Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Irs Ez

Irs 1040ez FormIrs Form 1040vIrs Ammended Return1040 Ez 2011 Tax FormEz FormsWhere Can I File My State Taxes For FreeAmending A Tax ReturnFree Irs State Tax FormsFree E File 2012Does Military Pay State TaxesFile Tax Extension For 2011How To File State Taxes For Free OnlineWhere Can I File My 2011 Taxes Online1040ez Instructions 2012Tax Form For MilitaryHow To File An Amended Tax ReturnFree State Taxes OnlineIrs Gov Free FileTurbo Tax Free FilePrintable 1040ez FormPrevious Years Tax FormsDidnt File 2012 TaxesTax Breaks For The UnemployedHow To Amend 2012 Federal Tax ReturnFree State Tax Filing SoftwareFree Irs Tax Filing1040ez FileHow To Fill Out Amended Tax Return1040nr Ez Online FreeHow Do I Amend A Tax ReturnHow To Amend TaxState Tax Online Filing540ez FormHow To File A Late Tax Return 2011File State Taxes Online Free 2012Form 1040ez 2013Turbo Tax State EfileTaxact 2011 FreeEz 1040Hr Block Tax Prep

Irs Ez

Irs ez Publication 929 - Main Content Table of Contents Part 1. Irs ez Rules for All Dependents Filing RequirementsEarned Income Only Unearned Income Only Both Earned and Unearned Income Other Filing Requirements Should a Return Be Filed Even If Not Required? Responsibility for Child's ReturnThird party designee. Irs ez Designated as representative. Irs ez IRS notice. Irs ez Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. Irs ez Part 2. Irs ez Tax on Unearned Income of Certain ChildrenWhich Parent's Return To Use Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, Lines A–C) Step 1. Irs ez Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Irs ez Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Irs ez Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. Irs ez Rules for All Dependents This part of the publication discusses the filing requirements for dependents, who is responsible for a child's return, how to figure a dependent's standard deduction and exemption (if any), and whether a dependent can claim exemption from federal income tax withholding. Irs ez Filing Requirements Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is age 65 or older, or is blind. Irs ez A dependent may have to file a return even if his or her income is less than the amount that would normally require a return. Irs ez See Other Filing Requirements, later. Irs ez The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. Irs ez  To find out whether a dependent must file, read the section that applies, or use Table 1. Irs ez Earned Income Only A dependent whose gross income is only earned income must file a return if the gross income is more than the amount listed in the following table. Irs ez Marital Status Amount Single   Under 65 and not blind $6,100 Either 65 or older or blind $7,600 65 or older and blind $9,100 Married*   Under 65 and not blind $6,100 Either 65 or older or blind $7,300 65 or older and blind $8,500 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Irs ez Example. Irs ez William is 16. Irs ez His mother claims an exemption for him on her income tax return. Irs ez He worked part time on weekends during the school year and full time during the summer. Irs ez He earned $7,000 in wages. Irs ez He did not have any unearned income. Irs ez He must file a tax return because he has earned income only and his gross income is more than $6,100. Irs ez If he is blind, he does not have to file a return because his gross income is not more than $7,600. Irs ez Unearned Income Only A dependent whose gross income is only unearned income must file a return if the gross income is more than the amount listed in the following table. Irs ez Marital Status Amount Single   Under 65 and not blind $1,000 Either 65 or older or blind $2,500 65 or older and blind $4,000 Married*   Under 65 and not blind $1,000 Either 65 or older or blind $2,200 65 or older and blind $3,400 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). Irs ez Example. Irs ez Sarah is 18 and single. Irs ez Her parents can claim an exemption for her on their income tax return. Irs ez She received $1,970 of taxable interest and dividend income. Irs ez She did not work during the year. Irs ez She must file a tax return because she has unearned income only and her gross income is more than $1,000. Irs ez If she is blind, she does not have to file a return because she has unearned income only and her gross income is not more than $2,500. Irs ez Election to report child's unearned income on parent's return. Irs ez   A parent of a child under age 19 (or under age 24 if a full-time student) may be able to elect to include the child's interest and dividend income on the parent's return. Irs ez See Parent's Election To Report Child's Interest and Dividends in Part 2. Irs ez If the parent makes this election, the child does not have to file a return. Irs ez Both Earned and Unearned Income A dependent who has both earned and unearned income generally must file a return if the dependent's gross income is more than line 5 of the following worksheet. Irs ez Filing Requirement Worksheet for Most Dependents 1. Irs ez Enter dependent's earned income plus $350     2. Irs ez Minimum amount   $1,000 3. Irs ez Compare lines 1 and 2. Irs ez Enter the larger amount     4. Irs ez Maximum amount   6,100 5. Irs ez Compare lines 3 and 4. Irs ez Enter the smaller amount     6. Irs ez Enter the dependent's gross income. Irs ez If line 6 is more than line 5, the dependent must file an income tax return. Irs ez If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Irs ez       Table 1. Irs ez 2013 Filing Requirements for Dependents If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Irs ez   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. Irs ez   Single dependents—Were you either age 65 or older or blind?     No. Irs ez You must file a return if any of the following apply. Irs ez       Your unearned income was over $1,000. Irs ez Your earned income was over $6,100. Irs ez Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Irs ez         Yes. Irs ez You must file a return if any of the following apply. Irs ez     Your unearned income was over $2,500 ($4,000 if 65 or older and blind), Your earned income was over $7,600 ($9,100 if 65 or older and blind), 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). Irs ez       Married dependents—Were you either age 65 or older or blind?     No. Irs ez You must file a return if any of the following apply. Irs ez       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs ez Your unearned income was over $1,000. Irs ez Your earned income was over $6,100. Irs ez Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Irs ez       Yes. Irs ez You must file a return if any of the following apply. Irs ez       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs ez Your unearned income was over $2,200 ($3,400 if 65 or older and blind), Your earned income was over $7,300 ($8,500 if 65 or older and blind), 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). Irs ez       Example 1. Irs ez Joe is 20, single, not blind, and a full-time college student. Irs ez He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. Irs ez He received $200 taxable interest income and earned $2,750 from a part-time job. Irs ez He does not have to file a tax return because his gross income of $2,950 ($200 interest plus $2,750 in wages) is not more than $3,100, the amount on line 5 of his filled-in Filing Requirement Worksheet for Most Dependents (shown next). Irs ez Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. Irs ez Enter dependent's earned income plus $350   $ 3,100 2. Irs ez Minimum amount   1,000 3. Irs ez Compare lines 1 and 2. Irs ez Enter the larger amount   3,100 4. Irs ez Maximum amount   6,100 5. Irs ez Compare lines 3 and 4. Irs ez Enter the smaller amount   3,100 6. Irs ez Enter the dependent's gross income. Irs ez If line 6 is more than line 5, the dependent must file an income tax return. Irs ez If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Irs ez   $ 2,950   Example 2. Irs ez The facts are the same as in Example 1 except that Joe had $600 taxable interest income. Irs ez He must file a tax return because his gross income of $3,350 ($600 interest plus $2,750 wages) is more than $3,100, the amount on line 5 of his filled-in worksheet (shown next). Irs ez Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. Irs ez Enter dependent's earned income plus $350   $ 3,100 2. Irs ez Minimum amount   1,000 3. Irs ez Compare lines 1 and 2. Irs ez Enter the larger amount   3,100 4. Irs ez Maximum amount   6,100 5. Irs ez Compare lines 3 and 4. Irs ez Enter the smaller amount   3,100 6. Irs ez Enter the dependent's gross income. Irs ez If line 6 is more than line 5, the dependent must file an income tax return. Irs ez If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. Irs ez   $ 3,350   Age 65 or older or blind. Irs ez A dependent who is age 65 or older or blind must file a return if his or her gross income is more than line 7 of the following worksheet. Irs ez Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Irs