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H&r Block Tax Returns

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H&r Block Tax Returns

H&r block tax returns Publication 51 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Introduction Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 51 (Circular A), such as legislation enacted after it was published, go to www. H&r block tax returns irs. H&r block tax returns gov/pub51. H&r block tax returns What's New Social security and Medicare tax for 2014. H&r block tax returns  The social security tax rate is 6. H&r block tax returns 2% each for the employee and employer, unchanged from 2013. H&r block tax returns The social security wage base limit is $117,000. H&r block tax returns The Medicare tax rate is 1. H&r block tax returns 45% each for the employee and employer, unchanged from 2013. H&r block tax returns There is no wage base limit for Medicare tax. H&r block tax returns Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. H&r block tax returns Withholding allowance. H&r block tax returns  The 2014 amount for one withholding allowance on an annual basis is $3,950. H&r block tax returns Change of responsible party. H&r block tax returns  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. H&r block tax returns Form 8822-B must be filed within 60 days of the change. H&r block tax returns If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. H&r block tax returns For a definition of "responsible party", see the Form 8822-B instructions. H&r block tax returns Same-sex marriage. H&r block tax returns  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 tax returns For more information, see Revenue Ruling 2013-17, 2013-38 I. H&r block tax returns R. H&r block tax returns B. H&r block tax returns 201, available at www. H&r block tax returns irs. H&r block tax returns gov/irb/2013-38_IRB/ar07. H&r block tax returns html. H&r block tax returns Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. H&r block tax returns Notice 2013-61, 2013-44 I. H&r block tax returns R. H&r block tax returns B. H&r block tax returns 432, is available at www. H&r block tax returns irs. H&r block tax returns gov/irb/2013-44_IRB/ar10. H&r block tax returns html. H&r block tax returns Reminders Additional Medicare Tax withholding. H&r block tax returns  In addition to withholding Medicare tax at 1. H&r block tax returns 45%, you must withhold a 0. H&r block tax returns 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. H&r block tax returns You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. H&r block tax returns Additional Medicare Tax is only imposed on the employee. H&r block tax returns There is no employer share of Additional Medicare Tax. H&r block tax returns All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. H&r block tax returns For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. H&r block tax returns For more information on Additional Medicare Tax, visit IRS. H&r block tax returns gov and enter “Additional Medicare Tax” in the search box. H&r block tax returns Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. H&r block tax returns  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. H&r block tax returns Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. H&r block tax returns For more information, visit IRS. H&r block tax returns gov and enter “work opportunity tax credit” in the search box. H&r block tax returns Outsourcing payroll duties. H&r block tax returns  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. H&r block tax returns The employer remains responsible if the third party fails to perform any required action. H&r block tax returns If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. H&r block tax returns gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. H&r block tax returns COBRA premium assistance credit. H&r block tax returns  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. H&r block tax returns For more information, see COBRA premium assistance credit under Introduction. H&r block tax returns Compensation paid to H-2A foreign agricultural workers. H&r block tax returns  Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2, Wage and Tax Statement. H&r block tax returns Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax withholding (line 6) on Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. H&r block tax returns On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. H&r block tax returns An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. H&r block tax returns In that case, the worker must give the employer a completed Form W-4, Employee's Withholding Allowance Certificate. H&r block tax returns Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. H&r block tax returns These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. H&r block tax returns For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. H&r block tax returns Additional employment tax information. H&r block tax returns  Visit the IRS website at www. H&r block tax returns irs. H&r block tax returns gov/businesses and click on Employment Taxes under Businesses Topics. H&r block tax returns For employment tax information by telephone, call 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. H&r block tax returns m. H&r block tax returns –7:00 p. H&r block tax returns m. H&r block tax returns local time (Alaska and Hawaii follow Pacific time). H&r block tax returns Additionally, you can call IRS TeleTax at 1-800-829-4477 for recorded information by topic. H&r block tax returns Disregarded entities and qualified subchapter S subsidiaries (QSubs). H&r block tax returns  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. H&r block tax returns Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. H&r block tax returns See Regulations sections 1. H&r block tax returns 1361-4(a)(7) and 301. H&r block tax returns 7701-2(c)(2)(iv). H&r block tax returns Differential wage payments. H&r block tax returns  Qualified differential wage payments made by employers to individuals serving in the Armed Forces after 2008 are subject to income tax withholding but not social security, Medicare, or FUTA taxes. H&r block tax returns For more information, see Publication 15 (Circular E). H&r block tax returns Federal tax deposits must be made by electronic funds transfer. H&r block tax returns  You must use electronic funds transfer to make all federal tax deposits. H&r block tax returns Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). H&r block tax returns If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. H&r block tax returns Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. H&r block tax returns EFTPS is a free service provided by the Department of Treasury. H&r block tax returns Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. H&r block tax returns For more information on making federal tax deposits, see How To Deposit in section 7. H&r block tax returns To get more information about EFTPS or to enroll in EFTPS, visit www. H&r block tax returns eftps. H&r block tax returns gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). H&r block tax returns Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. H&r block tax returns Electronic filing and payment. H&r block tax returns  Now, more than ever before, businesses can enjoy the benefits of filing tax returns and paying their taxes electronically. H&r block tax returns Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make it easier. H&r block tax returns Spend less time and worry on taxes and more time running your business. H&r block tax returns Use e-file and the Electronic Federal Tax Payment System (EFTPS) to your benefit. H&r block tax returns For e-file, visit the IRS website at www. H&r block tax returns irs. H&r block tax returns gov/efile for additional information. H&r block tax returns For EFTPS, visit www. H&r block tax returns eftps. H&r block tax returns gov or call EFTPS Customer Service at 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD) for additional information. H&r block tax returns For electronic filing of Form W-2, visit www. H&r block tax returns socialsecurity. H&r block tax returns gov/employer. H&r block tax returns If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. H&r block tax returns If a valid EIN is not provided, the return or payment will not be processed. H&r block tax returns This may result in penalties and delays in processing your return or payment. H&r block tax returns Electronic funds withdrawal (EFW). H&r block tax returns  If you file Form 943 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax professional. H&r block tax returns However, do not use EFW to make federal tax deposits. H&r block tax returns For more information on paying your taxes using EFW, visit the IRS website at www. H&r block tax returns irs. H&r block tax returns gov/e-pay. H&r block tax returns A fee may be charged to file electronically. H&r block tax returns Credit or debit card payments. H&r block tax returns   Employers can pay the balance due shown on Form 943 by credit or debit card. H&r block tax returns Do not use a credit or debit card to make federal tax deposits. H&r block tax returns For more information on paying your taxes with a credit or debit card, visit the IRS website at www. H&r block tax returns irs. H&r block tax returns gov/e-pay. H&r block tax returns When you hire a new employee. H&r block tax returns  Ask each new employee to complete the 2014 Form W-4 or its Spanish version, Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado. H&r block tax returns Also, ask the employee to show you his or her social security card so that you can record the employee's name and social security number accurately. H&r block tax returns If the employee has lost the card or recently changed names, have the employee apply for a duplicate or corrected card. H&r block tax returns If the employee does not have a card, have the employee apply for one on Form SS-5, Application for a Social Security Card. H&r block tax returns See section 1 for more information. H&r block tax returns Eligibility for employment. H&r block tax returns  You must verify that each new employee is legally eligible to work in the United States. H&r block tax returns This includes completing the U. H&r block tax returns S. H&r block tax returns Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. H&r block tax returns You can get the form from USCIS offices or by calling 1-800-870-3676. H&r block tax returns Contact the USCIS at 1-800-375-5283, or visit the USCIS website at www. H&r block tax returns uscis. H&r block tax returns gov for more information. H&r block tax returns New hire reporting. H&r block tax returns   You are required to report any new employee to a designated state new-hire registry. H&r block tax returns A new employee is an employee who has not previously been employed by you or was previously employed by you but has been separated from such prior employment for at least 60 consecutive days. H&r block tax returns Many states accept a copy of Form W-4 with employer information added. H&r block tax returns Visit the Office of Child Support Enforcement's website at www. H&r block tax returns acf. H&r block tax returns hhs. H&r block tax returns gov/programs/cse/newhire for more information. H&r block tax returns Dishonored payments. H&r block tax returns  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. H&r block tax returns The penalty is $25 or 2% of the payment, whichever is more. H&r block tax returns However, the penalty on dishonored payments of $24. H&r block tax returns 99 or less is an amount equal to the payment. H&r block tax returns For example, a dishonored payment of $18 is charged a penalty of $18. H&r block tax returns Forms in Spanish. H&r block tax returns  You can provide Formulario W-4(SP) in place of Form W-4 to your Spanish-speaking employees. H&r block tax returns For more information, see Publicación 17(SP), El Impuesto Federal sobre los Ingresos (Para Personas Físicas). H&r block tax returns For nonemployees, Formulario W-9(SP), Solicitud y Certificación del Número de Identificación del Contribuyente, may be used in place of Form W-9, Request for Taxpayer Identification Number and Certification. H&r block tax returns References in this publication to Form W-4 or Form W-9 also apply to their equivalent Spanish translations—Formulario W-4(SP) or Formulario W-9(SP). H&r block tax returns Information returns. H&r block tax returns  You may be required to file information returns to report certain types of payments made during the year. H&r block tax returns For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (for example, independent contractors) for services performed for your trade or business. H&r