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Https www freefilefillableforms org 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. Https www freefilefillableforms org Qualified official extended duty. Https www freefilefillableforms org ForeclosuresLump Sum Portion of Settlement Payment. Https www freefilefillableforms org Interest Payment on Lump Sum Portion of Settlement Payment. Https www freefilefillableforms org Lost Equity Portion of Settlement Payment. Https www freefilefillableforms org 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. Https www freefilefillableforms org Interest Payment on Lost Equity Portion of Settlement Payment. Https www freefilefillableforms org 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. Https www freefilefillableforms org Some are included in gross income while others are excluded from gross income. Https www freefilefillableforms org Included items (Table 1) are subject to tax and must be reported on your tax return. Https www freefilefillableforms org Excluded items (Table 2) are not subject to tax, but may have to be shown on your tax return. Https www freefilefillableforms org 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. Https www freefilefillableforms org Table 1. Https www freefilefillableforms org Included Items These items are included in gross income, unless the pay is for service in a combat zone. Https www freefilefillableforms org 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). Https www freefilefillableforms org   You can still deduct mortgage interest and real estate taxes on your home if you pay these expenses with your BAH. Https www freefilefillableforms org Table 2. Https www freefilefillableforms org Excluded Items The exclusion for certain items applies whether the item is furnished in kind or is a reimbursement or allowance. Https www freefilefillableforms org There is no exclusion for the personal use of a government-provided vehicle. Https www freefilefillableforms org 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. Https www freefilefillableforms org S. Https www freefilefillableforms org 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. Https www freefilefillableforms org   Any death gratuity paid to a survivor of a member of the Armed Forces is excluded from gross income. Https www freefilefillableforms org Differential wage payments. Https www freefilefillableforms org   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. Https www freefilefillableforms org These amounts are taxable and cannot be excluded as combat pay. Https www freefilefillableforms org Military base realignment and closure benefit. Https www freefilefillableforms org   Payments made under the Homeowners Assistance Program (HAP) generally are excluded from income. Https www freefilefillableforms org 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. Https www freefilefillableforms org Any part of the payment that is more than this limit is included in gross income. Https www freefilefillableforms org For more information about the HAP, see http://hap. Https www freefilefillableforms org usace. Https www freefilefillableforms org army. Https www freefilefillableforms org mil/Overview. Https www freefilefillableforms org html. Https www freefilefillableforms org Qualified reservist distribution (QRD). Https www freefilefillableforms org   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. Https www freefilefillableforms org A QRD is included in gross income and is subject to employment taxes. Https www freefilefillableforms org 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. Https www freefilefillableforms org Thrift Savings Plan (TSP) distributions. Https www freefilefillableforms org   If you participate in the Uniformed Services TSP and receive a distribution from your account, the distribution is generally included in your taxable income. Https www freefilefillableforms org   If your contributions included tax-exempt combat zone pay, the part of the distribution attributable to those contributions is tax exempt. Https www freefilefillableforms org However, the earnings on the tax-exempt portion of the distribution are taxable. Https www freefilefillableforms org The TSP will provide a statement showing the taxable and non-taxable portions of the distribution. Https www freefilefillableforms org Roth Thrift Savings Plan (TSP) balance. Https www freefilefillableforms org   You may be able to contribute to a designated Roth Account through the TSP known as the Roth TSP. Https www freefilefillableforms org Roth TSP contributions are after-tax contributions, subject to the same contribution limits as the traditional TSP. Https www freefilefillableforms org Qualified distributions from a Roth TSP are not included in your income. Https www freefilefillableforms org For more details, see Thrift Savings Accounts in Part II of Publication 721, Tax Guide to U. Https www freefilefillableforms org S. Https www freefilefillableforms org Civil Service Retirement Benefits. Https www freefilefillableforms org State bonus payments. Https www freefilefillableforms org   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. Https www freefilefillableforms org See Combat Zone , later, for a list of designated combat zones. Https www freefilefillableforms org Foreign Source Income If you are a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen with income from sources outside the United States (foreign income), you must report all of that income (except for amounts that U. Https www freefilefillableforms org S. Https www freefilefillableforms org law allows you to exclude) on your tax return. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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). Https www freefilefillableforms org Certain taxpayers can exclude income earned in foreign countries. Https www freefilefillableforms org For 2013, this exclusion amount can be as much as $97,600. Https www freefilefillableforms org However, the foreign earned income exclusion does not apply to the wages and salaries of military and civilian employees of the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Government. Https www freefilefillableforms org Employees of the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Government include those who work at United States Armed Forces exchanges, commissioned and noncommissioned officers' messes, Armed Forces motion picture services, and similar personnel. Https www freefilefillableforms org Other foreign income earned by military personnel or their spouses may be eligible for the foreign earned income exclusion. Https www freefilefillableforms org For more information on the exclusion, see Publication 54. Https www freefilefillableforms org Residents of American Samoa may be able to exclude income from American Samoa. Https www freefilefillableforms org This possession exclusion does not apply to wages and salaries of military and civilian employees of the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Government. Https www freefilefillableforms org If you need information on the possession exclusion, see Publication 570, Tax Guide for Individuals With Income From U. Https www freefilefillableforms org S. Https www freefilefillableforms org Possessions. Https www freefilefillableforms org Military Spouses Residency Relief Act (MSRRA) If you are the civilian spouse of an active duty U. Https www freefilefillableforms org S. Https www freefilefillableforms org 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. Https www freefilefillableforms org S. Https www freefilefillableforms org possession. Https www freefilefillableforms org See Publication 570 for more information. Https www freefilefillableforms org Domicile. Https www freefilefillableforms org   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. Https www freefilefillableforms org It is not always where you presently live. Https www freefilefillableforms org 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. Https www freefilefillableforms org The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Https www freefilefillableforms org Marital status. Https www freefilefillableforms org   Community property rules apply to married persons whose domicile during the tax year was in a community property state. Https www freefilefillableforms org The rules may affect your tax liability if you file separate returns or are divorced during the year. Https www freefilefillableforms org Nevada, Washington, and California domestic partners. Https www freefilefillableforms org   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. Https www freefilefillableforms org See Form 8958 and Publication 555, Community Property. Https www freefilefillableforms org Nature of the payment. Https www freefilefillableforms org   Active duty military pay is subject to community property laws. Https www freefilefillableforms org Armed Forces retired or retainer pay may be subject to community property laws. Https www freefilefillableforms org   For more information on community property laws, see Publication 555. Https www freefilefillableforms org 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. Https www freefilefillableforms org Form W-2 also shows other amounts that you may find important in box 12. Https www freefilefillableforms org The amounts shown in box 12 are generally preceded by a code. Https www freefilefillableforms org A list of codes used in box 12 is shown, next. Https www freefilefillableforms org 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. Https www freefilefillableforms org For more information on these codes, see your Form(s) W-2. Https www freefilefillableforms org Adjustments to Income Adjusted gross income is your total income minus certain adjustments. Https www freefilefillableforms org The following adjustments are of particular interest to members of the Armed Forces. Https www freefilefillableforms org 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. Https www freefilefillableforms org S. Https www freefilefillableforms org Individual Income Tax Return, rather than as a miscellaneous itemized deduction. Https www freefilefillableforms org Include all unreimbursed expenses from the time you leave home until the time you return home. Https www freefilefillableforms org The deduction is limited to the amount the federal government generally reimburses its employees for travel expenses. Https www freefilefillableforms org For more information about this limit, see Per Diem and Car Allowances in chapter 6 of Publication 463. Https www freefilefillableforms org Member of a reserve component. Https www freefilefillableforms org   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. Https www freefilefillableforms org How to report. Https www freefilefillableforms org   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. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org Example. Https www freefilefillableforms org 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. Https www freefilefillableforms org He incurred $1,549 of unreimbursed expenses consisting of $249 for mileage (440 miles × 56. Https www freefilefillableforms org 5 cents per mile), $300 for meals, and $1,000 for lodging. Https www freefilefillableforms org He also had other deductible mileage expenses of $110 for several trips to a location 20 miles from his home. Https www freefilefillableforms org Only 50% of his meal expenses are deductible. Https www freefilefillableforms org He shows his total deductible travel expenses of $1,509 ($249 + $150 (50% of $300) + $1,000 + $110) on Form 2106, line 10. Https www freefilefillableforms org He enters the $1,399 ($249 + $150 + $1,000) for travel over 100 miles from home on Form 1040, line 24. Https www freefilefillableforms org He then subtracts that $1,399 from the amount on Form 2106, $1,509, and enters $110 on Schedule A (Form 1040), line 21. Https www freefilefillableforms org 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). Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org The “Retirement plan” box should have a mark in it if you were covered. Https www freefilefillableforms org 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. Https www freefilefillableforms org Individuals serving in the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Armed Forces or in support of the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Armed Forces in designated combat zones have additional time to make a qualified retirement contribution to an IRA. Https www freefilefillableforms org For more information on this extension of deadline provision, see Extension of Deadlines , later. Https www freefilefillableforms org For more information on IRAs, see Publication 590. Https www freefilefillableforms org Combat Pay For IRA purposes, your compensation includes nontaxable combat pay. Https www freefilefillableforms org 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. Https www freefilefillableforms org Qualified Reservist Distributions A qualified reservist distribution is defined below. Https www freefilefillableforms org It is not subject to the 10% additional tax on early distributions from certain retirement plans. Https www freefilefillableforms org Definition. Https www freefilefillableforms org   A distribution you receive is a qualified reservist distribution if the following requirements are met. Https www freefilefillableforms org You were ordered or called to active duty after September 11, 2001. Https www freefilefillableforms org 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. Https www freefilefillableforms org ) 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org Qualified Reservist Repayments You may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined earlier) you received. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org Limit. Https www freefilefillableforms org   Your qualified reservist repayments cannot be more than your qualified reservist distributions. Https www freefilefillableforms org When repayment contributions can be made. Https www freefilefillableforms org   You cannot make these repayment contributions after the date that is 2 years after your active duty period ends. Https www freefilefillableforms org No deduction. Https www freefilefillableforms org   You cannot deduct qualified reservist repayments. Https www freefilefillableforms org Figuring your IRA deduction. Https www freefilefillableforms org   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. Https www freefilefillableforms org Reporting the repayment. Https www freefilefillableforms org   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606, Nondeductible IRAs. Https www freefilefillableforms org Moving Expenses To deduct moving expenses, you generally must meet certain time and distance tests. Https www freefilefillableforms org 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. Https www freefilefillableforms org You can deduct your unreimbursed moving expenses on Form 3903. Https www freefilefillableforms org Permanent change of station. Https www freefilefillableforms org   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. Https www freefilefillableforms org The move must occur within 1 year of ending your active duty or within the period allowed under the Joint Federal Travel Regulations. Https www freefilefillableforms org Spouse and dependents. Https www freefilefillableforms org   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. Https www freefilefillableforms org   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. Https www freefilefillableforms org Services or reimbursements provided by the government. Https www freefilefillableforms org   Do not include in your income the value of moving and storage services provided by the government because of a permanent change of station. Https www freefilefillableforms org Similarly, do not include in income amounts received as a dislocation allowance, temporary lodging expense, temporary lodging allowance, or move-in housing allowance. Https www freefilefillableforms org   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. Https www freefilefillableforms org 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. Https www freefilefillableforms org   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). Https www freefilefillableforms org   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. Https www freefilefillableforms org   Do not deduct any expenses for moving services that were provided by the government. Https www freefilefillableforms org Also, do not deduct any expenses that were reimbursed by an allowance you did not include in income. Https www freefilefillableforms org 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. Https www freefilefillableforms org You can deduct expenses (if not reimbursed or furnished in kind) for: Moving household goods and personal effects, and Travel. Https www freefilefillableforms org Moving household goods and personal effects. Https www freefilefillableforms org   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. Https www freefilefillableforms org You cannot deduct expenses for moving furniture or other goods you bought on the way from your old home to your new home. Https www freefilefillableforms org Storing and insuring household goods and personal effects. Https www freefilefillableforms org   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. Https www freefilefillableforms org Travel. Https www freefilefillableforms org   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. Https www freefilefillableforms org 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. Https www freefilefillableforms org   You can add parking fees and tolls to the amount claimed under either method. Https