ez Enter dependent's earned income plus $350     2. Irs ez Minimum amount   $1,000 3. Irs ez Compare lines 1 and 2. Irs ez Enter the larger amount     4. Irs ez Maximum amount   6,100 5. Irs ez Compare lines 3 and 4. Irs ez Enter the smaller amount     6. Irs ez Enter the amount from the following table that applies to the dependent       Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Irs ez Add lines 5 and 6. Irs ez Enter the total     8. Irs ez Enter the dependent's gross income. Irs ez If line 8 is more than line 7, the dependent must file an income tax return. Irs ez If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more     Example 3. Irs ez The facts are the same as in Example 2 except that Joe is also blind. Irs ez He does not have to file a return because his gross income of $3,350 is not more than $4,600, the amount on line 7 of his filled-in Filing Requirement Worksheet for Dependents Who Are Age 65 or Older or Blind (shown next). Irs ez   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Irs ez Enter dependent's earned income plus $350   $3,100 2. Irs ez Minimum amount   1,000 3. Irs ez Compare lines 1 and 2. Irs ez Enter the larger amount   3,100 4. Irs ez Maximum amount   6,100 5. Irs ez Compare lines 3 and 4. Irs ez Enter the smaller amount   3,100 6. Irs ez Enter the amount from the following table that applies to the dependent   1,500   Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. Irs ez Add lines 5 and 6. Irs ez Enter the total   4,600 8. Irs ez Enter the dependent's gross income. Irs ez If line 8 is more than line 7, the dependent must file an income tax return. Irs ez If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more   $3,350 Other Filing Requirements Some dependents may have to file a tax return even if their income is less than the amount that would normally require them to file a return. Irs ez A dependent must file a tax return if he or she owes any other taxes, such as: Social security and Medicare taxes on tips not reported to his or her employer or on wages received from an employer who did not withhold these taxes, Uncollected social security and Medicare or railroad retirement taxes on tips reported to his or her employer or on group-term life insurance, Alternative minimum tax, Additional tax on a health savings account from Form 8889, Part III, Recapture taxes, such as the tax from recapture of an education credit, or Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Irs ez But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. Irs ez A dependent must also file a tax return if he or she: Had wages of $108. Irs ez 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes, or Had net earnings from self-employment of at least $400. Irs ez Spouse itemizes. Irs ez   A dependent must file a return if the dependent's spouse itemizes deductions on a separate return and the dependent has $5 or more of gross income (earned and/or unearned). Irs ez Should a Return Be Filed Even If Not Required? Even if a dependent does not meet any of the filing requirements discussed earlier, he or she should file a tax return if either of the following applies. Irs ez Income tax was withheld from his or her income. Irs ez He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. Irs ez See the tax return instructions to find out who qualifies for these credits. Irs ez  By filing a return, the dependent can get a refund. Irs ez Responsibility for Child's Return Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. Irs ez If a child cannot file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child. Irs ez Signing the child's return. Irs ez   If the child cannot sign his or her return, a parent or guardian must sign the child's name followed by the words “By (signature), parent (or guardian) for minor child. Irs ez ” Authority of parent or guardian. Irs ez   A parent or guardian who signs a return on a child's behalf can deal with the IRS on all matters connected with the return. Irs ez   In general, a parent or guardian who does not sign the child's return can only provide information concerning the child's return and pay the child's tax. Irs ez That parent or guardian is not entitled to receive information from the IRS or legally bind the child to a tax liability arising from the return. Irs ez Third party designee. Irs ez   A child's parent or guardian who does not sign the child's return may be authorized, as a third party designee, to discuss the processing of the return with the IRS as well as provide information concerning the return. Irs ez The child or the person signing the return on the child's behalf must check the “Yes” box in the “Third Party Designee” area of the return and name the parent or guardian as the designee. Irs ez   If designated, a parent or guardian can respond to certain IRS notices and receive information about the processing of the return and the status of a refund or payment. Irs ez This designation does not authorize the parent or guardian to receive any refund check, bind the child to any tax liability, or otherwise represent the child before the IRS. Irs ez See the return instructions for more information. Irs ez Designated as representative. Irs ez   A parent or guardian who does not sign the child's return may be designated as the child's representative by the child or the person signing the return on the child's behalf. Irs ez Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. Irs ez See Publication 947, Practice Before the IRS and Power of Attorney, for more information. Irs ez   If designated, a parent or guardian can receive information about the child's return but cannot legally bind the child to a tax liability unless authorized to do so by the law of the state in which the child lives. Irs ez IRS notice. Irs ez   If you or the child receives a notice from the IRS concerning the child's return or tax liability, you should immediately inform the IRS that the notice concerns a child. Irs ez The notice will show who to contact. Irs ez The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. Irs ez Child's earnings. Irs ez   For federal income tax purposes, amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. Irs ez This is true even if, under state law, the parent has the right to the earnings and may actually have received them. Irs ez If the child does not pay the tax due on this income, the parent may be liable for the tax. Irs ez Child's expenses. Irs ez   Deductions for payments that are made out of a child's earnings are the child's, even if the payments are made by the parent. Irs ez Example. Irs ez You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. Irs ez You made the payments out of your child's earnings. Irs ez These items can be deducted only on the child's return. Irs ez Standard Deduction The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: $1,000, or The individual's earned income plus $350, but not more than the regular standard deduction (generally $6,100). Irs ez However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. Irs ez Certain dependents cannot claim any standard deduction. Irs ez See Standard Deduction of Zero , later. Irs ez Worksheet 1. Irs ez   Use Worksheet 1 to figure the dependent's standard deduction. Irs ez Worksheet 1. Irs ez Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. Irs ez If you were 65 or older and/or blind, check the correct number of boxes below. Irs ez Put the total number of boxes checked in box c and go to line 1. Irs ez a. Irs ez You 65 or older   Blind   b. Irs ez Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. Irs ez Total boxes checked         1. Irs ez Enter your earned income (defined below) plus $350. Irs ez If none, enter -0-. Irs ez 1. Irs ez     2. Irs ez Minimum amount. Irs ez   2. Irs ez $1,000   3. Irs ez Compare lines 1 and 2. Irs ez Enter the larger of the two amounts here. Irs ez 3. Irs ez     4. Irs ez Enter on line 4 the amount shown below for your filing status. Irs ez       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. Irs ez     5. Irs ez Standard deduction. Irs ez         a. Irs ez Compare lines 3 and 4. Irs ez Enter the smaller amount here. Irs ez If under 65 and not blind, stop here. Irs ez This is your standard deduction. Irs ez Otherwise, go on to line 5b. Irs ez 5a. Irs ez     b. Irs ez If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. Irs ez Enter the result here. Irs ez 5b. Irs ez     c. Irs ez Add lines 5a and 5b. Irs ez This is your standard deduction for 2013. Irs ez 5c. Irs ez     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Irs ez It also includes any amount received as a scholarship that you must include in income. Irs ez   Example 1. Irs ez Michael is single, age 15, and not blind. Irs ez His parents can claim him as a dependent on their tax return. Irs ez He has taxable interest income of $800 and wages of $150. Irs ez He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. Irs ez On line 3, he enters $1,000, the larger of $500 or $1,000. Irs ez Michael enters $6,100 on line 4. Irs ez