block tax returns For details about filing Forms 1099 and for information about required electronic filing, see the General Instructions for Certain Information Returns for general information and the separate, specific instructions for each information return that you file (for example, Instructions for Form 1099-MISC). H&r block tax returns Generally, do not use Forms 1099 to report wages or other compensation that you paid to employees; report these amounts on Form W-2. H&r block tax returns See the General Instructions for Forms W-2 and W-3 for details about filing Forms W-2 and for information about required electronic filing. H&r block tax returns If you file 250 or more Forms W-2, you must file them electronically. H&r block tax returns SSA will not accept Forms W-2 and W-3 filed on any magnetic media. H&r block tax returns Information reporting customer service site. H&r block tax returns  The IRS operates the Enterprise Computing Center—Martinsburg, a centralized customer service site, to answer questions about reporting on Forms W-2, W-3, 1099, and other information returns. H&r block tax returns If you have questions related to reporting on information returns, you may call 1-866-455-7438 (toll free), 304-263-8700 (toll call), or 304-267-3367 (TDD/TTY for persons who are deaf, heard of hearing, or have a speech disability). H&r block tax returns The call site can also be reached by email at mccirp@irs. H&r block tax returns gov. H&r block tax returns Do not include tax identification numbers (TINs) or attachments in email correspondence because electronic mail is not secure. H&r block tax returns Web-based application for an employer identification number (EIN). H&r block tax returns  You can apply for an employer identification number (EIN) online by visiting IRS. H&r block tax returns gov and clicking on the Apply for an EIN Online link under Tools. H&r block tax returns When a crew leader furnishes workers to you. H&r block tax returns  Record the crew leader's name, address, and EIN. H&r block tax returns See sections 2 and 10. H&r block tax returns Change of address. H&r block tax returns  Use Form 8822-B to notify the IRS of an address change. H&r block tax returns Do not mail form 8822-B with your employment tax return. H&r block tax returns Ordering forms and publications. H&r block tax returns  You can order your 2013 and 2014 employment tax and information return forms, instructions, and publications online at www. H&r block tax returns irs. H&r block tax returns gov/businesses. H&r block tax returns Click on the Online Ordering for Information Returns and Employer Returns. H&r block tax returns You can also visit www. H&r block tax returns irs. H&r block tax returns gov/formspubs to download other forms and publications. H&r block tax returns Instead of ordering paper Forms W-2 and W-3, consider filing them electronically using the Social Security Administration's (SSA) free e-file service. H&r block tax returns Visit the SSA's Employer W-2 Filing Instructions & Information website at  www. H&r block tax returns socialsecurity. H&r block tax returns gov/employer, to register for Business Services Online. H&r block tax returns You will be able to create and file “fill-in” versions of Forms W-2 with SSA and can print out completed copies of Forms W-2 for filing with state and local governments, distribution to your employees, and for your records. H&r block tax returns Form W-3 will be created for you based on your Forms W-2. H&r block tax returns Tax Questions. H&r block tax returns   If you have a tax question, check the information available on IRS. H&r block tax returns gov or call 1-800-829-4933 (businesses), 1-800-829-1040 (individuals), or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a. H&r block tax returns m. H&r block tax returns –7:00 p. H&r block tax returns m. H&r block tax returns local time (Alaska and Hawaii follow Pacific time). H&r block tax returns We cannot answer tax questions sent to the address provided later for comments and suggestions. H&r block tax returns Recordkeeping. H&r block tax returns  Keep all records of employment taxes for at least 4 years. H&r block tax returns These should be available for IRS review. H&r block tax returns Your records should include the following information. H&r block tax returns Your employer identification number (EIN). H&r block tax returns Amounts and dates of all wage, annuity, and pension payments. H&r block tax returns Names, addresses, social security numbers, and occupations of employees and recipients. H&r block tax returns Any employee copies of Forms W-2 and W-2c returned to you as undeliverable. H&r block tax returns Dates of employment for each employee. H&r block tax returns Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them. H&r block tax returns Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4(SP), W-4P, and W-4S). H&r block tax returns Dates and amounts of tax deposits you made and acknowledgment numbers for deposits made by EFTPS. H&r block tax returns Copies of returns filed and confirmation numbers. H&r block tax returns Records of fringe benefits and expense reimbursements provided to your employees, including substantiation. H&r block tax returns If a crew leader furnished you with farmworkers, you must keep a record of the name, permanent mailing address, and EIN of the crew leader. H&r block tax returns If the crew leader has no permanent mailing address, record his or her present address. H&r block tax returns Private delivery services. H&r block tax returns  You can use certain private delivery services designated by the IRS to send tax returns and payments. H&r block tax returns The list includes only the following. H&r block tax returns DHL Express (DHL): DHL Same Day Service. H&r block tax returns Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. H&r block tax returns United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. H&r block tax returns M. H&r block tax returns , UPS Worldwide Express Plus, and UPS Worldwide Express. H&r block tax returns For the IRS mailing address to use if you are using a private delivery service, go to IRS. H&r block tax returns gov and enter "private delivery service" in the search box. H&r block tax returns Your private delivery service can tell you how to get written proof of the mailing date. H&r block tax returns Private delivery services cannot deliver items to P. H&r block tax returns O. H&r block tax returns boxes. H&r block tax returns You must use the U. H&r block tax returns S. H&r block tax returns Postal Service to mail any item to an IRS P. H&r block tax returns O. H&r block tax returns box address. H&r block tax returns Photographs of missing children. H&r block tax returns  The IRS is a proud partner with the National Center for Missing and Exploited Children. H&r block tax returns Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. H&r block tax returns 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 tax returns Calendar The following are important dates and responsibilities. H&r block tax returns See section 7 for information about depositing taxes reported on Forms 941, 943, 944, and 945. H&r block tax returns Also see Publication 509, Tax Calendars. H&r block tax returns   If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. H&r block tax returns A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. H&r block tax returns However, a statewide legal holiday does not delay the due date of federal tax deposits. H&r block tax returns See Deposits on Business Days Only in section 7. H&r block tax returns For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. H&r block tax returns S. H&r block tax returns Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. H&r block tax returns See Private delivery services under Reminders. H&r block tax returns By January 31 . H&r block tax returns   File Form 943. H&r block tax returns See section 8 for more information on Form 943. H&r block tax returns If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. H&r block tax returns Furnish each employee with a completed Form W-2. H&r block tax returns Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). H&r block tax returns File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. H&r block tax returns See section 10 for more information on FUTA. H&r block tax returns If you deposited all the FUTA tax when due, you have 10 additional calendar days to file. H&r block tax returns File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll federal income tax withheld in 2013. H&r block tax returns If you deposited all Form 945 taxes when due, you have 10 additional calendar days to file. H&r block tax returns By February 15. H&r block tax returns  Ask for a new Form W-4 or Formulario W-4(SP) from each employee who claimed exemption from federal income tax withholding last year. H&r block tax returns On February 16. H&r block tax returns  Any Form W-4 claiming exemption from withholding for the previous year has now expired. H&r block tax returns Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. H&r block tax returns If the employee does not give you a new Form W-4, withhold tax based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. H&r block tax returns See section 5 for more information. H&r block tax returns If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. H&r block tax returns By February 28. H&r block tax returns   File paper Forms 1099 and 1096. H&r block tax returns File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. H&r block tax returns S. H&r block tax returns Information Returns, with the IRS. H&r block tax returns For electronically filed returns, see By March 31 below. H&r block tax returns File paper Forms W-2 and W-3. H&r block tax returns File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the SSA. H&r block tax returns For electronically filed returns, see By March 31 next. H&r block tax returns By March 31. H&r block tax returns   File electronic Forms W-2 and 1099. H&r block tax returns File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. H&r block tax returns For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. H&r block tax returns socialsecurity. H&r block tax returns gov/employer. H&r block tax returns For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G. H&r block tax returns By April 30, July 31, October 31, and January 31. H&r block tax returns   Deposit FUTA taxes. H&r block tax returns Deposit FUTA tax if the undeposited amount is over $500. H&r block tax returns Before December 1. H&r block tax returns  Remind employees to submit a new Form W-4 if their marital status or withholding allowances have changed or will change for the next year. H&r block tax returns Introduction This publication is for employers of agricultural workers (farmworkers). H&r block tax returns It contains information that you may need to comply with the laws for agricultural labor (farmwork) relating to social security and Medicare taxes, FUTA tax, and withheld federal income tax (employment taxes). H&r block tax returns Agricultural employers report social security and Medicare taxes and withheld federal income tax on Form 943 and report FUTA tax on Form 940. H&r block tax returns If you have nonfarm employees, see Publication 15 (Circular E). H&r block tax returns If you have employees in the U. H&r block tax returns S. H&r block tax returns Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, see Publication 80 (Circular SS). H&r block tax returns Publication 15-A, Employer's Supplemental Tax Guide, contains more employment-related information, including information about sick pay and pension income. H&r block tax returns Publication 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment and valuation of various types of noncash compensation. H&r block tax returns Comments and suggestions. H&r block tax returns   We welcome your comments about this publication and your suggestions for future editions. H&r block tax returns   You can write to us at the following address:  Internal Revenue Service Tax Forms and Publications Division  1111 Constitution Ave. H&r block tax returns NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. H&r block tax returns Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. H&r block tax returns   You can also send us comments from www. H&r block tax returns irs. H&r block tax returns gov/formspubs. H&r block tax returns Click on More Information and then click on Comment on Tax Forms and Publications. H&r block tax returns   Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax forms, instructions, and publications. H&r block tax returns COBRA premium assistance credit. H&r block tax returns   The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. H&r block