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H&r Block Ez Form

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H&r Block Ez Form

H&r block ez form 1. H&r block ez form   Definitions You Need To Know Table of Contents Other options. H&r block ez form Exception. H&r block ez form Certain terms used in this publication are defined below. H&r block ez form The same term used in another publication may have a slightly different meaning. H&r block ez form Annual additions. H&r block ez form   Annual additions are the total of all your contributions in a year, employee contributions (not including rollovers), and forfeitures allocated to a participant's account. H&r block ez form Annual benefits. H&r block ez form   Annual benefits are the benefits to be paid yearly in the form of a straight life annuity (with no extra benefits) under a plan to which employees do not contribute and under which no rollover contributions are made. H&r block ez form Business. H&r block ez form   A business is an activity in which a profit motive is present and economic activity is involved. H&r block ez form Service as a newspaper carrier under age 18 or as a public official is not a business. H&r block ez form Common-law employee. H&r block ez form   A common-law employee is any individual who, under common law, would have the status of an employee. H&r block ez form A leased employee can also be a common-law employee. H&r block ez form   A common-law employee is a person who performs services for an employer who has the right to control and direct the results of the work and the way in which it is done. H&r block ez form For example, the employer: Provides the employee's tools, materials, and workplace, and Can fire the employee. H&r block ez form   Common-law employees are not self-employed and cannot set up retirement plans for income from their work, even if that income is self-employment income for social security tax purposes. H&r block ez form For example, common-law employees who are ministers, members of religious orders, full-time insurance salespeople, and U. H&r block ez form S. H&r block ez form citizens employed in the United States by foreign governments cannot set up retirement plans for their earnings from those employments, even though their earnings are treated as self-employment income. H&r block ez form   However, an individual may be a common-law employee and a self-employed person as well. H&r block ez form For example, an attorney can be a corporate common-law employee during regular working hours and also practice law in the evening as a self-employed person. H&r block ez form In another example, a minister employed by a congregation for a salary is a common-law employee even though the salary is treated as self-employment income for social security tax purposes. H&r block ez form However, fees reported on Schedule C (Form 1040), Profit or Loss From Business, for performing marriages, baptisms, and other personal services are self-employment earnings for qualified plan purposes. H&r block ez form Compensation. H&r block ez form   Compensation for plan allocations is the pay a participant received from you for personal services for a year. H&r block ez form You can generally define compensation as including all the following payments. H&r block ez form Wages and salaries. H&r block ez form Fees for professional services. H&r block ez form Other amounts received (cash or noncash) for personal services actually rendered by an employee, including, but not limited to, the following items. H&r block ez form Commissions and tips. H&r block ez form Fringe benefits. H&r block ez form Bonuses. H&r block ez form   For a self-employed individual, compensation means the earned income, discussed later, of that individual. H&r block ez form   Compensation generally includes amounts deferred in the following employee benefit plans. H&r block ez form These amounts are elective deferrals. H&r block ez form Qualified cash or deferred arrangement (section 401(k) plan). H&r block ez form Salary reduction agreement to contribute to a tax-sheltered annuity (section 403(b) plan), a SIMPLE IRA plan, or a SARSEP. H&r block ez form Section 457 nonqualified deferred compensation plan. H&r block ez form Section 125 cafeteria plan. H&r block ez form   However, an employer can choose to exclude elective deferrals under the above plans from the definition of compensation. H&r block ez form The limit on elective deferrals is discussed in chapter 2 under Salary Reduction Simplified Employee Pension (SARSEP) and in chapter 4. H&r block ez form Other options. H&r block ez form   In figuring the compensation of a participant, you can treat any of the following amounts as the employee's compensation. H&r block ez form The employee's wages as defined for income tax withholding purposes. H&r block ez form The employee's wages you report in box 1 of Form W-2, Wage and Tax Statement. H&r block ez form The employee's social security wages (including elective deferrals). H&r block ez form   Compensation generally cannot include either of the following items. H&r block ez form Nontaxable reimbursements or other expense allowances. H&r block ez form Deferred compensation (other than elective deferrals). H&r block ez form SIMPLE plans. H&r block ez form   A special definition of compensation applies for SIMPLE plans. H&r block ez form See chapter 3. H&r block ez form Contribution. H&r block ez form   A contribution is an amount you pay into a plan for all those participating in the plan, including self-employed individuals. H&r block ez form Limits apply to how much, under the contribution formula of the plan, can be contributed each year for a participant. H&r block ez form Deduction. H&r block ez form   A deduction is the plan contributions you can subtract from gross income on your federal income tax return. H&r block ez form Limits apply to the amount deductible. H&r block ez form Earned income. H&r block ez form   Earned income is net earnings from self-employment, discussed later, from a business in which your services materially helped to produce the income. H&r block ez form   You can also have earned income from property your personal efforts helped create, such as royalties from your books or inventions. H&r block ez form Earned income includes net earnings from selling or otherwise disposing of the property, but it does not include capital gains. H&r block ez form It includes income from licensing the use of property other than goodwill. H&r block ez form   Earned income includes amounts received for services by self-employed members of recognized religious sects opposed to social security benefits who are exempt from self-employment tax. H&r block ez form   If you have more than one business, but only one has a retirement plan, only the earned income from that business is considered for that plan. H&r block ez form Employer. H&r block ez form   An employer is generally any person for whom an individual performs or did perform any service, of whatever nature, as an employee. H&r block ez form A sole proprietor is treated as his or her own employer for retirement plan purposes. H&r block ez form However, a partner is not an employer for retirement plan purposes. H&r block ez form Instead, the partnership is treated as the employer of each partner. H&r block ez form Highly compensated employee. H&r block ez form   A highly compensated employee is an individual who: Owned more than 5% of the interest in your business at any time during the year or the preceding year, regardless of how much compensation that person earned or received, or For the preceding year, received compensation from you of more than $115,000 (if the preceding year is 2012, 2013, or 2014) and, if you so choose, was in the top 20% of employees when ranked by compensation. H&r block ez form Leased employee. H&r block ez form   A leased employee who is not your common-law employee must generally be treated as your employee for retirement plan purposes if he or she does all the following. H&r block ez form Provides services to you under an agreement between you and a leasing organization. H&r block ez form Has performed services for you (or for you and related persons) substantially full time for at least 1 year. H&r block ez form Performs services under your primary direction or control. H&r block ez form Exception. H&r block ez form   A leased employee is not treated as your employee if all the following conditions are met. H&r block ez form Leased employees are not more than 20% of your non-highly compensated work force. H&r block ez form The employee is covered under the leasing organization's qualified pension plan. H&r block ez form The leasing organization's plan is a money purchase pension plan that has all the following provisions. H&r block ez form Immediate participation. H&r block ez form (This requirement does not apply to any individual whose compensation from the leasing organization in each plan year during the 4-year period ending with the plan year is less than $1,000. H&r block ez form ) Full and immediate vesting. H&r block ez form A nonintegrated employer contribution rate of at least 10% of compensation for each participant. H&r block ez form However, if the leased employee is your common-law employee, that employee will be your employee for