On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. Irs ez His standard deduction is $1,000. Irs ez Example 2. Irs ez Judy, a full-time student, is single, age 22, and not blind. Irs ez Her parents can claim her as a dependent on their tax return. Irs ez She has dividend income of $275 and wages of $2,500. Irs ez She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. Irs ez On line 3, she enters $2,850, the larger of $2,850 or $1,000. Irs ez She enters $6,100 on line 4. Irs ez On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. Irs ez Example 3. Irs ez Amy, who is single, is claimed as a dependent on her parents' tax return. Irs ez She is 18 years old and blind. Irs ez She has taxable interest income of $1,000 and wages of $2,000. Irs ez She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. Irs ez She enters $2,350 (the larger of $2,350 or $1,000) on line 3, $6,100 on line 4, and $2,350 (the smaller of $2,350 or $6,100) on line 5a. Irs ez Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. Irs ez She enters $1,500 (the number in box c times $1,500) on line 5b. Irs ez Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). Irs ez Standard Deduction of Zero The standard deduction for the following dependents is zero. Irs ez A married dependent filing a separate return whose spouse itemizes deductions. Irs ez A dependent who files a return for a period of less than 12 months due to a change in his or her annual accounting period. Irs ez A nonresident or dual-status alien dependent, unless the dependent is married to a U. Irs ez S. Irs ez citizen or resident alien at the end of the year and chooses to be treated as a U. Irs ez S. Irs ez resident for the year. Irs ez See Publication 519, U. Irs ez S. Irs ez Tax Guide for Aliens, for information on making this choice. Irs ez Example. Irs ez Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. Irs ez However, her husband elects to file a separate return and itemize his deductions. Irs ez Because he itemizes, Jennifer's standard deduction on her return is zero. Irs ez She can, however, itemize any of her allowable deductions. Irs ez Dependent's Own Exemption A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption. Irs ez This is true even if the other taxpayer does not actually claim the exemption. Irs ez Example. Irs ez James and Barbara can claim their child, Ben, as a dependent on their return. Irs ez Ben is a college student who works during the summer and must file a tax return. Irs ez Ben cannot claim his own exemption on his return. Irs ez This is true even if James and Barbara do not claim him as a dependent on their return. Irs ez Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. Irs ez If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. Irs ez The exemption from withholding does not apply to social security and Medicare taxes. Irs ez Conditions for exemption from withholding. Irs ez   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. Irs ez For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. Irs ez For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. Irs ez Dependents. Irs ez   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. Irs ez The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. Irs ez The employee's unearned income will be more than $350. Irs ez Exceptions. Irs ez   An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: Is age 65 or older, Is blind, or Will claim on his or her 2014 tax return: Adjustments to income, Tax credits, or Itemized deductions. Irs ez The above exceptions do not apply to supplemental wages greater than $1,000,000. Irs ez For more information, see Exemption From Withholding in chapter 1 of Publication 505. Irs ez Example. Irs ez Guy is 17 and a student. Irs ez During the summer he works part time at a grocery store. Irs ez He expects to earn about $1,200 this year. Irs ez He also worked at the store last summer and received a refund of all his withheld income tax because he did not have a tax liability. Irs ez The only other income he expects during the year is $375 interest on a savings account. Irs ez He expects that his parents will be able to claim him as a dependent on their tax return. Irs ez He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. Irs ez Guy cannot claim exemption from withholding when he fills out Form W-4 because his parents will be able to claim him as a dependent, his gross income will be more than $1,000 (the minimum standard deduction amount) and his unearned income will be more than $350. Irs ez Claiming exemption from withholding. Irs ez    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. Irs ez The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. Irs ez Renewing an exemption from withholding. Irs ez   An exemption from withholding is good for only one year. Irs ez An employee must file a new Form W-4 by February 15 each year to continue the exemption. Irs ez Part 2. Irs ez Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. Irs ez If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. Irs ez (See Parent's Election To Report Child's Interest and Dividends , later. Irs ez ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Irs ez (See Tax for Certain Children Who Have Unearned Income , later. Irs ez ) For these rules, the term “child” includes a legally adopted child and a stepchild. Irs ez These rules apply whether or not the child is a dependent. Irs ez These rules do not apply if neither of the child's parents were living at the end of the year. Irs ez Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. Irs ez The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . Irs ez Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. Irs ez Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Irs ez Parents are married. Irs ez   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Irs ez Parents not living together. Irs ez   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. Irs ez If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Irs ez   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in Publication 501. Irs ez Parents are divorced. Irs ez   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. Irs ez Custodial parent remarried. Irs ez   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Irs ez Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Irs ez Do not use the return of the noncustodial parent. Irs ez   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Irs ez If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Irs ez Parents never married. Irs ez   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. Irs ez If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Irs ez Widowed parent remarried. Irs ez   If a widow or widower remarries, the new spouse is treated as the child's other parent. Irs ez The rules explained earlier under Custodial parent remarried apply. Irs ez Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. Irs ez If you do, your child will not have to file a return. Irs ez You can make this election only if all the following conditions are met. Irs ez Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Irs ez Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Irs ez The child's gross income was less than $10,000. Irs ez The child is required to file a return unless you make this election. Irs ez The child does not file a joint return for the year. Irs ez No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. Irs ez No federal income tax was withheld from your child's income under the backup withholding rules. Irs ez You are the parent whose return must be used when applying the special tax rules for children. Irs ez (See Which Parent's Return To Use , earlier. Irs ez ) These conditions are also shown in Figure 1. Irs ez Certain January 1 birthdays. Irs ez   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Irs ez You cannot make this election for such a child unless the child was a full-time student. Irs ez   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Irs ez You cannot make this election for such a child. Irs ez How to make the election. Irs ez    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. Irs ez (If you make this election, you cannot file Form 1040A or Form 1040EZ. Irs ez ) Attach a separate Form 8814 for each child for whom you make the election. Irs ez You can make the election for one or more children and not for others. Irs ez Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Irs ez Rate may be higher. Irs ez   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. Irs ez This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Irs ez However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. Irs ez Deductions you cannot take. Irs ez   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. Irs ez The additional standard deduction if the child is blind. Irs ez The deduction for a penalty on an early withdrawal of your child's savings. Irs ez Itemized deductions (such as your child's investment expenses or charitable contributions). Irs ez Figure 1. Irs ez Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Irs