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Irs Tax Forms 1040 2010

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Irs Tax Forms 1040 2010

Irs tax forms 1040 2010 Publication 559 - Main Content Table of Contents Personal RepresentativeDuties Fees Received by Personal Representatives Final Income Tax Return for Decedent—Form 1040Name, Address, and Signature When and Where To File Filing Requirements Income To Include Exemptions and Deductions Credits, Other Taxes, and Payments Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts Filing Reminders Other Tax InformationTax Benefits for Survivors Income in Respect of a Decedent Deductions in Respect of a Decedent Estate Tax Deduction Gifts, Insurance, and Inheritances Other Items of Income Income Tax Return of an Estate— Form 1041Filing Requirements Income To Include Exemption and Deductions Credits, Tax, and Payments Name, Address, and Signature When and Where To File Distributions to BeneficiariesIncome That Must Be Distributed Currently Other Amounts Distributed Discharge of a Legal Obligation Character of Distributions How and When To Report Bequest Termination of Estate Estate and Gift TaxesApplicable Credit Amount Gift Tax Estate Tax Generation-Skipping Transfer Tax Comprehensive ExampleFinal Return for Decedent—Form 1040 Income Tax Return of an Estate—Form 1041 How To Get Tax HelpLow Income Taxpayer Clinics Personal Representative A personal representative of an estate is an executor, administrator, or anyone who is in charge of the decedent's property. Irs tax forms 1040 2010 Generally, an executor (or executrix) is named in a decedent's will to administer the estate and distribute properties as the decedent has directed. Irs tax forms 1040 2010 An administrator (or administratrix) is usually appointed by the court if no will exists, if no executor was named in the will, or if the named executor cannot or will not serve. Irs tax forms 1040 2010 In general, an executor and an administrator perform the same duties and have the same responsibilities. Irs tax forms 1040 2010 For estate tax purposes, if there is no executor or administrator appointed, qualified, and acting within the United States, the term “executor” includes anyone in actual or constructive possession of any property of the decedent. Irs tax forms 1040 2010 It includes, among others, the decedent's agents and representatives; safe-deposit companies, warehouse companies, and other custodians of property in this country; brokers holding securities of the decedent as collateral; and the debtors of the decedent who are in this country. Irs tax forms 1040 2010 Duties The primary duties of a personal representative are to collect all the decedent's assets, pay his or her creditors, and distribute the remaining assets to the heirs or other beneficiaries. Irs tax forms 1040 2010 The personal representative also must perform the following duties. Irs tax forms 1040 2010 Apply for an employer identification number (EIN) for the estate. Irs tax forms 1040 2010 File all tax returns, including income, estate and gift tax returns, when due. Irs tax forms 1040 2010 Pay the tax determined up to the date of discharge from duties. Irs tax forms 1040 2010 Other duties of the personal representative in federal tax matters are discussed in other sections of this publication. Irs tax forms 1040 2010 If any beneficiary is a nonresident alien, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for information on the personal representative's duties as a withholding agent. Irs tax forms 1040 2010 Penalty. Irs tax forms 1040 2010   There is a penalty for failure to file a tax return when due unless the failure is due to reasonable cause. Irs tax forms 1040 2010 Reliance on an agent (attorney, accountant, etc. Irs tax forms 1040 2010 ) is not reasonable cause for late filing. Irs tax forms 1040 2010 It is the personal representative's duty to file the returns for the decedent and the estate when due. Irs tax forms 1040 2010 Identification number. Irs tax forms 1040 2010   The first action you should take if you are the personal representative for the decedent is to apply for an EIN for the estate. Irs tax forms 1040 2010 You should apply for this number as soon as possible because you need to enter it on returns, statements, and other documents you file concerning the estate. Irs tax forms 1040 2010 You also must give the number to payers of interest and dividends and other payers who must file a return concerning the estate. Irs tax forms 1040 2010   You can get an EIN by applying online at www. Irs tax forms 1040 2010 irs. Irs tax forms 1040 2010 gov (click on "Apply for an EIN Online" under the Tools heading). Irs tax forms 1040 2010 Generally, if you apply online, you will receive your EIN immediately upon completing the application. Irs tax forms 1040 2010 You can also apply using Form SS-4, Application for Employer Identification Number. Irs tax forms 1040 2010 Generally, if you apply by mail, it takes about 4 weeks to get your EIN. Irs tax forms 1040 2010 See the form instructions for other ways to apply. Irs tax forms 1040 2010   Payers of interest and dividends report amounts on Forms 1099 using the identification number of the person to whom the account is payable. Irs tax forms 1040 2010 After a decedent's death, Forms 1099 must reflect the identification number of the estate or beneficiary to whom the amounts are payable. Irs tax forms 1040 2010 As the personal representative handling the estate, you