tax returns COBRA generally covers multiemployer health plans and health plans maintained by private-sector employers (other than churches) with 20 or more full and part-time employees. H&r block tax returns Parallel requirements apply to these plans under the Employee Retirement Income Security Act of 1974 (ERISA). H&r block tax returns Under the Public Health Service Act, COBRA requirements apply also to health plans covering state or local government employees. H&r block tax returns Similar requirements apply under the Federal Employees Health Benefits Program and under some state laws. H&r block tax returns For the premium assistance (or subsidy) discussed below, these requirements are all referred to as COBRA requirements. H&r block tax returns   Under the American Recovery and Reinvestment Act of 2009 (ARRA), employers are allowed a credit against “payroll taxes” (referred to in this publication as “employment taxes”) for providing COBRA premium assistance to assistance eligible individuals. H&r block tax returns For periods of COBRA continuation coverage beginning after February 16, 2009, a group health plan must treat an assistance eligible individual as having paid the required COBRA continuation coverage premium if the individual elects COBRA coverage and pays 35% of the amount of the premium. H&r block tax returns   An assistance eligible individual is a qualified beneficiary of an employer's group health plan who is eligible for COBRA continuation coverage during the period beginning September 1, 2008, and ending May 31, 2010, due to the involuntarily termination from employment of a covered employee during the period and elects continuation COBRA coverage. H&r block tax returns The assistance for the coverage can last up to 15 months. H&r block tax returns   Employees terminated during the period beginning September 1, 2008, and ending May 31, 2010, who received a severance package that delayed the start of the COBRA continuation coverage, may still be eligible for premium assistance for COBRA continuation coverage. H&r block tax returns For more information, see Notice 2009-27, 2009-16 I. H&r block tax returns R. H&r block tax returns B. H&r block tax returns 838, available at www. H&r block tax returns irs. H&r block tax returns gov/irb/2009-16_irb/ar09. H&r block tax returns html. H&r block tax returns   Administrators of the group health plans (or other entities) that provide or administer COBRA continuation coverage must provide notice to assistance eligible individuals of the COBRA premium assistance. H&r block tax returns   The 65% of the premium not paid by the assistance eligible individual is reimbursed to the employer maintaining the group health plan. H&r block tax returns The reimbursement is made through a credit against the employer's employment tax liabilities. H&r block tax returns For information on how to claim the credit, see the Instructions for Form 943. H&r block tax returns The credit is treated as a deposit made on the first day of the return period. H&r block tax returns In the case of a multiemployer plan, the credit is claimed by the plan, rather than the employer. H&r block tax returns In the case of an insured plan subject to state law continuation coverage requirements, the credit is claimed by the insurance company, rather than the employer. H&r block tax returns   Anyone claiming the credit for COBRA premium assistance payments must maintain the following information to support their claim, including the following. H&r block tax returns Information on the receipt of the assistance eligible individuals' 35% share of the premium including dates and amounts. H&r block tax returns In the case of an insurance plan, a copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier required under COBRA. H&r block tax returns In the case of a self-insured plan, proof of the premium amount and proof of the coverage provided to the assistance eligible individuals. H&r block tax returns Attestation of involuntary termination, including the date of the involuntary termination for each covered employee whose involuntary termination is the basis for eligibility for the subsidy. H&r block tax returns Proof of each assistance eligible individual's eligibility for COBRA coverage and the election of COBRA coverage. H&r block tax returns A record of the social security numbers (SSNs) of all covered employees, the amount of the subsidy reimbursed with respect to each covered employee, and whether the subsidy was for one individual or two or more individuals. H&r block tax returns   For more information, visit IRS. H&r block tax returns gov and enter “COBRA” in the search box. H&r block tax returns Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 225 Farmer's Tax Guide 535 Business Expenses 583 Starting a Business and Keeping Records 1635 Employer Identification Number: Understanding Your EIN Prev  Up  Next   Home   More Online Publications
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The H&r Block Tax Returns

H&r block tax returns Publication 3 - Main Content Table of Contents Gross IncomeForeign Source Income Military Spouses Residency Relief Act (MSRRA) Community Property Form W-2 Codes Adjustments to IncomeArmed Forces Reservists Individual Retirement Arrangements Moving Expenses Combat Zone ExclusionCombat Zone Serving in a Combat Zone Amount of Exclusion Alien StatusResident Aliens Nonresident Aliens Dual-Status Aliens Sale of HomePeriod of suspension. H&r block tax returns Qualified official extended duty. H&r block tax returns ForeclosuresLump Sum Portion of Settlement Payment. H&r block tax returns Interest Payment on Lump Sum Portion of Settlement Payment. H&r block tax returns Lost Equity Portion of Settlement Payment. H&r block tax returns The rules that apply to a lost equity payment you received for the foreclosure of a property that was not your main home are different. H&r block tax returns Interest Payment on Lost Equity Portion of Settlement Payment. H&r block tax returns Itemized DeductionsEmployee Business Expenses Repayments CreditsFirst-Time Homebuyer Credit Child Tax Credit Earned Income Credit Credit for Excess Social Security Tax Withheld Forgiveness of Decedent's Tax LiabilityCombat Zone Related Forgiveness Terrorist or Military Action Related Forgiveness Claims for Tax Forgiveness Filing ReturnsSame-Sex Marriage Where To File When To File Signing Returns Extension of DeadlinesService That Qualifies for an Extension of Deadline Length of Extension Actions for Which Deadlines Are Extended Deferral of Payment Maximum Rate of Interest How To Get Tax HelpLow Income Taxpayer Clinics Gross Income Members of the Armed Forces receive many different types of pay and allowances. H&r block tax returns Some are included in gross income while others are excluded from gross income. H&r block tax returns Included items (Table 1) are subject to tax and must be reported on your tax return. H&r block tax returns Excluded items (Table 2) are not subject to tax, but may have to be shown on your tax return. H&r block tax returns For information on the exclusion of pay for service in a combat zone and other tax benefits for combat zone participants, see Combat Zone Exclusion and Extension of Deadlines , later. H&r block tax returns Table 1. H&r block tax returns Included Items These items are included in gross income, unless the pay is for service in a combat zone. H&r block tax returns Basic pay • Active duty   Bonus pay • Career status   • Attendance at a designated service school     • Enlistment  • Officer   • Back wages     • Overseas extension   • CONUS COLA       • Reenlistment   • Drills         • Reserve training         • Training duty   Other pay  • Accrued leave          • High deployment per diem Special • Aviation career incentives      • Personal money allowances paid to pay • Career sea     high-ranking officers   • Diving duty      • Student loan repayment from programs   • Foreign duty (outside the 48 contiguous     such as the Department of Defense   states and the District of Columbia)     Educational Loan Repayment Program   • Foreign language proficiency     when year's service (requirement) is not   • Hardship duty     attributable to a combat zone   • Hostile fire or imminent danger         • Medical and dental officers   Incentive pay  • Submarine   • Nuclear-qualified officers      • Flight   • Optometry      • Hazardous duty   • Pharmacy      • High altitude/Low Opening (HALO)   • Special compensation for assistance with activities of daily living (SCAADL)         • Special duty assignment pay         • Veterinarian         • Voluntary Separation Incentive       Basic allowance for housing (BAH). H&r block tax returns   You can still deduct mortgage interest and real estate taxes on your home if you pay these expenses with your BAH. H&r block tax returns Table 2. H&r block tax returns Excluded Items The exclusion for certain items applies whether the item is furnished in kind or is a reimbursement or allowance. H&r block tax returns There is no exclusion for the personal use of a government-provided vehicle. H&r block tax returns Combat  zone pay • Compensation for active service while in a combat zone Note: Limited amount for officers     • Housing and cost-of-living allowances abroad paid by the U. H&r block tax returns S. H&r block tax returns Government or by a foreign government         • OHA (Overseas Housing Allowance)                     Other pay • Defense counseling         • Disability, including payments received for injuries incurred as a direct result of a terrorist or military action         • Group-term life insurance   Moving • Dislocation   • Professional education   allowances • Military base realignment and   • ROTC educational and subsistence     closure benefit    allowances     (the exclusion is limited as   • State bonus pay for service in a     described above)   combat zone     • Move-in housing   • Survivor and retirement protection     • Moving household and   plan premiums     personal items   • Uniform allowances     • Moving trailers or mobile homes   • Uniforms furnished to enlisted     • Storage   personnel     • Temporary lodging and         temporary lodging expenses                 Travel • Annual round trip for dependent Death • Burial services   allowances students allowances • Death gratuity payments to     • Leave between consecutive   eligible survivors     overseas tours   • Travel of dependents to burial site     • Reassignment in a dependent         restricted status Family • Certain educational expenses for     • Transportation for you or your allowances dependents     dependents during ship overhaul   • Emergencies     or inactivation   • Evacuation to a place of safety     • Per diem   • Separation             In-kind military • Dependent-care assistance program Living • BAH (Basic Allowance for Housing)   benefits • Legal assistance allowances • BAS (Basic Allowance for Subsistence)     • Medical/dental care         • Commissary/exchange discounts         • Space-available travel on government aircraft           Death gratuity. H&r block tax returns   Any death gratuity paid to a survivor of a member of the Armed Forces is excluded from gross income. H&r block tax returns Differential wage payments. H&r block tax returns   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and that represent all or a portion of the wages the individual would have received from the employer if the individual was performing services for the employer. H&r block tax returns These amounts are taxable and cannot be excluded as combat pay. H&r block tax returns Military base realignment and closure benefit. H&r block tax returns   Payments made under the Homeowners Assistance Program (HAP) generally are excluded from income. H&r block tax returns However, the excludable amount cannot be more than the maximum amount described in subsection (c) of 42 USC 3374 as in effect on November 6, 2009. H&r block tax returns Any part of the payment that is more than this limit is included in gross income. H&r block tax returns For more information about the HAP, see http://hap. H&r block tax returns usace. H&r block tax returns army. H&r block tax returns mil/Overview. H&r block tax returns html. H&r block tax returns Qualified reservist distribution (QRD). H&r block tax returns   A QRD is a distribution to an individual of all or part of the individual's balance in a cafeteria plan or health flexible spending arrangement if: The individual was a reservist who was ordered or called to active duty for more than 179 days or for an indefinite period, and The distribution is made no sooner than the date the reservist was ordered or called to active duty and no later than the last day reimbursements could otherwise be made under the arrangement for the plan year