all purposes, regardless of any pension plan of the leasing organization. H&r block ez form Net earnings from self-employment. H&r block ez form   For SEP and qualified plans, net earnings from self-employment is your gross income from your trade or business (provided your personal services are a material income-producing factor) minus allowable business deductions. H&r block ez form Allowable deductions include contributions to SEP and qualified plans for common-law employees and the deduction allowed for the deductible part of your self-employment tax. H&r block ez form   Net earnings from self-employment does not include items excluded from gross income (or their related deductions) other than foreign earned income and foreign housing cost amounts. H&r block ez form   For the deduction limits, earned income is net earnings for personal services actually rendered to the business. H&r block ez form You take into account the income tax deduction for the deductible part of self-employment tax and the deduction for contributions to the plan made on your behalf when figuring net earnings. H&r block ez form   Net earnings include a partner's distributive share of partnership income or loss (other than separately stated items, such as capital gains and losses). H&r block ez form It does not include income passed through to shareholders of S corporations. H&r block ez form Guaranteed payments to limited partners are net earnings from self-employment if they are paid for services to or for the partnership. H&r block ez form Distributions of other income or loss to limited partners are not net earnings from self-employment. H&r block ez form   For SIMPLE plans, net earnings from self-employment is the amount on line 4 of Short Schedule SE or line 6 of Long Schedule SE (Form 1040), Self-Employment Tax, before subtracting any contributions made to the SIMPLE plan for yourself. H&r block ez form Qualified plan. H&r block ez form   A qualified plan is a retirement plan that offers a tax-favored way to save for retirement. H&r block ez form You can deduct contributions made to the plan for your employees. H&r block ez form Earnings on these contributions are generally tax free until distributed at retirement. H&r block ez form Profit-sharing, money purchase, and defined benefit plans are qualified plans. H&r block ez form A 401(k) plan is also a qualified plan. H&r block ez form Participant. H&r block ez form   A participant is an eligible employee who is covered by your retirement plan. H&r block ez form See the discussions of the different types of plans for the definition of an employee eligible to participate in each type of plan. H&r block ez form Partner. H&r block ez form   A partner is an individual who shares ownership of an unincorporated trade or business with one or more persons. H&r block ez form For retirement plans, a partner is treated as an employee of the partnership. H&r block ez form Self-employed individual. H&r block ez form   An individual in business for himself or herself, and whose business is not incorporated, is self-employed. H&r block ez form Sole proprietors and partners are self-employed. H&r block ez form Self-employment can include part-time work. H&r block ez form   Not everyone who has net earnings from self-employment for social security tax purposes is self-employed for qualified plan purposes. H&r block ez form See Common-law employee and Net earnings from self-employment , earlier. H&r block ez form   In addition, certain fishermen may be considered self-employed for setting up a qualified plan. H&r block ez form See Publication 595, Capital Construction Fund for Commercial Fishermen, for the special rules used to determine whether fishermen are self-employed. H&r block ez form Sole proprietor. H&r block ez form   A sole proprietor is an individual who owns an unincorporated business by himself or herself, including a single member limited liability company that is treated as a disregarded entity for tax purposes. H&r block ez form For retirement plans, a sole proprietor is treated as both an employer and an employee. H&r block ez form Prev  Up  Next   Home   More Online Publications
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Statement by IRS Commissioner John Koskinen on The Fiscal Year 2015 Budget

The Fiscal Year 2015 Budget proposal is a critical step forward in order for us to improve vital taxpayer services and enforcement efforts. Funding the IRS at this level will be a good investment for the nation, helping taxpayers get the service they need and strengthening compliance efforts in key areas, including identity theft, refund fraud and offshore compliance. Every dollar invested in IRS enforcement provides a strong return on investment in revenue collection, plus an added protection in deterring potential fraud. It also halts the decline in key enforcement personnel, and allows the agency to again invest in necessary basic infrastructure and training. In the meantime, we continue looking for more efficiencies to get the most out of every dollar of the budget.

 

The Fiscal Year 2015 Budget will put a stop to significant declines in taxpayer service over the past four years. We are doing everything we can to maximize our services with our current resources, and IRS employees are working hard to minimize delays and deliver as much service as possible. However, it’s clear we need to do more to help taxpayers, and the proposed seven percent increase for taxpayer services will be a big help.

 

Budget In Brief Fiscal Year 2015

Page Last Reviewed or Updated: 04-Mar-2014

The H&r Block Ez Form

H&r block ez form Publication 4492 - Main Contents Table of Contents DefinitionsHurricane Katrina Disaster Area Katrina Covered Disaster Area Gulf Opportunity (GO) Zone (Core Disaster Area) Hurricane Rita Disaster Area (Rita Covered Disaster Area) Rita GO Zone Hurricane Wilma Disaster Area Wilma Covered Disaster Area Wilma GO Zone Extended Tax Deadlines Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Charitable Deduction for Contributions of Food Inventory Charitable Deduction for Contributions of Book Inventories to Public Schools Casualty and Theft LossesTime limit for making election. H&r block ez form Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Hurricane Distributions Repayment of Qualified Hurricane Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by Hurricane Katrina Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Work Opportunity Credit Employee Retention Credit Hurricane Katrina Housing Credit Reforestation Costs Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax Help Definitions The following definitions are used throughout this publication. H&r block ez form Hurricane Katrina Disaster Area The Hurricane Katrina disaster area covers the area for which the President declared a major disaster before September 14, 2005, because of Hurricane Katrina. H&r block ez form The Hurricane Katrina disaster area covers the entire states of Alabama, Florida, Louisiana, and Mississippi. H&r block ez form Katrina Covered Disaster Area A portion of the Hurricane Katrina disaster area has been designated by the IRS as a covered disaster area. H&r block ez form The Katrina covered disaster area covers the following areas in four states. H&r block ez form Alabama. H&r block ez form   The counties of Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox, and Winston. H&r block ez form Florida. H&r block ez form   The counties of Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa, and Walton. H&r block ez form Louisiana. H&r block ez form   All parishes. H&r block ez form Mississippi. H&r block ez form   All counties. H&r block ez form Gulf Opportunity (GO) Zone (Core Disaster Area) The GO Zone (also called the core disaster area) covers the portion of the Hurricane Katrina disaster area determined by the Federal Emergency Management Agency (FEMA) to be eligible for either individual only or both individual and public assistance from the Federal Government. H&r block ez form The GO Zone covers the following areas in three states. H&r block ez form Alabama. H&r block ez form   The counties of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington. H&r block ez form Louisiana. H&r block ez form   The parishes of Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. H&r block ez form Bernard, St. H&r block ez form Charles, St. H&r block ez form Helena, St. H&r block ez form James, St. H&r block ez form John the Baptist, St. H&r block ez form Martin, St. H&r block ez form Mary, St. H&r block ez form Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West Feliciana. H&r block ez form Mississippi. H&r block ez form   The counties of Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo. H&r block ez form Hurricane Rita Disaster Area (Rita Covered Disaster Area) The Hurricane Rita disaster area (also designated by the IRS as the Rita covered disaster area) covers the area for which the President declared a major disaster before October 6, 2005, because of Hurricane Rita. H&r block ez form This area covers the entire states of Louisiana and Texas. H&r block ez form Rita GO Zone The Rita GO Zone covers the portion of the Hurricane Rita disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. H&r block ez form The Rita GO Zone covers the following areas in two