must furnish this identification number to the payer. Irs tax forms 1040 2010 For example, if interest is payable to the estate, the estate's EIN must be provided to the payer and used to report the interest on Form 1099-INT, Interest Income. Irs tax forms 1040 2010 If the interest is payable to a surviving joint owner, the survivor's identification number, such as an SSN or ITIN, must be provided to the payer and used to report the interest. Irs tax forms 1040 2010   If the estate or a survivor may receive interest or dividends after you inform the payer of the decedent's death, the payer should give you (or the survivor) a Form W-9, Request for Taxpayer Identification Number and Certification (or a similar substitute form). Irs tax forms 1040 2010 Complete this form to inform the payer of the estate's (or if completed by the survivor, the survivor's) identification number and return it to the payer. Irs tax forms 1040 2010    Do not use the deceased individual's identifying number to file an individual income tax return after the decedent's final tax return. Irs tax forms 1040 2010 Also do not use it to make estimated tax payments for a tax year after the year of death. Irs tax forms 1040 2010 Penalty. Irs tax forms 1040 2010   If you do not include the EIN or the taxpayer identification number of another person where it is required on a return, statement, or other document, you are liable for a penalty for each failure, unless you can show reasonable cause. Irs tax forms 1040 2010 You also are liable for a penalty if you do not give the taxpayer identification number of another person when required on a return, statement, or other document. Irs tax forms 1040 2010 Notice of fiduciary relationship. Irs tax forms 1040 2010   The term fiduciary means any person acting for another person. Irs tax forms 1040 2010 It applies to persons who have positions of trust on behalf of others. Irs tax forms 1040 2010 A personal representative for a decedent's estate is a fiduciary. Irs tax forms 1040 2010 Form 56. Irs tax forms 1040 2010   If you are appointed to act in a fiduciary capacity for another, you must file a written notice with the IRS stating this. Irs tax forms 1040 2010 Form 56, Notice Concerning Fiduciary Relationship, is used for this purpose. Irs tax forms 1040 2010 See the Instructions for Form 56 for filing requirements and other information. Irs tax forms 1040 2010   File Form 56 as soon as all the necessary information (including the EIN) is available. Irs tax forms 1040 2010 It notifies the IRS that you, as the fiduciary, are assuming the powers, rights, duties, and privileges of the decedent. Irs tax forms 1040 2010 The notice remains in effect until you notify the IRS (by filing another Form 56) that your fiduciary relationship with the estate has terminated. Irs tax forms 1040 2010 Termination of fiduciary relationship. Irs tax forms 1040 2010   Form 56 should also be filed to notify the IRS if your fiduciary relationship is terminated or when a successor fiduciary is appointed if the estate has not been terminated. Irs tax forms 1040 2010 See Form 56 and its instructions for more information. Irs tax forms 1040 2010   At the time of termination of the fiduciary relationship, you may want to file Form 4810, Request for Prompt Assessment Under Internal Revenue Code Section 6501(d), and Form 5495, Request for Discharge From Personal Liability Under Internal Revenue Code Section 2204 or 6905, to wind up your duties as fiduciary. Irs tax forms 1040 2010 See below for a discussion of these forms. Irs tax forms 1040 2010 Request for prompt assessment (charge) of tax. Irs tax forms 1040 2010   The IRS ordinarily has 3 years from the date an income tax return is filed, or its due date, whichever is later, to charge any additional tax due. Irs tax forms 1040 2010 However, as a personal representative, you may request a prompt assessment of tax after the return has been filed. Irs tax forms 1040 2010 This reduces the time for making the assessment to 18 months from the date the written request for prompt assessment was received. Irs tax forms 1040 2010 This request can be made for any tax return (except the estate tax return) of the decedent or the decedent's estate. Irs tax forms 1040 2010 This may permit a quicker settlement of the tax liability of the estate and an earlier final distribution of the assets to the beneficiaries. Irs tax forms 1040 2010 Form 4810. Irs tax forms 1040 2010   Form 4810 can be used for making this request. Irs tax forms 1040 2010 It must be filed separately from any other document. Irs tax forms 1040 2010   As the personal representative for the decedent's estate, you are responsible for any additional taxes that may be due. Irs tax forms 1040 2010 You can request prompt assessment of any of the decedent's taxes (other than federal estate taxes) for any years for which the statutory period for assessment is open. Irs tax forms 1040 2010 This applies even though the returns were filed before the decedent's death. Irs tax forms 1040 2010 Failure to report income. Irs tax forms 1040 2010   If you or the decedent failed to report substantial amounts of gross income (more than 25% of the gross income reported on the return) or filed a false or fraudulent return, your request for prompt assessment will not shorten the period during which the IRS may assess the additional tax. Irs tax forms 1040 2010 However, such a request may relieve you of personal liability for the tax if you did not have knowledge