which includes the date of the order or the call to duty. H&r block tax returns A QRD is included in gross income and is subject to employment taxes. H&r block tax returns The employer must include the QRD (reduced by after-tax contributions to the health flexible spending arrangement) as wages on Form W-2, Wage and Tax Statement. H&r block tax returns Thrift Savings Plan (TSP) distributions. H&r block tax returns   If you participate in the Uniformed Services TSP and receive a distribution from your account, the distribution is generally included in your taxable income. H&r block tax returns   If your contributions included tax-exempt combat zone pay, the part of the distribution attributable to those contributions is tax exempt. H&r block tax returns However, the earnings on the tax-exempt portion of the distribution are taxable. H&r block tax returns The TSP will provide a statement showing the taxable and non-taxable portions of the distribution. H&r block tax returns Roth Thrift Savings Plan (TSP) balance. H&r block tax returns   You may be able to contribute to a designated Roth Account through the TSP known as the Roth TSP. H&r block tax returns Roth TSP contributions are after-tax contributions, subject to the same contribution limits as the traditional TSP. H&r block tax returns Qualified distributions from a Roth TSP are not included in your income. H&r block tax returns For more details, see Thrift Savings Accounts in Part II of Publication 721, Tax Guide to U. H&r block tax returns S. H&r block tax returns Civil Service Retirement Benefits. H&r block tax returns State bonus payments. H&r block tax returns   Bonus payments made by a state (or a political subdivision thereof) to a member or former member of the uniformed services of the United States or to a dependent of such member are considered combat pay (and therefore may not be taxable) if the payments are made only because of the member's service in a combat zone. H&r block tax returns See Combat Zone , later, for a list of designated combat zones. H&r block tax returns Foreign Source Income If you are a U. H&r block tax returns S. H&r block tax returns citizen with income from sources outside the United States (foreign income), you must report all of that income (except for amounts that U. H&r block tax returns S. H&r block tax returns law allows you to exclude) on your tax return. H&r block tax returns This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2 or a Form 1099. H&r block tax returns This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). H&r block tax returns Certain taxpayers can exclude income earned in foreign countries. H&r block tax returns For 2013, this exclusion amount can be as much as $97,600. H&r block tax returns However, the foreign earned income exclusion does not apply to the wages and salaries of military and civilian employees of the U. H&r block tax returns S. H&r block tax returns Government. H&r block tax returns Employees of the U. H&r block tax returns S. H&r block tax returns Government include those who work at United States Armed Forces exchanges, commissioned and noncommissioned officers' messes, Armed Forces motion picture services, and similar personnel. H&r block tax returns Other foreign income earned by military personnel or their spouses may be eligible for the foreign earned income exclusion. H&r block tax returns For more information on the exclusion, see Publication 54. H&r block tax returns Residents of American Samoa may be able to exclude income from American Samoa. H&r block tax returns This possession exclusion does not apply to wages and salaries of military and civilian employees of the U. H&r block tax returns S. H&r block tax returns Government. H&r block tax returns If you need information on the possession exclusion, see Publication 570, Tax Guide for Individuals With Income From U. H&r block tax returns S. H&r block tax returns Possessions. H&r block tax returns Military Spouses Residency Relief Act (MSRRA) If you are the civilian spouse of an active duty U. H&r block tax returns S. H&r block tax returns military servicemember and your domicile is the same as the servicemember's, you can choose to keep your prior residence or domicile for tax purposes when you accompany the servicemember spouse, who is relocating under military orders to a new duty station in one of the 50 states, the District of Columbia, or a U. H&r block tax returns S. H&r block tax returns possession. H&r block tax returns See Publication 570 for more information. H&r block tax returns Domicile. H&r block tax returns   Your domicile is the permanent legal home you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. H&r block tax returns It is not always where you presently live. H&r block tax returns Community Property The pay you earn as a member of the Armed Forces may be subject to community property laws depending on your marital status, your domicile, and the nature of the payment. H&r block tax returns The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. H&r block tax returns Marital status. H&r block tax returns   Community property rules apply to married persons whose domicile during the tax year was in a community property state. H&r block tax returns The rules may affect your tax liability if you file separate returns or are divorced during the year. H&r block tax returns Nevada, Washington, and California domestic partners. H&r block tax returns   A registered domestic partner in Nevada, Washington, or California generally must report half the combined income of the individual and his or her domestic partner. H&r block tax returns See Form 8958 and Publication 555, Community Property. H&r block tax returns Nature of the payment. H&r block tax returns   Active duty military pay is subject to community property laws. H&r block tax returns Armed Forces retired or retainer pay may be subject to community property laws. H&r block tax returns   For more information on community property laws, see Publication 555. H&r block tax returns Form W-2 Codes Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. H&r block tax returns Form W-2 also shows other amounts that you may find important in box 12. H&r block tax returns The amounts shown in box 12 are generally preceded by a code. H&r block tax returns A list of codes used in box 12 is shown, next. H&r block tax returns Form W-2 Reference Guide for Box 12 Codes A Uncollected social security or RRTA J Nontaxable sick pay T Adoption benefits   tax on tips             K 20% excise tax on excess golden V Income from exercise of B Uncollected Medicare tax on tips   parachute payments   nonstatutory stock option(s)             C Taxable cost of group-term life L Substantiated employee business W Employer contributions (including   insurance over $50,000   expense reimbursements   employee contributions through a           cafeteria plan) to an employee's D Elective deferrals under a section M Uncollected social security or RRTA   health savings account (HSA)   401(k) cash or deferred arrangement   tax on taxable cost of group-term life       plan (including a SIMPLE 401(k)   insurance over $50,000 (former Y Deferrals under a section 409A   arrangement)   employees only)   nonqualified deferred           compensation plan E Elective deferrals under a section N Uncollected Medicare tax on taxable       403(b) salary reduction agreement   cost of group-term life insurance Z Income under section 409A on a       over $50,000 (former employees only)   nonqualified deferred F Elective deferrals under a section       compensation plan   408(k)(6) salary reduction SEP P Excludable moving expense           reimbursements paid directly to AA Designated Roth contributions G Elective deferrals and employer   employee   under a section 401(k) plan   contributions (including nonelective           deferrals) to a section 457(b) Q Nontaxable combat pay BB Designated Roth contributions   deferred compensation plan       under a section 403(b) plan     R Employer contributions to an Archer     H Elective deferrals to a section   MSA DD Cost of employer-sponsored   501(c)(18)(D) tax-exempt       health coverage   organization plan S Employee salary reduction contributions under a section 408(p) SIMPLE  EE  Designated Roth contributions under a governmental section 457(b) plan  Note. H&r block tax returns For more information on these codes, see your Form(s) W-2. H&r block tax returns Adjustments to Income Adjusted gross income is your total income minus certain adjustments. H&r block tax returns The following adjustments are of particular interest to members of the Armed Forces. H&r block tax returns Armed Forces Reservists If you are a member of a reserve component of the Armed Forces and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your unreimbursed travel expenses as an adjustment to income on line 24 of Form 1040, U. H&r block tax returns S. H&r block tax returns Individual Income Tax Return, rather than as a miscellaneous itemized deduction. H&r block tax returns Include all unreimbursed expenses from the time you leave home until the time you return home. H&r block tax returns The deduction is limited to the amount the federal government generally reimburses its employees for travel expenses. H&r block tax returns For more information about this limit, see Per Diem and Car Allowances in chapter 6 of Publication 463. H&r block tax returns Member of a reserve component. H&r block tax returns   You are a member of a reserve component of the Armed Forces if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. H&r block tax returns How to report. H&r block tax returns   If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. H&r block tax returns Then enter on Form 1040, line 24, the part of your expenses, up to the federal rate, included on Form 2106, line 10, or Form 2106-EZ, line 6, that is for reserve-related travel more than 100 miles from your home. H&r block tax returns Subtract this amount from the total on Form 2106, line 10, or Form 2106-EZ, line 6, and deduct the balance as an itemized deduction on Schedule A (Form 1040), line 21. H&r block tax returns Example. H&r block tax returns Captain Harris, a member of the Army Reserve, traveled to a location 220 miles from his home to perform his work in the reserves in April 2013. H&r block tax returns He incurred $1,549 of unreimbursed expenses consisting of $249 for mileage (440 miles × 56. H&r block tax returns 5 cents per mile), $300 for meals, and $1,000 for lodging. H&r block tax returns He also had other deductible mileage expenses of $110 for several trips to a location 20 miles from his home. H&r block tax returns Only 50% of his meal expenses are deductible. H&r block tax returns He shows his total deductible travel expenses of $1,509 ($249 + $150 (50% of $300) + $1,000 + $110) on Form 2106, line 10. H&r block tax returns He enters the $1,399 ($249 + $150 + $1,000) for travel over 100 miles from home on Form 1040, line 24. H&r block tax returns He then subtracts that $1,399 from the amount on Form 2106, $1,509, and enters $110 on Schedule A (Form 1040), line 21. H&r block tax returns Individual Retirement Arrangements Generally, you can deduct the lesser of the contributions to your traditional individual retirement arrangement (IRA) for the year or the general limit (or spousal IRA limit, if applicable). H&r block tax returns However, if you or your spouse was covered by an employer-maintained retirement plan at any time during the year for which contributions were made, you may not be able to deduct all of the contributions. H&r block tax returns The Form W-2 you or your spouse receives from an employer has a box used to indicate whether you were covered for the year. H&r block tax returns The “Retirement plan” box should have a mark in it if you were covered. H&r block tax returns For purposes of a deduction for contributions to a traditional IRA, Armed Forces members (including reservists on active duty for more than 90 days during the year) are considered covered by an employer-maintained retirement plan. H&r block tax returns Individuals serving in the U. H&r block tax returns S. H&r block tax returns Armed Forces or in support of the U. H&r block tax returns S. H&r block tax returns Armed Forces in designated combat zones have additional time to make a qualified retirement contribution to an IRA. H&r block tax returns For more information on this extension of deadline provision, see Extension of Deadlines , later. H&r block tax returns For more information on IRAs, see Publication 590. H&r block tax returns Combat Pay For IRA purposes, your compensation includes nontaxable combat pay. H&r block tax returns This means that even though you do not have to include the combat pay in your gross income, you do include