www freefilefillableforms org You cannot deduct any expenses for meals. Https www freefilefillableforms org You cannot deduct the cost of unnecessary side trips or lavish and extravagant lodging. Https www freefilefillableforms org Member of your household. Https www freefilefillableforms org   A member of your household is anyone who has both your former home and your new home as his or her main home. Https www freefilefillableforms org It does not include a tenant or employee unless you can claim that person as a dependent. Https www freefilefillableforms org 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. Https www freefilefillableforms org A move from a foreign country to the United States or its possessions is not a foreign move. Https www freefilefillableforms org 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. Https www freefilefillableforms org The new job location must be outside the United States. Https www freefilefillableforms org Reporting Moving Expenses Figure moving expense deductions on Form 3903. Https www freefilefillableforms org Carry the deduction from Form 3903 to Form 1040, line 26. Https www freefilefillableforms org For more information, see Publication 521 and Form 3903. Https www freefilefillableforms org Combat Zone Exclusion If you are a member of the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Armed Forces who serves in a combat zone (defined later), you can exclude certain pay from your income. Https www freefilefillableforms org This pay is generally referred to as “combat pay. Https www freefilefillableforms org ” 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. Https www freefilefillableforms org (See Form W-2 , later. Https www freefilefillableforms org ) 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org If you are an enlisted member, warrant officer, or commissioned warrant officer, you can exclude the following amounts from your income. Https www freefilefillableforms org (Other officer personnel are discussed under Amount of Exclusion , later. Https www freefilefillableforms org ) Active duty pay earned in any month you served in a combat zone. Https www freefilefillableforms org Imminent danger/hostile fire pay. Https www freefilefillableforms org A reenlistment bonus if the voluntary extension or reenlistment occurs in a month you served in a combat zone. Https www freefilefillableforms org Pay for accrued leave earned in any month you served in a combat zone. Https www freefilefillableforms org The Department of Defense must determine that the unused leave was earned during that period. Https www freefilefillableforms org Pay received for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other nonappropriated fund activities. Https www freefilefillableforms org The pay must be earned in a month you served in a combat zone. Https www freefilefillableforms org 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. Https www freefilefillableforms org Student loan repayments. Https www freefilefillableforms org 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. Https www freefilefillableforms org If only part of that year of service was performed in a combat zone, only part of the repayment qualifies for exclusion. Https www freefilefillableforms org For example, if you served in a combat zone for 5 months, 5/12 of your repayment qualifies for exclusion. Https www freefilefillableforms org Retirement pay and pensions do not qualify for the combat zone exclusion. Https www freefilefillableforms org Partial (month) service. Https www freefilefillableforms org   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. Https www freefilefillableforms org Form W-2. Https www freefilefillableforms org   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. Https www freefilefillableforms org If it does, you will need to get a corrected Form W-2 from your finance office. Https www freefilefillableforms org   You cannot exclude as combat pay any wages shown in box 1 of Form W-2. Https www freefilefillableforms org 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. Https www freefilefillableforms org S. Https www freefilefillableforms org Armed Forces are engaging or have engaged in combat. Https www freefilefillableforms org An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order. Https www freefilefillableforms org Afghanistan area. Https www freefilefillableforms org   By Executive Order No. Https www freefilefillableforms org 13239, Afghanistan (and airspace above) was designated as a combat zone beginning September 19, 2001. Https www freefilefillableforms org 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. Https www freefilefillableforms org Djibouti. Https www freefilefillableforms org Jordan. Https www freefilefillableforms org Kyrgyzstan. Https www freefilefillableforms org Pakistan. Https www freefilefillableforms org Somalia. Https www freefilefillableforms org Syria. Https www freefilefillableforms org Tajikistan. Https www freefilefillableforms org Uzbekistan. Https www freefilefillableforms org Yemen. Https www freefilefillableforms org The Philippines. Https www freefilefillableforms org  Note. Https www freefilefillableforms org For the Philippines only, the personnel must be deployed in conjunction with Operation Enduring Freedom supporting military operations in the Afghanistan combat zone. Https www freefilefillableforms org The Kosovo area. Https www freefilefillableforms org   By Executive Order No. Https www freefilefillableforms org 13119, the following locations (including airspace above) were designated as a combat zone beginning March 24, 1999. Https www freefilefillableforms org Federal Republic of Yugoslavia (Serbia/Montenegro). Https www freefilefillableforms org Albania. Https www freefilefillableforms org Kosovo. Https www freefilefillableforms org The Adriatic Sea. Https www freefilefillableforms org The Ionian Sea—north of the 39th parallel. Https www freefilefillableforms org Note. Https www freefilefillableforms org 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. Https www freefilefillableforms org Arabian peninsula. Https www freefilefillableforms org   By Executive Order No. Https www freefilefillableforms org 12744, the following locations (and airspace above) were designated as a combat zone beginning January 17, 1991. Https www freefilefillableforms org The Persian Gulf. Https www freefilefillableforms org The Red Sea. Https www freefilefillableforms org The Gulf of Oman. Https www freefilefillableforms org The part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude. Https www freefilefillableforms org The Gulf of Aden. Https www freefilefillableforms org The total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates. Https www freefilefillableforms org Jordan which is in direct support of the Arabian Peninsula. Https www freefilefillableforms org 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. Https www freefilefillableforms org Service in a combat zone includes any periods you are absent from duty because of sickness, wounds, or leave. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org Example. Https www freefilefillableforms org 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. Https www freefilefillableforms org The disease is presumed to have been incurred while you were serving in the combat zone. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org In that case, you can exclude military pay earned while you are hospitalized as a result of the wound, disease, or injury. Https www freefilefillableforms org Example. Https www freefilefillableforms org You were hospitalized for a specific disease 3 weeks after you left the combat zone. Https www freefilefillableforms org The incubation period of the disease is from 2 to 4 weeks. Https www freefilefillableforms org The disease is presumed to have been incurred while serving in the combat zone. Https www freefilefillableforms org Nonqualifying Presence in Combat Zone None of the following types of military service qualify as service in a combat zone. Https www freefilefillableforms org Presence in a combat zone while on leave from a duty station located outside the combat zone. Https www freefilefillableforms org Passage over or through a combat zone during a trip between two points that are outside a combat zone. Https www freefilefillableforms org Presence in a combat zone solely for your personal convenience. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org It should not be included in the wages reported on your Form W-2. Https www freefilefillableforms org You also can exclude military pay earned while you are hospitalized as a result of wounds, disease, or injury incurred in the combat zone. Https www freefilefillableforms org 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. Https www freefilefillableforms org Your hospitalization does not have to be in the combat zone. Https www freefilefillableforms org If you are a commissioned officer (other than a commissioned warrant officer), you can exclude your pay according to the rules just discussed. Https www freefilefillableforms org 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. Https www freefilefillableforms org Alien Status For tax purposes, an alien is an individual who is not a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen. Https www freefilefillableforms org An alien is in one of three categories: resident, nonresident, or dual-status. Https www freefilefillableforms org Placement in the correct category is crucial in determining what income to report and what forms to file. Https www freefilefillableforms org 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. Https www freefilefillableforms org If you are an alien enlistee in the Armed Forces, you are probably a resident alien. Https www freefilefillableforms org If, under an income tax treaty, you are considered a resident of a foreign country, see your base legal officer. Https www freefilefillableforms org 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. Https www freefilefillableforms org Guam and Puerto Rico have special rules. Https www freefilefillableforms org Residents of those areas should contact their taxing authority with their questions. Https www freefilefillableforms org Most members of the Armed Forces are U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizens or resident aliens. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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). Https www freefilefillableforms org 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. Https www freefilefillableforms org S. Https www freefilefillableforms org resident for part of 2013. Https www freefilefillableforms org See First-Year Choice in Publication 519. Https www freefilefillableforms org These tests are explained in Publication 519. Https www freefilefillableforms org Generally, resident aliens are taxed on their worldwide income and file the same tax forms as U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizens. Https www freefilefillableforms org Treating nonresident alien spouse as resident alien. Https www freefilefillableforms org   A nonresident alien spouse can be treated as a resident alien if all the following conditions are met. Https www freefilefillableforms org One spouse is a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen or resident alien at the end of the tax year. Https www freefilefillableforms org That spouse is married to the nonresident alien at the end of the tax year. Https www freefilefillableforms org You both choose to treat the nonresident alien spouse as a resident alien. Https www freefilefillableforms org Making the choice. Https www freefilefillableforms org   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. Https www freefilefillableforms org Include in the statement: A declaration that one spouse was a nonresident alien and the other was a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen or resident alien on the last day of the year, A declaration that both spouses choose to be treated as U. Https www freefilefillableforms org S. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org    Once you make this choice, the nonresident alien spouse's worldwide income is subject to U. Https www freefilefillableforms org S. Https www freefilefillableforms org tax. Https www freefilefillableforms org If the nonresident alien spouse has substantial foreign income, there may be no advantage to making this choice. Https www freefilefillableforms org Ending the choice. Https www freefilefillableforms org   Once you make this choice, it applies to all later years unless one of the following situations occurs. Https www freefilefillableforms org You or your spouse revokes the choice. Https www freefilefillableforms org You or your spouse dies. Https www freefilefillableforms org You and your spouse become legally separated under a decree of divorce or separate maintenance. Https www freefilefillableforms org The Internal Revenue Service ends the choice because you or your spouse kept inadequate records. Https www freefilefillableforms org For specific details on these situations, see Publication 519. Https www freefilefillableforms org   If the choice is ended for any of these reasons, neither spouse can make the choice for any later year. Https www freefilefillableforms org Choice not made. Https www freefilefillableforms org   If you and your nonresident alien spouse do not make this choice: You cannot file a joint return. Https www freefilefillableforms org You can file as married filing separately, or head of household if you qualify. Https www freefilefillableforms org You can claim an exemption for your nonresident alien spouse if he or she has no gross income for U. Https www freefilefillableforms org S. Https www freefilefillableforms org tax purposes and is not another taxpayer's dependent. Https www freefilefillableforms org 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. Https www freefilefillableforms org If a return has to be filed, see the next discussion. Https www freefilefillableforms org The nonresident alien spouse is not eligible for the earned income credit if he or she has to file a return. Https www freefilefillableforms org 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. Https www freefilefillableforms org If you are required to file a federal tax return, you must file either Form 1040NR, U. Https www freefilefillableforms org S. Https www freefilefillableforms org Nonresident Alien Income Tax Return, or Form 1040NR-EZ, U. Https www freefilefillableforms org S. Https www freefilefillableforms org Income Tax Return for Certain Nonresident Aliens With No Dependents. Https www freefilefillableforms org See the form instructions for information on who must file and filing status. Https www freefilefillableforms org If you are a nonresident alien, you generally must pay tax on income from sources in the United States. Https www freefilefillableforms org Your income from conducting a trade or business in the United States is taxed at graduated U. Https www freefilefillableforms org S. Https www freefilefillableforms org tax rates. Https www freefilefillableforms org Other income from U. Https www freefilefillableforms org S. Https www freefilefillableforms org sources is taxed at a flat 30% (or lower treaty) rate. Https www freefilefillableforms org For example, dividends from a U. Https www freefilefillableforms org S. Https www freefilefillableforms org corporation paid to a nonresident alien generally are subject to a 30% (or lower treaty) rate. Https www freefilefillableforms org Dual-Status Aliens You can be both a nonresident and resident alien during the same tax year. Https www freefilefillableforms org This usually occurs in the year you arrive in or depart from the United States. Https www freefilefillableforms org 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. Https www freefilefillableforms org Generally, for the part of the year you are a nonresident alien, you are taxed only on income from sources in the United States. Https www freefilefillableforms org Sale of Home You may not have to pay tax on all or part of the gain from the sale of your main home. Https www freefilefillableforms org Usually, your main home is the one you live in most of the time. Https www freefilefillableforms org It can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. Https www freefilefillableforms org 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. Https www freefilefillableforms org The exclusion is allowed each time you sell or exchange a main home, but generally not more than once every 2 years. Https www freefilefillableforms org 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). Https www freefilefillableforms org Exception to ownership and use tests. Https www freefilefillableforms org   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. Https www freefilefillableforms org 5-year test period suspended. Https www freefilefillableforms org   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. Https www freefilefillableforms org 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. Https www freefilefillableforms org Example. Https www freefilefillableforms org David bought and moved into a home in 2005. Https www freefilefillableforms org He lived in it as his main home for 2½ years. Https www freefilefillableforms org For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. Https www freefilefillableforms org He then sold the home at a gain in 2013. Https www freefilefillableforms org 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. Https www freefilefillableforms org This means he can disregard those 6 years. Https www freefilefillableforms org Therefore, David's 5-year test period consists of the 5 years before he went on