   2. H and r block for military Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. H and r block for military Add lines 1 and 2. H and r block for military If $7,049. H and r block for military 40 or less, stop here. H and r block for military You cannot take  the credit   4. H and r block for military Social security and tier 1 RRTA  tax limit 7,049. H and r block for military 40 5. H and r block for military Credit. H and r block for military Subtract line 4 from line 3. H and r block for military Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. H and r block for military   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. H and r block for military More information. H and r block for military   For more information on the credit, see Publication 505. H and r block for military Prev  Up  Next   Home   More Online Publications