of the unpaid tax. Irs tax forms 1040 2010 Request for discharge from personal liability for tax. Irs tax forms 1040 2010   An executor can make a request for discharge from personal liability for a decedent's income, gift, and estate taxes. Irs tax forms 1040 2010 The request must be made after the returns for those taxes are filed. Irs tax forms 1040 2010 To make the request, file Form 5495. Irs tax forms 1040 2010 For this purpose, an executor is an executor or administrator that is appointed, qualified, and acting within the United States. Irs tax forms 1040 2010   Within 9 months after receipt of the request, the IRS will notify the executor of the amount of taxes due. Irs tax forms 1040 2010 If this amount is paid, the executor will be discharged from personal liability for any future deficiencies. Irs tax forms 1040 2010 If the IRS has not notified the executor, he or she will be discharged from personal liability at the end of the 9-month period. Irs tax forms 1040 2010    Even if the executor is discharged from personal liability, the IRS will still be able to assess tax deficiencies against the executor to the extent he or she still has any of the decedent's property. Irs tax forms 1040 2010 Insolvent estate. Irs tax forms 1040 2010   Generally, if a decedent's estate is insufficient to pay all the decedent's debts, the debts due to the United States must be paid first. Irs tax forms 1040 2010 Both the decedent's federal income tax liabilities at the time of death and the estate's income tax liability are debts due to the United States. Irs tax forms 1040 2010 The personal representative of an insolvent estate is personally responsible for any tax liability of the decedent or of the estate if he or she had notice of such tax obligations or failed to exercise due care in determining if such obligations existed before distribution of the estate's assets and before being discharged from duties. Irs tax forms 1040 2010 The extent of such personal responsibility is the amount of any other payments made before paying the debts due to the United States, except where such other debt paid has priority over the debts due to the United States. Irs tax forms 1040 2010 Income tax liabilities need not be formally assessed for the personal representative to be liable if he or she was aware or should have been aware of their existence. Irs tax forms 1040 2010 Fees Received by Personal Representatives All personal representatives must include fees paid to them from an estate in their gross income. Irs tax forms 1040 2010 If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on your Form 1040, line 21. Irs tax forms 1040 2010 If you are in the trade or business of being an executor, report fees received from the estate as self-employment income on Schedule C or Schedule C-EZ of your Form 1040. Irs tax forms 1040 2010 If the estate operates a trade or business and you, as executor, actively participate in the trade or business while fulfilling your duties, any fees you receive related to the operation of the trade or business must be reported as self-employment income on Schedule C (or Schedule C-EZ) of your Form 1040. Irs tax forms 1040 2010 Final Income Tax Return for Decedent—Form 1040 The personal representative (defined earlier) must file the final income tax return (Form 1040) of the decedent for the year of death and any returns not filed for preceding years. Irs tax forms 1040 2010 A surviving spouse, under certain circumstances, may have to file the returns for the decedent. Irs tax forms 1040 2010 See Joint Return, later. Irs tax forms 1040 2010 Return for preceding year. Irs tax forms 1040 2010   If an individual died after the close of the tax year, but before the return for that year was filed, the return for the year just closed will not be the final return. Irs tax forms 1040 2010 The return for that year will be a regular return and the personal representative must file it. Irs tax forms 1040 2010 Example. Irs tax forms 1040 2010 Samantha Smith died on March 21, 2013, before filing her 2012 tax return. Irs tax forms 1040 2010 Her personal representative must file her 2012 return by April 15, 2013. Irs tax forms 1040 2010 Her final tax return covering the period from January 1, 2013, to March 20, 2013, is due April 15, 2014. Irs tax forms 1040 2010 Name, Address, and Signature Write the word “DECEASED,” the decedent's name, and the date of death across the top of the tax return. Irs tax forms 1040 2010 If filing a joint return, write the name and address of the decedent and the surviving spouse in the name and address fields. Irs tax forms 1040 2010 If a joint return is not being filed, write the decedent's name in the name field and the personal representative's name and address in the address field. Irs tax forms 1040 2010 Third party designee. Irs tax forms 1040 2010   You can check the “Yes” box in the Third Party Designee area on page 2 of the return to authorize the IRS to discuss the return with a friend, family member, or any other person you choose. Irs tax forms 1040 2010 This allows the IRS to call the person you identified as the designee to answer any questions that may arise during the processing of the return. Irs tax forms 1040 2010 It also allows the designee to perform certain actions. Irs tax forms 1040 2010 See the Instructions for Form 1040 for details. Irs tax forms 1040 2010 Signature. Irs tax forms 1040 2010   If a personal representative has been appointed, that person must sign the