states. H&r block ez form Louisiana. H&r block ez form   The parishes of Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Plaquemines, Sabine, St. H&r block ez form Landry, St. H&r block ez form Martin, St. H&r block ez form Mary, St. H&r block ez form Tammany, Terrebonne, Vermilion, Vernon, and West Baton Rouge. H&r block ez form Texas. H&r block ez form   The counties of Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. H&r block ez form Hurricane Wilma Disaster Area The Hurricane Wilma disaster area covers the area for which the President declared a major disaster before November 14, 2005, because of Hurricane Wilma. H&r block ez form The Hurricane Wilma disaster area covers the entire state of Florida. H&r block ez form Wilma Covered Disaster Area A portion of the Hurricane Wilma disaster area has been designated by the IRS as a covered disaster area. H&r block ez form The Wilma covered disaster area covers the following counties. H&r block ez form Florida. H&r block ez form   Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. H&r block ez form Lucie, and Sarasota. H&r block ez form Wilma GO Zone The Wilma GO Zone covers the portion of the Hurricane Wilma disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. H&r block ez form The Wilma GO Zone covers the following counties. H&r block ez form Florida. H&r block ez form   Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. H&r block ez form Lucie. H&r block ez form Extended Tax Deadlines The IRS has extended deadlines that apply to filing returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Katrina, Rita, or Wilma, until February 28, 2006. H&r block ez form The extension applies to deadlines (either an original or extended due date) that occur during the following periods. H&r block ez form After August 28, 2005 (August 23, 2005, for Florida affected taxpayers), and before February 28, 2006, for taxpayers affected by Hurricane Katrina. H&r block ez form After September 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Rita. H&r block ez form After October 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Wilma. H&r block ez form Affected taxpayer. H&r block ez form   The following taxpayers are eligible for the extension. H&r block ez form Any individual whose main home is located in a covered disaster area. H&r block ez form Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. H&r block ez form Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained or whose tax professional's office is in a covered disaster area. H&r block ez form The main home or principal place of business does not have to be located in the covered area. H&r block ez form Any individual visiting a county or parish in the Hurricane Katrina or Hurricane Rita covered disaster area that was injured or killed (and the estate of an individual killed) as a result of the hurricane or its aftermath. H&r block ez form Any estate or trust whose tax records needed to meet a filing or payment deadline are maintained in a covered disaster area. H&r block ez form Generally, any individual who is a worker assisting in the relief activities in a covered disaster area. H&r block ez form However, a relief worker assisting in the Wilma covered disaster area is not an affected taxpayer unless the worker is affiliated with a recognized government or philanthropic organization assisting in the relief activities. H&r block ez form The spouse of an affected taxpayer, solely with regard to a joint income tax return with that taxpayer. H&r block ez form   To ensure correct processing, affected taxpayers should write the assigned disaster designation (for example, “Hurricane Katrina”) in red ink at the top of any forms or documents filed with the IRS. H&r block ez form Affected taxpayers can also identify themselves to the IRS or ask hurricane-related questions by calling the special IRS disaster hotline at 1-866-562-5227. H&r block ez form Acts extended. H&r block ez form   Deadlines for performing the following acts are extended. H&r block ez form Filing any return of income, estate, gift, generation-skipping transfer, excise, or employment tax. H&r block ez form Paying any income, estate, gift, generation-skipping transfer, excise, or employment tax. H&r block ez form This includes making estimated tax payments. H&r block ez form Making certain contributions, distributions, recharacterizing contributions, or making a rollover to or from a qualified retirement plan. H&r block ez form Filing certain petitions with the Tax Court. H&r block ez form Filing a claim for credit or refund of any tax. H&r block ez form Bringing suit upon a claim for credit or refund. H&r block ez form Certain other acts described in Revenue Procedure 2005-27. H&r block ez form You can find Revenue Procedure 2005-27 on page 1050 of Internal Revenue Bulletin 2005-20 at www. H&r block ez form irs. H&r block ez form gov/pub/irs-irbs/irb05-20. H&r block ez form pdf. H&r block ez form Forgiveness of interest and penalties. H&r block ez form   The IRS may forgive the interest and penalties on any underpaid income, estate, gift, employment, or excise tax for the length of any extension. H&r block ez form Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions Individuals. H&r block ez form   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% adjusted gross income (AGI) limit. H&r block ez form A qualified contribution is a charitable contribution paid in cash or by check after August 27, 2005, and before January 1, 2006, to a 50% limit organization (other than certain private foundations described in section 509(a)(3)) if you make an election to have the 50% limit not apply to these contributions. H&r block ez form   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. H&r block ez form You can carry over any contributions you are not able to deduct for 2005 because of this limit. H&r block ez form In 2006, treat the carryover of your unused qualified contributions as a carryover of contributions subject to the 50% limit. H&r block ez form Exception. H&r block ez form   Qualified contributions do not include a contribution to a segregated fund or account for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or investments based on your contribution. H&r block ez form Corporations. H&r block ez form   A corporation may elect to deduct qualified cash contributions without regard to the 10% taxable income limit if the contributions were made after August 27, 2005, and before January 1, 2006, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3)), for Hurricane Katrina, Rita, or Wilma relief efforts. H&r block ez form The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. H&r block ez form Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% limit. H&r block ez form Partners and shareholders. H&r block ez form   Each partner in a partnership and each shareholder in an S corporation makes a separate election to have the appropriate limit not apply. H&r block ez form More information. H&r block ez form   For more information, see Publication 526 or Publication 542, Corporations. H&r block ez form Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. H&r block ez form Standard Mileage Rate for Charitable Use of Vehicles The following are special standard mileage rates in effect in 2005 and 2006 for the cost of operating your automobile for providing charitable services solely related to Hurricane Katrina. H&r block ez form 29 cents per mile for the period August 25 through August 31, 2005. H&r block ez form 34 cents per mile for the period September 1 through December 31, 2005. H&r block ez form 32 cents per mile for the period January 1 through December 31, 2006. H&r block ez form Mileage Reimbursements to Charitable Volunteers You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger automobile for the benefit of a qualified charitable organization in providing relief related to Hurricane Katrina during the period beginning on August 25, 2005, and ending on December 31, 2006. H&r block ez form You cannot claim a deduction or credit for amounts you receive as a mileage reimbursement. H&r block ez form You must keep records of miles driven, time, place (or use), and purpose of the mileage. H&r block ez form The amount you can exclude from income cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. H&r block ez form 40. H&r block ez form 5 cents per mile for the period August 25 through August 31, 2005. H&r block ez form 48. H&r block ez form 5 cents per mile for the period September 1 through December 31, 2005. H&r block ez form 44. H&r block ez form 5 cents per mile for the period January 1 through December 31, 2006. H&r block ez form Charitable Deduction for Contributions of Food Inventory Any taxpayer engaged in a trade or business is eligible to claim a deduction for a contribution of “apparently wholesome food” inventory to a qualified charitable organization described in section 501(c)(3) (except for private nonoperating foundations) after August 27, 2005, and before January 1, 2006. H&r block ez form “Apparently wholesome food” is food that meets all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. H&r block ez form The deduction is equal to the lesser of: The basis of the donated food plus one-half of the gain that would have been realized if the donated food had been sold at fair market