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H&r Block Free File 2011

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H&r Block Free File 2011

H&r block free file 2011 5. H&r block free file 2011   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. H&r block free file 2011 You may be able to reduce your federal income tax by claiming one or more of these credits. H&r block free file 2011 Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. H&r block free file 2011 For more information, see Publication 524, Credit for the Elderly or the Disabled. H&r block free file 2011 You can take the credit only if you file Form 1040 or Form 1040A. H&r block free file 2011 You cannot take the credit if you file Form 1040EZ or Form 1040NR. H&r block free file 2011 Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. H&r block free file 2011 You are a qualified individual. H&r block free file 2011 Your income is not more than certain limits. H&r block free file 2011  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. H&r block free file 2011   Qualified Individual You are a qualified individual for this credit if you are a U. H&r block free file 2011 S. H&r block free file 2011 citizen or resident alien, and either of the following applies. H&r block free file 2011 You were age 65 or older at the end of 2013. H&r block free file 2011 You were under age 65 at the end of 2013 and all three of the following statements are true. H&r block free file 2011 You retired on permanent and total disability (explained later). H&r block free file 2011 You received taxable disability income for 2013. H&r block free file 2011 On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). H&r block free file 2011 Age 65. H&r block free file 2011 You are considered to be age 65 on the day before your 65th birthday. H&r block free file 2011 Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. H&r block free file 2011 Figure 5-A. H&r block free file 2011 Are You a Qualified Individual? This image is too large to be displayed in the current screen. H&r block free file 2011 Please click the link to view the image. H&r block free file 2011 Figure 5-A, Are you a qualified individual? U. H&r block free file 2011 S. H&r block free file 2011 citizen or resident alien. H&r block free file 2011   You must be a U. H&r block free file 2011 S. H&r block free file 2011 citizen or resident alien (or be treated as a resident alien) to take the credit. H&r block free file 2011 Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. H&r block free file 2011 Exceptions. H&r block free file 2011   You may be able to take the credit if you are a nonresident alien who is married to a U. H&r block free file 2011 S. H&r block free file 2011 citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. H&r block free file 2011 S. H&r block free file 2011 resident alien. H&r block free file 2011 If you make that choice, both you and your spouse are taxed on your worldwide income. H&r block free file 2011   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. H&r block free file 2011 S. H&r block free file 2011 citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. H&r block free file 2011 S. H&r block free file 2011 resident alien for the entire year. H&r block free file 2011 In that case, you may be allowed to take the credit. H&r block free file 2011   For information on these choices, see chapter 1 of Publication 519, U. H&r block free file 2011 S. H&r block free file 2011 Tax Guide for Aliens. H&r block free file 2011 Married persons. H&r block free file 2011   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. H&r block free file 2011 However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. H&r block free file 2011 Head of household. H&r block free file 2011   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. H&r block free file 2011 See Publication 524 and Publication 501. H&r block free file 2011 Under age 65. H&r block free file 2011   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). H&r block free file 2011 You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. H&r block free file 2011 You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. H&r block free file 2011   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. H&r block free file 2011 If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. H&r block free file 2011 Permanent and total disability. H&r block free file 2011   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. H&r block free file 2011 A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. H&r block free file 2011 See Physician's statement , later. H&r block free file 2011 Substantial gainful activity. H&r block free file 2011   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. H&r block free file 2011   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. H&r block free file 2011   Substantial gainful activity is not work you do to take care of yourself or your home. H&r block free file 2011 It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. H&r block free file 2011 However, doing this kind of work may show that you are able to engage in substantial gainful activity. H&r block free file 2011    Figure 5-B. H&r block free file 2011 Income Limits IF your filing status is. H&r block free file 2011 . H&r block free file 2011 . H&r block free file 2011 THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. H&r block free file 2011 . H&r block free file 2011 . H&r block free file 2011 OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. H&r block free file 2011 . H&r block free file 2011 . H&r block free file 2011 single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. H&r block free file 2011 Physician's statement. H&r block free file 2011   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. H&r block free file 2011   You do not have to file this statement with your tax return, but you must keep it for your records. H&r block free file 2011 The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. H&r block free file 2011 Veterans. H&r block free file 2011   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. H&r block