return. Irs tax forms 1040 2010 If it is a joint return, the surviving spouse must also sign it. Irs tax forms 1040 2010 If no personal representative has been appointed, the surviving spouse (on a joint return) signs the return and writes in the signature area “Filing as surviving spouse. Irs tax forms 1040 2010 ” If no personal representative has been appointed and if there is no surviving spouse, the person in charge of the decedent's property must file and sign the return as “personal representative. Irs tax forms 1040 2010 ” Paid preparer. Irs tax forms 1040 2010   If you pay someone to prepare, assist in preparing, or review the tax return, that person must sign the return and fill in the other blanks in the Paid Preparer Use Only area of the return. Irs tax forms 1040 2010 See the Form 1040 instructions for details. Irs tax forms 1040 2010 When and Where To File The final income tax return is due at the same time the decedent's return would have been due had death not occurred. Irs tax forms 1040 2010 A final return for a decedent who was a calendar year taxpayer is generally due on April 15 following the year of death, regardless of when during that year death occurred. Irs tax forms 1040 2010 However, when the due date falls on a Saturday, Sunday, or legal holiday, the return is filed timely if filed by the next business day. Irs tax forms 1040 2010 The tax return must be prepared for the year of death regardless of when during the year death occurred. Irs tax forms 1040 2010 Generally, you must file the final income tax return of the decedent with the Internal Revenue Service Center for the place where you live. Irs tax forms 1040 2010 A tax return for a decedent can be electronically filed. Irs tax forms 1040 2010 A personal representative may also obtain an income tax filing extension on behalf of a decedent. Irs tax forms 1040 2010 Filing Requirements The gross income, age, and filing status of a decedent generally determine whether a return must be filed. Irs tax forms 1040 2010 Gross income is all income received by an individual from any source in the form of money, goods, property, and services that is not tax-exempt. Irs tax forms 1040 2010 It includes gross receipts from self-employment, but if the business involves manufacturing, merchandising, or mining, subtract any cost of goods sold. Irs tax forms 1040 2010 In general, filing status depends on whether the decedent was considered single or married at the time of death. Irs tax forms 1040 2010 See the income tax return instructions or Publication 501, Exemptions, Standard Deduction, and Filing Information. Irs tax forms 1040 2010 Refund A return must be filed to obtain a refund if tax was withheld from salaries, wages, pensions, or annuities, or if estimated tax was paid, even if a return is not otherwise required to be filed. Irs tax forms 1040 2010 Also, the decedent may be entitled to other credits that result in a refund. Irs tax forms 1040 2010 These advance payments of tax and credits are discussed later under Credits, Other Taxes, and Payments. Irs tax forms 1040 2010 Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Irs tax forms 1040 2010   Form 1310 does not have to be filed if you are claiming a refund and you are: A surviving spouse filing an original or amended joint return with the decedent, or A court-appointed or certified personal representative filing the decedent’s original return and a copy of the court certificate showing your appointment is attached to the return. Irs tax forms 1040 2010   If the personal representative is filing a claim for refund on Form 1040X, Amended U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 Individual Income Tax Return, or Form 843, Claim for Refund and Request for Abatement, and the court certificate has already been filed with the IRS, attach Form 1310 and write “Certificate Previously Filed” at the bottom of the form. Irs tax forms 1040 2010 Example. Irs tax forms 1040 2010 Edward Green died before filing his tax return. Irs tax forms 1040 2010 You were appointed the personal representative for Edward's estate, and you file his Form 1040 showing a refund due. Irs tax forms 1040 2010 You do not need Form 1310 to claim the refund if you attach a copy of the court certificate showing you were appointed the personal representative. Irs tax forms 1040 2010    If you are a surviving spouse and you receive a tax refund check in both your name and your deceased spouse's name, you can have the check reissued in your name alone. Irs tax forms 1040 2010 Return the joint-name check marked “VOID” to your local IRS office or the service center where you mailed your return, along with a written request for reissuance of the refund check. Irs tax forms 1040 2010 A new check will be issued in your name and mailed to you. Irs tax forms 1040 2010 Death certificate. Irs tax forms 1040 2010   When filing the decedent's final income tax return, do not attach the death certificate or other proof of death to the final return. Irs tax forms 1040 2010 Instead, keep it for your records and provide it if requested. Irs tax forms 1040 2010 Nonresident Alien If the decedent was a nonresident alien who would have had to file Form 1040NR, U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 Nonresident Alien Income Tax Return, you must file that form for the decedent's final tax year. Irs tax forms 1040 2010 See the Instructions for Form 1040NR for the filing requirements, due date, and where to file. Irs tax forms 1040 