ez Figure 1. Irs ez Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. Irs ez   If you use Form 8814, your child's unearned income is considered your unearned income. Irs ez To figure the limit on your deductible investment interest, add the child's unearned income to yours. Irs ez However, if your child received qualified dividends, capital gain distributions, or Alaska Permanent Fund dividends, see chapter 3 of Publication 550 for information about how to figure the limit. Irs ez Alternative minimum tax. Irs ez    If your child received tax-exempt interest (or exempt-interest dividends paid by a regulated investment company) from certain private activity bonds, you must determine if that interest is a tax preference item for alternative minimum tax (AMT) purposes. Irs ez If it is, you must include it with your own tax preference items when figuring your AMT. Irs ez See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. Irs ez Reduced deductions or credits. Irs ez   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. Irs ez Deduction for contributions to a traditional individual retirement arrangement (IRA). Irs ez Deduction for student loan interest. Irs ez Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Irs ez Credit for child and dependent care expenses. Irs ez Child tax credit. Irs ez Education tax credits. Irs ez Earned income credit. Irs ez Penalty for underpayment of estimated tax. Irs ez   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. Irs ez If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. Irs ez Get Publication 505 for more information. Irs ez Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Irs ez Only the amount over $2,000 is added to your income. Irs ez The amount over $2,000 is shown on Form 8814, line 6. Irs ez Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Irs ez Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. Irs ez If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040 or Form 1040NR, line 21. Irs ez On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. Irs ez Note. Irs ez The tax on the first $2,000 is figured on Form 8814, Part II. Irs ez See Figuring Additional Tax , later. Irs ez Qualified dividends. Irs ez   Enter on Form 8814, line 2a, any ordinary dividends your child received. Irs ez This amount may include qualified dividends. Irs ez Qualified dividends are those dividends reported on Form 1040, line 9b, or Form 1040NR, line 10b, and are eligible for lower tax rates that apply to a net capital gain. Irs ez For detailed information about qualified dividends, see Publication 550. Irs ez   If your child received qualified dividends, the amount of these dividends that is added to your income must be reported on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Irs ez You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Irs ez   Enter the child's qualified dividends on Form 8814, line 2b. Irs ez But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Irs ez Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Irs ez (The amount on Form 8814, line 9, may be less than the amount on Form 8814, line 2b, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Irs ez ) Capital gain distributions. Irs ez   Enter on Form 8814, line 3, any capital gain distributions your child received. Irs ez The amount of these distributions that is added to your income must be reported on Schedule D (Form 1040), line 13, or, if you are not required to file Schedule D, on Form 1040, line 13, or Form 1040NR, line 14. Irs ez You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Irs ez   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. Irs ez (The amount on Form 8814, line 10, may be less than the amount on Form 8814, line 3, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. Irs ez ) Collectibles (28% rate) gain. Irs ez    If any of the child's capital gain distributions are reported on Form 1099-DIV as collectibles (28% rate) gain, you must determine how much to also include on line 4 of the 28% Rate Gain Worksheet, in the instructions for Schedule D, line 18. Irs ez Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Irs ez The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. Irs ez The denominator is the child's total capital gain distribution. Irs ez Enter the result on line 4 of the 28% Rate Gain Worksheet. Irs ez Unrecaptured section 1250 gain. Irs ez   If any of the child's capital gain distributions are reported on Form 1099-DIV as unrecaptured section 1250 gain, you must determine how much to include on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the instructions for Schedule D, line 19. Irs ez Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Irs ez The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. Irs ez The denominator is the child's total capital gain distribution. Irs ez Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. Irs ez Section 1202 gain. Irs ez   If any of the child's capital gain distributions are reported as section 1202 gain (gain on qualified small business stock) on Form 1099-DIV, part or all of that gain may be eligible for the section 1202 exclusion. Irs ez (For information about the exclusion, see chapter 4 of Publication 550. Irs ez ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Irs ez The numerator is the part of the child's total capital gain distribution that is section 1202 gain. Irs ez The denominator is the child's total capital gain distribution. Irs ez Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. Irs ez In some cases, the exclusion is more than 50%. Irs ez See the instructions for Schedule D for details and information on how to report the exclusion amount. Irs ez Example. Irs ez Fred is 6 years old. Irs ez In 2013, he received dividend income of $2,100, which included $1,575 of ordinary dividends and a $525 capital gain distribution from a mutual fund. Irs ez (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. Irs ez ) All of the ordinary dividends are qualified dividends. Irs ez He has no other income and is not subject to backup withholding. Irs ez No estimated tax payments were made under his name and social security number. Irs ez Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. Irs ez They figure the amount to report on Form 1040, lines 9a and 9b, the amount to report on their Schedule D, line 13, and the amount to report on Form 1040, line 21, as follows. Irs ez They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. Irs ez They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. Irs ez They enter the amount of Fred's capital gain distributions, $525, on line 3. Irs ez Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. Irs ez They subtract the base amount on line 5, $2,000, from the amount on line 4, $2,100, and enter the result, $100, on line 6. Irs ez This is the total amount from Form 8814 to be reported on their return. Irs ez Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. Irs ez They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. Irs ez They enter the result, . Irs ez 75, on line 7. Irs ez They divide the amount on line 3, $525, by the amount on line 4, $2,100. Irs ez They enter the result, . Irs ez 25, on line 8. Irs ez They multiply the amount on line 6, $100, by the decimal on line 7, . Irs ez 75, and enter the result, $75, on line 9. Irs ez They multiply the amount on line 6, $100, by the decimal on line 8, . Irs ez 25, and enter the result, $25, on line 10. Irs ez They include the amount from line 9, $75, on lines 9a and 9b of their Form 1040 and enter “Form 8814 – $75” on the dotted lines next to lines 9a and 9b. Irs ez They include the amount from line 10, $25, on line 13 of their Schedule D (Form 1040) and enter “Form 8814 – $25” on the dotted line next to Schedule D, line 13. Irs ez They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. Irs ez Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. Irs ez Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. Irs ez This tax is added to the tax figured on your income. Irs ez This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. Irs ez Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. Irs ez Check box a on Form 1040, line 44, or Form 1040NR, line 42. Irs ez Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Irs ez If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. Irs ez Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. Irs ez When Form 8615 must be filed. Irs ez   Form 8615 must be filed for a child if all of the following statements are true. Irs ez The child's unearned income was more than $2,000. Irs ez The child is required to file a return for 2013. Irs ez The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. Irs ez At least one of the child's parents was alive at the end of 2013. Irs ez The child does not file a joint return for 2013. Irs ez These conditions are also shown in Figure 2. Irs ez Certain January 1 birthdays. Irs ez   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Irs ez IF a child was born on. Irs ez . Irs ez . Irs ez THEN, at the end of 