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Irs free Index Symbols 401(k) Plan Elective Deferrals, Elective Deferrals (401(k) Plans) Safe harbor, Safe harbor 401(k) plan. Irs free A Annual additions, Annual additions. Irs free Annual benefits, Annual benefits. Irs free Assistance (see Tax help) Automatic Enrollment, Automatic Enrollment B Business, definition, Business. Irs free C Common-law employee, Common-law employee. Irs free Compensation, Compensation. Irs free Contribution Defined, Contribution. Irs free Limits Qualified plans, Limits on Contributions and Benefits SEP-IRAs, Contribution Limits SIMPLE IRA plan, Contribution Limits D Deduction Defined, SIMPLE plans. Irs free , Deduction. Irs free Deduction worksheet for self-employed, Figuring your deduction. Irs free Defined benefit plan Deduction limits, Defined benefit plans. Irs free Limits on contributions, Defined benefit plan. Irs free Defined contribution plan Automatic Enrollment, Automatic Enrollment Deduction limits, Defined contribution plans. Irs free Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Irs free Forfeitures, Forfeiture. Irs free Limits on contributions, Defined contribution plan. Irs free Money purchase pension plan, Money purchase pension plan. Irs free Profit-sharing plan, Profit-sharing plan. Irs free Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Irs free Definitions you need to know, Definitions You Need To Know Disqualified person, Prohibited Transactions Distributions (withdrawals), Distributions (Withdrawals) E EACA, Eligible automatic contribution arrangement. Irs free Earned income, Earned income. Irs free Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Irs free Employees Eligible, Eligible employee. Irs free Excludable, Excludable employees. Irs free Highly compensated, Highly compensated employee. Irs free Leased, Leased employee. Irs free Employer Defined, Employer. Irs free Excess Deferrals, Treatment of Excess Deferrals Excise tax, Excise Tax on Reversion of Plan Assets Nondeductible (excess) contributions, Excise Tax for Nondeductible (Excess) Contributions Reduced benefit accrual, Notification of Significant Benefit Accrual Reduction SEP excess contributions, Excise tax. Irs free Excludable employees, Excludable employees. Irs free F Form 1040, Where To Deduct Contributions, Reporting the tax. Irs free 1099-R, Reporting corrective distributions on Form 1099-R. Irs free 5304–SIMPLE, How To Set Up a SIMPLE IRA Plan 5305–S, Setting up a SIMPLE IRA. Irs free 5305–SA, Setting up a SIMPLE IRA. Irs free 5305–SEP, Formal written agreement. Irs free 5305–SIMPLE, How To Set Up a SIMPLE IRA Plan 5310, Form 5310. Irs free 5329, Reporting the tax. Irs free 5330, Reporting the tax. Irs free , Tax on excess contributions of highly compensated employees. Irs free , Excise Tax on Reversion of Plan Assets, Payment of the 15% tax. Irs free 5500, Form 5500. Irs free , Electronic filing of Forms 5500 and 5500-SF. Irs free 5500-EZ, Form 5500-EZ. Irs free Form W-2, Reporting on Form W-2. Irs free Schedule K (Form 1065), Where To Deduct Contributions Free tax services, Free help with your return. Irs free H Highly compensated employee, Highly compensated employee. Irs free K Keogh plans (see Qualified plans) L Leased employee, Leased employee. Irs free N Net earnings from self-employment, Net earnings from self-employment. Irs free Notification requirements, Notification Requirement P Participant, definition, Participant. Irs free Participation, Participation. Irs free Partner, definition, Partner. Irs free Publications (see Tax help) Q QACA, Qualified automatic contribution arrangement. Irs free Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Irs free Qualified Plan, definition, Qualified plan. Irs free Qualified plans, Limits on Contributions and Benefits Assignment of benefits, Benefits must not be assigned or alienated. Irs free Benefits starting date, Benefit payment must begin when required. Irs free Contributions, Contributions, Employer Contributions, Limits on Contributions and Benefits, When Contributions Are Considered Made, Where To Deduct Contributions Deduction limits, Deduction Limits, Defined contribution plans. Irs free , Defined benefit plans. Irs free , Deduction Limit for Self-Employed Individuals, Carryover of Excess Contributions, Excise Tax for Nondeductible (Excess) Contributions Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Deductions, Employer Deduction Deferrals, Treatment of contributions. Irs free , Reporting on Form W-2. Irs free Defined benefit plan, Defined Benefit Plan Defined contribution plan, Defined Contribution Plan Distributions, Distributions Minimum, Required Distributions Required beginning date, Required beginning date. Irs free Rollover, Rollover. Irs free Tax on excess benefits, Tax on Excess Benefits Tax on premature, Tax on Early Distributions Tax treatment, Tax Treatment of Distributions Elective Deferrals, Elective Deferrals (401(k) Plans) Limits, Limit on