it in your compensation when figuring the limits on contributions and deductions of contributions to IRAs. H&r block tax returns Qualified Reservist Distributions A qualified reservist distribution is defined below. H&r block tax returns It is not subject to the 10% additional tax on early distributions from certain retirement plans. H&r block tax returns Definition. H&r block tax returns   A distribution you receive is a qualified reservist distribution if the following requirements are met. H&r block tax returns You were ordered or called to active duty after September 11, 2001. H&r block tax returns You were ordered or called to active duty for a period of more than 179 days or for an indefinite period because you are a member of a reserve component (see Member of a reserve component , earlier, under Armed Forces Reservists. H&r block tax returns ) The distribution is from an IRA or from amounts attributable to elective deferrals under a section 401(k) or 403(b) plan or a similar arrangement. H&r block tax returns The distribution was made no earlier than the date of the order or call to active duty and no later than the close of the active duty period. H&r block tax returns Qualified Reservist Repayments You may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined earlier) you received. H&r block tax returns You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. H&r block tax returns You make these repayment contributions to an IRA, even if you received the qualified reservist distribution from a section 401(k) or 403(b) plan or a similar arrangement. H&r block tax returns Limit. H&r block tax returns   Your qualified reservist repayments cannot be more than your qualified reservist distributions. H&r block tax returns When repayment contributions can be made. H&r block tax returns   You cannot make these repayment contributions after the date that is 2 years after your active duty period ends. H&r block tax returns No deduction. H&r block tax returns   You cannot deduct qualified reservist repayments. H&r block tax returns Figuring your IRA deduction. H&r block tax returns   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. H&r block tax returns Reporting the repayment. H&r block tax returns   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606, Nondeductible IRAs. H&r block tax returns Moving Expenses To deduct moving expenses, you generally must meet certain time and distance tests. H&r block tax returns However, if you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet these tests. H&r block tax returns You can deduct your unreimbursed moving expenses on Form 3903. H&r block tax returns Permanent change of station. H&r block tax returns   A permanent change of station includes: A move from your home to your first post of active duty, A move from one permanent post of duty to another, and A move from your last post of duty to your home or to a nearer point in the United States. H&r block tax returns The move must occur within 1 year of ending your active duty or within the period allowed under the Joint Federal Travel Regulations. H&r block tax returns Spouse and dependents. H&r block tax returns   If you are the spouse or dependent of a member of the Armed Forces who deserts, is imprisoned, or dies, a permanent change of station for you includes a move to: The member's place of enlistment or induction, Your, or the member's, home of record, or A nearer point in the United States. H&r block tax returns   If the military moves you to or from a different location than the member, the moves are treated as a single move to your new main job location. H&r block tax returns Services or reimbursements provided by the government. H&r block tax returns   Do not include in your income the value of moving and storage services provided by the government because of a permanent change of station. H&r block tax returns Similarly, do not include in income amounts received as a dislocation allowance, temporary lodging expense, temporary lodging allowance, or move-in housing allowance. H&r block tax returns   Generally, if the total reimbursements or allowances that you receive from the government because of the move are more than your actual moving expenses, the excess is included in your wages on Form W-2. H&r block tax returns However, if any reimbursements or allowances (other than dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances) exceed the cost of moving and the excess is not included in your wages on Form W-2, the excess still must be included in gross income on Form 1040, line 7. H&r block tax returns   Use Form 3903 to deduct qualified expenses that exceed your reimbursements and allowances (including dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances that are excluded from gross income). H&r block tax returns   If you must relocate and your spouse and dependents move to or from a different location, do not include in income reimbursements, allowances, or the value of moving and storage services provided by the government to move you and your spouse and dependents to and from the separate locations. H&r block tax returns   Do not deduct any expenses for moving services that were provided by the government. H&r block tax returns Also, do not deduct any expenses that were reimbursed by an allowance you did not include in income. H&r block tax returns Deductible Moving Expenses If you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household. H&r block tax returns You can deduct expenses (if not reimbursed or furnished in kind) for: Moving household goods and personal effects, and Travel. H&r block tax returns Moving household goods and personal effects. H&r block tax returns   You can deduct the expenses of moving your household goods and personal effects, including expenses for hauling a trailer, packing, crating, in-transit storage, and insurance. H&r block tax returns You cannot deduct expenses for moving furniture or other goods you bought on the way from your old home to your new home. H&r block tax returns Storing and insuring household goods and personal effects. H&r block tax returns   You can include only the cost of storing and insuring your household goods and personal effects within any period of 30 consecutive days after the day these goods and effects are moved from your former home and before they are delivered to your new home. H&r block tax returns Travel. H&r block tax returns   You can deduct the expenses of traveling (including lodging but not meals) from your old home to your new home, including car expenses and air fare. H&r block tax returns You can deduct as car expenses either: Your actual out-of-pocket expenses such as gas and oil, or The standard mileage rate of 24 cents a mile. H&r block tax returns   You can add parking fees and tolls to the amount claimed under either method. H&r block tax returns You cannot deduct any expenses for meals. H&r block tax returns You cannot deduct the cost of unnecessary side trips or lavish and extravagant lodging. H&r block tax returns Member of your household. H&r block tax returns   A member of your household is anyone who has both your former home and your new home as his or her main home. H&r block tax returns It does not include a tenant or employee unless you can claim that person as a dependent. H&r block tax returns Foreign Moves A foreign move is a move from the United States or its possessions to a foreign country or from one foreign country to another foreign country. H&r block tax returns A move from a foreign country to the United States or its possessions is not a foreign move. H&r block tax returns For a foreign move, the deductible moving expenses described earlier are expanded to include the reasonable expenses of: Moving your household goods and personal effects to and from storage, and Storing these items for part or all of the time the new job location remains your main job location. H&r block tax returns The new job location must be outside the United States. H&r block tax returns Reporting Moving Expenses Figure moving expense deductions on Form 3903. H&r block tax returns Carry the deduction from Form 3903 to Form 1040, line 26. H&r block tax returns For more information, see Publication 521 and Form 3903. H&r block tax returns Combat Zone Exclusion If you are a member of the U. H&r block tax returns S. H&r block tax returns Armed Forces who serves in a combat zone (defined later), you can exclude certain pay from your income. H&r block tax returns This pay is generally referred to as “combat pay. H&r block tax returns ” You do not actually need to show the exclusion on your tax return because income that qualifies for the combat zone exclusion is not included in the wages reported on your Form W-2. H&r block tax returns (See Form W-2 , later. H&r block tax returns ) The month for which you receive the pay must be a month in which you either served in a combat zone or were hospitalized as a result of wounds, disease, or injury incurred while serving in the combat zone. H&r block tax returns You do not have to receive the excluded pay while you are in a combat zone, are hospitalized, or in the same year you served in a combat zone. H&r block tax returns If you are an enlisted member, warrant officer, or commissioned warrant officer, you can exclude the following amounts from your income. H&r block tax returns (Other officer personnel are discussed under Amount of Exclusion , later. H&r block tax returns ) Active duty pay earned in any month you served in a combat zone. H&r block tax returns Imminent danger/hostile fire pay. H&r block tax returns A reenlistment bonus if the voluntary extension or reenlistment occurs in a month you served in a combat zone. H&r block tax returns Pay for accrued leave earned in any month you served in a combat zone. H&r block tax returns The Department of Defense must determine that the unused leave was earned during that period. H&r block tax returns Pay received for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other nonappropriated fund activities. H&r block tax returns The pay must be earned in a month you served in a combat zone. H&r block tax returns Awards for suggestions, inventions, or scientific achievements you are entitled to because of a submission you made in a month you served in a combat zone. H&r block tax returns Student loan repayments. H&r block tax returns If the entire year of service required to earn the repayment was performed in a combat zone, the entire repayment made because of that year of service is excluded. H&r block tax returns If only part of that year of service was performed in a combat zone, only part of the repayment qualifies for exclusion. H&r block tax returns For example, if you served in a combat zone for 5 months, 5/12 of your repayment qualifies for exclusion. H&r block tax returns Retirement pay and pensions do not qualify for the combat zone exclusion. H&r block tax returns Partial (month) service. H&r block tax returns   If you serve in a combat zone for any part of one or more days during a particular month, you are entitled to an exclusion for that entire month. H&r block tax returns Form W-2. H&r block tax returns   The wages shown in box 1 of your 2013 Form W-2 should not include military pay excluded from your income under the combat zone exclusion provisions. H&r block tax returns If it does, you will need to get a corrected Form W-2 from your finance office. H&r block tax returns   You cannot exclude as combat pay any wages shown in box 1 of Form W-2. H&r block tax returns Combat Zone A combat zone is any area the President of the United States designates by Executive Order as an area in which the U. H&r block tax returns S. H&r block tax returns Armed Forces are engaging or have engaged in combat. H&r block tax returns An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order. H&r block tax returns Afghanistan area. H&r block tax returns   By Executive Order No. H&r block tax returns 13239, Afghanistan (and airspace above) was designated as a combat zone beginning September 19, 2001. H&r block tax returns On December 14, 2001, the following countries were certified by the Department of Defense for combat zone tax benefits due to their direct support of military operations in the Afghanistan combat zone. H&r block tax returns Djibouti. H&r block tax returns Jordan. H&r block tax returns Kyrgyzstan. H&r block tax returns Pakistan. H&r block tax returns Somalia. H&r block tax returns Syria. H&r block tax returns Tajikistan. H&r block tax returns Uzbekistan. H&r block tax returns Yemen. H&r block tax returns The Philippines. H&r block tax returns  Note. H&r block tax returns For the Philippines only, the personnel must be deployed in conjunction with Operation Enduring Freedom supporting military operations in the