2013, the child is considered to be. Irs ez . Irs ez . Irs ez January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Irs ez The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Irs ez  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. Irs ez  ***Do not use Form 8615 for this child. Irs ez Figure 2. Irs ez Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Irs ez Figure 2. Irs ez Do You Have To Use Form 8615 To Figure Your Child's Tax? Providing Parental Information (Form 8615, Lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Irs ez (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Irs ez ) On line C, check the box for the parent's filing status. Irs ez See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. Irs ez Parent with different tax year. Irs ez   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. Irs ez Example. Irs ez Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). Irs ez Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). Irs ez Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. Irs ez Parent's return information not known timely. Irs ez   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. Irs ez   You can use any reasonable estimate. Irs ez This includes using information from last year's return. Irs ez If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Irs ez   When you get the correct information, file an amended return on Form 1040X, Amended U. Irs ez S. Irs ez Individual Income Tax Return. Irs ez Extension of time to file. Irs ez   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Irs ez S. Irs ez Individual Income Tax Return. Irs ez See the instructions for Form 4868 for details. Irs ez    An extension of time to file is not an extension of time to pay. Irs ez You must make an accurate estimate of the tax for 2013. Irs ez If you do not pay the full amount due by the regular due date, the child will owe interest and may also be charged penalties. Irs ez See Form 4868 and its instructions. Irs ez Parent's return information not available. Irs ez   If a child cannot get the required information about his or her parent's tax return, the child (or the child's legal representative) can request the necessary information from the Internal Revenue Service (IRS). Irs ez How to request. Irs ez   After the end of the tax year, send a signed, written request for the information to the Internal Revenue Service Center where the parent's return will be filed. Irs ez (The IRS cannot process a request received before the end of the tax year. Irs ez )    You should also consider getting an extension of time to file the child's return, because there may be a delay in getting the requested information. Irs ez   The request must contain all of the following. Irs ez A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and that you have tried to get the information from the parent. Irs ez Proof of the child's age (for example, a copy of the child's birth certificate). Irs ez Evidence the child has more than $2,000 of unearned income (for example, a copy of the child's prior year tax return or copies of Forms 1099 for the current year). Irs ez The name, address, social security number (if known), and filing status (if known) of the parent whose information is to be shown on Form 8615. Irs ez    A child's legal representative making the request should include a copy of his or her Power of Attorney, such as Form 2848, or proof of legal guardianship. Irs ez Step 1. Irs ez Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. Irs ez To do that, use Form 8615, Part I. Irs ez Line 1 (Unearned Income) If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Irs ez Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Irs ez Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. Irs ez If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. Irs ez However, use the following worksheet if: the child has excluded any foreign earned income, deducted a loss from self-employment, or has a net operating loss from another year. Irs ez Alternate Worksheet for Form 8615, Line 1 A. Irs ez Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. Irs ez Enter the total of any net loss  from self-employment, any net operating loss deduction, any foreign earned income exclusion, and any foreign housing exclusion from the child's Form 1040 or Form 1040NR. Irs ez Enter this total as a positive number (greater than zero)   C. Irs ez Add line A and line B and  enter the total   D. Irs ez Enter the child's earned income plus any amount from the child's Form 1040, line 30, or the child's Form 1040NR, line 30     Generally, the child's earned income is the total of the amounts reported on Form 1040, lines 7, 12, and 18 (if line 12 or 18 is a loss, use zero) or Form 1040NR, lines 8, 13, and 19 (if line 13 or 19 is a loss, use zero)   E. Irs ez Subtract line D from line C. Irs ez Enter the result here and on Form 8615, line 1   Unearned income defined. Irs ez   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. Irs ez It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. Irs ez Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). Irs ez Nontaxable income. Irs ez   For this purpose, unearned income includes only amounts the child must include in gross income. Irs ez Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Irs ez Capital loss. Irs ez   A child's capital losses are taken into account in figuring the child's unearned income. Irs ez Capital losses are first applied against capital gains. Irs ez If the capital losses are more than the capital gains, the difference (up to $3,000) is subtracted from the child's interest, dividends, and other unearned income. Irs ez Any difference over $3,000 is carried to the next year. Irs ez Income from property received as a gift. Irs ez   A child's unearned income includes all income produced by property belonging to the child. Irs ez This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. Irs ez   A child's unearned income includes income produced by property given as a gift to the child. Irs ez This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Irs ez Example. Irs ez Amanda Black, age 13, received the following income. Irs ez Dividends—$800 Wages—$2,100 Taxable interest—$1,200 Tax-exempt interest—$100 Capital gains—$300 Capital losses—($200) The dividends were qualified dividends on stock given to her by her grandparents. Irs ez Amanda's unearned income is $2,100. Irs ez This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). Irs ez Her wages are earned (not unearned) income because they are received for work actually performed. Irs ez Her tax-exempt interest is not included because it is nontaxable. Irs ez Trust income. Irs ez   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. Irs ez   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. Irs ez See the Form 8615 instructions for details. Irs ez Adjustment to income. Irs ez   In figuring the amount to enter on line 1, the child's unearned income is reduced by any penalty on the early withdrawal of savings. Irs ez Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. Irs ez If the child itemizes deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29 (or Schedule A (Form 1040NR), line 15), that are directly connected with the production of the unearned income entered on line 1, or $2,000. Irs ez Directly connected. Irs ez   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. Irs ez These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Irs ez    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Irs ez Only the amount greater than 2% of the child's adjusted gross income can be deducted. Irs ez See Publication 529, Miscellaneous Deductions, for more information. Irs ez Example 1. Irs ez Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with his unearned income. Irs ez His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Irs ez Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly-connected itemized deductions of $300. Irs ez Example 2. Irs ez Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Irs ez She has no other income. Irs ez She has itemized deductions of $1,050 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with the production of her unearned income. Irs ez Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Irs ez The amount on line 2 is $2,050. Irs ez This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Irs ez Line 3 Subtract line 2 from line 1 and enter the result on this line. Irs ez If zero or less, do not complete the rest of the form. Irs ez However, you must still attach Form 8615 to the child's tax return. Irs ez Figure the tax on the child's taxable income in the normal manner. Irs ez Line 4 (Child's Taxable Income) Enter on line 4 the child's taxable income from Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Irs ez Child files Form 2555 or 2555-EZ. Irs ez   If the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) is used to figure the child's tax. Irs ez Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. Irs ez Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. Irs