value on the date of the donation, or Two times the basis of the donated food. H&r block ez form The taxpayer must receive written certification from the donee stating: The donated food is related to the purpose or function of the donee's basis for exemption under section 501(c)(3) and is to be used solely for the care of the ill, the needy, or infants; and The food was not given in exchange for money, other property, or services. H&r block ez form For a taxpayer other than a C corporation, the deduction is limited to 10% of the taxpayer's total net income from all trades or businesses from which the food contributions were made (figured without regard to the deduction for charitable contributions). H&r block ez form For example, if a taxpayer is a sole proprietor, a shareholder in an S corporation, and a partner in a partnership, and each made a contribution of apparently wholesome food inventory, the taxpayer's deduction is limited to 10% of the taxpayer's total net income from the sole proprietorship, S corporation, and partnership (figured without regard to the deduction for charitable contributions). H&r block ez form Charitable Deduction for Contributions of Book Inventories to Public Schools A corporation (other than an S corporation) may be allowed a charitable deduction for a qualified book contribution made after August 27, 2005, and before January 1, 2006, to a public school that: Provides elementary or secondary education (kindergarten through grade 12), and Normally maintains a regular faculty and curriculum and has a regular enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. H&r block ez form . H&r block ez form The deduction is equal to the lesser of: The basis of the donated books plus one-half of the gain that would have been realized if the donated books had been sold at fair market value on the date of the donation, or Two times the basis of the donated books. H&r block ez form The corporation must receive written certification from the school stating that the donated books are suitable for the organization's educational programs and will be used for such programs. H&r block ez form Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that were caused by Hurricane Katrina, Rita, or Wilma. H&r block ez form For more information, see Publication 547. H&r block ez form Limits on personal casualty or theft losses caused by Hurricane Katrina, Rita, or Wilma. H&r block ez form   The following losses to personal use property are not subject to the $100 or 10% of adjusted gross income limits. H&r block ez form Losses that arose in the Hurricane Katrina disaster area after August 24, 2005, and that were caused by Hurricane Katrina. H&r block ez form Losses that arose in the Hurricane Rita disaster area after September 22, 2005, and that were caused by Hurricane Rita. H&r block ez form Losses that arose in the Hurricane Wilma disaster area after October 22, 2005, and that were caused by Hurricane Wilma. H&r block ez form Qualifying losses include losses from flooding or other casualty, and from theft, that arose in the hurricane disaster area and that were caused by the hurricane. H&r block ez form Special instructions for individuals who elect to claim a Hurricane Katrina, Rita, or Wilma casualty or theft loss for 2004. H&r block ez form   Casualty and theft losses are generally deductible only in the year the casualty occurred or theft was discovered. H&r block ez form However, Hurricane Katrina, Rita, and Wilma are Presidentially declared disasters. H&r block ez form Therefore, you can elect to deduct losses from these hurricanes on your tax return for the previous year. H&r block ez form If you make this election, use the following additional instructions to complete your forms. H&r block ez form   Individuals filing or amending their 2004 tax return whose only casualty or theft losses to personal use property claimed on that return were caused by Hurricane Katrina, Rita, or Wilma should write “Hurricane Katrina,” “Hurricane Rita,” or “Hurricane Wilma” at the top of Form 1040 or 1040X. H&r block ez form They must also complete and attach the 2004 Form 4684 and write “Hurricane Katrina,”“Hurricane Rita,” or “Hurricane Wilma” on the dotted line next to line 11 and enter -0- on lines 11 and 17. H&r block ez form   Individuals filing or amending their 2004 tax return who also have casualty or theft losses to personal use property not related to Hurricane Katrina, Rita, or Wilma should disregard the caution directing taxpayers to use only one Form 4684, located above line 13, and complete lines 13 through 18 on two Forms 4684. H&r block ez form The Form 1040 or 1040X and the first Form 4684 should be prepared as explained above for Hurricane Katrina, Rita, or Wilma losses only. H&r block ez form The second Form 4684 should be prepared in the normal manner for all gains and non-Hurricane Katrina, Rita or Wilma losses. H&r block ez form If both Forms 4684 have a loss on line 18, they should carry the combined losses from that line to Schedule A (Form 1040), line 19. H&r block ez form If there is a gain on line 15 of the second Form 4684, disregard the instruction to enter it on Schedule D (Form 1040), and instead enter on Schedule A (Form 1040), line 19, the excess of the loss from the first Form 4684 over the gain on line 15 of the second Form 4684. H&r block ez form , Time limit for making election. H&r block ez form   You must make this election to claim your casualty or theft loss in 2004 by the later of the following dates. H&r block ez form The due date (without extensions) for filing your 2005 income tax return. H&r block ez form The due date (with extensions) for filing your 2004 income tax return. H&r block ez form Example. H&r block ez form If you are a calendar year individual taxpayer, you have until April 17, 2006, to amend your 2004 tax return to claim a casualty or theft loss that occurred during 2005. H&r block ez form Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. H&r block ez form Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). H&r block ez form However, for property that was involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. H&r block ez form For more information, see the Instructions for Form 4684. H&r block ez form Net Operating Losses Qualified GO Zone loss. H&r block ez form   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. H&r block ez form However, the portion of an NOL that is a qualified GO Zone loss can be carried back to the 5 tax years before the NOL year. H&r block ez form In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. H&r block ez form   A qualified GO Zone loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified GO Zone casualty loss (as defined below), Moving expenses paid or incurred after August 27, 2005, and before January 1, 2008, for the employment of an individual whose main home was in the GO Zone before August 28, 2005, who was unable to remain in that home because of Hurricane Katrina, and whose main job location (after the move) is in the GO Zone, Temporary housing expenses paid or incurred after August 27, 2005, and before January 1, 2008, to house employees of the taxpayer whose main job location is in the GO Zone, Depreciation or amortization allowable for any qualified GO Zone property (even if you elected not to claim the special GO Zone depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after August 27, 2005, and before January 1, 2008, for any damage from Hurricane Katrina to property located in the GO Zone. H&r block ez form Qualified GO Zone casualty loss. H&r block ez form   A qualified GO Zone casualty loss is any deductible section 1231 loss of property located in the GO Zone if the loss was caused by Hurricane Katrina. H&r block ez form For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by Hurricane Katrina of property located in the GO Zone. H&r block ez form Any such loss taken into account in figuring your qualified GO Zone loss is not eligible for the election to be treated as having occurred in the previous tax year. H&r block ez form 5-year NOL carryback of certain timber losses. H&r block ez form   Generally, you can carry the portion of an NOL due to income and deductions attributable to a farming business back to the 5 tax years before the NOL year. H&r block ez form You can treat income and deductions attributable to qualified timber property as attributable to a farming business if any portion of the property is located in the GO Zone, Rita GO Zone, or Wilma GO Zone, and the income and deductions are allocable to the part of your tax year which is after the applicable date below. H&r block ez form August 27, 2005, if any portion of the property is located in the GO Zone. H&r block ez form September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). H&r block ez form October 22, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the RITA GO Zone). H&r block ez form   These rules will not apply after 2006. H&r block ez form   However, these rules apply only to a timber producer who: Held qualified timber property (defined in Publication 535, Business Expenses) on the applicable date below: August 28, 2005, if any portion of the property is located in the GO Zone, September 23, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone), or October 23, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the Rita GO Zone); Is not a corporation with stock publicly traded on an established securities market; Is not a real estate investment trust; and Did not hold more than 500 acres of qualified timber property on the applicable date above. H&r block ez form More information. H&r block ez form   For more information on NOLs, see Publication 536 or Publication 542, Corporations. H&r block ez form IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of Hurricane Katrina, Rita, or Wilma. H&r block ez form Definitions Qualified hurricane distribution. H&r block ez form   A qualified hurricane distribution is any distribution you received from an eligible retirement plan if all of the following apply. H&r block ez form The distribution was made: After August 24, 2005, and before January 1, 2007, for Hurricane Katrina; After September 22, 2005, and before January 1, 2007, for Hurricane Rita; or After October 22, 2005, and before January 1, 2007, for Hurricane Wilma. H&r block ez form Your main home was located in a hurricane disaster area listed below on the date shown for that area. H&r block ez form August 28, 2005, for the Hurricane Katrina disaster area. H&r block ez form September 23, 2005, for the Hurricane Rita disaster area. H&r block ez form October 23, 2005, for the Hurricane Wilma disaster area. H&r block ez form You sustained an economic loss because of Hurricane Katrina, Rita, or Wilma and your main home was in that hurricane disaster area on the date shown in (2) above for that hurricane. H&r block ez form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. H&r block ez form   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified hurricane distribution, regardless of whether the distribution was made on account of Hurricane Katrina, Rita, or Wilma. H&r block ez form Qualified hurricane distributions are permitted without regard to your need or the actual amount of your economic loss. H&r block ez form   The total of your qualified hurricane distributions from all plans is limited to $100,000. H&r block ez form If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. H&r block ez form   A reduction or offset (after August 24, 2005, for Katrina; after September 22, 2005, for Rita; or after October 22, 2005, for Wilma) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified hurricane distribution. H&r block ez form Eligible retirement plan. H&r block ez form   An eligible retirement plan can be any of the following. H&r block ez form A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). H&r block ez form A qualified annuity plan. H&r block ez form A tax-sheltered annuity contract. H&r block ez form A governmental section 457 deferred compensation plan. H&r block ez form A traditional, SEP, SIMPLE, or Roth IRA. H&r block ez form Main home. H&r block ez form   Generally, your main home is the home where you live most of the time. H&r block ez form A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. H&r block ez form Taxation of Qualified Hurricane Distributions Qualified hurricane distributions are included in income in equal amounts over three years. H&r block ez form However, if you elect, you can include the entire distribution in your income in the year it was received. H&r block ez form Qualified hurricane distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). H&r block ez form However, any distributions you receive in excess of the $100,000 qualified hurricane distribution limit may be subject to the additional tax on early distributions. H&r block ez form For more information, see Form 8915. H&r block ez form Repayment of Qualified Hurricane Distributions If you choose, you generally can repay any portion of a qualified hurricane distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. H&r block ez form Also, you can repay a qualified hurricane distribution made on account of a hardship from a retirement plan. H&r block ez form However, see Exceptions below for qualified hurricane distributions you cannot repay. H&r block ez form You have three years from the day after the date you received the distribution to make a repayment. H&r block ez form Amounts that are repaid are treated as a qualified rollover and are not included in income. H&r block ez form Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. H&r block ez form See Form 8915 for more information on how to report repayments. H&r block ez form Exceptions. H&r block ez form   You cannot repay the following types of distributions. H&r block ez form Qualified hurricane distributions received as a beneficiary (other than a surviving spouse). H&r block ez form Required minimum distributions. H&r block ez form Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. H&r block ez form Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area, you can repay that distribution before March 1, 2006, to an eligible retirement plan after August 24, 2005 (Katrina); after September 22, 2005 (Rita); or after October 22, 2005 (Wilma). H&r block ez form For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. H&r block ez form To be a qualified distribution, the distribution must meet all of the following requirements. H&r block ez form The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. H&r block ez form The distribution was received in 2005 after February 28 and before: August 29 for Hurricane Katrina; September 24 for Hurricane Rita; or October 24 for Hurricane Wilma. H&r block ez form The distribution was to be used to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area that was not purchased or constructed because of Hurricane Katrina, Rita, or Wilma. H&r block ez form Amounts that are repaid before March 1, 2006, are treated as a qualified rollover and are not included in income. H&r block ez form Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. H&r block ez form A qualified distribution not repaid before March 1, 2006, may be taxable for 2005 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. H&r block ez form You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before March 1, 2006. H&r block ez form Loans From Qualified Plans The following benefits are available to qualified individuals. H&r block ez form Increases to the limits for distributions treated as loans from employer plans. H&r block ez form A 1-year suspension for payments due on plan loans. H&r block ez form Qualified individual. H&r block ez form   You are a qualified individual if any of the following apply. H&r block ez form Your main home on August 28, 2005, was located in the Hurricane Katrina disaster area and you had an economic loss because of Hurricane Katrina. H&r block ez form Your main home on September 23, 2005, was located in the Hurricane Rita disaster area and you had an economic loss because of Hurricane Rita. H&r block ez form Your main home on October 23, 2005, was located in the Hurricane Wilma disaster area and you had an economic loss because of Hurricane Wilma. H&r block ez form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. H&r block ez form Limits on plan loans. H&r block ez form   The $50,000 limit for distributions treated as plan loans is increased to $100,000. H&r block ez form In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. H&r block ez form The higher limits apply only to loans received during the following period. H&r block ez form If your main home was located in the Hurricane Katrina disaster area, the period began on September 24, 2005, and ends on December 31, 2006. H&r block ez form If your main home was located in the Hurricane Rita or Wilma disaster area, the period began on December 21, 2005, and ends on December 31, 2006. H&r block ez form If you are a qualified individual based on Hurricane Katrina and another hurricane, use the period based on Hurricane Katrina. H&r block ez form One-year suspension of loan payments. H&r block ez form   Payments on plan loans due before 2007 may be suspended for 1 year by the plan administrator. H&r block ez form To qualify for the suspension, the due date for any loan payment must occur during the period beginning on: August 28, 2005, if your main home was located in the Hurricane Katrina disaster area. H&r block ez form September 23, 2005, if your main home was located in the Hurricane Rita disaster area. H&r block ez form October 23, 2005, if your main home was located in the Hurricane Wilma disaster area. H&r block ez form If you are a qualified individual based on more than one hurricane, use the period with the earliest beginning date. H&r block ez form Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit You can elect to use your 2004 earned income to figure your earned income credit (EIC) and additional child tax credit for 2005 if: Your 2005 earned income is less than your 2004 earned income, and At least one of the following statements is true. H&r block ez form Your main home on August 25, 2005, was in the Gulf Opportunity (GO) Zone. H&r block ez form Your main home on August 25, 2005, was in the Hurricane Katrina disaster area and you were displaced from that home because of Hurricane Katrina. H&r block ez form Your main home on September 23, 2005, was in the Rita GO Zone. H&r block ez form Your main home on September 23, 2005, was in the Hurricane Rita disaster area and you were displaced from that home