free file 2011 VA Form 21-0172 must be signed by a person authorized by the VA to do so. H&r block free file 2011 You can get this form from your local VA regional office. H&r block free file 2011 Physician's statement obtained in earlier year. H&r block free file 2011   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. H&r block free file 2011 For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. H&r block free file 2011 If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. H&r block free file 2011   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. H&r block free file 2011 Disability income. H&r block free file 2011   If you are under age 65, you must also have taxable disability income to qualify for the credit. H&r block free file 2011   Disability income must meet the following two requirements. H&r block free file 2011 It must be paid under your employer's accident or health plan or pension plan. H&r block free file 2011 It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. H&r block free file 2011 Payments that are not disability income. H&r block free file 2011   Any payment you receive from a plan that does not provide for disability retirement is not disability income. H&r block free file 2011 Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. H&r block free file 2011   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. H&r block free file 2011 Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. H&r block free file 2011 Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. H&r block free file 2011 Figuring the credit yourself. H&r block free file 2011   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). H&r block free file 2011 Next, fill out Schedule R (Form 1040A or 1040), Part III. H&r block free file 2011 Credit figured for you. H&r block free file 2011   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). H&r block free file 2011 If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. H&r block free file 2011 Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. H&r block free file 2011 The credit can be up to 35% of your expenses. H&r block free file 2011 To qualify, you must pay these expenses so you can work or look for work. H&r block free file 2011 If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. H&r block free file 2011 If the correct information is not shown, the credit may be reduced or disallowed. H&r block free file 2011 You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. H&r block free file 2011 For more information, see Publication 503, Child and Dependent Care Expenses. H&r block free file 2011 Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. H&r block free file 2011 The EIC is available to persons with or without a qualifying child. H&r block free file 2011 Credit has no effect on certain welfare benefits. H&r block free file 2011   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&r block free file 2011 These programs include the following. H&r block free file 2011 Medicaid and supplemental security income (SSI). H&r block free file 2011 Supplemental Nutrition Assistance Program (food stamps). H&r block free file 2011 Low-income housing. H&r block free file 2011 Temporary Assistance for Needy Families (TANF). H&r block free file 2011  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. H&r block free file 2011 Check with your local benefit coordinator to find out if your refund will affect your benefits. H&r block free file 2011 Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. H&r block free file 2011 The specific rules you must meet depend on whether you have a qualifying child. H&r block free file 2011 If you have a qualifying child, the rules in Parts A, B, and D apply to you. H&r block free file 2011 If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. H&r block free file 2011  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. H&r block free file 2011 You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). H&r block free file 2011 The sections that follow provide additional information for some of the rules. H&r block free file 2011 Adjusted gross income (AGI). H&r block free file 2011   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. H&r block free file 2011 Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). H&r block free file 2011 Table 5-1. H&r block free file 2011 Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. H&r block free file 2011 Second, you must meet all the rules in one of these columns, whichever applies. H&r block free file 2011 Third, you must meet the rule in this column. H&r block free file 2011 Part A. H&r block free file 2011  Rules for Everyone Part B. H&r block free file 2011  Rules If You Have a Qualifying Child Part C. H&r block free file 2011  Rules If You Do Not Have a Qualifying Child Part D. H&r block free file 2011  Figuring and Claiming the EIC 1. H&r block free file 2011 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&r block free file 2011 2. H&r block free file 2011 You must have a valid social security number. H&r block free file 2011  3. H&r block free file 2011 Your filing status cannot be “Married filing separately. H&r block free file 2011 ” 4. H&r block free file 2011 You must be a U. H&r block free file 2011 S. H&r block free file 2011 citizen or resident alien all year. H&r block free file 2011  5. H&r block free file 2011 You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). H&r block free file 2011  6. H&r block free file 2011 Your investment income must be $3,300 or less. H&r block free file 2011  7. H&r block free file 2011 You must have earned income. H&r block free file 2011 8. H&r block free file 2011 Your child must meet the relationship, age, residency, and joint return tests. H&r block free file 2011  9. H&r block free file 2011 Your qualifying child cannot be used by more than one person to claim the EIC. H&r block free file 2011  10. H&r block free file 2011 You generally cannot be a qualifying child of another person. H&r block free file 2011 11. H&r block free file 2011 You must be at least age 25 but under age 65. H&r block free file 2011  12. H&r block free file 