ez Enter on Form 8615, line 5, the smaller of line 3 or line 4. Irs ez This is the child's net unearned income. Irs ez If zero or less, do not complete the rest of the form. Irs ez However, you must still attach Form 8615 to the child's tax return. Irs ez Figure the tax on the child's taxable income in the normal manner. Irs ez Step 2. Irs ez Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. Irs ez The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. Irs ez When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. Irs ez For example, do not refigure the medical expense deduction. Irs ez Figure the tentative tax on Form 8615, lines 6 through 13. Irs ez Line 6 (Parent's Taxable Income) Enter on line 6 the amount from the parent's Form 1040, line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR, line 41; or Form 1040NR-EZ, line 14. Irs ez If the parent's taxable income is zero or less, enter zero on line 6. Irs ez Parent files Form 2555 or 2555-EZ. Irs ez   If the parent files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet in the Form 1040 instructions is used to figure the parent's tax. Irs ez Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the parent's taxable income, on line 6 of Form 8615. Irs ez Line 7 (Net Unearned Income of Other Children) If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. Irs ez Do not include the amount from line 5 of the Form 8615 being completed. Irs ez (The term “other child” means any other child whose Form 8615 uses the tax information of the parent identified on Lines A and B of Form 8615. Irs ez ) Example. Irs ez Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Irs ez The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon—$800 Jerry—$600 Mike—$1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. Irs ez Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Irs ez Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Irs ez Other children's information not available. Irs ez   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. Irs ez Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . Irs ez Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. Irs ez You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. Irs ez Net capital gain. Irs ez   Net capital gain is the smaller of the gain, if any, on Schedule D (Form 1040), line 15, or the gain, if any, on Schedule D, line 16. Irs ez If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. Irs ez Qualified dividends. Irs ez   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. Irs ez Net capital gain and qualified dividends on line 8. Irs ez   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. Irs ez   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. Irs ez   If the child, parent, or any other child has net capital gain, figure the amount of net capital gain included on line 8 by adding together the net capital gain amounts included on lines 5, 6, and 7 of Form 8615. Irs ez   If the child, parent, or any other child has qualified dividends, figure the amount of qualified dividends included on line 8 by adding together the qualified dividend amounts included on lines 5, 6, and 7. Irs ez   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. Irs ez See the instructions for Form 8615 for more details. Irs ez Note. Irs ez The amount of any net capital gain or qualified dividends is not separately reported on line 8. Irs ez It is  needed, however, when figuring the tax on line 9. Irs ez Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Figure the tax on the amount on line 8 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet (in the Form 1040, 1040A, or 1040NR instructions), the Schedule D Tax Worksheet (in the Schedule D instructions), or Schedule J (Form 1040), as follows. Irs ez If line 8 does not include any net capital gain or qualified dividends, use the Tax Table or Tax Computation Worksheet to figure this tax. Irs ez But if Schedule J, Income Averaging for Farmers and Fishermen, is used to figure the tax on the parent's return, use it to figure this tax. Irs ez If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. Irs ez For details, see the instructions for Form 8615, line 9. Irs ez However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. Irs ez But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. Irs ez Child files Form 2555 or 2555-EZ. Irs ez   If line 8 includes any net capital gain or qualified dividends and the child, or any other child filing Form 8615, also files Form 2555 or 2555-EZ, use Using the Schedule D Tax Worksheet for line 9 tax, next, to figure the line 9 tax. Irs ez Using the Schedule D Tax Worksheet for line 9 tax. Irs ez    Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the line 9 tax on Form 8615 if the child, parent, or any other child has unrecaptured section 1250 gain or 28% rate gain. Irs ez If you must use the Schedule D Tax Worksheet, first complete any Schedule D and any actual Schedule D Tax Worksheet required for the child, parent, or any other child. Irs ez Then figure the line 9 tax using another Schedule D Tax Worksheet. Irs ez (Do not attach this Schedule D Tax Worksheet to the child's return. Irs ez )   Complete this Schedule D Tax Worksheet as follows. Irs ez On line 1, enter the amount from Form 8615, line 8. Irs ez On line 2, enter the qualified dividends included on Form 8615, line 8. Irs ez (See the earlier discussion for line 8. Irs ez ) On line 3, enter the total of the amounts, if any, on line 4g of all Forms 4952 filed by the child, parent, or any other child. Irs ez On line 4, enter the total of the amounts, if any, on line 4e of all Forms 4952 filed by the child, parent, or any other child. Irs ez If applicable, include instead the smaller amount entered on the dotted line next to line 4e. Irs ez On lines 5 and 6, follow the worksheet instructions. Irs ez On line 7, enter the net capital gain included on Form 8615, line 8. Irs ez (See the earlier discussion for line 8. Irs ez ) On lines 8 through 10, follow the worksheet instructions. Irs ez On line 11, enter zero if neither the child, nor the parent, nor any other child has unrecaptured section 1250 gain (Schedule D, line 19) or 28% rate gain (Schedule D, line 18). Irs ez Otherwise, enter the amount of unrecaptured section 1250 gain and 28% rate gain included in the net capital gain on line 8 of Form 8615. Irs ez Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). Irs ez If the Foreign Earned Income Tax Worksheet was used to figure the parent's tax or the tax of any child, go to step 10 below. Irs ez Otherwise, skip steps 10, 11, and 12 below, and go to step 13. Irs ez Determine whether there is a line 8 capital gain excess as follows. Irs ez Add the amounts on line 2 of all Foreign Earned Income Tax Worksheets completed by the parent or any child for whom Form 8615 is filed. Irs ez (But for each child do not add more than the excess, if any, of the amount on line 5 of the child's Form 8615 over the child's taxable income on Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. Irs ez ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. Irs ez Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. Irs ez If the result is more than zero, that amount is the line 8 capital gain excess. Irs ez If the result is zero or less, there is no line 8 capital gain excess. Irs ez If there is no line 8 capital gain excess, skip step 12 below and go to step 13. Irs ez If there is a line 8 capital gain excess, complete a second Schedule D Tax Worksheet as instructed above and in step 13, but in its entirety and with the following additional modifications. Irs ez (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. Irs ez ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. Irs ez Reduce the amount you would otherwise enter on line 6 (but not below zero) by any of the line 8 capital gain excess not used in (a) above. Irs ez If the child, parent, or any other child has 28% rate gain, reduce the amount you would otherwise enter on line 8 of Worksheet 1 for Line 11 of the Schedule D Tax Worksheet – 28% Rate Gain (Line 9 Tax), shown later, (but not below zero) by the line 8 capital gain excess, and refigure the amount on line 11 of this Schedule D Tax Worksheet. Irs ez If the child, parent, or any other child has unrecaptured section 1250 gain, reduce the amount you would otherwise enter on line 8 of Worksheet 2 for Line 11 of the Schedule D Tax Worksheet – Unrecaptured Section 1250 Gain (Line 9 Tax) (but not below zero) by the line 8 capital gain excess not used in 12(c), and refigure the amount on line 11 of this Schedule D Tax Worksheet. Irs ez Complete lines 12 through 45 following the worksheet instructions. Irs ez Use the parent's filing status to complete lines 15, 42, and 44. Irs ez Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line
Español

Office of Special Education and Rehabilitative Services (OSERS)

OSERS provides a wide array of supports to parents and individuals, school districts and states in three main areas: special education, vocational rehabilitation and research.