Afghanistan combat zone. H&r block tax returns The Kosovo area. H&r block tax returns   By Executive Order No. H&r block tax returns 13119, the following locations (including airspace above) were designated as a combat zone beginning March 24, 1999. H&r block tax returns Federal Republic of Yugoslavia (Serbia/Montenegro). H&r block tax returns Albania. H&r block tax returns Kosovo. H&r block tax returns The Adriatic Sea. H&r block tax returns The Ionian Sea—north of the 39th parallel. H&r block tax returns Note. H&r block tax returns The combat zone designation for Montenegro and Kosovo (previously a province within Serbia) under Executive Order 13119 remains in force even though Montenegro and Kosovo became independent nations since EO 13119 was signed. H&r block tax returns Arabian peninsula. H&r block tax returns   By Executive Order No. H&r block tax returns 12744, the following locations (and airspace above) were designated as a combat zone beginning January 17, 1991. H&r block tax returns The Persian Gulf. H&r block tax returns The Red Sea. H&r block tax returns The Gulf of Oman. H&r block tax returns The part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude. H&r block tax returns The Gulf of Aden. H&r block tax returns The total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates. H&r block tax returns Jordan which is in direct support of the Arabian Peninsula. H&r block tax returns Serving in a Combat Zone You are considered to be serving in a combat zone if you are either assigned on official temporary duty to a combat zone or you qualify for hostile fire/imminent danger pay while in a combat zone. H&r block tax returns Service in a combat zone includes any periods you are absent from duty because of sickness, wounds, or leave. H&r block tax returns If, as a result of serving in a combat zone, a person becomes a prisoner of war or is missing in action, that person is considered to be serving in the combat zone so long as he or she keeps that status for military pay purposes. H&r block tax returns Hospitalized While Serving in a Combat Zone If you are hospitalized while serving in a combat zone, the wound, disease, or injury causing the hospitalization will be presumed to have been incurred while serving in the combat zone unless there is clear evidence to the contrary. H&r block tax returns Example. H&r block tax returns You are hospitalized for a specific disease in a combat zone where you have been serving for 3 weeks, and the disease for which you are hospitalized has an incubation period of 2 to 4 weeks. H&r block tax returns The disease is presumed to have been incurred while you were serving in the combat zone. H&r block tax returns On the other hand, if the incubation period of the disease is 1 year, the disease would not have been incurred while you were serving in the combat zone. H&r block tax returns Hospitalized After Leaving a Combat Zone In some cases, the wound, disease, or injury may have been incurred while you were serving in the combat zone, even though you were not hospitalized until after you left. H&r block tax returns In that case, you can exclude military pay earned while you are hospitalized as a result of the wound, disease, or injury. H&r block tax returns Example. H&r block tax returns You were hospitalized for a specific disease 3 weeks after you left the combat zone. H&r block tax returns The incubation period of the disease is from 2 to 4 weeks. H&r block tax returns The disease is presumed to have been incurred while serving in the combat zone. H&r block tax returns Nonqualifying Presence in Combat Zone None of the following types of military service qualify as service in a combat zone. H&r block tax returns Presence in a combat zone while on leave from a duty station located outside the combat zone. H&r block tax returns Passage over or through a combat zone during a trip between two points that are outside a combat zone. H&r block tax returns Presence in a combat zone solely for your personal convenience. H&r block tax returns Service Outside Combat Zone Considered Service in Combat Zone Military service outside a combat zone is considered to be performed in a combat zone if: The Department of Defense designates that the service is in direct support of military operations in the combat zone, and The service qualifies you for special military pay for duty subject to hostile fire or imminent danger. H&r block tax returns Military pay received for this service will qualify for the combat zone exclusion if all of the requirements (other than service in a combat zone) are met and the pay is verifiable by reference to military pay records. H&r block tax returns Amount of Exclusion If you are an enlisted member, warrant officer, or commissioned warrant officer and you serve in a combat zone during any part of a month, you can exclude all of your military pay for that month. H&r block tax returns It should not be included in the wages reported on your Form W-2. H&r block tax returns You also can exclude military pay earned while you are hospitalized as a result of wounds, disease, or injury incurred in the combat zone. H&r block tax returns If you are hospitalized, you cannot exclude any military pay received for any month of service that begins more than 2 years after the end of combat activities in the combat zone. H&r block tax returns Your hospitalization does not have to be in the combat zone. H&r block tax returns If you are a commissioned officer (other than a commissioned warrant officer), you can exclude your pay according to the rules just discussed. H&r block tax returns However, the amount of your exclusion is limited to the highest rate of enlisted pay (plus imminent danger/hostile fire pay you received) for each month during any part of which you served in a combat zone or were hospitalized as a result of your service there. H&r block tax returns Alien Status For tax purposes, an alien is an individual who is not a U. H&r block tax returns S. H&r block tax returns citizen. H&r block tax returns An alien is in one of three categories: resident, nonresident, or dual-status. H&r block tax returns Placement in the correct category is crucial in determining what income to report and what forms to file. H&r block tax returns Under peacetime enlistment rules, you generally cannot enlist in the Armed Forces unless you are a citizen or have been legally admitted to the United States for permanent residence. H&r block tax returns If you are an alien enlistee in the Armed Forces, you are probably a resident alien. H&r block tax returns If, under an income tax treaty, you are considered a resident of a foreign country, see your base legal officer. H&r block tax returns Other aliens who are in the United States only because of military assignments and who have a home outside the United States are nonresident aliens. H&r block tax returns Guam and Puerto Rico have special rules. H&r block tax returns Residents of those areas should contact their taxing authority with their questions. H&r block tax returns Most members of the Armed Forces are U. H&r block tax returns S. H&r block tax returns citizens or resident aliens. H&r block tax returns However, if you have questions about your alien status or the alien status of your dependents or spouse, you should read the information in the following paragraphs and see Publication 519. H&r block tax returns Resident Aliens You are considered a resident alien of the United States for tax purposes if you meet either the “green card test” or the “substantial presence test” for the calendar year (January 1–December 31). H&r block tax returns If you meet the substantial presence test for 2014, you did not meet either the green card test or the substantial presence test for 2012 or 2013, and you did not choose to be treated as a resident for part of 2012, you may be able to choose to be treated as a U. H&r block tax returns S. H&r block tax returns resident for part of 2013. H&r block tax returns See First-Year Choice in Publication 519. H&r block tax returns These tests are explained in Publication 519. H&r block tax returns Generally, resident aliens are taxed on their worldwide income and file the same tax forms as U. H&r block tax returns S. H&r block tax returns citizens. H&r block tax returns Treating nonresident alien spouse as resident alien. H&r block tax returns   A nonresident alien spouse can be treated as a resident alien if all the following conditions are met. H&r block tax returns One spouse is a U. H&r block tax returns S. H&r block tax returns citizen or resident alien at the end of the tax year. H&r block tax returns That spouse is married to the nonresident alien at the end of the tax year. H&r block tax returns You both choose to treat the nonresident alien spouse as a resident alien. H&r block tax returns Making the choice. H&r block tax returns   Both you and your spouse must sign a statement and attach it to your joint return for the first tax year for which the choice applies. H&r block tax returns Include in the statement: A declaration that one spouse was a nonresident alien and the other was a U. H&r block tax returns S. H&r block tax returns citizen or resident alien on the last day of the year, A declaration that both spouses choose to be treated as U. H&r block tax returns S. H&r block tax returns residents for the entire tax year, and The name, address, and taxpayer identification number (social security number or individual taxpayer identification number) of each spouse. H&r block tax returns If the nonresident alien spouse is not eligible to get a social security number, he or she should file Form W-7, Application for IRS Individual Taxpayer Identification Number. H&r block tax returns    Once you make this choice, the nonresident alien spouse's worldwide income is subject to U. H&r block tax returns S. H&r block tax returns tax. H&r block tax returns If the nonresident alien spouse has substantial foreign income, there may be no advantage to making this choice. H&r block tax returns Ending the choice. H&r block tax returns   Once you make this choice, it applies to all later years unless one of the following situations occurs. H&r block tax returns You or your spouse revokes the choice. H&r block tax returns You or your spouse dies. H&r block tax returns You and your spouse become legally separated under a decree of divorce or separate maintenance. H&r block tax returns The Internal Revenue Service ends the choice because you or your spouse kept inadequate records. H&r block tax returns For specific details on these situations, see Publication 519. H&r block tax returns   If the choice is ended for any of these reasons, neither spouse can make the choice for any later year. H&r block tax returns Choice not made. H&r block tax returns   If you and your nonresident alien spouse do not make this choice: You cannot file a joint return. H&r block tax returns You can file as married filing separately, or head of household if you qualify. H&r block tax returns You can claim an exemption for your nonresident alien spouse if he or she has no gross income for U. H&r block tax returns S. H&r block tax returns tax purposes and is not another taxpayer's dependent. H&r block tax returns The nonresident alien spouse generally does not have to file a federal income tax return if he or she had no income from sources in the United States. H&r block tax returns If a return has to be filed, see the next discussion. H&r block tax returns The nonresident alien spouse is not eligible for the earned income credit if he or she has to file a return. H&r block tax returns Nonresident Aliens If you are an alien who does not meet the requirements discussed earlier to be a resident alien, you are a nonresident alien. H&r block tax returns If you are required to file a federal tax return, you must file either Form 1040NR, U. H&r block tax returns S. H&r block tax returns Nonresident Alien Income Tax Return, or Form 1040NR-EZ, U. H&r block tax returns S. H&r block tax returns Income Tax Return for Certain Nonresident Aliens With No Dependents. H&r block tax returns See the form instructions for information on who must file and filing status. H&r block tax returns If you are a nonresident alien, you generally must pay tax on income from sources in the United States. H&r block tax returns Your income from conducting a trade or business in the United States is taxed at graduated U. H&r block tax returns S. H&r block tax returns tax rates. H&r block tax returns Other income from U. H&r block tax returns S. H&r block tax returns sources is taxed at a flat 30% (or lower treaty) rate. H&r block tax returns For example, dividends from a U. H&r block tax returns S. H&r block tax returns corporation paid to a nonresident alien generally are subject to a 30% (or