2010 Joint Return Generally, the personal representative and the surviving spouse can file a joint return for the decedent and the surviving spouse. Irs tax forms 1040 2010 However, the surviving spouse alone can file the joint return if no personal representative has been appointed before the due date for filing the final joint return for the year of death. Irs tax forms 1040 2010 This also applies to the return for the preceding year if the decedent died after the close of the preceding tax year and before filing the return for that year. Irs tax forms 1040 2010 The income of the decedent that was includible on his or her return for the year up to the date of death (see Income To Include, later) and the income of the surviving spouse for the entire year must be included in the final joint return. Irs tax forms 1040 2010 A final joint return with the decedent cannot be filed if the surviving spouse remarried before the end of the year of the decedent's death. Irs tax forms 1040 2010 The filing status of the decedent in this instance is married filing a separate return. Irs tax forms 1040 2010 For information about tax benefits to which a surviving spouse may be entitled, see Tax Benefits for Survivors, later, under Other Tax Information. Irs tax forms 1040 2010 Personal representative may revoke joint return election. Irs tax forms 1040 2010   A court-appointed personal representative may revoke an election to file a joint return previously made by the surviving spouse alone. Irs tax forms 1040 2010 This is done by filing a separate return for the decedent within one year from the due date of the return (including any extensions). Irs tax forms 1040 2010 The joint return made by the surviving spouse will then be regarded as the separate return of that spouse by excluding the decedent's items and refiguring the tax liability. Irs tax forms 1040 2010 Relief from joint liability. Irs tax forms 1040 2010   In some cases, one spouse may be relieved of joint liability for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Irs tax forms 1040 2010 If the decedent qualified for this relief while alive, the personal representative can pursue an existing request, or file a request, for relief from joint liability. Irs tax forms 1040 2010 For information on requesting this relief, see Publication 971, Innocent Spouse Relief. Irs tax forms 1040 2010 Income To Include The decedent's income includible on the final return is generally determined as if the person were still alive except that the taxable period is usually shorter because it ends on the date of death. Irs tax forms 1040 2010 The method of accounting regularly used by the decedent before death also determines the income includible on the final return. Irs tax forms 1040 2010 This section explains how some types of income are reported on the final return. Irs tax forms 1040 2010 For more information about accounting methods, see Publication 538, Accounting Periods and Methods. Irs tax forms 1040 2010 Cash Method If the decedent accounted for income under the cash method, only those items actually or constructively received before death are included on the final return. Irs tax forms 1040 2010 Constructive receipt of income. Irs tax forms 1040 2010   Interest from coupons on the decedent's bonds is constructively received by the decedent if the coupons matured in the decedent's final tax year, but had not been cashed. Irs tax forms 1040 2010 Include the interest income on the final return. Irs tax forms 1040 2010   Generally, a dividend is considered constructively received if it was available for use by the decedent without restriction. Irs tax forms 1040 2010 If the corporation customarily mailed its dividend checks, the dividend was includible when received. Irs tax forms 1040 2010 If the individual died between the time the dividend was declared and the time it was received in the mail, the decedent did not constructively receive it before death. Irs tax forms 1040 2010 Do not include the dividend in the final return. Irs tax forms 1040 2010 Accrual Method Generally, under an accrual method of accounting, income is reported when earned. Irs tax forms 1040 2010 If the decedent used an accrual method, only the income items normally accrued before death are included on the final return. Irs tax forms 1040 2010 Interest and Dividend Income (Forms 1099) Form(s) 1099 reporting interest and dividends earned by the decedent before death should be received and the amounts included on the decedent's final return. Irs tax forms 1040 2010 A separate Form 1099 should show the interest and dividends earned after the date of the decedent's death and paid to the estate or other recipient that must include those amounts on its return. Irs tax forms 1040 2010 You can request corrected Forms 1099 if these forms do not properly reflect the right recipient or amounts. Irs tax forms 1040 2010 For example, a Form 1099-INT, reporting interest payable to the decedent, may include income that should be reported on the final income tax return of the decedent, as well as income that the estate or other recipient should report, either as income earned after death or as income in respect of the decedent (discussed later). Irs tax forms 1040 2010 For income earned after death, you should ask the payer for a Form 1099 that properly identifies the recipient (by name and identification number) and the proper amount. Irs tax forms 1040 2010 If that is not possible, or if the form includes an amount that