because of Hurricane Rita. H&r block ez form Your main home on October 23, 2005, was in the Wilma GO Zone. H&r block ez form Your main home on October 23, 2005, was in the Hurricane Wilma disaster area and you were displaced from that home because of Hurricane Wilma. H&r block ez form Earned income. H&r block ez form    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. H&r block ez form If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. H&r block ez form Joint returns. H&r block ez form   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. H&r block ez form If you make the election, your 2004 earned income is the sum of your 2004 earned income and your spouse's 2004 earned income. H&r block ez form Making the election. H&r block ez form   If you make the election to use your 2004 earned income, the election applies for figuring both the EIC and the additional child tax credit. H&r block ez form However, you can make the election for the additional child tax credit even if you do not take the EIC. H&r block ez form   Electing to use your 2004 earned income may increase or decrease your EIC. H&r block ez form Take the following steps to decide whether to make the election. H&r block ez form Figure your 2005 EIC using your 2004 earned income. H&r block ez form Figure your 2005 additional child tax credit using your 2004 earned income for EIC purposes. H&r block ez form Add the results of (1) and (2). H&r block ez form Figure your 2005 EIC using your 2005 earned income. H&r block ez form Figure your 2005 additional child tax credit using your 2005 earned income for additional child tax credit purposes. H&r block ez form Add the results of (4) and (5). H&r block ez form Compare the results of (3) and (6). H&r block ez form If (3) is larger than (6), it is to your benefit to make the election. H&r block ez form If (3) is equal to or smaller than (6), making the election will not help you. H&r block ez form   If you elect to use your 2004 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2004 earned income on the dotted line next to line 66a of Form 1040, on the line next to line 41a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. H&r block ez form   If you elect to use your 2004 earned income and you are claiming the additional child tax credit, enter your 2004 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. H&r block ez form   Because Form 8812 was released before the GO Zone legislation was enacted, the instructions refer only to individuals whose main home was in the Hurricane Katrina disaster area. H&r block ez form When completing Form 8812, line 4a, use the above rules to determine your eligibility to make the election (instead of the Form 8812 instructions). H&r block ez form Getting your 2004 tax return information. H&r block ez form   If you do not have your 2004 tax records, you can get the amount of earned income used to figure your 2004 EIC by calling 1-866-562-5227. H&r block ez form You can also get this information by visiting the IRS website at www. H&r block ez form irs. H&r block ez form gov. H&r block ez form   If you prefer to figure your 2004 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. H&r block ez form See Request for Copy or Transcript of Tax Return on page 16. H&r block ez form Additional Exemption for Housing Individuals Displaced by Hurricane Katrina You may be able to claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by Hurricane Katrina. H&r block ez form The additional exemption amount is claimed on new Form 8914. H&r block ez form The additional exemption amount is allowable once per taxpayer for a specific individual in 2005 or 2006, but not in both years. H&r block ez form The maximum additional exemption amount you can claim for all displaced individuals is $2,000 ($1,000 if married filing separately). H&r block ez form The additional exemption amount you claim for displaced individuals in 2005 will reduce the $2,000 maximum for 2006. H&r block ez form If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. H&r block ez form If married filing separately, only one spouse may claim the additional exemption amount for a specific displaced individual. H&r block ez form In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). H&r block ez form To qualify as a displaced individual, the individual: Must have had his or her main home in the Hurricane Katrina disaster area on August 28, 2005, and he or she must have been displaced from that home. H&r block ez form If the individual's main home was located outside the core disaster area, that home must have been damaged by Hurricane Katrina or the individual must have been evacuated from that home because of Hurricane Katrina, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. H&r block ez form You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. H&r block ez form You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. H&r block ez form Food, clothing, or personal items consumed or used by the displaced individual. H&r block ez form Reimbursement for the cost of any long distance telephone calls made by the displaced individual. H&r block ez form Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. H&r block ez form However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. H&r block ez form Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. H&r block ez form For more information, see Form 8914. H&r block ez form Education Credits The education credits have been expanded for students attending an eligible educational institution located in the Gulf Opportunity Zone (GOZ students) for any tax year beginning in 2005 or 2006. H&r block ez form The Hope credit for a GOZ student is increased to 100% of the first $2,000 in qualified education expenses and 50% of the next $2,000 of qualified education expenses for a maximum credit of $3,000 per student. H&r block ez form The lifetime learning credit rate for a GOZ student is increased from 20% to 40%. H&r block ez form The definition of qualified education expenses for a GOZ student also has been expanded. H&r block ez form In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a GOZ student include the following. H&r block ez form Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. H&r block ez form For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. H&r block ez form For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. H&r block ez form The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. H&r block ez form The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. H&r block ez form You will need to contact the eligible educational institution for qualified room and board costs. H&r block ez form For more information, see Form 8863. H&r block ez form Recapture of Federal Mortgage Subsidy Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. H&r block ez form However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. H&r block ez form This amount is increased to $150,000 if the loan was provided before 2011 and was used to: Repair damage caused by Hurricane Katrina to a residence in the Hurricane Katrina disaster area, or Alter, repair, or improve an existing owner-occupied residence in the GO Zone, Rita GO Zone, or Wilma GO Zone. H&r block ez form Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Generally, discharges of nonbusiness debts (such as mortgages) made after August 24, 2005, and before January 1, 2007, are excluded from income for individuals whose main home was in the Hurricane Katrina disaster area on August 25, 2005. H&r block ez form If the individual's main home was located outside the core disaster area, the individual also must have had an economic loss because of Hurricane Katrina. H&r block ez form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. H&r block ez form This relief does not apply to any debt secured by real property located outside the Hurricane Katrina disaster area. H&r block ez form You may also have to reduce certain tax attributes by the amount excluded. H&r block ez form For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). H&r block ez form Tax Relief for Temporary Relocation Under the Gulf Opportunity Zone Act of 2005, the IRS may adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2005 or 2006 as a result of a temporary relocation caused by Hurricane Katrina, Rita, or Wilma. H&r block ez form However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. H&r block ez form The IRS has exercised this authority as follows. H&r block ez form In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. H&r block ez form In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. H&r block ez form You can treat as a student an individual who enrolled in school before August 25, 2005, and who is unable to attend classes because of Hurricane Katrina, for each month of the enrollment period that individual is prevented by Hurricane Katrina from attending school as planned. H&r block ez form You can treat as a student an individual who enrolled in school before September 23, 2005, and who is unable to attend classes because of Hurricane Rita, for each month of the enrollment period that individual is prevented by Hurricane Rita from attending school as planned. H&r block ez form You can treat as a student an individual who enrolled in school before October 23, 2005, and