Elective Deferrals Employee nondeductible contributions, Employee Contributions Excess Deferrals, Treatment of Excess Deferrals Investing plan assets, Investing Plan Assets Kinds of plans, Kinds of Plans Leased employees, Leased employee. Irs free Minimum requirements Coverage, Minimum coverage requirement must be met. Irs free Funding, Minimum Funding Requirement Vesting, Minimum vesting standard must be met. Irs free Prohibited transactions, Prohibited Transactions Qualification rules, Qualification Rules Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting requirements, Reporting Requirements Setting up, Setting Up a Qualified Plan Qualified Plans Survivor benefits, Survivor benefits. Irs free Qualified Roth Contribution Program, Qualified Roth Contribution Program R Rate Table for Self-Employed, Rate table for self-employed. Irs free Rate Worksheet for Self-Employed, Rate worksheet for self-employed. Irs free Required distributions, Required Distributions Rollovers, Rollover. Irs free S Safe harbor 401(k) plan, Safe harbor 401(k) plan. Irs free Salary reduction arrangement, Deferral percentage. Irs free , Limit on Elective Deferrals Salary Reduction Simplified Employee Pension(SARSEP), Salary Reduction Simplified Employee Pensions (SARSEPs) SARSEP ADP test, SARSEP ADP test. Irs free Section 402(f) notice, Section 402(f) Notice. Irs free Self-employed individual, Self-employed individual. Irs free SEP plans Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting and Disclosure, Reporting and Disclosure Requirements SEP-IRAs Contributions, Contributions for yourself. Irs free Deductible contributions, Deducting Contributions, Excise tax. Irs free Carryover of excess contributions, Carryover of Excess SEP Contributions Deduction limits, Deduction Limit for Contributions for Participants Limits for self-employed, Deduction Limit for Self-Employed Individuals When to deduct, When To Deduct Contributions Where to deduct, Where To Deduct Contributions Distributions (withdrawals), Distributions (Withdrawals) Eligible employee, Eligible employee. Irs free Excludable employees, Excludable employees. Irs free SIMPLE IRA plan Compensation, Compensation. Irs free Contributions, Contribution Limits Deductions, Nonelective contributions. Irs free Distributions(withdrawals), Distributions (Withdrawals) Employee election period, Election period. Irs free Employer matching contributions, Employer matching contributions. Irs free Excludable employees, Excludable employees. Irs free Notification requirements, Notification Requirement When to deduct contributions, When To Deduct Contributions SIMPLE plans, Who Can Set Up a SIMPLE IRA Plan?, Reporting on Form W-2. Irs free SIMPLE 401(k), SIMPLE 401(k) Plan SIMPLE IRA plan, SIMPLE IRA Plan Simplified employee pension (SEP), Salary Reduction Simplified Employee Pensions (SARSEPs) Salary reduction arrangement Compensation of self-employed individuals, Compensation of self-employed individuals. Irs free Employee compensation, Employee compensation. Irs free Who can have a SARSEP, Who can have a SARSEP? SEP-IRA contributions, How Much Can I Contribute? Setting up a SEP, Setting Up a SEP Sixty-day employee election period, Election period. Irs free Sole proprietor, definition, Sole proprietor. Irs free T Tax help, How To Get Tax Help U User fee, User fee. Irs free W Worksheets Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Prev  Up     Home   More Online Publications
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IRS Outlines Filing and Payment Options for Taxpayers Affected by Hurricane Irene, Tropical Storm Lee and Texas Wildfires

Oct. 4, 2011

WASHINGTON –– The Internal Revenue Service today reminded taxpayers affected by Hurricane Irene, Tropical Storm Irene, Tropical Storm Lee and the Texas wildfires that they have until Oct. 31 to meet certain tax filing and payment obligations and announced that e-File and Free File would remain available to accept their returns.

E-file, which will close for all other taxpayers following the Oct. 17 extension filing deadline, will be open through the end of October to any taxpayer who lives or has a business in areas granted tax relief because of Hurricane Irene, Tropical Storm Irene, the Texas wildfires or Tropical Storm Lee in New York and Pennsylvania.

Special Instructions for e-Filers

The IRS encouraged any taxpayer who wants to include a payment with the tax return to e-File by Oct. 20.

Because of year-end programming changes, IRS e-File will not accept returns that include payments after Oct 20. E-file returns that include a payment after that date will be rejected, but the IRS offers other options for these taxpayers to still e-file but pay separately by using:

EFTPS (The Electronic Federal Tax Payment System)
credit or debit card
check or money order

These guidelines apply to e-File and Free File returns only. Payments accompanying paper returns are not affected.

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