represents income in respect of the decedent, report the interest as shown next under How to report. Irs tax forms 1040 2010 See U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 savings bonds acquired from decedent under Income in Respect of a Decedent, later, for information on savings bond interest that may have to be reported on the final return. Irs tax forms 1040 2010 How to report. Irs tax forms 1040 2010   If you are preparing the decedent's final return and you have received a Form 1099-INT for the decedent that includes amounts belonging to the decedent and to another recipient (the decedent's estate or another beneficiary), report the total interest shown on Form 1099-INT on Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends. Irs tax forms 1040 2010 Next, enter a subtotal of the interest shown on Forms 1099, and the interest reportable from other sources for which you did not receive Forms 1099. Irs tax forms 1040 2010 Then, show any interest (including any interest you receive as a nominee) belonging to another recipient separately and subtract it from the subtotal. Irs tax forms 1040 2010 Identify the amount of this adjustment as “Nominee Distribution” or other appropriate designation. Irs tax forms 1040 2010   Report dividend income for which you received a Form 1099-DIV, Dividends and Distributions, on the appropriate schedule using the same procedure. Irs tax forms 1040 2010    Note. Irs tax forms 1040 2010 If the decedent received amounts as a nominee, you must give the actual owner a Form 1099, unless the owner is the decedent's spouse. Irs tax forms 1040 2010 See General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G) for more information on filing Forms 1099. Irs tax forms 1040 2010 Partnership Income The death of a partner closes the partnership's tax year for that partner. Irs tax forms 1040 2010 Generally, it does not close the partnership's tax year for the remaining partners. Irs tax forms 1040 2010 The decedent's distributive share of partnership items must be figured as if the partnership's tax year ended on the date the partner died. Irs tax forms 1040 2010 To avoid an interim closing of the partnership books, the partners can agree to estimate the decedent's distributive share by prorating the amounts the partner would have included for the entire partnership tax year. Irs tax forms 1040 2010 On the decedent's final return, include the decedent's distributive share of partnership items for the following periods. Irs tax forms 1040 2010 The partnership's tax year that ended within or with the decedent's final tax year (the year ending on the date of death). Irs tax forms 1040 2010 The period, if any, from the end of the partnership's tax year in (1) to the decedent's date of death. Irs tax forms 1040 2010 Example. Irs tax forms 1040 2010 Mary Smith was a partner in XYZ partnership and reported her income on a tax year ending December 31. Irs tax forms 1040 2010 The partnership uses a tax year ending June 30. Irs tax forms 1040 2010 Mary died August 31, 2013, and her estate established its tax year through August 31. Irs tax forms 1040 2010 The distributive share of partnership items based on the decedent's partnership interest is reported as follows. Irs tax forms 1040 2010 Final Return for the Decedent—January 1 through August 31, 2013, includes XYZ partnership items from (a) the partnership tax year ending June 30, 2013, and (b) the partnership tax year beginning July 1, 2013, and ending August 31, 2013 (the date of death). Irs tax forms 1040 2010 Income Tax Return of the Estate—September 1, 2013, through August 31, 2014, includes XYZ partnership items for the period September 1, 2013, through June 30, 2014. Irs tax forms 1040 2010 S Corporation Income If the decedent was a shareholder in an S corporation, include on the final return the decedent's share of the S corporation's items of income, loss, deduction, and credit for the following periods. Irs tax forms 1040 2010 The corporation's tax year that ended within or with the decedent's final tax year (the year ending on the date of death). Irs tax forms 1040 2010 The period, if any, from the end of the corporation's tax year in (1) to the decedent's date of death. Irs tax forms 1040 2010 Self-Employment Income Include self-employment income actually or constructively received or accrued, depending on the decedent's accounting method. Irs tax forms 1040 2010 For self-employment tax purposes only, the decedent's self-employment income will include the decedent's distributive share of a partnership's income or loss through the end of the month in which death occurred. Irs tax forms 1040 2010 For this purpose, the partnership's income or loss is considered to be earned ratably over the partnership's tax year. Irs tax forms 1040 2010 Community Income If the decedent was married and domiciled in a community property state, half of the income received and half of the expenses paid during the decedent's tax year by either the decedent or spouse may be considered to be the income and expenses of the other. Irs tax forms 1040 2010 For more information, see Publication 555, Community Property. Irs tax forms 1040 2010 HSA, Archer MSA, or Medicare Advantage MSA The treatment of an HSA (health savings account), an Archer MSA (medical savings account), or a Medicare Advantage MSA at the death of the account holder, depends on who acquires the interest in the account. Irs tax forms 1040 2010 If the decedent's estate acquires the interest, the