lower treaty) rate. H&r block tax returns Dual-Status Aliens You can be both a nonresident and resident alien during the same tax year. H&r block tax returns This usually occurs in the year you arrive in or depart from the United States. H&r block tax returns If you are a dual-status alien, you are taxed on income from all sources for the part of the year you are a resident alien. H&r block tax returns Generally, for the part of the year you are a nonresident alien, you are taxed only on income from sources in the United States. H&r block tax returns Sale of Home You may not have to pay tax on all or part of the gain from the sale of your main home. H&r block tax returns Usually, your main home is the one you live in most of the time. H&r block tax returns It can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. H&r block tax returns You generally can exclude up to $250,000 of gain ($500,000, in most cases, if married filing a joint return) realized on the sale or exchange of a main home in 2013. H&r block tax returns The exclusion is allowed each time you sell or exchange a main home, but generally not more than once every 2 years. H&r block tax returns To be eligible, during the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years (the ownership test), and lived in the home as your main home for at least 2 years (the use test). H&r block tax returns Exception to ownership and use tests. H&r block tax returns   You can exclude gain, but the maximum amount of gain you can exclude will be reduced if you do not meet the ownership and use tests due to a move to a new permanent duty station. H&r block tax returns 5-year test period suspended. H&r block tax returns   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty as a member of the Armed Forces. H&r block tax returns This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. H&r block tax returns Example. H&r block tax returns David bought and moved into a home in 2005. H&r block tax returns He lived in it as his main home for 2½ years. H&r block tax returns For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. H&r block tax returns He then sold the home at a gain in 2013. H&r block tax returns To meet the use test, David chooses to suspend the 5-year test period for the 6 years he was on qualifying official extended duty. H&r block tax returns This means he can disregard those 6 years. H&r block tax returns Therefore, David's 5-year test period consists of the 5 years before he went on qualifying official extended duty. H&r block tax returns He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. H&r block tax returns Period of suspension. H&r block tax returns   The period of suspension cannot last more than 10 years. H&r block tax returns You cannot suspend the 5-year period for more than one property at a time. H&r block tax returns You can revoke your choice to suspend the 5-year period at any time. H&r block tax returns Qualified official extended duty. H&r block tax returns   You are on qualified official extended duty if you serve on extended duty either: At a duty station at least 50 miles from your main home, or While you live in Government quarters under Government orders. H&r block tax returns   You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period. H&r block tax returns Property used for rental or business. H&r block tax returns   You may be able to exclude your gain from the sale of a home that you have used as a rental property or for business. H&r block tax returns However, you must meet the ownership and use tests discussed in Publication 523. H&r block tax returns Nonqualified use. H&r block tax returns   If the sale of your main home results in a gain that is allocated to one or more period(s) of nonqualified use, you cannot exclude that gain from your income. H&r block tax returns   Nonqualified use means any period after 2008 when neither you nor your spouse (or your former spouse) used the property as a main home, with certain exceptions. H&r block tax returns For example, a period of nonqualified use does not include any period (not to exceed a total of 10 years) during which you or your spouse is serving on qualified official extended duty. H&r block tax returns Loss. H&r block tax returns   You cannot deduct a loss from the sale of your main home. H&r block tax returns More information. H&r block tax returns   For more information, see Publication 523. H&r block tax returns Foreclosures There may be tax consequences as a result of compensation payments for foreclosures. H&r block tax returns Payments made for violations of the Service Members Civil Relief Act (SCRA). H&r block tax returns   All service members who received a settlement payment reported on a Form 1099 may need to report the amount on their tax return. H&r block tax returns Generally, you must include settlement payments in income. H&r block tax returns However, the tax treatment of settlement payments will depend on the facts and circumstances. H&r block tax returns Lump Sum Portion of Settlement Payment. H&r block tax returns    Generally, you must include the lump sum payment in gross income. H&r block tax returns In limited circumstances you may be able to exclude part or all of the lump sum payment from gross income. H&r block tax returns For example, you may qualify to exclude part or all of the payment from gross income if you can show that the payment was made to reimburse specific nondeductible expenses (such as living expenses) you incurred because of the SCRA violation. H&r block tax returns Interest Payment on Lump Sum Portion of Settlement Payment. H&r block tax returns    You must include any interest on the lump sum portion of your settlement payment in your income. H&r block tax returns Lost Equity Portion of Settlement Payment. H&r block tax returns    If you lost your main home in foreclosure, you should treat the lost equity payment as an additional amount you received on the foreclosure of the home. H&r block tax returns You will have a gain on the foreclosure only if the sum of the lost equity payment and the value of the main home at foreclosure is more than what you paid for the home. H&r block tax returns In many cases, this gain may be excluded from income. H&r block tax returns For more information on the rules for excluding all or part of any gain from the sale (including a foreclosure) of a main home, see Pub. H&r block tax returns 523, Selling Your Home. H&r block tax returns The rules that apply to a lost equity payment you received for the foreclosure of a property that was not your main home are different. H&r block tax returns    To find rules for reporting gain or loss on the foreclosure of property that was not your main home, see Pub. H&r block tax returns 544, Sales and Other Dispositions of Assets. H&r block tax returns Interest Payment on Lost Equity Portion of Settlement Payment. H&r block tax returns    You must include any interest on the lost equity portion of your settlement payment in your income. H&r block tax returns Itemized Deductions To figure your taxable income, you must subtract either your standard deduction or your itemized deductions from adjusted gross income. H&r block tax returns For information on the standard deduction, see Publication 501. H&r block tax returns Itemized deductions are figured on Schedule A (Form 1040). H&r block tax returns This chapter discusses miscellaneous itemized deductions of particular interest to members of the Armed Forces. H&r block tax returns For information on other itemized deductions, see the publications listed below. H&r block tax returns Publication 502, Medical and Dental Expenses. H&r block tax returns Publication 526, Charitable Contributions. H&r block tax returns Publication 547, Casualties, Disasters, and Thefts. H&r block tax returns Publication 550, Investment Income and Expenses. H&r block tax returns You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. H&r block tax returns For information on deductions that are not subject to the 2% limit, see Publication 529. H&r block tax returns Employee Business Expenses Deductible employee business expenses generally are miscellaneous itemized deductions subject to the 2% limit. H&r block tax returns Certain employee business expenses are deductible as adjustments to income. H&r block tax returns For information on many employee business expenses, see Publication 463. H&r block tax returns Generally, you must file Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses, to claim these expenses. H&r block tax returns You do not have to file Form 2106 or Form 2106-EZ if you are claiming only unreimbursed expenses for uniforms, professional society dues, and work-related educational expenses (all discussed later). H&r block tax returns You can deduct these expenses directly on Schedule A (Form 1040). H&r block tax returns Reimbursement. H&r block tax returns   Generally, to receive advances, reimbursements, or other allowances from the government, you must adequately account for your expenses and return any excess reimbursement. H&r block tax returns Your reimbursed expenses are not deductible. H&r block tax returns   If your expenses are more than your reimbursement, the excess expenses are deductible (subject to the 2% limit) if you can prove them. H&r block tax returns You must file Form 2106 to report these expenses. H&r block tax returns   You can use the shorter Form 2106-EZ if you meet all three of the following conditions. H&r block tax returns You are an employee deducting expenses related to your job. H&r block tax returns You were not reimbursed by your employer for your expenses. H&r block tax returns (Amounts included in box 1 of Form W-2 are not considered reimbursements. H&r block tax returns ) If you claim car expenses, you use the standard mileage rate. H&r block tax returns    For 2013, the standard mileage rate is 56. H&r block tax returns 5 cents a mile for all business miles driven. H&r block tax returns This rate is adjusted periodically. H&r block tax returns Travel Expenses You can deduct unreimbursed travel expenses only if they are incurred while you are traveling away from home. H&r block tax returns If you are a member of the U. H&r block tax returns S. H&r block tax returns Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. H&r block tax returns You cannot deduct your expenses for meals and lodging while at your permanent duty station. H&r block tax returns You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. H&r block tax returns A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a home aboard ship for travel expense purposes. H&r block tax returns To be deductible, your travel expenses must be work related. H&r block tax returns You cannot deduct any expenses for personal travel, such as visits to family while on furlough, leave, or liberty. H&r block tax returns Away from home. H&r block tax returns   Home is your permanent duty station (which can be a ship or base), regardless of where you or your family live. H&r block tax returns You are away from home if you are away from your permanent duty station substantially longer than an ordinary day's work and you need to get sleep or rest to meet the demands of your work while away from home. H&r block tax returns   Examples of deductible travel expenses include: Expenses for business-related meals (generally limited to 50% of your unreimbursed cost), lodging, taxicabs, business telephone calls, tips, laundry, and dry cleaning while you are away from home on temporary duty or temporary additional duty, and Expenses of carrying out official business while on “No Cost” orders. H&r block tax returns    You cannot deduct any expenses for travel away from home if the temporary assignment in a single location is realistically expected to last (and does in fact last) for more than 1 year. H&r block tax returns This rule may not apply if you are participating in a federal crime investigation or prosecution. H&r block tax returns For more information, see Publication 463 and the Form 2106 instructions. H&r block tax returns Transportation Expenses These expenses include the ordinary and necessary costs of: Getting from one workplace to another when you are not away from home, Going to a business meeting away from your regular workplace, and Getting from your home to a temporary workplace when you have a regular place of work. H&r block tax returns These expenses include the costs of transportation by air, bus, rail, taxi, and driving and maintaining your car. H&r block tax returns Transportation expenses incurred while traveling away from home are included with your travel expenses, discussed earlier. H&r block tax returns However, if you use your car while traveling away from home overnight, see the rules in chapter 4 of Publication 463 