qualifying official extended duty. Https www freefilefillableforms org He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. Https www freefilefillableforms org Period of suspension. Https www freefilefillableforms org   The period of suspension cannot last more than 10 years. Https www freefilefillableforms org You cannot suspend the 5-year period for more than one property at a time. Https www freefilefillableforms org You can revoke your choice to suspend the 5-year period at any time. Https www freefilefillableforms org Qualified official extended duty. Https www freefilefillableforms org   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. Https www freefilefillableforms org   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. Https www freefilefillableforms org Property used for rental or business. Https www freefilefillableforms org   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. Https www freefilefillableforms org However, you must meet the ownership and use tests discussed in Publication 523. Https www freefilefillableforms org Nonqualified use. Https www freefilefillableforms org   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. Https www freefilefillableforms org   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. Https www freefilefillableforms org 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. Https www freefilefillableforms org Loss. Https www freefilefillableforms org   You cannot deduct a loss from the sale of your main home. Https www freefilefillableforms org More information. Https www freefilefillableforms org   For more information, see Publication 523. Https www freefilefillableforms org Foreclosures There may be tax consequences as a result of compensation payments for foreclosures. Https www freefilefillableforms org Payments made for violations of the Service Members Civil Relief Act (SCRA). Https www freefilefillableforms org   All service members who received a settlement payment reported on a Form 1099 may need to report the amount on their tax return. Https www freefilefillableforms org Generally, you must include settlement payments in income. Https www freefilefillableforms org However, the tax treatment of settlement payments will depend on the facts and circumstances. Https www freefilefillableforms org Lump Sum Portion of Settlement Payment. Https www freefilefillableforms org    Generally, you must include the lump sum payment in gross income. Https www freefilefillableforms org In limited circumstances you may be able to exclude part or all of the lump sum payment from gross income. Https www freefilefillableforms org 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. Https www freefilefillableforms org Interest Payment on Lump Sum Portion of Settlement Payment. Https www freefilefillableforms org    You must include any interest on the lump sum portion of your settlement payment in your income. Https www freefilefillableforms org Lost Equity Portion of Settlement Payment. Https www freefilefillableforms org    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. Https www freefilefillableforms org 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. Https www freefilefillableforms org In many cases, this gain may be excluded from income. Https www freefilefillableforms org 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. Https www freefilefillableforms org 523, Selling Your Home. Https www freefilefillableforms org 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. Https www freefilefillableforms org    To find rules for reporting gain or loss on the foreclosure of property that was not your main home, see Pub. Https www freefilefillableforms org 544, Sales and Other Dispositions of Assets. Https www freefilefillableforms org Interest Payment on Lost Equity Portion of Settlement Payment. Https www freefilefillableforms org    You must include any interest on the lost equity portion of your settlement payment in your income. Https www freefilefillableforms org Itemized Deductions To figure your taxable income, you must subtract either your standard deduction or your itemized deductions from adjusted gross income. Https www freefilefillableforms org For information on the standard deduction, see Publication 501. Https www freefilefillableforms org Itemized deductions are figured on Schedule A (Form 1040). Https www freefilefillableforms org This chapter discusses miscellaneous itemized deductions of particular interest to members of the Armed Forces. Https www freefilefillableforms org For information on other itemized deductions, see the publications listed below. Https www freefilefillableforms org Publication 502, Medical and Dental Expenses. Https www freefilefillableforms org Publication 526, Charitable Contributions. Https www freefilefillableforms org Publication 547, Casualties, Disasters, and Thefts. Https www freefilefillableforms org Publication 550, Investment Income and Expenses. Https www freefilefillableforms org You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Https www freefilefillableforms org For information on deductions that are not subject to the 2% limit, see Publication 529. Https www freefilefillableforms org Employee Business Expenses Deductible employee business expenses generally are miscellaneous itemized deductions subject to the 2% limit. Https www freefilefillableforms org Certain employee business expenses are deductible as adjustments to income. Https www freefilefillableforms org For information on many employee business expenses, see Publication 463. Https www freefilefillableforms org Generally, you must file Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses, to claim these expenses. Https www freefilefillableforms org 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). Https www freefilefillableforms org You can deduct these expenses directly on Schedule A (Form 1040). Https www freefilefillableforms org Reimbursement. Https www freefilefillableforms org   Generally, to receive advances, reimbursements, or other allowances from the government, you must adequately account for your expenses and return any excess reimbursement. Https www freefilefillableforms org Your reimbursed expenses are not deductible. Https www freefilefillableforms org   If your expenses are more than your reimbursement, the excess expenses are deductible (subject to the 2% limit) if you can prove them. Https www freefilefillableforms org You must file Form 2106 to report these expenses. Https www freefilefillableforms org   You can use the shorter Form 2106-EZ if you meet all three of the following conditions. Https www freefilefillableforms org You are an employee deducting expenses related to your job. Https www freefilefillableforms org You were not reimbursed by your employer for your expenses. Https www freefilefillableforms org (Amounts included in box 1 of Form W-2 are not considered reimbursements. Https www freefilefillableforms org ) If you claim car expenses, you use the standard mileage rate. Https www freefilefillableforms org    For 2013, the standard mileage rate is 56. Https www freefilefillableforms org 5 cents a mile for all business miles driven. Https www freefilefillableforms org This rate is adjusted periodically. Https www freefilefillableforms org Travel Expenses You can deduct unreimbursed travel expenses only if they are incurred while you are traveling away from home. Https www freefilefillableforms org If you are a member of the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Https www freefilefillableforms org You cannot deduct your expenses for meals and lodging while at your permanent duty station. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org To be deductible, your travel expenses must be work related. Https www freefilefillableforms org You cannot deduct any expenses for personal travel, such as visits to family while on furlough, leave, or liberty. Https www freefilefillableforms org Away from home. Https www freefilefillableforms org   Home is your permanent duty station (which can be a ship or base), regardless of where you or your family live. Https www freefilefillableforms org 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. Https www freefilefillableforms org   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. Https www freefilefillableforms org    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. Https www freefilefillableforms org This rule may not apply if you are participating in a federal crime investigation or prosecution. Https www freefilefillableforms org For more information, see Publication 463 and the Form 2106 instructions. Https www freefilefillableforms org 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. Https www freefilefillableforms org These expenses include the costs of transportation by air, bus, rail, taxi, and driving and maintaining your car. Https www freefilefillableforms org Transportation expenses incurred while traveling away from home are included with your travel expenses, discussed earlier. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org However, the expenses of getting to and from your regular place of work (commuting) are not deductible. Https www freefilefillableforms org Temporary work location. Https www freefilefillableforms org   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. Https www freefilefillableforms org   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. Https www freefilefillableforms org   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. Https www freefilefillableforms org 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. Https www freefilefillableforms org    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. Https www freefilefillableforms org However, you cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Https www freefilefillableforms org These are nondeductible commuting costs. Https www freefilefillableforms org Armed Forces reservists. Https www freefilefillableforms org   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. Https www freefilefillableforms org You can deduct the expense of getting from one workplace to the other. Https www freefilefillableforms org 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. Https www freefilefillableforms org In this case, your transportation generally is a nondeductible commuting expense. Https www freefilefillableforms org 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. Https www freefilefillableforms org   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. Https www freefilefillableforms org If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Https www freefilefillableforms org See Armed Forces Reservists under Adjustments to Income, earlier. Https www freefilefillableforms org Uniforms You usually cannot deduct the expenses for uniform cost and upkeep. Https www freefilefillableforms org Generally, you must wear uniforms when on duty and you are allowed to wear them when off duty. Https www freefilefillableforms org 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. Https www freefilefillableforms org Unreimbursed expenses for the cost and upkeep of the following articles are deductible. Https www freefilefillableforms org Military battle dress uniforms and utility uniforms that you cannot wear when off duty. Https www freefilefillableforms org Articles not replacing regular clothing, including insignia of rank, corps devices, epaulets, aiguillettes, and swords. Https www freefilefillableforms org Reservists' uniforms if you can wear the uniform only while performing duties as a reservist. Https www freefilefillableforms org Professional Dues You can deduct unreimbursed dues paid to professional societies directly related to your military position. Https www freefilefillableforms org However, you cannot deduct amounts paid to an officers' club or a noncommissioned officers' club. Https www freefilefillableforms org Example. Https www freefilefillableforms org Lieutenant Margaret Allen, an electrical engineer at Maxwell Air Force Base, can deduct professional dues paid to the American Society of Electrical Engineers. Https www freefilefillableforms org Educational Expenses You can deduct the unreimbursed costs of qualifying work-related education. Https www freefilefillableforms org This is education that meets at least one of the following two tests. Https www freefilefillableforms org The education is required by your employer or the law to keep your present salary, status, or job. Https www freefilefillableforms org The required education must serve a bona fide business purpose of your employer. Https www freefilefillableforms org The education maintains or improves skills needed in your present work. Https www freefilefillableforms org 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. Https www freefilefillableforms org You can deduct the expenses for qualifying work-related education even if the education could lead to a degree. Https www freefilefillableforms org Example 1. Https www freefilefillableforms org Lieutenant Colonel Mason has a degree in financial management and is in charge of base finances at her post of duty. Https www freefilefillableforms org She took an advanced finance course. Https www freefilefillableforms org She already meets the minimum qualifications for her job. Https www freefilefillableforms org By taking the course, she is improving skills in her current position. Https www freefilefillableforms org The course does not qualify her for a new trade or business. Https www freefilefillableforms org She can deduct educational expenses that are more than the educational allowance she received. Https www freefilefillableforms org Example 2. Https www freefilefillableforms org Major Williams worked in the military base legal office as a legal intern. Https www freefilefillableforms org He was placed in excess leave status by his employer to attend law school. Https www freefilefillableforms org He paid all his educational expenses and was not reimbursed. Https www freefilefillableforms org After obtaining his law degree, he passed the state bar exam and worked as a judge advocate. Https www freefilefillableforms org 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. Https www freefilefillableforms org Travel to obtain education. Https www freefilefillableforms org   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. Https www freefilefillableforms org   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. Https www freefilefillableforms org Transportation for education. Https www freefilefillableforms org   If your work-related education qualifies for a deduction, you can deduct the costs of transportation to obtain that education. Https www freefilefillableforms org However, you cannot deduct the cost of services provided in kind, such as base-provided transportation to or from class. Https www freefilefillableforms org Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Https www freefilefillableforms org   If you need more information on educational expenses, see Publication 970. Https www freefilefillableforms org 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. Https www freefilefillableforms org Repayment of $3,000 or less. Https www freefilefillableforms org   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Https www freefilefillableforms org If you reported it as wages, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Https www freefilefillableforms org Repayment over $3,000. Https www freefilefillableforms org   If the amount you repaid was more than $3,000, see Repayments in Publication 525. Https www freefilefillableforms org Credits After you have figured your taxable income and tax liability, you can determine if you are entitled to any tax credits. Https www freefilefillableforms org This publication discusses the first-time homebuyer credit, child tax credit, earned income credit, and credit for excess social security tax withheld. Https www freefilefillableforms org For information on other credits, see your tax form instructions. Https www freefilefillableforms org First-Time Homebuyer Credit The first-time homebuyer credit is not available for homes purchased after 2011. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org If you bought your home in 2008, you generally must repay the credit over a 15-year period in 15 equal installments. Https www freefilefillableforms org For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. Https www freefilefillableforms org 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. Https www freefilefillableforms org 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. Https www freefilefillableforms org The child tax credit is not the same as the credit for child and dependent care expenses. Https www freefilefillableforms org See Publication 503 for information on the credit for child and dependent care expenses. Https www freefilefillableforms org 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. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen, a U. Https www freefilefillableforms org S. Https www freefilefillableforms org national, or a U. Https www freefilefillableforms org S. Https www freefilefillableforms org resident alien. Https www freefilefillableforms org If the child was adopted, see Adopted child . Https www freefilefillableforms org For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c, column (4). Https www freefilefillableforms org Exceptions to time lived with you. Https www freefilefillableforms org   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. Https www freefilefillableforms org 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. Https www freefilefillableforms org   There are also exceptions for kidnapped children and children of divorced or separated parents. Https www freefilefillableforms org For details, see Publication 501. Https www freefilefillableforms org Qualifying child of more than one person. Https www freefilefillableforms org   A special rule applies if your qualifying child is the qualifying child of more than one person. Https www freefilefillableforms org For details, see Publication 501. Https www freefilefillableforms org Adopted child. Https www freefilefillableforms org   An adopted child is always treated as your own child. Https www freefilefillableforms org An adopted child includes a child lawfully placed with you for legal adoption. Https www freefilefillableforms org   If you are a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen or U. Https www freefilefillableforms org S. Https www freefilefillableforms org 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. Https www freefilefillableforms org Amount of Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. Https www freefilefillableforms org Limits on the credit. Https www freefilefillableforms org   You must reduce your child tax credit if either (1) or (2), below, applies. Https www freefilefillableforms org The amount on Form 1040, line 46, or Form 1040A, line 28, is less than the credit. Https www freefilefillableforms org If the amount is zero, you cannot take this credit because there is no tax to reduce. Https www freefilefillableforms org However, you may be able to take the additional child tax credit. Https www freefilefillableforms org See Additional Child Tax Credit , later. Https www freefilefillableforms org Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. Https www freefilefillableforms org Married filing jointly — $110,000. Https www freefilefillableforms org Single, head of household,  or qualifying widow(er) — $75,000. Https www freefilefillableforms org Married filing separately — $55,000. Https www freefilefillableforms org Modified AGI. Https www freefilefillableforms org   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. Https www freefilefillableforms org Any amount excluded from income because of the exclusion of income from Puerto Rico. Https www freefilefillableforms org Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. Https www freefilefillableforms org Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. Https www freefilefillableforms org Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. Https www freefilefillableforms org   If you do not have any of the above, your modified AGI is the same as your AGI. Https www freefilefillableforms org Claiming the Credit To claim the child tax credit, you must file Form 1040 or Form 1040A. Https www freefilefillableforms org For more information on the child tax credit, see the instructions for Form 1040 or Form 1040A. Https www freefilefillableforms org Also attach Schedule 8812, Child Tax Credit, if required. Https www freefilefillableforms org Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. Https www freefilefillableforms org The additional child tax credit may give you a refund even if you do not owe any tax. Https www freefilefillableforms org For more information, see the instructions for Form 1040 or Form 1040A, and Schedule 8812. Https www freefilefillableforms org Earned Income Credit The earned income credit (EIC) is a cr
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Https www freefilefillableforms org 1. Https www freefilefillableforms org   Filing Information Table of Contents What's New Reminders Introduction Do I Have To File a Return?Individuals—In General Dependents Certain Children Under Age 19 or Full-Time Students Self-Employed Persons Aliens Who Should File Which Form Should I Use?Form 1040EZ Form 1040A Form 1040 Does My Return Have To Be on Paper?IRS e-file When Do I Have To File?Private delivery services. Https www freefilefillableforms org Extensions of Time To File How Do I Prepare My Return?When Do I Report My Income and Expenses? Social Security Number (SSN) Presidential Election Campaign Fund Computations Attachments Third Party Designee Signatures Paid Preparer Refunds Amount You Owe Gift To Reduce Debt Held by the Public Name and Address Where Do I File? What Happens After I File?What Records Should I Keep? Why Keep Records? Kinds of Records to Keep Basic Records How Long to Keep Records Refund Information Interest on Refunds Change of Address What If I Made a Mistake?Amended Returns and Claims for Refund Penalties Identity Theft What's New Filing status for same-sex married couple. Https www freefilefillableforms org   If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Https www freefilefillableforms org See Publication 501 for more information. Https www freefilefillableforms org Additional Medicare Tax. Https www freefilefillableforms org  Beginning in 2013, a 0. Https www freefilefillableforms org 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. Https www freefilefillableforms org For more information, see the Instructions for Form 1040, line 60, and Form 8959. Https www freefilefillableforms org Net Investment Income Tax. Https www freefilefillableforms org  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). Https www freefilefillableforms org NIIT is a 3. Https www freefilefillableforms org 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. Https www freefilefillableforms org For more information, see the Instructions for Form 1040, line 60, and Form 8960. Https www freefilefillableforms org Refundable credit for prior year minimum tax. Https www freefilefillableforms org  The refundable portion of the credit for prior year minimum tax is no longer available. Https www freefilefillableforms org Who must file. Https www freefilefillableforms org  Generally, the amount of income you can receive before you must file a return has been increased. Https www freefilefillableforms org See Table 1-1, Table 1-2, and Table 1-3 for the specific amounts. Https www freefilefillableforms org Reminders File online. Https www freefilefillableforms org  Rather than filing a return on paper, you may be able to file electronically using IRS e-file. Https www freefilefillableforms org Create your own personal identification number (PIN) and file a completely paperless tax return. Https www freefilefillableforms org For more information, see Does My Return Have To Be on Paper , later. Https www freefilefillableforms org Change of address. Https www freefilefillableforms org  If you change your address, you should notify the IRS. Https www freefilefillableforms org You can use Form 8822 to notify the IRS of the change. Https www freefilefillableforms org See Change of Address , later, under What Happens After I File. Https www freefilefillableforms org Enter your social security number. Https www freefilefillableforms org  You must enter your social security number (SSN) in the spaces provided on your tax return. Https www freefilefillableforms org If you file a joint return, enter the SSNs in the same order as the names. Https www freefilefillableforms org Direct deposit of refund. Https www freefilefillableforms org  Instead of getting a paper check, you may be able to have your refund deposited directly into your account at a bank or other financial institution. Https www freefilefillableforms org See Direct Deposit under Refunds, later. Https www freefilefillableforms org If you choose direct deposit of your refund, you may be able to split the refund among two or three accounts. Https www freefilefillableforms org Pay online or by phone. Https www freefilefillableforms org  If you owe additional tax, you may be able to pay online or by phone. Https www freefilefillableforms org See How To Pay , later. Https www freefilefillableforms org Installment agreement. Https www freefilefillableforms org  If you cannot pay the full amount due with your return, you may ask to make monthly installment payments. Https www freefilefillableforms org See Installment Agreement , later, under Amount You Owe. Https www freefilefillableforms org You may be able to apply online for a payment agreement if you owe federal tax, interest, and penalties. Https www freefilefillableforms org Automatic 6-month extension. Https www freefilefillableforms org  You can get an automatic 6-month extension to file your tax return if, no later than the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Https www freefilefillableforms org S. Https www freefilefillableforms org Individual Income Tax Return. Https www freefilefillableforms org See Automatic Extension , later. Https www freefilefillableforms org Service in combat zone. Https www freefilefillableforms org  You are allowed extra time to take care of your tax matters if you are a member of the Armed Forces who served in a combat zone, or if you served in the combat zone in support of the Armed Forces. Https www freefilefillableforms org See Individuals Serving in Combat Zone , later, under When Do I Have To File. Https www freefilefillableforms org Adoption taxpayer identification number. Https www freefilefillableforms org  If a child has been placed in your home for purposes of legal adoption and you will not be able to get a social security number for the child in time to file your return, you may be able to get an adoption taxpayer identification number (ATIN). Https www freefilefillableforms org For more information, see Social Security Number (SSN) , later. Https www freefilefillableforms org Taxpayer identification number for aliens. Https www freefilefillableforms org  If you or your dependent is a nonresident or resident alien who does not have and is not eligible to get a social security number, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Https www freefilefillableforms org For more information, see Social Security Number (SSN) , later. Https www freefilefillableforms org Frivolous tax submissions. Https www freefilefillableforms org  The IRS has published a list of positions that are identified as frivolous. Https www freefilefillableforms org The penalty for filing a frivolous tax return is $5,000. Https www freefilefillableforms org Also, the $5,000 penalty will apply to other specified frivolous submissions. Https www freefilefillableforms org For more information, see Civil Penalties , later. Https www freefilefillableforms org Introduction This chapter discusses the following topics. Https www freefilefillableforms org Whether you have to file a return. Https www freefilefillableforms org Which form to use. Https www freefilefillableforms org How to file electronically. Https www freefilefillableforms org When, how, and where to file your return. Https www freefilefillableforms org What happens if you pay too little or too much tax. Https www freefilefillableforms org What records you should keep and how long you should keep them. Https www freefilefillableforms org How you can change a return you have already filed. Https www freefilefillableforms org Do I Have To File a Return? You must file a federal income tax return if you are a citizen or resident of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the following categories that apply to you. Https www freefilefillableforms org Individuals in general. Https www freefilefillableforms org (There are special rules for surviving spouses, executors, administrators, legal representatives, U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizens and residents living outside the United States, residents of Puerto Rico, and individuals with income from U. Https www freefilefillableforms org S. Https www freefilefillableforms org possessions. Https www freefilefillableforms org ) Dependents. Https www freefilefillableforms org Certain children under age 19 or full-time students. Https www freefilefillableforms org Self-employed persons. Https www freefilefillableforms org Aliens. Https www freefilefillableforms org The filing requirements for each category are explained in this chapter. Https www freefilefillableforms org The filing requirements apply even if you do not owe tax. Https www freefilefillableforms org Even if you do not have to file a return, it may be to your advantage to do so. Https www freefilefillableforms org See Who Should File, later. Https www freefilefillableforms org File only one federal income tax return for the year regardless of how many jobs you had, how many Forms W-2 you received, or how many states you lived in during the year. Https www freefilefillableforms org Do not file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed. Https www freefilefillableforms org Individuals—In General If you are a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen or resident, whether you must file a return depends on three factors: Your gross income, Your filing status, and Your age. Https www freefilefillableforms org To find out whether you must file, see Table 1-1, Table 1-2, and Table 1-3. Https www freefilefillableforms org Even if no table shows that you must file, you may need to file to get money back. Https www freefilefillableforms org (See Who Should File , later. Https www freefilefillableforms org ) Gross income. Https www freefilefillableforms org   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Https www freefilefillableforms org It also includes income from sources outside the United States or from the sale of your main home (even if you can exclude all or part of it). Https www freefilefillableforms org Include part of your social security benefits if: You were married, filing a separate return, and you lived with your spouse at any time during 2013; or Half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Https www freefilefillableforms org If either (1) or (2) applies, see the instructions for Form 1040 or 1040A, or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the social security benefits you must include in gross income. Https www freefilefillableforms org   Common types of income are discussed in Part Two of this publication. Https www freefilefillableforms org Community income. Https www freefilefillableforms org   If you are married and your permanent home is in a community property state, half of any income described by state law as community income may be considered yours. Https www freefilefillableforms org This affects your federal taxes, including whether you must file if you do not file a joint return with your spouse. Https www freefilefillableforms org See Publication 555, Community Property, for more information. Https www freefilefillableforms org Nevada, Washington, and California domestic partners. Https www freefilefillableforms org   A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. Https www freefilefillableforms org See Publication 555. Https www freefilefillableforms org Self-employed individuals. Https www freefilefillableforms org   If you are self-employed, your gross income includes the amount on line 7 of Schedule C (Form 1040), Profit or Loss From Business; line 1 of Schedule C-EZ (Form 1040), Net Profit From Business; and line 9 of Schedule F (Form 1040), Profit or Loss From Farming. Https www freefilefillableforms org See Self-Employed Persons , later, for more information about your filing requirements. Https www freefilefillableforms org    If you do not report all of your self-employment income, your social security benefits may be lower when you retire. Https www freefilefillableforms org Filing status. Https www freefilefillableforms org   Your filing status depends on whether you are single or married and on your family situation. Https www freefilefillableforms org Your filing status is determined on the last day of your tax year, which is December 31 for most taxpayers. Https www freefilefillableforms org See chapter 2 for an explanation of each filing status. Https www freefilefillableforms org Age. Https www freefilefillableforms org   If you are 65 or older at the end of the year, you generally can have a higher amount of gross income than other taxpayers before you must file. Https www freefilefillableforms org See Table 1-1. Https www freefilefillableforms org You are considered 65 on the day before your 65th birthday. Https www freefilefillableforms org For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Https www freefilefillableforms org Table 1-1. Https www freefilefillableforms org 2013 Filing Requirements for Most Taxpayers IF your filing status is. Https www freefilefillableforms org . Https www freefilefillableforms org . Https www freefilefillableforms org AND at the end of 2013 you  were. Https www freefilefillableforms org . Https www freefilefillableforms org . Https www freefilefillableforms org * THEN file a return if  your gross income  was at least. Https www freefilefillableforms org . Https www freefilefillableforms org . Https www freefilefillableforms org ** single under 65 $10,000     65 or older $11,500   married filing jointly*** under 65 (both spouses) $20,000     65 or older (one spouse) $21,200     65 or older (both spouses) $22,400   married filing separately any age $3,900   head of household under 65 $12,850     65 or older $14,350   qualifying widow(er) with dependent child under 65 $16,100   65 or older $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Https www freefilefillableforms org ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Https www freefilefillableforms org Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Https www freefilefillableforms org If (a) or (b) applies, see the Instructions for Form 1040 or 1040A or Publication 915 to figure the taxable part of social security benefits you must include in gross income. Https www freefilefillableforms org Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Https www freefilefillableforms org Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Https www freefilefillableforms org But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Https www freefilefillableforms org *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Https www freefilefillableforms org Surviving Spouses, Executors, Administrators, and Legal Representatives You must file a final return for a decedent (a person who died) if both of the following are true. Https www freefilefillableforms org You are the surviving spouse, executor, administrator, or legal representative. Https www freefilefillableforms org The decedent met the filing requirements at the date of death. Https www freefilefillableforms org For more information on rules for filing a decedent's final return, see Publication 559, Survivors, Executors, and Administrators. Https www freefilefillableforms org U. Https www freefilefillableforms org S. Https www freefilefillableforms org Citizens and Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you received abroad, including any income you can exclude under the foreign earned income exclusion. Https www freefilefillableforms org For information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Https www freefilefillableforms org S. Https www freefilefillableforms org Citizens and Resident Aliens Abroad. Https www freefilefillableforms org It is available online and at most U. Https www freefilefillableforms org S. Https www freefilefillableforms org embassies and consulates. Https www freefilefillableforms org See How To Get Tax Help in the back of this publication. Https www freefilefillableforms org Residents of Puerto Rico If you are a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Https www freefilefillableforms org S. Https www freefilefillableforms org income tax return for any year in which you meet the income requirements. Https www freefilefillableforms org This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Https www freefilefillableforms org If you are a bona fide resident of Puerto Rico for the entire year, your U. Https www freefilefillableforms org S. Https www freefilefillableforms org gross income does not include income from sources within Puerto Rico. Https www freefilefillableforms org It does, however, include any income you received for your services as an employee of the United States or a U. Https www freefilefillableforms org S. Https www freefilefillableforms org agency. Https www freefilefillableforms org If you receive income from Puerto Rican sources that is not subject to U. Https www freefilefillableforms org S. Https www freefilefillableforms org tax, you must reduce your standard deduction. Https www freefilefillableforms org As a result, the amount of income you must have before you are required to file a U. Https www freefilefillableforms org S. Https www freefilefillableforms org income tax return is lower than the applicable amount in Table 1-1 or Table 1-2. Https www freefilefillableforms org For more information, see Publication 570, Tax Guide for Individuals With Income From U. Https www freefilefillableforms org S. Https www freefilefillableforms org Possessions. Https www freefilefillableforms org Individuals With Income From U. Https www freefilefillableforms org S. Https www freefilefillableforms org Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Https www freefilefillableforms org S. Https www freefilefillableforms org Virgin Islands, special rules may apply when determining whether you must file a U. Https www freefilefillableforms org S. Https www freefilefillableforms org federal income tax return. Https www freefilefillableforms org In addition, you may have to file a return with the individual island government. Https www freefilefillableforms org See Publication 570 for more information. Https www freefilefillableforms org Dependents If you are a dependent (one who meets the dependency tests in chapter 3), see Table 1-2 to find out whether you must file a return. Https www freefilefillableforms org You also must file if your situation is described in Table 1-3. Https www freefilefillableforms org Responsibility of parent. Https www freefilefillableforms org   Generally, a child is responsible for filing his or her own tax return and for paying any tax on the return. Https www freefilefillableforms org If a dependent child must file an income tax return but cannot file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child. Https www freefilefillableforms org If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Https www freefilefillableforms org ” Child's earnings. Https www freefilefillableforms org   Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Https www freefilefillableforms org This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Https www freefilefillableforms org But if the child does not pay the tax due on this income, the parent is liable for the tax. Https www freefilefillableforms org Certain Children Under Age 19 or Full-Time Students If a child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends), the child was under age 19 at the end of 2013 or was a full-time student under age 24 at the end of 2013, and certain other conditions are met, a parent can elect to include the child's income on the parent's return. Https www freefilefillableforms org If this election is made, the child does not have to file a return. Https www freefilefillableforms org See Parent's Election To Report Child's Interest and Dividends in chapter 31. Https www freefilefillableforms org Self-Employed Persons You are self-employed if you: Carry on a trade or business as a sole proprietor, Are an independent contractor, Are a member of a partnership, or Are in business for yourself in any other way. Https www freefilefillableforms org Self-employment can include work in addition to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job. Https www freefilefillableforms org You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1). Https www freefilefillableforms org Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if: Your net earnings from self-employment (excluding church employee income) were $400 or more, or You had church employee income of $108. Https www freefilefillableforms org 28 or more. Https www freefilefillableforms org (See Table 1-3. Https www freefilefillableforms org ) Use Schedule SE (Form 1040) to figure your self-employment tax. Https www freefilefillableforms org Self-employment tax is comparable to the social security and Medicare tax withheld from an employee's wages. Https www freefilefillableforms org For more information about this tax, see Publication 334, Tax Guide for Small Business. Https www freefilefillableforms org Employees of foreign governments or international organizations. Https www freefilefillableforms org   If you are a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen who works in the United States for an international organization, a foreign government, or a wholly owned instrumentality of a foreign government, and your employer is not required to withhold social security and Medicare taxes from your wages, you must include your earnings from services performed in the United States when figuring your net earnings from self-employment. Https www freefilefillableforms org Ministers. Https www freefilefillableforms org   You must include income from services you performed as a minister when figuring your net earnings from self-employment, unless you have an exemption from self-employment tax. Https www freefilefillableforms org This also applies to Christian Science practitioners and members of a religious order who have not taken a vow of poverty. Https www freefilefillableforms org For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Https www freefilefillableforms org Table 1-2. Https www freefilefillableforms org 2013 Filing Requirements for Dependents See chapter 3 to find out if someone can claim you as a dependent. Https www freefilefillableforms org If your parents (or someone else) can claim you as a dependent, use this table to see if you must file a return. Https www freefilefillableforms org (See Table 1-3 for other situations when you must file. Https www freefilefillableforms org ) In this table, earned income includes salaries, wages, tips, and professional fees. Https www freefilefillableforms org It also includes taxable scholarship and fellowship grants. Https www freefilefillableforms org (See Scholarships and fellowships in chapter 12. Https www freefilefillableforms org ) Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. Https www freefilefillableforms org It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust. Https www freefilefillableforms org Gross income is the total of your earned and unearned income. Https www freefilefillableforms org   Single dependents—Were you either age 65 or older or blind? □ No. Https www freefilefillableforms org You must file a return if any of the following apply. Https www freefilefillableforms org     • Your unearned income was more than $1,000. Https www freefilefillableforms org     • Your earned income was more than $6,100. Https www freefilefillableforms org     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Https www freefilefillableforms org □ Yes. Https www freefilefillableforms org You must file a return if any of the following apply. Https www freefilefillableforms org     • Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Https www freefilefillableforms org     • Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Https www freefilefillableforms org     • Your gross income was more than the larger of:       • $2,500 ($4,000 if 65 or older and blind), or       • Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Https www freefilefillableforms org Married dependents—Were you either age 65 or older or blind? □ No. Https www freefilefillableforms org You must file a return if any of the following apply. Https www freefilefillableforms org     • Your unearned income was more than $1,000. Https www freefilefillableforms org     • Your earned income was more than $6,100. Https www freefilefillableforms org     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Https www freefilefillableforms org     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Https www freefilefillableforms org □ Yes. Https www freefilefillableforms org You must file a return if any of the following apply. Https www freefilefillableforms org     • Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Https www freefilefillableforms org     • Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Https www freefilefillableforms org     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Https www freefilefillableforms org     • Your gross income was more than the larger of:       • $2,200 ($3,400 if 65 or older and blind), or       • Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Https www freefilefillableforms org Aliens Your status as an alien—resident, nonresident, or dual-status—determines whether and how you must file an income tax return. Https www freefilefillableforms org The rules used to determine your alien status are discussed in Publication 519, U. Https www freefilefillableforms org S. Https www freefilefillableforms org Tax Guide for Aliens. Https www freefilefillableforms org Resident alien. Https www freefilefillableforms org   If you are a resident alien for the entire year, you must file a tax return following the same rules that apply to U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizens. Https www freefilefillableforms org Use the forms discussed in this publication. Https www freefilefillableforms org Nonresident alien. Https www freefilefillableforms org   If you are a nonresident alien, the rules and tax forms that apply to you are different from those that apply to U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizens and resident aliens. Https www freefilefillableforms org See Publication 519 to find out if U. Https www freefilefillableforms org S. Https www freefilefillableforms org income tax laws apply to you and which forms you should file. Https www freefilefillableforms org Dual-status taxpayer. Https www freefilefillableforms org   If you are a resident alien for part of the tax year and a nonresident alien for the rest of the year, you are a dual-status taxpayer. Https www freefilefillableforms org Different rules apply for each part of the year. Https www freefilefillableforms org For information on dual-status taxpayers, see Publication 519. Https www freefilefillableforms org Table 1-3. Https www freefilefillableforms org Other Situations When You Must File a 2013 Return You must file a return if any of the four conditions below apply for 2013. Https www freefilefillableforms org 1. Https www freefilefillableforms org   You owe any special taxes, including any of the following. Https www freefilefillableforms org   a. Https www freefilefillableforms org Alternative minimum tax. Https www freefilefillableforms org   b. Https www freefilefillableforms org Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Https www freefilefillableforms org But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Https www freefilefillableforms org   c. Https www freefilefillableforms org Household employment taxes. Https www freefilefillableforms org But if you are filing a return only because you owe this tax, you can file Schedule H by itself. Https www freefilefillableforms org   d. Https www freefilefillableforms org Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes. Https www freefilefillableforms org   e. Https www freefilefillableforms org Recapture of first-time homebuyer credit. Https www freefilefillableforms org   f. Https www freefilefillableforms org Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. Https www freefilefillableforms org   g. Https www freefilefillableforms org Recapture taxes. Https www freefilefillableforms org 2. Https www freefilefillableforms org   You (or your spouse, if filing jointly) received HSA, Archer MSA, or Medicare Advantage MSA distributions. Https www freefilefillableforms org 3. Https www freefilefillableforms org   You had net earnings from self-employment of at least $400. Https www freefilefillableforms org 4. Https www freefilefillableforms org   You had wages of $108. Https www freefilefillableforms org 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Https www freefilefillableforms org Who Should File Even if you do not have to file, you should file a federal income tax return to get money back if any of the following conditions apply. Https www freefilefillableforms org You had federal income tax withheld or made estimated tax payments. Https www freefilefillableforms org You qualify for the earned income credit. Https www freefilefillableforms org See chapter 36 for more information. Https www freefilefillableforms org You qualify for the additional child tax credit. Https www freefilefillableforms org See chapter 34 for more information. Https www freefilefillableforms org You qualify for the health coverage tax credit. Https www freefilefillableforms org See chapter 37 for more information. Https www freefilefillableforms org You qualify for the American opportunity credit. Https www freefilefillableforms org See chapter 35 for more information. Https www freefilefillableforms org You qualify for the credit for federal tax on fuels. Https www freefilefillableforms org See chapter 37 for more information. Https www freefilefillableforms org Which Form Should I Use? You must use one of three forms to file your return: Form 1040EZ, Form 1040A, or Form 1040. Https www freefilefillableforms org (But also see Does My Return Have To Be on Paper , later. Https www freefilefillableforms org ) See the discussion under Form 1040 for when you must use that form. Https www freefilefillableforms org Form 1040EZ Form 1040EZ is the simplest form to use. Https www freefilefillableforms org You can use Form 1040EZ if all of the following apply. Https www freefilefillableforms org    Your filing status is single or married filing jointly. Https www freefilefillableforms org If you were a nonresident alien at any time in 2013, your filing status must be married filing jointly. Https www freefilefillableforms org You (and your spouse if married filing a joint return) were under age 65 and not blind at the end of 2013. Https www freefilefillableforms org If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Https www freefilefillableforms org You do not claim any dependents. Https www freefilefillableforms org Your taxable income is less than $100,000. Https www freefilefillableforms org Your income is only from wages, salaries, tips, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less. Https www freefilefillableforms org You do not claim any adjustments to income, such as a deduction for IRA contributions or student loan interest. Https www freefilefillableforms org You do not claim any credits other than the earned income credit. Https www freefilefillableforms org You do not owe any household employment taxes on wages you paid to a household employee. Https www freefilefillableforms org If you earned tips, they are included in boxes 5 and 7 of your Form W-2. Https www freefilefillableforms org You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005. Https www freefilefillableforms org   You must meet all of these requirements to use Form 1040EZ. Https www freefilefillableforms org If you do not, you must use Form 1040A or Form 1040. Https www freefilefillableforms org Figuring tax. Https www freefilefillableforms org   On Form 1040EZ, you can use only the tax table to figure your income tax. Https www freefilefillableforms org You cannot use Form 1040EZ to report any other tax. Https www freefilefillableforms org Form 1040A If you do not qualify to use Form 1040EZ, you may be able to use Form 1040A. Https www freefilefillableforms org You can use Form 1040A if all of the following apply. Https www freefilefillableforms org    Your