The Irs Ez

Irs ez 2. Irs ez   Filing Status Table of Contents What's New Introduction Useful Items - You may want to see: Marital StatusDivorced persons. Irs ez Divorce and remarriage. Irs ez Annulled marriages. Irs ez Head of household or qualifying widow(er) with dependent child. Irs ez Considered married. Irs ez Same-sex marriage. Irs ez Spouse died during the year. Irs ez Married persons living apart. Irs ez Single Married Filing JointlyFiling a Joint Return Married Filing SeparatelySpecial Rules Head of HouseholdConsidered Unmarried Keeping Up a Home Qualifying Person Qualifying Widow(er) With Dependent Child What's New Filing status for same-sex married couples. Irs ez  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. Irs ez See Same-sex marriage under Marital Status, later. Irs ez Introduction This chapter helps you determine which filing status to use. Irs ez There are five filing statuses. Irs ez Single. Irs ez Married Filing Jointly. Irs ez Married Filing Separately. Irs ez Head of Household. Irs ez Qualifying Widow(er) With Dependent Child. Irs ez If more than one filing status applies to you, choose the one that will give you the lowest tax. Irs ez You must determine your filing status before you can determine whether you must file a tax return (chapter 1), your standard deduction (chapter 20), and your tax (chapter 30). Irs ez You also use your filing status to determine whether you are eligible to claim certain deductions and credits. Irs ez Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 519 U. Irs ez S. Irs ez Tax Guide for Aliens 555 Community Property Marital Status In general, your filing status depends on whether you are considered unmarried or married. Irs ez Unmarried persons. Irs ez   You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. Irs ez State law governs whether you are married or legally separated under a divorce or separate maintenance decree. Irs ez Divorced persons. Irs ez   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. Irs ez Divorce and remarriage. Irs ez   If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. Irs ez Annulled marriages. Irs ez    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. Irs ez You must file Form 1040X, Amended U. Irs ez S. Irs ez Individual Income Tax Return, claiming single or head of household status for all tax years that are affected by the annulment and are not closed by the statute of limitations for filing a tax return. Irs ez Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Irs ez If you filed your original return early (for example, March 1), your return is considered filed on the due date (generally April 15). Irs ez However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. Irs ez Head of household or qualifying widow(er) with dependent child. Irs ez   If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. Irs ez See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. Irs ez Married persons. Irs ez   If you are considered married, you and your spouse can file a joint return or separate returns. Irs ez Considered married. Irs ez   You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. Irs ez You are married and living together as a married couple. Irs ez You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. Irs ez You are married and living apart, but not legally separated under a decree of divorce or separate maintenance. Irs ez You are separated under an interlocutory (not final) decree of divorce. Irs ez Same-sex marriage. Irs ez   For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Irs ez The term “spouse” includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Irs ez However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state (or foreign) law are not considered married for federal tax purposes. Irs ez For more details, see Publication 501. Irs ez Spouse died during the year. Irs ez   If your spouse died during the year, you are considered married for the whole year for filing status purposes. Irs ez   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Irs ez For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . Irs ez   If you remarried before the end of the tax year, you can file a joint return with your new spouse. Irs ez Your deceased spouse's filing status is married filing separately for that year. Irs ez Married persons living apart. Irs ez   If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. Irs ez If you qualify to file as head of household instead of married filing separately, your standard deduction will be higher. Irs ez Also, your tax may be lower, and you may be able to claim the earned income credit. Irs ez See Head of Household , later. Irs ez Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Irs ez To determine your marital status, see Marital Status , earlier. Irs ez Widow(er). Irs ez   Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. Irs ez You may, however, be able to use another filing status that will give you a lower tax. Irs ez See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. Irs ez How to file. Irs ez   You can file Form 1040. Irs ez If you have taxable income of less than $100,000, you may be able to file Form 1040A. Irs ez If, in addition, you have no dependents, and are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Irs ez If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. Irs ez Use the Single column of the Tax Table or Section A of the Tax Computation Worksheet to figure your tax. Irs ez Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. Irs ez On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. Irs ez You can file a joint return even if one of you had no income or deductions. Irs ez If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Irs ez Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. Irs ez If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Irs ez You can choose the method that gives the two of you the lower combined tax. Irs ez How to file. Irs ez   If you file as married filing jointly, you can use Form 1040. Irs ez If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. Irs ez If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Irs ez If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Irs ez Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Irs ez Spouse died. Irs ez   If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. Irs ez See Spouse died during the year under Marital Status, earlier, for more information. Irs ez   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. Irs ez Divorced persons. Irs ez   If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. Irs ez Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. Irs ez Accounting period. Irs ez   Both of you must use the same accounting period, but you can use different accounting methods. Irs ez See Accounting Periods and Accounting Methods in chapter 1. Irs ez Joint responsibility. Irs ez   Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Irs ez This means that if one spouse does not pay the tax due, the other may have to. Irs ez Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. Irs ez One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. Irs ez You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. Irs ez Divorced taxpayer. Irs ez   You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. Irs ez This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Irs ez Relief from joint responsibility. Irs ez   In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Irs ez You can ask for relief no matter how small the liability. Irs ez   There are three types of relief available. Irs ez Innocent spouse relief. Irs ez Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or have not lived together for the 12 months ending on the date the election for this relief is filed). Irs ez Equitable relief. Irs ez    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. Irs ez Publication 971, Innocent Spouse Relief, explains these kinds of relief and who may qualify for them. Irs ez Signing a joint return. Irs ez   For a return to be considered a joint return, both spouses generally must sign the return. Irs ez Spouse died before signing. Irs ez   If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. Irs ez If neither you nor anyone else has yet been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. Irs ez Spouse away from home. Irs ez   If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so that it can be filed on time. Irs ez Injury or disease prevents signing. Irs ez   If your spouse cannot sign because of disease or injury and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). Irs ez ” Be sure to also sign in the space provided for your signature. Irs ez Attach a dated statement, signed by you, to the return. Irs ez The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. Irs ez Signing as guardian of spouse. Irs ez   If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Irs ez Spouse in combat zone. Irs ez   You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf Area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. Irs ez Attach a signed statement to your return explaining that your spouse is serving in a combat zone. Irs ez For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. Irs ez Other reasons spouse cannot sign. Irs ez    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). Irs ez Attach the power of attorney (or a copy of it) to your tax return. Irs ez You can use Form 2848, Power of Attorney and Declaration of Representative. Irs ez Nonresident alien or dual-status alien. Irs ez   Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. Irs ez However, if one spouse was a nonresident alien or dual-status alien who was married to a U. Irs ez S. Irs ez citizen or resident alien at the end of the year, the spouses can choose to file a joint return. Irs ez If you do file a joint return, you and your spouse are both treated as U. Irs ez S. Irs ez residents for the entire tax year. Irs ez See chapter 1 of Publication 519. Irs ez Married Filing Separately You can choose married filing separately as your filing status if you are married. Irs ez This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Irs ez If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. Irs ez You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). Irs ez This can apply to you even if you are not divorced or legally separated. Irs ez If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. Irs ez The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. Irs ez See Head of Household , later, for more information. Irs ez You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. Irs ez However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). Irs ez This way you can make sure you are using the filing status that results in the lowest combined tax. Irs ez When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. Irs ez How to file. Irs ez   If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. Irs ez You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. Irs ez You can file Form 1040. Irs ez If your taxable income is less than $100,000, you may be able to file Form 1040A. Irs ez Select this filing status by checking the box on line 3 of either form. Irs ez Enter your spouse's full name and SSN or ITIN in the spaces provided. Irs ez If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. Irs ez Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. Irs ez Special Rules If you choose married filing separately as your filing status, the following special rules apply. Irs ez Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. Irs ez   Your tax rate generally is higher than on a joint return. Irs ez Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. Irs ez You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000). Irs ez If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Irs ez For more information about these expenses, the credit, and the exclusion, see chapter 32. Irs ez You cannot take the earned income credit. Irs ez You cannot take the exclusion or credit for adoption expenses in most cases. Irs ez You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. Irs ez You cannot exclude any interest income from qualified U. Irs ez S. Irs ez savings bonds you used for higher education expenses. Irs ez If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. Irs ez The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. Irs ez Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Irs