to figure your car expense deduction. H&r block tax returns If you must go from one workplace to another while on duty (for example, as a courier or to attend meetings) without being away from home, your unreimbursed transportation expenses are deductible. H&r block tax returns However, the expenses of getting to and from your regular place of work (commuting) are not deductible. H&r block tax returns Temporary work location. H&r block tax returns   If you have one or more regular places of business away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location. H&r block tax returns   Generally, if your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary. H&r block tax returns   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. H&r block tax returns If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. H&r block tax returns    If you do not have a regular place of business, but you ordinarily work in the metropolitan area where you live, you can deduct daily transportation expenses between your home and a temporary work site outside your metropolitan area. H&r block tax returns However, you cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. H&r block tax returns These are nondeductible commuting costs. H&r block tax returns Armed Forces reservists. H&r block tax returns   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. H&r block tax returns You can deduct the expense of getting from one workplace to the other. H&r block tax returns You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. H&r block tax returns In this case, your transportation generally is a nondeductible commuting expense. H&r block tax returns However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. H&r block tax returns   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. H&r block tax returns If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. H&r block tax returns See Armed Forces Reservists under Adjustments to Income, earlier. H&r block tax returns Uniforms You usually cannot deduct the expenses for uniform cost and upkeep. H&r block tax returns Generally, you must wear uniforms when on duty and you are allowed to wear them when off duty. H&r block tax returns If military regulations prohibit you from wearing certain uniforms when off duty, you can deduct the cost and upkeep of the uniforms, but you must reduce your expenses by any allowance or reimbursement you receive. H&r block tax returns Unreimbursed expenses for the cost and upkeep of the following articles are deductible. H&r block tax returns Military battle dress uniforms and utility uniforms that you cannot wear when off duty. H&r block tax returns Articles not replacing regular clothing, including insignia of rank, corps devices, epaulets, aiguillettes, and swords. H&r block tax returns Reservists' uniforms if you can wear the uniform only while performing duties as a reservist. H&r block tax returns Professional Dues You can deduct unreimbursed dues paid to professional societies directly related to your military position. H&r block tax returns However, you cannot deduct amounts paid to an officers' club or a noncommissioned officers' club. H&r block tax returns Example. H&r block tax returns Lieutenant Margaret Allen, an electrical engineer at Maxwell Air Force Base, can deduct professional dues paid to the American Society of Electrical Engineers. H&r block tax returns Educational Expenses You can deduct the unreimbursed costs of qualifying work-related education. H&r block tax returns This is education that meets at least one of the following two tests. H&r block tax returns The education is required by your employer or the law to keep your present salary, status, or job. H&r block tax returns The required education must serve a bona fide business purpose of your employer. H&r block tax returns The education maintains or improves skills needed in your present work. H&r block tax returns However, even if the education meets one or both of the above tests, it is not qualifying education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. H&r block tax returns You can deduct the expenses for qualifying work-related education even if the education could lead to a degree. H&r block tax returns Example 1. H&r block tax returns Lieutenant Colonel Mason has a degree in financial management and is in charge of base finances at her post of duty. H&r block tax returns She took an advanced finance course. H&r block tax returns She already meets the minimum qualifications for her job. H&r block tax returns By taking the course, she is improving skills in her current position. H&r block tax returns The course does not qualify her for a new trade or business. H&r block tax returns She can deduct educational expenses that are more than the educational allowance she received. H&r block tax returns Example 2. H&r block tax returns Major Williams worked in the military base legal office as a legal intern. H&r block tax returns He was placed in excess leave status by his employer to attend law school. H&r block tax returns He paid all his educational expenses and was not reimbursed. H&r block tax returns After obtaining his law degree, he passed the state bar exam and worked as a judge advocate. H&r block tax returns His educational expenses are not deductible because the law degree qualified him for a new trade or business, even though the education maintained and improved his skills in his work. H&r block tax returns Travel to obtain education. H&r block tax returns   If your work-related education qualifies, you can deduct the costs of travel, including meals (subject to the 50% limit), and lodging, if the main purpose of the trip is to obtain the education. H&r block tax returns   You cannot deduct the cost of travel that is itself a form of education, even if it is directly related to your duties in your work or business. H&r block tax returns Transportation for education. H&r block tax returns   If your work-related education qualifies for a deduction, you can deduct the costs of transportation to obtain that education. H&r block tax returns However, you cannot deduct the cost of services provided in kind, such as base-provided transportation to or from class. H&r block tax returns Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. H&r block tax returns   If you need more information on educational expenses, see Publication 970. H&r block tax returns Repayments If you had to repay to your employer an amount that you included in your income in an earlier year, you may be able to deduct the repaid amount from your income for the year in which you repaid it. H&r block tax returns Repayment of $3,000 or less. H&r block tax returns   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. H&r block tax returns If you reported it as wages, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. H&r block tax returns Repayment over $3,000. H&r block tax returns   If the amount you repaid was more than $3,000, see Repayments in Publication 525. H&r block tax returns Credits After you have figured your taxable income and tax liability, you can determine if you are entitled to any tax credits. H&r block tax returns This publication discusses the first-time homebuyer credit, child tax credit, earned income credit, and credit for excess social security tax withheld. H&r block tax returns For information on other credits, see your tax form instructions. H&r block tax returns First-Time Homebuyer Credit The first-time homebuyer credit is not available for homes purchased after 2011. H&r block tax returns In 2011, this credit had already expired for most taxpayers, however, certain members of the uniformed services and Foreign Service and certain employees of the intelligence community could claim the credit for homes purchased in 2011. H&r block tax returns If you bought the home (and claimed the credit) after 2008, you generally must repay the credit if you dispose of the home or the home stops being your main home within the 36-month period beginning on the purchase date. H&r block tax returns If the home continues to be your main home for at least 36 months beginning on the purchase date, you do not have to repay any of the credit. H&r block tax returns If you bought your home in 2008, you generally must repay the credit over a 15-year period in 15 equal installments. H&r block tax returns For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. H&r block tax returns Child Tax Credit The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children. H&r block tax returns The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit. H&r block tax returns The child tax credit is not the same as the credit for child and dependent care expenses. H&r block tax returns See Publication 503 for information on the credit for child and dependent care expenses. H&r block tax returns Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you, later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. H&r block tax returns S. H&r block tax returns citizen, a U. H&r block tax returns S. H&r block tax returns national, or a U. H&r block tax returns S. H&r block tax returns resident alien. H&r block tax returns If the child was adopted, see Adopted child . H&r block tax returns For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c, column (4). H&r block tax returns Exceptions to time lived with you. H&r block tax returns   A child is considered to have lived with you for all of 2013 if the child was born or died in 2013 and your home was this child's home for the entire time he or she was alive. H&r block tax returns Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. H&r block tax returns   There are also exceptions for kidnapped children and children of divorced or separated parents. H&r block tax returns For details, see Publication 501. H&r block tax returns Qualifying child of more than one person. H&r block tax returns   A special rule applies if your qualifying child is the qualifying child of more than one person. H&r block tax returns For details, see Publication 501. H&r block tax returns Adopted child. H&r block tax returns   An adopted child is always treated as your own child. H&r block tax returns An adopted child includes a child lawfully placed with you for legal adoption. H&r block tax returns   If you are a U. H&r block tax returns S. H&r block tax returns citizen or U. H&r block tax returns S. H&r block tax returns national and your adopted child lived with you as a member of your household all year, that child meets condition (7) above to be a qualifying child for the child tax credit. H&r block tax returns Amount of Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. H&r block tax returns Limits on the credit. H&r block tax returns   You must reduce your child tax credit if either (1) or (2), below, applies. H&r block tax returns The amount on Form 1040, line 46, or Form 1040A, line 28, is less than the credit. H&r block tax returns If the amount is zero, you cannot take this credit because there is no tax to reduce. H&r block tax returns However, you may be able to take the additional child tax credit. H&r block tax returns See Additional Child Tax Credit , later. H&r block tax returns Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. H&r block tax returns Married filing jointly — $110,000. H&r block tax returns Single, head of household,  or qualifying widow(er) — $75,000. H&r block tax returns Married filing separately — $55,000. H&r block tax returns Modified AGI. H&r block tax returns   For purposes of the child tax credit, your modified AGI is the amount on Form 1040, line 38, or Form 1040A, line 22, plus the following amounts that may apply to you. H&r block tax returns Any amount excluded from income because of the exclusion of income from Puerto Rico. H&r block tax returns Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. H&r block tax returns Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. H&r block tax returns Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. H&r block tax returns   If you do not have any of the above, your modified AGI is the same as your AGI. H&r block tax returns Claiming the Credit To claim the child tax credit, you must file Form 1040 or Form 1040A. H&r block tax returns For more information on the child tax credit, see the instructions for Form 1040 or Form 1040A. H&r block tax returns Also attach Schedule 8812, Child Tax Credit, if required. H&r block tax returns Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. H&r block tax returns The additional child tax credit may give you a refund even if you do not owe any tax. H&r block tax returns For more information, see the instructions for Form 1040 or Form 1040A, and Schedule 8812. H&r block tax returns Earned Income Credit The earned income credit (EIC) is a cr