income is only from: Wages, salaries, and tips, Interest, Ordinary dividends (including Alaska Permanent Fund dividends), Capital gain distributions, IRA distributions, Pensions and annuities, Unemployment compensation, Taxable social security and railroad retirement benefits, and Taxable scholarship and fellowship grants. Https www freefilefillableforms org If you receive a capital gain distribution that includes unrecaptured section 1250 gain, section 1202 gain, or collectibles (28%) gain, you cannot use Form 1040A. Https www freefilefillableforms org You must use Form 1040. Https www freefilefillableforms org Your taxable income is less than $100,000. Https www freefilefillableforms org Your adjustments to income are for only the following items. Https www freefilefillableforms org Educator expenses. Https www freefilefillableforms org IRA deduction. Https www freefilefillableforms org Student loan interest deduction. Https www freefilefillableforms org Tuition and fees. Https www freefilefillableforms org You do not itemize your deductions. Https www freefilefillableforms org You claim only the following tax credits. Https www freefilefillableforms org The credit for child and dependent care expenses. Https www freefilefillableforms org (See chapter 32. Https www freefilefillableforms org ) The credit for the elderly or the disabled. Https www freefilefillableforms org (See chapter 33. Https www freefilefillableforms org ) The education credits. Https www freefilefillableforms org (See chapter 35. Https www freefilefillableforms org ) The retirement savings contribution credit. Https www freefilefillableforms org (See chapter 37. Https www freefilefillableforms org ) The child tax credit. Https www freefilefillableforms org (See chapter 34. Https www freefilefillableforms org ) The earned income credit. Https www freefilefillableforms org (See chapter 36. Https www freefilefillableforms org ) The additional child tax credit. Https www freefilefillableforms org (See chapter 34. Https www freefilefillableforms org ) You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option. Https www freefilefillableforms org (See Publication 525, Taxable and Nontaxable Income. Https www freefilefillableforms org )   You can also use Form 1040A if you received employer-provided dependent care benefits or if you owe tax from the recapture of an education credit or the alternative minimum tax. Https www freefilefillableforms org   You must meet all these requirements to use Form 1040A. Https www freefilefillableforms org If you do not, you must use Form 1040. Https www freefilefillableforms org Form 1040 If you cannot use Form 1040EZ or Form 1040A, you must use Form 1040. Https www freefilefillableforms org You can use Form 1040 to report all types of income, deductions, and credits. Https www freefilefillableforms org You may pay less tax by filing Form 1040 because you can take itemized deductions, some adjustments to income, and credits you cannot take on Form 1040A or Form 1040EZ. Https www freefilefillableforms org You must use Form 1040 if any of the following apply. Https www freefilefillableforms org    Your taxable income is $100,000 or more. Https www freefilefillableforms org You itemize your deductions on Schedule A. Https www freefilefillableforms org You had income that cannot be reported on Form 1040EZ or Form 1040A, including tax-exempt interest from private activity bonds issued after August 7, 1986. Https www freefilefillableforms org You claim any adjustments to gross income other than the adjustments listed earlier under Form 1040A. Https www freefilefillableforms org Your Form W-2, box 12, shows uncollected employee tax (social security and Medicare tax) on tips (see chapter 6) or group-term life insurance (see chapter 5). Https www freefilefillableforms org You received $20 or more in tips in any 1 month and did not report all of them to your employer. Https www freefilefillableforms org (See chapter 6. Https www freefilefillableforms org ) You were a bona fide resident of Puerto Rico and exclude income from sources in Puerto Rico. Https www freefilefillableforms org You claim any credits other than the credits listed earlier under Form 1040A. Https www freefilefillableforms org You owe the excise tax on insider stock compensation from an expatriated corporation. Https www freefilefillableforms org Your Form W-2 shows an amount in box 12 with a code Z. Https www freefilefillableforms org You had a qualified health savings account funding distribution from your IRA. Https www freefilefillableforms org You are an employee and your employer did not withhold social security and Medicare tax. Https www freefilefillableforms org You have to file other forms with your return to report certain exclusions, taxes, or transactions, such as Form 8959 or Form 8960. Https www freefilefillableforms org You are a debtor in a bankruptcy case filed after October 16, 2005. Https www freefilefillableforms org You must repay the first-time homebuyer credit. Https www freefilefillableforms org You have adjusted gross income of more than $150,000 and must reduce the dollar amount of your exemptions. Https www freefilefillableforms org Does My Return Have To Be on Paper? You may be able to file a paperless return using IRS e-file (electronic filing). Https www freefilefillableforms org If your 2013 adjusted gross income (AGI) is less than a certain amount, you are eligible for Free File. Https www freefilefillableforms org See your tax return instructions for details. Https www freefilefillableforms org If you do not qualify for Free File, then you should check out IRS. Https www freefilefillableforms org gov for low-cost e-file options or Free File Fillable Forms. Https www freefilefillableforms org IRS e-file Table 1-4 lists the benefits of IRS e-file. Https www freefilefillableforms org IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Https www freefilefillableforms org As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Https www freefilefillableforms org However, as with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Https www freefilefillableforms org Using e-file does not affect your chances of an IRS examination of your return. Https www freefilefillableforms org Free File Fillable Forms. Https www freefilefillableforms org   If you do not need the help of a tax preparer, then Free File Fillable Forms may be for you. Https www freefilefillableforms org These forms: Do not have an income requirement so everyone is eligible, Are easy to use, Perform basic math calculations, Are available only at IRS. Https www freefilefillableforms org gov, and Apply only to a federal tax return. Https www freefilefillableforms org Electronic return signatures. Https www freefilefillableforms org   To file your return electronically, you must sign the return electronically using a personal identification number (PIN). Https www freefilefillableforms org If you are filing online, you must use a Self-Select PIN. Https www freefilefillableforms org If you are filing electronically using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN. Https www freefilefillableforms org Self-Select PIN. Https www freefilefillableforms org   The Self-Select PIN method allows you to create your own PIN. Https www freefilefillableforms org If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Https www freefilefillableforms org   A PIN is any combination of five digits you choose except five zeros. Https www freefilefillableforms org If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Https www freefilefillableforms org   To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2012 federal income tax return, if applicable. Https www freefilefillableforms org Do not use your AGI from an amended return (Form 1040X) or a math error correction made by the IRS. Https www freefilefillableforms org AGI is the amount shown on your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. Https www freefilefillableforms org If you do not have your 2012 income tax return, you can quickly request a transcript by using our automated self-service tool. Https www freefilefillableforms org Visit us at IRS. Https www freefilefillableforms org gov and click on Order a Return or Account Transcript or call 1-800-908-9946 to get a free transcript of your return. Https www freefilefillableforms org (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. Https www freefilefillableforms org The prior year PIN is the five digit PIN you used to electronically sign your 2012 return. Https www freefilefillableforms org ) You will also be prompted to enter your date of birth. Https www freefilefillableforms org Table 1-4. Https www freefilefillableforms org Benefits of IRS e-file • Free File allows qualified taxpayers to prepare and e-file their own tax returns for free. Https www freefilefillableforms org • Free File is available in English and Spanish. Https www freefilefillableforms org • Free File is available online 24 hours a day, 7 days a week. Https www freefilefillableforms org • Get your refund faster by e-filing using Direct Deposit. Https www freefilefillableforms org • Sign electronically with a secure self-selected PIN and file a completely paperless return. Https www freefilefillableforms org • Receive an acknowledgement that your return was received and accepted. Https www freefilefillableforms org • If you owe, you can e-file and pay electronically either online or by phone, using your bank account or a credit or debit card. Https www freefilefillableforms org You can also file a return early and pay the amount you owe by the due date of your return. Https www freefilefillableforms org • Save time by preparing and e-filing federal and state returns together. Https www freefilefillableforms org • IRS computers quickly and automatically check for errors or other missing information. Https www freefilefillableforms org • Help the environment, use less paper, and save taxpayer money—it costs less to process an e-filed return than a paper return. Https www freefilefillableforms org You cannot use the Self-Select PIN method if you are a first-time filer under age 16 at the end of 2013. Https www freefilefillableforms org If you cannot locate your prior year AGI or prior year PIN, use the Electronic Filing PIN Request. Https www freefilefillableforms org This can be found at IRS. Https www freefilefillableforms org gov. Https www freefilefillableforms org Click on Request an Electronic Filing PIN. Https www freefilefillableforms org Or you can call 1-866-704-7388. Https www freefilefillableforms org Practitioner PIN. Https www freefilefillableforms org   The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN. Https www freefilefillableforms org The practitioner can provide you with details. Https www freefilefillableforms org Form 8453. Https www freefilefillableforms org   You must send in a paper Form 8453 if you have to attach certain forms or other documents that cannot be electronically filed. Https www freefilefillableforms org For details, see Form 8453. Https www freefilefillableforms org For more details, visit www. Https www freefilefillableforms org irs. Https www freefilefillableforms org gov/efile and click on “ Individuals. Https www freefilefillableforms org ” Identity Protection PIN. Https www freefilefillableforms org   If the IRS gave you an identity protection personal identification number (PIN) because you were a victim of identity theft, enter it in the spaces provided on your tax form. Https www freefilefillableforms org If the IRS has not given you this type of number, leave these spaces blank. Https www freefilefillableforms org For more information, see the Instructions for Form 1040A or Form 1040. Https www freefilefillableforms org Power of attorney. Https www freefilefillableforms org   If an agent is signing your return for you, a power of attorney (POA) must be filed. Https www freefilefillableforms org Attach the POA to Form 8453 and file it using that form's instructions. Https www freefilefillableforms org See Signatures , later, for more information on POAs. Https www freefilefillableforms org State returns. Https www freefilefillableforms org   In most states, you can file an electronic state return simultaneously with your federal return. Https www freefilefillableforms org For more information, check with your local IRS office, state tax agency, tax professional, or the IRS website at  www. Https www freefilefillableforms org irs. Https www freefilefillableforms org gov/efile. Https www freefilefillableforms org Refunds. Https www freefilefillableforms org   You can have a refund check mailed to you, or you can have your refund deposited directly to your checking or savings account or split among two or three accounts. Https www freefilefillableforms org With e-file, your refund will be issued faster than if you filed on paper. Https www freefilefillableforms org   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain other federal nontax debts, such as student loans. Https www freefilefillableforms org See Offset against debts under Refunds, later. Https www freefilefillableforms org Refund inquiries. Https www freefilefillableforms org   Information about your return will generally be available within 24 hours after the IRS receives your e-filed return. Https www freefilefillableforms org See Refund Information , later. Https www freefilefillableforms org Amount you owe. Https www freefilefillableforms org   To avoid late-payment penalties and interest, pay your taxes in full by April 15, 2014. Https www freefilefillableforms org See How To Pay , later, for information on how to pay the amount you owe. Https www freefilefillableforms org Using Your Personal Computer You can file your tax return in a fast, easy, and convenient way using your personal computer. Https www freefilefillableforms org A computer with Internet access and tax preparation software are all you need. Https www freefilefillableforms org Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week. Https www freefilefillableforms org IRS approved tax preparation software is available for online use on the Internet, for download from the Internet, and in retail stores. Https www freefilefillableforms org For information, visit www. Https www freefilefillableforms org irs. Https www freefilefillableforms org gov/efile. Https www freefilefillableforms org Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Https www freefilefillableforms org Others offer it for a fee. Https www freefilefillableforms org Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Https www freefilefillableforms org Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Https www freefilefillableforms org The Volunteer Income Tax Assistance (VITA) program is designed to help low to moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Https www freefilefillableforms org Many VITA sites offer free electronic filing and all volunteers will let you know about the credits and deductions you may be entitled to claim. Https www freefilefillableforms org To find a site near you, call 1-800-906-9887. Https www freefilefillableforms org Or to find the nearest AARP TaxAide site, visit AARP's website at www. Https www freefilefillableforms org aarp. Https www freefilefillableforms org org/taxaide or call 1-888-227-7669. Https www freefilefillableforms org For more information on these programs, go to IRS. Https www freefilefillableforms org gov and enter keyword “VITA” in the search box. Https www freefilefillableforms org Using a Tax Professional Many tax professionals electronically file tax returns for their clients. Https www freefilefillableforms org You may personally enter your PIN or complete Form 8879, IRS e-file Signature Authorization, to authorize the tax professional to enter your PIN on your return. Https www freefilefillableforms org Note. Https www freefilefillableforms org Tax professionals may charge a fee for IRS e-file. Https www freefilefillableforms org Fees can vary depending on the professional and the specific services rendered. Https www freefilefillableforms org When Do I Have To File? April 15, 2014, is the due date for filing your 2013 income tax return if you use the calendar year. Https www freefilefillableforms org For a quick view of due dates for filing a return with or without an extension of time to file (discussed later), see Table 1-5. Https www freefilefillableforms org Table 1-5. Https www freefilefillableforms org When To File Your 2013 Return For U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizens and residents who file returns on a calendar year. Https www freefilefillableforms org   For Most Taxpayers For Certain Taxpayers Outside the U. Https www freefilefillableforms org S. Https www freefilefillableforms org No extension requested April 15, 2014 June 16, 2014 Automatic extension October 15, 2014 October 15, 2014 If you use a fiscal year (a year ending on the last day of any month except December, or a 52-53-week year), your income tax return is due by the 15th day of the 4th month after the close of your fiscal year. Https www freefilefillableforms org When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Https www freefilefillableforms org —falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Https www freefilefillableforms org Filing paper returns on time. Https www freefilefillableforms org   Your paper return is filed on time if it is mailed in an envelope that is properly addressed, has enough postage, and is postmarked by the due date. Https www freefilefillableforms org If you send your return by registered mail, the date of the registration is the postmark date. Https www freefilefillableforms org The registration is evidence that the return was delivered. Https www freefilefillableforms org If you send a