ez If your spouse itemizes deductions, you cannot claim the standard deduction. Irs ez If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. Irs ez Adjusted gross income (AGI) limits. Irs ez   If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. Irs ez Individual retirement arrangements (IRAs). Irs ez   You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. Irs ez Your deduction is reduced or eliminated if your income is more than a certain amount. Irs ez This amount is much lower for married individuals who file separately and lived together at any time during the year. Irs ez For more information, see How Much Can You Deduct in chapter 17. Irs ez Rental activity losses. Irs ez   If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income, up to $25,000. Irs ez This is called a special allowance. Irs ez However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. Irs ez Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. Irs ez See Limits on Rental Losses in chapter 9. Irs ez Community property states. Irs ez   If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. Irs ez See Publication 555. Irs ez Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. Irs ez You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. Irs ez This does not include any extensions. Irs ez A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. Irs ez Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Irs ez Exception. Irs ez   A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Irs ez The personal representative has 1 year from the due date of the return (including extensions) to make the change. Irs ez See Publication 559, Survivors, Executors, and Administrators, for more information on filing a return for a decedent. Irs ez Head of Household You may be able to file as head of household if you meet all the following requirements. Irs ez You are unmarried or “considered unmarried” on the last day of the year. Irs ez See Marital Status , earlier, and Considered Unmarried , later. Irs ez You paid more than half the cost of keeping up a home for the year. Irs ez A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). Irs ez However, if the qualifying person is your dependent parent, he or she does not have to live with you. Irs ez See Special rule for parent , later, under Qualifying Person. Irs ez If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. Irs ez You will also receive a higher standard deduction than if you file as single or married filing separately. Irs ez Kidnapped child. Irs ez   A child may qualify you to file as head of household even if the child has been kidnapped. Irs ez For more information, see Publication 501. Irs ez How to file. Irs ez   If you file as head of household, you can use Form 1040. Irs ez If your taxable income is less than $100,000, you may be able to file Form 1040A. Irs ez Indicate your choice of this filing status by checking the box on line 4 of either form. Irs ez Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. Irs ez Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. Irs ez You are considered unmarried on the last day of the tax year if you meet all the following tests. Irs ez You file a separate return (defined earlier under Joint Return After Separate Returns ). Irs ez You paid more than half the cost of keeping up your home for the tax year. Irs ez Your spouse did not live in your home during the last 6 months of the tax year. Irs ez Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Irs ez See Temporary absences , under Qualifying Person, later. Irs ez Your home was the main home of your child, stepchild, or foster child for more than half the year. Irs ez (See Home of qualifying person , under Qualifying Person, later, for rules applying to a child's birth, death, or temporary absence during the year. Irs ez ) You must be able to claim an exemption for the child. Irs ez However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described in Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3, or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative in chapter 3. Irs ez The general rules for claiming an exemption for a dependent are explained under Exemptions for Dependents in chapter 3. Irs ez If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. Irs ez See Publication 555 for more information. Irs ez Nonresident alien spouse. Irs ez   You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. Irs ez However, your spouse is not a qualifying person for head of household purposes. Irs ez You must have another qualifying person and meet the other tests to be eligible to file as a head of household. Irs ez Choice to treat spouse as resident. Irs ez   You are considered married if you choose to treat your spouse as a resident alien. Irs ez See Publication 519. Irs ez Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. Irs ez You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 2–1. Irs ez Worksheet 2-1. Irs ez Cost of Keeping Up a Home   Amount You Paid Total Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $ Minus total amount you paid   () Amount others paid   $ If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Irs ez Costs you include. Irs ez   Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Irs ez   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. Irs ez However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Irs ez Costs you do not include. Irs ez   Do not include the costs of clothing, education, medical treatment, vacations, life insurance, or transportation. Irs ez Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. Irs ez Qualifying Person See Table 2-1 to see who is a qualifying person. Irs ez Any person not described in Table 2-1 is not a qualifying person. Irs ez Table 2-1. Irs ez Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Caution. Irs ez See the text of this chapter for the other requirements you must meet to claim head of household filing status. Irs ez IF the person is your . Irs ez . Irs ez . Irs ez   AND . Irs ez . Irs ez . Irs ez   THEN that person is . Irs ez . Irs ez . Irs ez qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. Irs ez   he or she is married and you can claim an exemption for him or her   a qualifying person. Irs ez   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. Irs ez 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. Irs ez 6   you cannot claim an exemption for him or her   not a qualifying person. Irs ez qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests)   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and you can claim an exemption for him or her5   a qualifying person. Irs ez   he or she did not live with you more than half the year   not a qualifying person. Irs ez   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3 and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. Irs ez   you cannot claim an exemption for him or her   not a qualifying person. Irs ez 1A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Irs ez 2The term “qualifying child” is defined in chapter 3. Irs ez Note. Irs ez If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child in chapter 3. Irs ez If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Irs ez 3This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Irs ez 4The term “ qualifying relative ” is defined in chapter 3. Irs ez 5If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Irs ez See Multiple Support Agreement in chapter 3. Irs ez 6See Special rule for parent . Irs ez Example 1—child. Irs ez Your unmarried son lived with you all year and was 18 years old at the end of the year. Irs ez He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. Irs ez As a result, he is your qualifying child (see Qualifying Child in chapter 3) and, because he is single, your qualifying person for you to claim head of household filing status. Irs ez Example 2—child who is not qualifying person. Irs ez The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. Irs ez Because he does not meet the age test (explained under Qualifying Child in chapter 3), your son is not your qualifying child. Irs ez Because he does not meet the gross income test (explained later under Qualifying Relative in chapter 3), he is not your qualifying relative. Irs ez As a result, he is not your qualifying person for head of household purposes. Irs ez Example 3—girlfriend. Irs ez Your girlfriend lived with you all year. Irs ez Even though she may be your qualifying relative if the gross income and support tests (explained in chapter 3) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you in chapter 3. Irs ez See Table 2-1. Irs ez Example 4—girlfriend's child. Irs ez The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. Irs ez He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test in chapter 3). Irs ez As a result, he is not your qualifying person for head of household purposes. Irs ez Home of qualifying person. Irs ez   Generally, the qualifying person must live with you for more than half of the year. Irs ez Special rule for parent. Irs ez   If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Irs ez However, you must be able to claim an exemption for your father or mother. Irs ez Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Irs ez   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Irs ez Death or birth. Irs ez   You may be eligible to file as head of household even if the individual who qualifies you for this filing status is born or dies during the year. Irs ez If the individual is your qualifying child, the child must have lived with you for more than half the part of the year he or she was alive. Irs ez If the individual is anyone else, see Publication 501. Irs ez Temporary absences. Irs ez   You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Irs ez It must be reasonable to assume the absent person will return to the home after the temporary absence. Irs ez You must continue to keep up the home during the absence. Irs ez Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. Irs ez The year of death is the last year for which you can file jointly with your deceased spouse. Irs ez See Married Filing Jointly , earlier. Irs ez You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. Irs ez For example, if your spouse died in 2012, and you have not remarried, you may be able to use this filing status for 2013 and 2014. Irs ez This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). Irs ez It does not entitle you to file a joint return. Irs ez How to file. Irs ez   If you file as qualifying widow(er) with dependent child, you can use Form 1040. Irs ez If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Irs ez Check the box on line 5 of either form. Irs ez Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Irs ez Eligibility rules. Irs ez   You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all of the following tests. Irs ez You were entitled to file a joint return with your spouse for the year your spouse died. Irs ez It does not matter whether you actually filed a joint return. Irs ez Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Irs ez You have a child or stepchild for whom you can claim an exemption. Irs ez This does not include a foster child. Irs ez This child lived in your home all year, except for temporary absences. Irs ez See Temporary absences , earlier, under Head of Household. Irs ez There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. Irs ez You paid more than half the cost of keeping up a home for the year. Irs ez See Keeping Up a Home , earlier, under Head of Household. Irs ez Example. Irs ez John's wife died in 2011. Irs ez John has not remarried. Irs ez During 2012 and 2013, he continued to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. Irs ez For 2011 he was entitled to file a joint return for himself and his deceased wife. Irs ez For 2012 and 2013, he can file as qualifying widower with a dependent child. Irs ez After 2013 he can file as head of household if he qualifies. Irs ez Death or birth. Irs ez    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. Irs ez You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. Irs ez Kidnapped child. Irs ez   A child may qualify you for qualifying widow(er) with dependent child, even if the child has been kidnapped. Irs ez See Publication 501. Irs ez    As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. Irs ez Prev  Up  Next   Home   More Online Publications