who is unable to attend classes because of Hurricane Wilma, for each month of the enrollment period that individual is prevented by Hurricane Wilma from attending school as planned. H&r block ez form Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified Gulf Opportunity (GO) Zone property (as defined below) you place in service after August 27, 2005. H&r block ez form The allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). H&r block ez form The special allowance applies only for the first year the property is placed in service. H&r block ez form The allowance is deductible for both the regular tax and the alternative minimum tax (AMT). H&r block ez form There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. H&r block ez form You can elect not to deduct the special GO Zone depreciation allowance for qualified property. H&r block ez form If you make this election for any property, it applies to all property in the same class placed in service during the year. H&r block ez form Qualified GO Zone property. H&r block ez form   Property that qualifies for the special GO Zone depreciation allowance includes the following. H&r block ez form Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. H&r block ez form Water utility property. H&r block ez form Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. H&r block ez form (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. H&r block ez form ) Qualified leasehold improvement property. H&r block ez form Nonresidential real property and residential rental property. H&r block ez form   For more information on this property, see Publication 946. H&r block ez form Other tests to be met. H&r block ez form   To be qualified GO Zone property, the property must also meet all of the following tests. H&r block ez form You must have acquired the property, by purchase, after August 27, 2005, but only if no binding written contract for the acquisition was in effect before August 28, 2005. H&r block ez form The property must be placed in service before 2008 (2009 in the case of nonresidential real property and residential rental property). H&r block ez form Substantially all of the use of the property must be in the GO Zone and in the active conduct of your trade or business in the GO Zone. H&r block ez form The original use of the property in the GO Zone must begin with you after August 27, 2005. H&r block ez form Used property can be qualified GO Zone property if it has not previously been used within the GO Zone. H&r block ez form Also, additional capital expenditures you incurred after August 27, 2005, to recondition or rebuild your property meet the original use test if the original use of the property in the GO Zone began with you. H&r block ez form Excepted property. H&r block ez form   Qualified GO Zone property does not include any of the following. H&r block ez form Property required to be depreciated using the Alternative Depreciation System (ADS). H&r block ez form Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. H&r block ez form Property for which you are claiming a commercial revitalization deduction. H&r block ez form Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. H&r block ez form Any gambling or animal racing property (as defined below). H&r block ez form Property in the same class as that for which you elected not to claim the special GO Zone depreciation allowance. H&r block ez form   Gambling or animal racing property is: Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and The portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. H&r block ez form Recapture of special allowance. H&r block ez form   If, in any year after the year you claim the special allowance, the property ceases to be qualified GO Zone property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. H&r block ez form Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 Gulf Opportunity (GO) Zone property (as defined later) placed in service in the GO Zone. H&r block ez form Increased dollar limit. H&r block ez form   The limit on the section 179 deduction ($105,000 for 2005, $108,000 for 2006) for qualified section 179 GO Zone property acquired after August 27, 2005, is increased by the smaller of: $100,000, or The cost of qualified section 179 GO Zone property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). H&r block ez form   The amount for which you can make the election is reduced if the cost of all qualified section 179 GO Zone property you placed in service during the year exceeds $420,000 for 2005 ($430,000 for 2006) increased by the smaller of: $600,000, or The cost of qualified section 179 GO Zone property placed in service during the year. H&r block ez form Qualified section 179 GO Zone property. H&r block ez form   Qualified section 179 GO Zone property is section 179 property that is qualified GO Zone property (explained earlier under Special Depreciation Allowance). H&r block ez form Section 179 property does not include nonresidential real property or residential rental property. H&r block ez form For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. H&r block ez form Work Opportunity Credit For the work opportunity credit, the definition of “targeted group employee” has been expanded to include a Hurricane Katrina employee. H&r block ez form Hurricane Katrina employee. H&r block ez form   A Hurricane Katrina employee is: A person who, on August 28, 2005, had a main home in the core disaster area and, within a two-year period beginning on that date, is hired to perform services principally in the core disaster area; or A person who, on August 28, 2005, had a main home in the core disaster area, was displaced from that main home as a result of Hurricane Katrina, and was hired during the period beginning on August 28, 2005, and ending on December 31, 2005. H&r block ez form Qualified wages. H&r block ez form   Generally, qualified wages do not include wages you paid to a targeted group employee who worked for you previously. H&r block ez form However, wages will qualify if: You paid them to an employee who is a Hurricane Katrina employee, The employee was not in your employment on August 28, 2005, and This is your first hire of the employee as a Hurricane Katrina employee after August 28, 2005. H&r block ez form   For more information, see Form 5884. H&r block ez form Certification requirements. H&r block ez form   An employee must provide to the employer reasonable evidence that he or she is a Hurricane Katrina employee. H&r block ez form An employer may accept a completed Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, as such evidence. H&r block ez form The certification requirements described in Form 8850 do not apply to a Hurricane Katrina employee. H&r block ez form Do not send any Forms 8850 that have only box 1 checked to the state employment security agency. H&r block ez form Instead, the employer should keep these Forms 8850 with the employer's other records. H&r block ez form For more information, see Form 8850 and its instructions. H&r block ez form Employee Retention Credit An eligible employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone, the Rita GO Zone, or the Wilma GO Zone can claim the employee retention credit. H&r block ez form The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). H&r block ez form Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). H&r block ez form Use Form 5884-A to claim the credit. H&r block ez form See the following rules and definitions for each hurricane. H&r block ez form Employers affected by Hurricane Katrina. H&r block ez form   The following definitions apply to employers affected by Hurricane Katrina. H&r block ez form Eligible employer. H&r block ez form   For this purpose, an eligible employer is any employer who conducted an active trade or business on August 28, 2005, in the GO Zone and whose trade or business was inoperable on any day after August 28, 2005, and before January 1, 2006, because of damage caused by Hurricane Katrina. H&r block ez form Eligible employee. H&r block ez form   For this purpose, an eligible employee is an employee whose principal place of employment on August 28, 2005, with such eligible employer was in the GO Zone. H&r block ez form An employee is not an eligible employee for purposes of Hurricane Katrina if the employee is treated as an eligible employee for the work opportunity credit. H&r block ez form Employers affected by Hurricane Rita. H&r block ez form   The following definitions apply to employers affected by Hurricane Rita. H&r block ez form Eligible employer. H&r block ez form   For this purpose, an eligible employer is any employer who conducted an active trade or business on September 23, 2005, in the Rita GO Zone and whose trade or business was inoperable on any day after September 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Rita. H&r block ez form Eligible employee. H&r block ez form   For this purpose, an eligible employee is an employee whose principal place of employment on September 23, 2005, with such eligible employer was in the Rita GO Zone. H&r block ez form An employee is not an eligible employee for purposes of Hurricane Rita if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina employee retention credit. H&r block ez form Employers affected by Hurricane Wilma. H&r block ez form   The