2011 You cannot be the dependent of another person. H&r block free file 2011  13. H&r block free file 2011 You generally cannot be a qualifying child of another person. H&r block free file 2011  14. H&r block free file 2011 You must have lived in the United States more than half of the year. H&r block free file 2011 15. H&r block free file 2011 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&r block free file 2011 Social security number. H&r block free file 2011   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). H&r block free file 2011 Any qualifying child listed on Schedule EIC also must have a valid SSN. H&r block free file 2011 (See Qualifying child , later, if you have a qualifying child. H&r block free file 2011 )   If your social security card (or your spouse's if you are married filing jointly) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. H&r block free file 2011 An example of a federally funded benefit is Medicaid. H&r block free file 2011 Investment income. H&r block free file 2011   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. H&r block free file 2011 If your investment income is more than $3,300, you cannot claim the credit. H&r block free file 2011 For most people, investment income is the total of the following amounts. H&r block free file 2011 Taxable interest (line 8a of Form 1040 or 1040A). H&r block free file 2011 Tax-exempt interest (line 8b of Form 1040 or 1040A). H&r block free file 2011 Dividend income (line 9a of Form 1040 or 1040A). H&r block free file 2011 Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). H&r block free file 2011  If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. H&r block free file 2011   For more information about investment income, see Publication 596, Earned Income Credit. H&r block free file 2011 Earned income. H&r block free file 2011   Under Rule 7, you must have earned income to claim the EIC. H&r block free file 2011 Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. H&r block free file 2011 Earned income includes all of the following types of income. H&r block free file 2011 Wages, salaries, tips, and other taxable employee pay. H&r block free file 2011 Employee pay is earned income only if it is taxable. H&r block free file 2011 Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. H&r block free file 2011 But there is an exception for nontaxable combat pay, which you can choose to include in earned income. H&r block free file 2011 Net earnings from self-employment. H&r block free file 2011 Gross income received as a statutory employee. H&r block free file 2011 Gross income defined. H&r block free file 2011   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). H&r block free file 2011 Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). H&r block free file 2011 If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. H&r block free file 2011 Self-employed persons. H&r block free file 2011   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. H&r block free file 2011 If you do not, you may not get all the credit to which you are entitled. H&r block free file 2011 Disability benefits. H&r block free file 2011   If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. H&r block free file 2011 Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. H&r block free file 2011 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. H&r block free file 2011   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. H&r block free file 2011 It does not matter whether you have reached minimum retirement age. H&r block free file 2011 If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. H&r block free file 2011 Income that is not earned income. H&r block free file 2011   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. H&r block free file 2011 Do not include any of these items in your earned income. H&r block free file 2011 Workfare payments. H&r block free file 2011   Nontaxable workfare payments are not earned income for the EIC. H&r block free file 2011 These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. H&r block free file 2011 Qualifying child. H&r block free file 2011   Under Rule 8, your child is a qualifying child if your child meets four tests. H&r block free file 2011 The four tests are: Relationship, Age, Residency, and Joint return. H&r block free file 2011   The four tests are illustrated in Figure 5-C. H&r block free file 2011 See Publication 596 for more information about each test. H&r block free file 2011 Figure 5-C. H&r block free file 2011 Tests for Qualifying Child A qualifying child for the EIC is a child who is your. H&r block free file 2011 . H&r block free file 2011 . H&r block free file 2011 Son, daughter, stepchild, foster child,  or a descendant of any of them (for example, your grandchild) OR Brother, sister, half brother, half sister, stepbrother,  stepsister, or a descendant of any of them (for example, your  niece or nephew) was . H&r block free file 2011 . H&r block free file 2011 . H&r block free file 2011 Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR Under age 24 at the end of 2013, a student, and younger than you (or your spouse if filing jointly) OR Permanently and totally disabled at any time during the year, regardless of age who. H&r block free file 2011 . H&r block free file 2011 . H&r block free file 2011 Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. H&r block free file 2011 . H&r block free file 2011 . H&r block free file 2011 Lived with you in the United States for more than half of 2013. H&r block free file 2011  If the child did not live with you for the required time, see Publication 596 for more information. H&r block free file 2011 Figuring the EIC To figure the amount of your credit, you have two choices. H&r block free file 2011 Have the IRS figure the EIC for you. H&r block free file 2011 If you want to do this, see IRS Will Figure the EIC for You in Publication 596. H&r block free file 2011 Figure the EIC yourself. H&r block free file 2011 If you want to do this, see How To Figure the EIC Yourself in Publication 596. H&r block free file 2011 Prev  Up  Next   Home   More Online Publications