return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. Https www freefilefillableforms org The postmarked certified mail receipt is evidence that the return was delivered. Https www freefilefillableforms org Private delivery services. Https www freefilefillableforms org   If you use a private delivery service designated by the IRS to send your return, the postmark date generally is the date the private delivery service records in its database or marks on the mailing label. Https www freefilefillableforms org The private delivery service can tell you how to get written proof of this date. Https www freefilefillableforms org   For the IRS mailing address to use if you are using a private delivery service, go to IRS. Https www freefilefillableforms org gov and enter “private delivery service” in the search box. Https www freefilefillableforms org   The following are designated private delivery services. Https www freefilefillableforms org DHL Express (DHL): Same Day Service. Https www freefilefillableforms org Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Https www freefilefillableforms org United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Https www freefilefillableforms org M. Https www freefilefillableforms org , UPS Worldwide Express Plus, and UPS Worldwide Express. Https www freefilefillableforms org Filing electronic returns on time. Https www freefilefillableforms org   If you use IRS e-file, your return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. Https www freefilefillableforms org An authorized electronic return transmitter is a participant in the IRS e-file program that transmits electronic tax return information directly to the IRS. Https www freefilefillableforms org   The electronic postmark is a record of when the authorized electronic return transmitter received the transmission of your electronically filed return on its host system. Https www freefilefillableforms org The date and time in your time zone controls whether your electronically filed return is timely. Https www freefilefillableforms org Filing late. Https www freefilefillableforms org   If you do not file your return by the due date, you may have to pay a failure-to-file penalty and interest. Https www freefilefillableforms org For more information, see Penalties , later. Https www freefilefillableforms org Also see Interest under Amount You Owe. Https www freefilefillableforms org   If you were due a refund but you did not file a return, you generally must file within 3 years from the date the return was due (including extensions) to get that refund. Https www freefilefillableforms org Nonresident alien. Https www freefilefillableforms org    If you are a nonresident alien and earn wages subject to U. Https www freefilefillableforms org S. Https www freefilefillableforms org income tax withholding, your 2013 U. Https www freefilefillableforms org S. Https www freefilefillableforms org income tax return (Form 1040NR or Form 1040NR-EZ) is due by: April 15, 2014, if you use a calendar year, or The 15th day of the 4th month after the end of your fiscal year if you use a fiscal year. Https www freefilefillableforms org   If you do not earn wages subject to U. Https www freefilefillableforms org S. Https www freefilefillableforms org income tax withholding, your return is due by: June 16, 2014, if you use a calendar year, or The 15th day of the 6th month after the end of your fiscal year, if you use a fiscal year. Https www freefilefillableforms org See Publication 519 for more filing information. Https www freefilefillableforms org Filing for a decedent. Https www freefilefillableforms org   If you must file a final income tax return for a taxpayer who died during the year (a decedent), the return is due by the 15th day of the 4th month after the end of the decedent's normal tax year. Https www freefilefillableforms org See Publication 559. Https www freefilefillableforms org Extensions of Time To File You may be able to get an extension of time to file your return. Https www freefilefillableforms org There are three types of situations where you may qualify for an extension: Automatic extensions, You are outside the United States, or You are serving in a combat zone. Https www freefilefillableforms org Automatic Extension If you cannot file your 2013 return by the due date, you may be able to get an automatic 6-month extension of time to file. Https www freefilefillableforms org Example. Https www freefilefillableforms org If your return is due on April 15, 2014, you will have until October 15, 2014, to file. Https www freefilefillableforms org If you do not pay the tax due by the regular due date (generally, April 15), you will owe interest. Https www freefilefillableforms org You may also be charged penalties, discussed later. Https www freefilefillableforms org How to get the automatic extension. Https www freefilefillableforms org   You can get the automatic extension by: Using IRS e-file (electronic filing), or Filing a paper form. Https www freefilefillableforms org E-file options. Https www freefilefillableforms org   There are two ways you can use e-file to get an extension of time to file. Https www freefilefillableforms org Complete Form 4868, Application for Automatic Extension of Time To File U. Https www freefilefillableforms org S. Https www freefilefillableforms org Individual Income Tax Return, to use as a worksheet. Https www freefilefillableforms org If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Https www freefilefillableforms org If you e-file Form 4868 to the IRS, do not also send a paper Form 4868. Https www freefilefillableforms org E-file using your personal computer or a tax professional. Https www freefilefillableforms org    You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Https www freefilefillableforms org You will need to provide certain information from your tax return for 2012. Https www freefilefillableforms org If you wish to make a payment by direct transfer from your bank account, see Pay online , under How To Pay, later in this chapter. Https www freefilefillableforms org E-file and pay by credit or debit card or by direct transfer from your bank account. Https www freefilefillableforms org   You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card or by direct transfer from your bank account. Https www freefilefillableforms org You can do this by phone or over the Internet. Https www freefilefillableforms org You do not file Form 4868. Https www freefilefillableforms org See Pay online , under How To Pay, later in this chapter. Https www freefilefillableforms org Filing a paper Form 4868. Https www freefilefillableforms org   You can get an extension of time to file by filing a paper Form 4868. Https www freefilefillableforms org Mail it to the address shown in the form instructions. Https www freefilefillableforms org   If you want to make a payment with the form, make your check or money order payable to “United States Treasury. Https www freefilefillableforms org ” Write your SSN, daytime phone number, and “2013 Form 4868” on your check or money order. Https www freefilefillableforms org When to file. Https www freefilefillableforms org   You must request the automatic extension by the due date for your return. Https www freefilefillableforms org You can file your return any time before the 6-month extension period ends. Https www freefilefillableforms org When you file your return. Https www freefilefillableforms org   Enter any payment you made related to the extension of time to file on Form 1040, line 68. Https www freefilefillableforms org If you file Form 1040EZ or Form 1040A, include that payment in your total payments on Form 1040EZ, line 9, or Form 1040A, line 41. Https www freefilefillableforms org Also enter “Form 4868” and the amount paid in the space to the left of line 9 or line 41. Https www freefilefillableforms org Individuals Outside the United States You are allowed an automatic 2-month extension, without filing Form 4868, (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen or resident, and On the due date of your return: You are living outside the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and  Puerto Rico. Https www freefilefillableforms org However, if you pay the tax due after the regular due date (generally, April 15), interest will be charged from that date until the date the tax is paid. Https www freefilefillableforms org If you served in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. Https www freefilefillableforms org See Individuals Serving in Combat Zone , later, for special rules that apply to you. Https www freefilefillableforms org Married taxpayers. Https www freefilefillableforms org   If you file a joint return, only one spouse has to qualify for this automatic extension. Https www freefilefillableforms org If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. Https www freefilefillableforms org How to get the extension. Https www freefilefillableforms org   To use this automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. Https www freefilefillableforms org (See the situations listed under (2), earlier. Https www freefilefillableforms org ) Extensions beyond 2 months. Https www freefilefillableforms org   If you cannot file your return within the automatic 2-month extension period, you may be able to get an additional 4-month extension, for a total of 6 months. Https www freefilefillableforms org File Form 4868 and check the box on line 8. Https www freefilefillableforms org No further extension. Https www freefilefillableforms org   An extension of more than 6 months will generally not be granted. Https www freefilefillableforms org However, if you are outside the United States and meet certain tests, you may be granted a longer extension. Https www freefilefillableforms org For more information, see When To File and Pay in Publication 54. Https www freefilefillableforms org Individuals Serving in Combat Zone The deadline for filing your tax return, paying any tax you may owe, and filing a claim for refund is automatically extended if you serve in a combat zone. Https www freefilefillableforms org This applies to members of the Armed Forces, as well as merchant marines serving aboard vessels under the operational control of the Department of Defense, Red Cross personnel, accredited correspondents, and civilians under the direction of the Armed Forces in support of the Armed Forces. Https www freefilefillableforms org Combat zone. Https www freefilefillableforms org   For purposes of the automatic extension, the term “combat zone” includes the following areas. Https www freefilefillableforms org The Arabian peninsula area, effective January 17, 1991. Https www freefilefillableforms org The Kosovo area, effective March 24, 1999. Https www freefilefillableforms org Afghanistan area, effective September 19, 2001. Https www freefilefillableforms org   See Publication 3, Armed Forces' Tax Guide, for more detailed information on the locations comprising each combat zone. Https www freefilefillableforms org The publication also has information about other tax benefits available to military personnel serving in a combat zone. Https www freefilefillableforms org Extension period. Https www freefilefillableforms org   The deadline for filing your return, paying any tax due, and filing a claim for refund is extended for at least 180 days after the later of: The last day you are in a combat zone or the last day the area qualifies as a combat zone, or The last day of any continuous qualified hospitalization for injury from service in the combat zone. Https www freefilefillableforms org   In addition to the 180 days, your deadline is also extended by the number of days you had left to take action with the IRS when you entered the combat zone. Https www freefilefillableforms org For example, you have 3½ months (January 1 – April 15) to file your tax return. Https www freefilefillableforms org Any days left in this period when you entered the combat zone (or the entire 3½ months if you entered it before the beginning of the year) are added to the 180 days. Https www freefilefillableforms org See Extension of Deadlines in Publication 3 for more information. Https www freefilefillableforms org   The rules on the extension for filing your return also apply when you are deployed outside the United States (away from your permanent duty station) while participating in a designated contingency operation. Https www freefilefillableforms org How Do I Prepare My Return? This section explains how to get ready to fill in your tax return and when to report your income and expenses. Https www freefilefillableforms org It also explains how to complete certain sections of the form. Https www freefilefillableforms org You may find Table 1-6 helpful when you prepare your paper return. Https www freefilefillableforms org Table 1-6. Https www freefilefillableforms org Six Steps for Preparing Your Paper Return 1 — Get your records together for income and expenses. Https www freefilefillableforms org 2 — Get the forms, schedules, and publications you need. Https www freefilefillableforms org 3 — Fill in your return. Https www freefilefillableforms org 4 — Check your return to make sure it is correct. Https www freefilefillableforms org 5 — Sign and date your return. Https www freefilefillableforms org 6 — Attach all required forms and schedules. Https www freefilefillableforms org Electronic returns. Https www freefilefillableforms org   For information you may find useful in preparing a paperless return, see Does My Return Have To Be on Paper , earlier. Https www freefilefillableforms org Substitute tax forms. Https www freefilefillableforms org   You cannot use your own version of a tax form unless it meets the requirements explained in Publication 1167, General Rules and Specifications for Substitute Forms and Schedules. Https www freefilefillableforms org Form W-2. Https www freefilefillableforms org   If you were an employee, you should receive Form W-2 from your employer. Https www freefilefillableforms org You will need the information from this form to prepare your return. Https www freefilefillableforms org See Form W-2 under Credit for Withholding and Estimated Tax in chapter 4. Https www freefilefillableforms org   Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Https www freefilefillableforms org If it is mailed, you should allow adequate time to receive it before contacting your employer. Https www freefilefillableforms org If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Https www freefilefillableforms org When you request IRS help, be prepared to provide the following information. Https www freefilefillableforms org Your name, address (including ZIP code), and phone number. Https www freefilefillableforms org Your SSN. Https www freefilefillableforms org Your dates of employment. Https www freefilefillableforms org Your employer's name, address (including ZIP code), and phone number. Https www freefilefillableforms org Form 1099. Https www freefilefillableforms org   If you received certain types of income, you may receive a Form 1099. Https www freefilefillableforms org For example, if you received taxable interest of $10 or more, the payer is required to provide or send Form 1099 to you no later than January 31, 2014 (or by February 18, 2014, if furnished by a broker). Https www freefilefillableforms org If it is mailed, you should allow adequate time to receive it before contacting the payer. Https www freefilefillableforms org If you still do not get the form by February 18 (or by March 5, 2014, if furnished by a broker), call the IRS for help. Https www freefilefillableforms org When Do I Report My Income and Expenses? You must figure your taxable income on the basis of a tax year. Https www freefilefillableforms org A “tax year” is an annual accounting period used for keeping records and reporting income and expenses. Https www freefilefillableforms org You must account for your income and expenses in a way that clearly shows your taxable income. Https www freefilefillableforms org The way you do this is called an accounting method. Https www freefilefillableforms org This section explains which accounting periods and methods you can use. Https www freefilefillableforms org Accounting Periods Most individual tax returns cover a calendar year—the 12 months from January 1 through December 31. Https www freefilefillableforms org If you do not use a calendar year, your accounting period is a fiscal year. Https www freefilefillableforms org A regular fiscal year is a 12-month period that ends on the last day of any month except December. Https www freefilefillableforms org A 52-53-week fiscal year varies from 52 to 53 weeks and always ends on the same day of the week. Https www freefilefillableforms org You choose your accounting period (tax year) when you file your first income tax return. Https www freefilefillableforms org It cannot be longer than 12 months. Https www freefilefillableforms org More information. Https www freefilefillableforms org   For more information on accounting periods, including how to change your accounting period, see Publication 538, Accounting Periods and Methods. Https www freefilefillableforms org Accounting Methods Your accounting method is the way you account for your income and expenses. Https www freefilefillableforms org Most taxpayers use either the cash method or an accrual method. Https www freefilefillableforms org You choose a method when you file your first income tax return. Https www freefilefillableforms org If you want to change your accounting method after that, you generally must get IRS approval. Https www freefilefillableforms org Cash method. Https www freefilefillableforms org   If you use this method, report all items of income in the year in which you actually