fair market value (FMV) of the assets in the account on the date of death is included in income on the decedent's final return. Irs tax forms 1040 2010 The estate tax deduction, discussed later, does not apply to this amount. Irs tax forms 1040 2010 If a beneficiary acquires the interest, see the discussion under Income in Respect of a Decedent, later. Irs tax forms 1040 2010 For other information on HSAs, Archer MSAs, or Medicare Advantage MSAs, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Irs tax forms 1040 2010 Coverdell Education Savings Account (ESA) Generally, the balance in a Coverdell ESA must be distributed within 30 days after the individual for whom the account was established reaches age 30, or dies, whichever is earlier. Irs tax forms 1040 2010 The treatment of the Coverdell ESA at the death of an individual under age 30 depends on who acquires the interest in the account. Irs tax forms 1040 2010 If the decedent's estate acquires the interest, the earnings on the account must be included on the final income tax return of the decedent. Irs tax forms 1040 2010 The estate tax deduction, discussed later, does not apply to this amount. Irs tax forms 1040 2010 If a beneficiary acquires the interest, see the discussion under Income in Respect of a Decedent, later. Irs tax forms 1040 2010 The age 30 limitation does not apply if the individual for whom the account was established or the beneficiary that acquires the account is an individual with special needs. Irs tax forms 1040 2010 This includes an individual who, because of a physical, mental, or emotional condition (including a learning disability), requires additional time to complete his or her education. Irs tax forms 1040 2010 For more information on Coverdell ESAs, see Publication 970, Tax Benefits for Education. Irs tax forms 1040 2010 Accelerated Death Benefits Accelerated death benefits are amounts received under a life insurance contract before the death of the insured individual. Irs tax forms 1040 2010 These benefits also include amounts received on the sale or assignment of the contract to a viatical settlement provider. Irs tax forms 1040 2010 Generally, if the decedent received accelerated death benefits on the life of a terminally or chronically ill individual, whether on his or her own life or on the life of another person, those benefits are not included in the decedent's income. Irs tax forms 1040 2010 For more information, see the discussion under Gifts, Insurance, and Inheritances under Other Tax Information, later. Irs tax forms 1040 2010 Exemptions and Deductions Generally, the rules for exemptions and deductions allowed to an individual also apply to the decedent's final income tax return. Irs tax forms 1040 2010 Show on the final return deductible items the decedent paid (or accrued, if the decedent reported deductions on an accrual method) before death. Irs tax forms 1040 2010 This section contains a detailed discussion of medical expenses because the tax treatment of the decedent's medical expenses can be different. Irs tax forms 1040 2010 See Medical Expenses, later. Irs tax forms 1040 2010 Exemptions You can claim the decedent's personal exemption on the final income tax return. Irs tax forms 1040 2010 If the decedent was another person's dependent (for example, a parent's), you cannot claim the personal exemption on the decedent's final return. Irs tax forms 1040 2010 Standard Deduction If you do not itemize deductions on the final return, the full amount of the appropriate standard deduction is allowed regardless of the date of death. Irs tax forms 1040 2010 For information on the appropriate standard deduction, see the Form 1040 income tax return instructions or Publication 501. Irs tax forms 1040 2010 Medical Expenses Medical expenses paid before death by the decedent are deductible, subject to limits, on the final income tax return if deductions are itemized. Irs tax forms 1040 2010 This includes expenses for the decedent, as well as for the decedent's spouse and dependents. Irs tax forms 1040 2010 Beginning in 2013, medical expenses exceeding 10% of adjusted gross income (AGI) may be deducted, unless the decedent or their spouse is age 65 or older. Irs tax forms 1040 2010 In that case medical expenses exceeding 7. Irs tax forms 1040 2010 5% of AGI may be deducted. Irs tax forms 1040 2010 Qualified medical expenses are not deductible if paid with a tax-free distribution from an HSA or an Archer MSA. Irs tax forms 1040 2010 Election for decedent's expenses. Irs tax forms 1040 2010   Medical expenses not paid before death are liabilities of the estate and are shown on the federal estate tax return (Form 706). Irs tax forms 1040 2010 However, if medical expenses for the decedent are paid out of the estate during the 1-year period beginning with the day after death, you can elect to treat all or part of the expenses as paid by the decedent at the time they were incurred. Irs tax forms 1040 2010   If you make the election, you can claim all or part of the expenses on the decedent's income tax return (if deductions are itemized) rather than on the federal estate tax return (Form 706). Irs tax forms 1040 2010 You can deduct expenses incurred in the year of death on the final income tax return. Irs tax forms 1040 2010 You should file an amended return (Form 1040X) for medical expenses incurred in an earlier year, unless the statutory period for filing a claim for that year has expired. Irs tax forms 1040 2010   The amount you can deduct