Topic 515 - Casualty, Disaster, and Theft Losses (Including Federally Declared Disaster Areas)

Generally, you may deduct casualty and theft losses relating to your home, household items and vehicles on your federal income tax return. You may not deduct casualty and theft losses covered by insurance unless you file a timely claim for reimbursement, and you reduce the loss by the amount of any reimbursement or expected reimbursement.

A casualty loss can result from the damage, destruction or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption. A casualty does not include normal wear and tear or progressive deterioration.

A theft is the taking and removing of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and it must have been done with criminal intent.

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of:

  • The adjusted basis of your property, or
  • The decrease in fair market value of your property as a result of the casualty

The amount of your theft loss is generally the adjusted basis of your property because the fair market value of your property immediately after the theft is considered to be zero.

If your property is business or income-producing property, such as rental property, and is completely destroyed, then the amount of your loss is your adjusted basis.

The loss, regardless of whether it is a casualty or theft loss, must be reduced by any salvage value and by any insurance or other reimbursement you receive or expect to receive. The adjusted basis of your property is usually your cost, increased or decreased by certain events such as improvements or depreciation. For more information about the basis of property, refer to Topic 703, Publication 547, Casualties, Disasters, and Thefts, and Publication 551, Basis of Assets. You may determine the decrease in fair market value by appraisal, or if certain conditions are met, by the cost of repairing the property. For more information, refer to Publication 547.

Individuals are required to claim their casualty and theft losses as an itemized deduction on Form 1040, Schedule A (PDF) (or Form 1040NR, Schedule A (PDF), if you are a nonresident alien). For property held by you for personal use, once you have subtracted any salvage value and any insurance or other reimbursement, you must subtract $100 from each casualty or theft event that occurred during the year. Then add up all those amounts and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.

Casualty and theft losses are reported on Form 4684 (PDF), Casualties and Thefts. Section A is used for personal-use property, and Section B is used for business or income-producing property. If personal-use property was damaged, destroyed or stolen, you may wish to refer to Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property). For losses involving business-use property, refer to Publication 584-B (PDF), Business Casualty, Disaster, and Theft Loss Workbook.

Casualty losses are generally deductible in the year the casualty occurred. However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to treat the loss as having occurred in the year immediately preceding the tax year in which the disaster happened, and you can deduct the loss on your return or amended return for that preceding tax year. Review Disaster Assistance and Emergency Relief for Individuals and Businesses on IRS.gov, for information regarding timeframes and additional information to your specific qualifying event.

Theft losses are generally deductible in the year you discover the property was stolen unless you have a reasonable prospect of recovery through a claim for reimbursement. In that case, no deduction is available until the taxable year in which it can be determined with reasonable certainty whether or not such reimbursement will be received.

Special rules may apply to theft losses from Ponzi-type investment schemes. For more information, see the Form 4684 (PDF) and the Form 4684 Instructions (PDF), Casualties and Thefts. Additionally, review Help for Victims of Ponzi Investment Schemes on IRS.gov.

If your loss deduction is more than your income, you may have a net operating loss. You do not have to be in business to have a net operating loss from a casualty. For more information, refer to Publication 536, Net Operating Losses for Individuals, Estates, and Trusts.