following definitions apply to employers affected by Hurricane Wilma. H&r block ez form Eligible employer. H&r block ez form   For this purpose, an eligible employer is any employer who conducted an active trade or business on October 23, 2005, in the Wilma GO Zone and whose trade or business was inoperable on any day after October 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Wilma. H&r block ez form Eligible employee. H&r block ez form   For this purpose, an eligible employee is an employee whose principal place of employment on October 23, 2005, with such eligible employer was in the Wilma GO Zone. H&r block ez form An employee is not an eligible employee for purposes of Hurricane Wilma if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina or Rita employee retention credit. H&r block ez form Qualified wages. H&r block ez form   Qualified wages are wages you paid or incurred before January 1, 2006, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable hurricane, and ending on the date your trade or business resumed significant operations at that place. H&r block ez form In addition, the wages must have been paid or incurred after the following date. H&r block ez form August 28, 2005, for Hurricane Katrina. H&r block ez form September 23, 2005, for Hurricane Rita. H&r block ez form October 23, 2005, for Hurricane Wilma. H&r block ez form    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. H&r block ez form    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). H&r block ez form Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. H&r block ez form Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. H&r block ez form   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. H&r block ez form For a special rule that applies to railroad employees, see section 51(h)(1)(B). H&r block ez form   Qualified wages do not include the following. H&r block ez form Wages paid to your dependent or a related individual. H&r block ez form See section 51(i)(1). H&r block ez form Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. H&r block ez form Wages for services of replacement workers during a strike or lockout. H&r block ez form   For more information, see Form 5884-A. H&r block ez form Hurricane Katrina Housing Credit An employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone can claim the Hurricane Katrina housing credit. H&r block ez form The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from January 1, 2006, through July 1, 2006. H&r block ez form The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). H&r block ez form Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). H&r block ez form The employer must use Form 5884-A to claim the credit. H&r block ez form A qualified employee is an individual who had a main home in the GO Zone on August 28, 2005, and who performs substantially all employment services in the GO Zone for the employer furnishing the lodging. H&r block ez form The employee cannot be your dependent or a related individual. H&r block ez form See section 51(i)(1). H&r block ez form For more information, see Form 5884-A. H&r block ez form Reforestation Costs You may be able to elect to deduct a limited amount of reforestation costs for each qualified timber property. H&r block ez form The deduction for any tax year generally is limited to $10,000 ($5,000 if married filing separately, $0 for a trust). H&r block ez form However, this limit is increased if you paid or incurred reforestation costs after the applicable date below and any portion of the qualified timber property is located in one of the following areas. H&r block ez form August 27, 2005, if any portion of the property is located in the GO Zone. H&r block ez form September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). H&r block ez form October 22, 2005, if any portion of the property is located in the Wilma GO Zone. H&r block ez form The limit for each qualified timber property is increased by the smaller of: $10,000 ($5,000 if married filing separately, $0 for a trust), or The amount of reforestation costs you paid or incurred after the applicable date for the qualified timber property, any portion of which is located in the zone described above. H&r block ez form The increase in the limit applies only to costs paid or incurred before 2008. H&r block ez form However, these rules do not apply to any timber producer who: Held more than 500 acres of qualified timber property at any time during the tax year, Is a corporation with stock publicly traded on an established securities market, or Is a real estate investment trust. H&r block ez form For more information about the election to deduct reforestation costs, see chapter 8 in Publication 535, Business Expenses. H&r block ez form Demolition and Clean-up Costs You can elect to deduct 50% of any qualified GO Zone clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. H&r block ez form Qualified GO Zone clean-up costs are any amounts paid or incurred after August 27, 2005, and before January 1, 2008, for the removal of debris from, or the demolition of structures on, real property located in the GO Zone that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. H&r block ez form Increase in Rehabilitation Tax Credit The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred after August 27, 2005, and before January 1, 2009, on buildings located in the GO Zone as follows. H&r block ez form For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. H&r block ez form For certified historic structures, the credit percentage is increased from 20% to 26%. H&r block ez form For more information, see Form 3468, Investment Credit. H&r block ez form Request for Copy or Transcript of Tax Return Request for copy of tax return. H&r block ez form   You can use Form 4506 to order a copy of your tax return. H&r block ez form Generally, there is a $39. H&r block ez form 00 fee for requesting each copy of a tax return. H&r block ez form If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Hurricane Katrina”) is written in red across the top of the form when filed. H&r block ez form Request for transcript of tax return. H&r block ez form   You can use Form 4506-T to order a free transcript of your tax return. H&r block ez form A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. H&r block ez form You can also call 1-800-829-1040 to order a transcript. H&r block ez form How To Get Tax Help Special IRS assistance. H&r block ez form   The IRS is providing special help for those affected by Hurricane Katrina, Rita, or Wilma, as well as survivors and personal representatives of the victims. H&r block ez form We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by Hurricane Katrina, Rita, or Wilma, or who have other tax issues related to the hurricanes. H&r block ez form Call 1-866-562-5227 Monday through Friday In English-7 a. H&r block ez form m. H&r block ez form to 10 p. H&r block ez form m. H&r block ez form local time In Spanish-8 a. H&r block ez form m. H&r block ez form to 9:30 p. H&r block ez form m. H&r block ez form local time   The IRS website at www. H&r block ez form irs. H&r block ez form gov has notices and other tax relief information. H&r block ez form Check it periodically for any new guidance. H&r block ez form Other help from the IRS. H&r block ez form   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. H&r block ez form By selecting the method that is best for you, you will have quick and easy access to tax help. H&r block ez form Contacting your Taxpayer Advocate. H&r block ez form   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. H&r block ez form   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. H&r block ez form While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. H&r block ez form   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778. H&r block ez form Call, write, or fax the Taxpayer Advocate office in your area. H&r block ez form Call 1-800-829-4059 if you are a TTY/TDD user. H&r block ez form Visit www. H&r block ez form irs. H&r block ez form gov/advocate. H&r block ez form   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). H&r block ez form Free tax services. H&r block ez form   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. H&r block ez form It contains a list of free tax publications and an index of tax topics. H&r block ez form It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. H&r block ez form Internet. H&r block ez form You can access the IRS website 24 hours a day, 7 days a week, at www. H&r block ez form irs. H&r block ez form gov to: E-file your return. H&r block ez form Find out about commercial tax preparation and e-file services available free to eligible taxpayers. H&r block ez form Check the status of your refund. H&r block ez form Click on Where's My Refund. H&r block ez form Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). H&r block ez form Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. H&r block ez form Download forms, instructions, and publications. H&r block ez form Order IRS products online. H&r block ez form Research your tax questions online. H&r block ez form Search publications online by topic or keyword. H&r block ez form View Internal Revenue Bulletins (IRBs) published in the last few years. H&r block ez form Figure your withholdin