or constructively receive them. Https www freefilefillableforms org Generally, you deduct all expenses in the year you actually pay them. Https www freefilefillableforms org This is the method most individual taxpayers use. Https www freefilefillableforms org Constructive receipt. Https www freefilefillableforms org   Generally, you constructively receive income when it is credited to your account or set apart in any way that makes it available to you. Https www freefilefillableforms org You do not need to have physical possession of it. Https www freefilefillableforms org For example, interest credited to your bank account on December 31, 2013, is taxable income to you in 2013 if you could have withdrawn it in 2013 (even if the amount is not entered in your records or withdrawn until 2014). Https www freefilefillableforms org Garnisheed wages. Https www freefilefillableforms org   If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you. Https www freefilefillableforms org You must include these wages in income for the year you would have received them. Https www freefilefillableforms org Debts paid for you. Https www freefilefillableforms org   If another person cancels or pays your debts (but not as a gift or loan), you have constructively received the amount and generally must include it in your gross income for the year. Https www freefilefillableforms org See Canceled Debts in chapter 12 for more information. Https www freefilefillableforms org Payment to third party. Https www freefilefillableforms org   If a third party is paid income from property you own, you have constructively received the income. Https www freefilefillableforms org It is the same as if you had actually received the income and paid it to the third party. Https www freefilefillableforms org Payment to an agent. Https www freefilefillableforms org   Income an agent receives for you is income you constructively received in the year the agent receives it. Https www freefilefillableforms org If you indicate in a contract that your income is to be paid to another person, you must include the amount in your gross income when the other person receives it. Https www freefilefillableforms org Check received or available. Https www freefilefillableforms org   A valid check that was made available to you before the end of the tax year is constructively received by you in that year. Https www freefilefillableforms org A check that was “made available to you” includes a check you have already received, but not cashed or deposited. Https www freefilefillableforms org It also includes, for example, your last paycheck of the year that your employer made available for you to pick up at the office before the end of the year. Https www freefilefillableforms org It is constructively received by you in that year whether or not you pick it up before the end of the year or wait to receive it by mail after the end of the year. Https www freefilefillableforms org No constructive receipt. Https www freefilefillableforms org   There may be facts to show that you did not constructively receive income. Https www freefilefillableforms org Example. Https www freefilefillableforms org Alice Johnson, a teacher, agreed to her school board's condition that, in her absence, she would receive only the difference between her regular salary and the salary of a substitute teacher hired by the school board. Https www freefilefillableforms org Therefore, Alice did not constructively receive the amount by which her salary was reduced to pay the substitute teacher. Https www freefilefillableforms org Accrual method. Https www freefilefillableforms org   If you use an accrual method, you generally report income when you earn it, rather than when you receive it. Https www freefilefillableforms org You generally deduct your expenses when you incur them, rather than when you pay them. Https www freefilefillableforms org Income paid in advance. Https www freefilefillableforms org   An advance payment of income is generally included in gross income in the year you receive it. Https www freefilefillableforms org Your method of accounting does not matter as long as the income is available to you. Https www freefilefillableforms org An advance payment may include rent or interest you receive in advance and pay for services you will perform later. Https www freefilefillableforms org   A limited deferral until the next tax year may be allowed for certain advance payments. Https www freefilefillableforms org See Publication 538 for specific information. Https www freefilefillableforms org Additional information. Https www freefilefillableforms org   For more information on accounting methods, including how to change your accounting method, see Publication 538. Https www freefilefillableforms org Social Security Number (SSN) You must enter your SSN on your return. Https www freefilefillableforms org If you are married, enter the SSNs for both you and your spouse, whether you file jointly or separately. Https www freefilefillableforms org If you are filing a joint return, include the SSNs in the same order as the names. Https www freefilefillableforms org Use this same order in submitting other forms and documents to the IRS. Https www freefilefillableforms org Check that both the name and SSN on your Form 1040, W-2, and 1099 agree with your social security card. Https www freefilefillableforms org If they do not, certain deductions and credits on your Form 1040 may be reduced or disallowed and you may not receive credit for your social security earnings. Https www freefilefillableforms org If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. Https www freefilefillableforms org If the name or SSN on your social security card is incorrect, call the SSA at 1-800-772-1213. Https www freefilefillableforms org Name change. Https www freefilefillableforms org   If you changed your name because of marriage, divorce, etc. Https www freefilefillableforms org , be sure to report the change to your local Social Security Administration (SSA) office before filing your return. Https www freefilefillableforms org This prevents delays in processing your return and issuing refunds. Https www freefilefillableforms org It also safeguards your future social security benefits. Https www freefilefillableforms org Dependent's SSN. Https www freefilefillableforms org   You must provide the SSN of each dependent you claim, regardless of the dependent's age. Https www freefilefillableforms org This requirement applies to all dependents (not just your children) claimed on your tax return. Https www freefilefillableforms org Exception. Https www freefilefillableforms org    If your child was born and died in 2013 and did not have an SSN, enter “DIED” in column (2) of line 6c (Form 1040 or 1040A) and include a copy of the child's birth certificate, death certificate, or hospital records. Https www freefilefillableforms org The document must show that the child was born alive. Https www freefilefillableforms org No SSN. Https www freefilefillableforms org   File Form SS-5, Application for a Social Security Card, with your local SSA office to get an SSN for yourself or your dependent. Https www freefilefillableforms org It usually takes about 2 weeks to get an SSN. Https www freefilefillableforms org If you or your dependent is not eligible for an SSN, see Individual taxpayer identification number (ITIN) , later. Https www freefilefillableforms org   If you are a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen or resident alien, you must show proof of age, identity, and citizenship or alien status with your Form SS-5. Https www freefilefillableforms org If you are 12 or older and have never been assigned an SSN, you must appear in person with this proof at an SSA office. Https www freefilefillableforms org   Form SS-5 is available at any SSA office, on the Internet at www. Https www freefilefillableforms org socialsecurity. Https www freefilefillableforms org gov, or by calling 1-800-772-1213. Https www freefilefillableforms org If you have any questions about which documents you can use as proof of age, identity, or citizenship, contact your SSA office. Https www freefilefillableforms org   If your dependent does not have an SSN by the time your return is due, you may want to ask for an extension of time to file, as explained earlier under When Do I Have To File . Https www freefilefillableforms org   If you do not provide a required SSN or if you provide an incorrect SSN, your tax may be increased and any refund may be reduced. Https www freefilefillableforms org Adoption taxpayer identification number (ATIN). Https www freefilefillableforms org   If you are in the process of adopting a child who is a U. Https www freefilefillableforms org S. Https www freefilefillableforms org citizen or resident and cannot get an SSN for the child until the adoption is final, you can apply for an ATIN to use instead of an SSN. Https www freefilefillableforms org    File Form W-7A, Application for Taxpayer Identification Number for Pending U. Https www freefilefillableforms org S. Https www freefilefillableforms org Adoptions, with the IRS to get an ATIN if all of the following are true. Https www freefilefillableforms org You have a child living with you who was placed in your home for legal adoption. Https www freefilefillableforms org You cannot get the child's existing SSN even though you have made a reasonable attempt to get it from the birth parents, the placement agency, and other persons. Https www freefilefillableforms org You cannot get an SSN for the child from the SSA because, for example, the adoption is not final. Https www freefilefillableforms org You are eligible to claim the child as a dependent on your tax return. Https www freefilefillableforms org After the adoption is final, you must apply for an SSN for the child. Https www freefilefillableforms org You cannot continue using the ATIN. Https www freefilefillableforms org   See Form W-7A for more information. Https www freefilefillableforms org Nonresident alien spouse. Https www freefilefillableforms org   If your spouse is a nonresident alien, your spouse must have either an SSN or an ITIN if: You file a joint return, You file a separate return and claim an exemption for your spouse, or Your spouse is filing a separate return. Https www freefilefillableforms org If your spouse is not eligible for an SSN, see the following discussion on ITINs. Https www freefilefillableforms org Individual taxpayer identification number (ITIN). Https www freefilefillableforms org   The IRS will issue you an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Https www freefilefillableforms org This also applies to an alien spouse or dependent. Https www freefilefillableforms org To apply for an ITIN, file Form W-7 with the IRS. Https www freefilefillableforms org It usually takes about 6 to 10 weeks to get an ITIN. Https www freefilefillableforms org Enter the ITIN on your tax return wherever an SSN is requested. Https www freefilefillableforms org    If you are applying for an ITIN for yourself, your spouse, or a dependent in order to file your tax return, attach your completed tax return to your Form W-7. Https www freefilefillableforms org See the Form W-7 instructions for how and where to file. Https www freefilefillableforms org You cannot e-file a return using an ITIN in the calendar year the ITIN is issued; however, you can e-file returns in the following years. Https www freefilefillableforms org ITIN for tax use only. Https www freefilefillableforms org   An ITIN is for tax use only. Https www freefilefillableforms org It does not entitle you or your dependent to social security benefits or change the employment or immigration status of either of you under U. Https www freefilefillableforms org S. Https www freefilefillableforms org law. Https www freefilefillableforms org Penalty for not providing social security number. Https www freefilefillableforms org   If you do not include your SSN or the SSN of your spouse or dependent as required, you may have to pay a penalty. Https www freefilefillableforms org See the discussion on Penalties , later, for more information. Https www freefilefillableforms org SSN on correspondence. Https www freefilefillableforms org   If you write to the IRS about your tax account, be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in your correspondence. Https www freefilefillableforms org Because your SSN is used to identify your account, this helps the IRS respond to your correspondence promptly. Https www freefilefillableforms org Presidential Election Campaign Fund This fund helps pay for Presidential election campaigns. Https www freefilefillableforms org If you want $3 to go to this fund, check the box. Https www freefilefillableforms org If you are filing a joint return, your spouse can also have $3 go to the fund. Https www freefilefillableforms org If you check a box, your tax or refund will not change. Https www freefilefillableforms org Computations The following information may be useful in making the return easier to complete. Https www freefilefillableforms org Rounding off dollars. Https www freefilefillableforms org   You can round off cents to whole dollars on your return and schedules. Https www freefilefillableforms org If you do round to whole dollars, you must round all amounts. Https www freefilefillableforms org To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. Https www freefilefillableforms org For example, $1. Https www freefilefillableforms org 39 becomes $1 and $2. Https www freefilefillableforms org 50 becomes $3. Https www freefilefillableforms org   If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. Https www freefilefillableforms org Example. Https www freefilefillableforms org You receive two Forms W-2: one showing wages of $5,000. Https www freefilefillableforms org 55 and one showing wages of $18,500. Https www freefilefillableforms org 73. Https www freefilefillableforms org On Form 1040, line 7, you would enter $23,501 ($5,000. Https www freefilefillableforms org 55 + $18,500. Https www freefilefillableforms org 73 = $23,501. Https www freefilefillableforms org 28), not $23,502 ($5,001 + $18,501). Https www freefilefillableforms org Equal amounts. Https www freefilefillableforms org   If you are asked to enter the smaller or larger of two equal amounts, enter that amount. Https www freefilefillableforms org Example. Https www freefilefillableforms org Line 1 is $500. Https www freefilefillableforms org Line 3 is $500. Https www freefilefillableforms org Line 5 asks you to enter the smaller of line 1 or 3. Https www freefilefillableforms org Enter $500 on line 5. Https www freefilefillableforms org Negative amounts. Https www freefilefillableforms org   If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. Https www freefilefillableforms org To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts. Https www freefilefillableforms org Attachments Depending on the form you file and the items reported on your return, you may have to complete additional schedules and forms and attach them to your paper return. Https www freefilefillableforms org You may be able to file a paperless return using IRS e-file. Https www freefilefillableforms org There's nothing to attach or mail, not even your Forms W-2. Https www freefilefillableforms org See Does My Return Have To Be on Paper, earlier. Https www freefilefillableforms org Form W-2. Https www freefilefillableforms org   Form W-2 is a statement from your employer of wages and other compensation paid to you and taxes withheld from your pay. Https www freefilefillableforms org You should have a Form W-2 from each employer. Https www freefilefillableforms org If you file a paper return, be sure to attach a copy of Form W-2 in the place indicated on the front page of your return. Https www freefilefillableforms org Attach it to the front page of your paper return, not to any attachments. Https www freefilefillableforms org For more information, see Form W-2 in chapter 4. Https www freefilefillableforms org   If you received a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Https www freefilefillableforms org , showing federal income tax withheld, and you file a paper return, attach a copy of that form in the place indicated on the front page of your return. Https www freefilefillableforms org Form 1040EZ. Https www freefilefillableforms org   There are no additional schedules to file with Form 1040EZ. Https www freefilefillableforms org Form 1040A. Https www freefilefillableforms org   If you file a paper return, attach any forms and schedules behind Form 1040A in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Https www freefilefillableforms org Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Https www freefilefillableforms org Do not attach items unless required to do so. Https www freefilefillableforms org Form 1040. Https www freefilefillableforms org   If you file a paper return, attach any forms and schedules behind Form 1040 in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Https www freefilefillableforms org Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Https www freefilefillableforms org Do not attach items unless required to do so. Https www freefilefillableforms org Third Party Designee You can authorize the IRS to discuss your return with your preparer, a friend, family member, or any other person you choose. Https www freefilefillableforms org If you check the “Yes” box in the Third party designee area of your 2013 tax return and provide the information required, you are authorizing: The IRS to call the designee to answer any questions that arise during the processing of your return, and The designee to: Give information that is missing from your return to the IRS, Call the IRS for information about th