Page Last Reviewed or Updated: December 12, 2013

The H&r Block Free File 2011

H&r block free file 2011 Publication 969 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. H&r block free file 2011 Tax questions. H&r block free file 2011 What's New Federal tax benefits for same-sex married couples. H&r block free file 2011   For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. H&r block free file 2011 For more information, see Publication 501. H&r block free file 2011 Health flexible spending arrangements (FSAs). H&r block free file 2011  The following rules apply to health FSAs for plan years beginning after December 31, 2012. H&r block free file 2011 Salary reduction contributions to your health FSA cannot be more than $2,500 a year (indexed for inflation). H&r block free file 2011 Your employer may choose to change your cafeteria plan to allow you to carry over up to $500 of unused amounts remaining at the end of the plan year in a health FSA to be paid or reimbursed for qualified medical expenses incurred during the following plan year. H&r block free file 2011 For more information, see Balance in an FSA under Flexible Spending Arrangements (FSAs), later. H&r block free file 2011 Reminders Future Developments. H&r block free file 2011  For the latest information about developments related to Publication 969, such as legislation enacted after it was published, go to www. H&r block free file 2011 IRS. H&r block free file 2011 gov/pub969. H&r block free file 2011 Photographs of missing children. H&r block free file 2011  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. H&r block free file 2011 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. H&r block free file 2011 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&r block free file 2011 Introduction Various programs are designed to give individuals tax advantages to offset health care costs. H&r block free file 2011 This publication explains the following programs. H&r block free file 2011 Health savings accounts (HSAs). H&r block free file 2011 Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). H&r block free file 2011 Health flexible spending arrangements (FSAs). H&r block free file 2011 Health reimbursement arrangements (HRAs). H&r block free file 2011 An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. H&r block free file 2011 Contributions, other than employer contributions, are deductible on the eligible individual's return whether or not the individual itemizes deductions. H&r block free file 2011 Employer contributions are not included in income. H&r block free file 2011 Distributions from an HSA that are used to pay qualified medical expenses are not taxed. H&r block free file 2011 An Archer MSA may receive contributions from an eligible individual and his or her employer, but not both in the same year. H&r block free file 2011 Contributions by the individual are deductible whether or not the individual itemizes deductions. H&r block free file 2011 Employer contributions are not included in income. H&r block free file 2011 Distributions from an Archer MSA that are used to pay qualified medical expenses are not taxed. H&r block free file 2011 A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is enrolled in Medicare. H&r block free file 2011 Contributions can only be made by Medicare. H&r block free file 2011 The contributions are not included in your income. H&r block free file 2011 Distributions from a Medicare Advantage MSA that are used to pay qualified medical expenses are not taxed. H&r block free file 2011 A health FSA may receive contributions from an eligible individual. H&r block free file 2011 Employers may also contribute. H&r block free file 2011 Contributions are not includible in income. H&r block free file 2011 Reimbursements from an FSA that are used to pay qualified medical expenses are not taxed. H&r block free file 2011 An HRA must receive contributions from the employer only. H&r block free file 2011 Employees may not contribute. H&r block free file 2011 Contributions are not includible in income. H&r block free file 2011 Reimbursements from an HRA that are used to pay qualified medical expenses are not taxed. H&r block free file 2011 Comments and suggestions. H&r block free file 2011   We welcome your comments about this publication and your suggestions for future editions. H&r block free file 2011   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. H&r block free file 2011 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. H&r block free file 2011 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. H&r block free file 2011   You can send your comments from www. H&r block free file 2011 irs. H&r block free file 2011 gov/formspubs. H&r block free file 2011 Click on “More Information” and then on “Comment on Tax Forms and Publications. H&r block free file 2011 ”   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&r block free file 2011 Ordering forms and publications. H&r block free file 2011   Visit www. H&r block free file 2011 irs. H&r block free file 2011 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&r block free file 2011 Internal Revenue Service 1201 N. H&r block free file 2011 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. H&r block free file 2011   If you have a tax question, check the information available on IRS. H&r block free file 2011 gov or call 1-800-829-1040. H&r block free file 2011 We cannot answer tax questions sent to either of the above addresses. H&r block free file 2011 Prev  Up  Next   Home   More Online Publications