on the income tax return is the amount above 10% of adjusted gross income (or 7. Irs tax forms 1040 2010 5% of adjusted gross income if the decedent or the decedent's spouse was born before January 2, 1949). Irs tax forms 1040 2010 Amounts not deductible because of this percentage cannot be claimed on the federal estate tax return. Irs tax forms 1040 2010 Making the election. Irs tax forms 1040 2010   You make the election by attaching a statement, in duplicate, to the decedent's income tax return or amended return. Irs tax forms 1040 2010 The statement must state that you have not claimed the amount as an estate tax deduction, and that the estate waives the right to claim the amount as a deduction. Irs tax forms 1040 2010 This election applies only to expenses incurred for the decedent, not to expenses incurred to provide medical care for dependents. Irs tax forms 1040 2010 Example. Irs tax forms 1040 2010 Richard Brown used the cash method of accounting and filed his income tax return on a calendar year basis. Irs tax forms 1040 2010 Richard died on June 1, 2013, at the age of 78, after incurring $800 in medical expenses. Irs tax forms 1040 2010 Of that amount, $500 was incurred in 2012 and $300 was incurred in 2013. Irs tax forms 1040 2010 Richard itemized his deductions when he filed his 2012 income tax return. Irs tax forms 1040 2010 The personal representative of the estate paid the entire $800 liability in August 2013. Irs tax forms 1040 2010 The personal representative may file an amended return (Form 1040X) for 2012 claiming the $500 medical expense as a deduction, subject to the 7. Irs tax forms 1040 2010 5% limit. Irs tax forms 1040 2010 The $300 of expenses incurred in 2013 can be deducted on the final income tax return if deductions are itemized, subject to the 7. Irs tax forms 1040 2010 5% limit. Irs tax forms 1040 2010 The personal representative must file a statement in duplicate with each return stating that these amounts have not been claimed on the federal estate tax return (Form 706), and waiving the right to claim such a deduction on Form 706 in the future. Irs tax forms 1040 2010 Medical expenses not paid by estate. Irs tax forms 1040 2010   If you paid medical expenses for your deceased spouse or dependent, claim the expenses on your tax return for the year in which you paid them, whether they are paid before or after the decedent's death. Irs tax forms 1040 2010 If the decedent was a child of divorced or separated parents, the medical expenses can usually be claimed by both the custodial and noncustodial parent to the extent paid by that parent during the year. Irs tax forms 1040 2010 Insurance reimbursements. Irs tax forms 1040 2010   Insurance reimbursements of previously deducted medical expenses due a decedent at the time of death and later received by the decedent's estate are includible in the income tax return of the estate (Form 1041) for the year the reimbursements are received. Irs tax forms 1040 2010 The reimbursements are also includible in the decedent's gross estate. Irs tax forms 1040 2010 No deduction for funeral expenses can be taken on the final Form 1040 of a decedent. Irs tax forms 1040 2010 These expenses may be deductible for estate tax purposes on Form 706. Irs tax forms 1040 2010 Deduction for Losses A decedent's net operating loss deduction from a prior year and any capital losses (including capital loss carryovers) can be deducted only on the decedent's final income tax return. Irs tax forms 1040 2010 A net operating loss on the decedent's final income tax return can be carried back to prior years. Irs tax forms 1040 2010 (See Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Irs tax forms 1040 2010 ) You cannot deduct any unused net operating loss or capital loss on the estate's income tax return. Irs tax forms 1040 2010 At-risk loss limits. Irs tax forms 1040 2010   Special at-risk rules apply to most activities that are engaged in as a trade or business or for the production of income. Irs tax forms 1040 2010   These rules limit the deductible loss to the amount which the individual was considered at-risk in the activity. Irs tax forms 1040 2010 An individual generally will be considered at-risk to the extent of the money and the adjusted basis of property that he or she contributed to the activity and certain amounts the individual borrowed for use in the activity. Irs tax forms 1040 2010 An individual will be considered at-risk for amounts borrowed only if he or she was personally liable for the repayment or if the amounts borrowed were secured by property other than that used in the activity. Irs tax forms 1040 2010 The individual is not considered at-risk for borrowed amounts if the lender has an interest in the activity or if the lender is related to a person who has an interest in the activity. Irs tax forms 1040 2010 For more information, see Publication 925, Passive Activity and At-Risk Rules. Irs tax forms 1040 2010 Passive activity rules. Irs tax forms 1040 2010   A passive activity is any trade or business activity in which the taxpayer does not materially participate. Irs tax forms 1040 2010 To determine material participation, see Publication 925. Irs tax forms 1040 2010 Rental activities are passive activities regardless of the taxpayer's participation, unless the taxpayer meets certain eligibility requirements. Irs tax forms 1040 2010   Individuals, estates, and trusts can offset passive activity losses only against passive activity income. Irs tax forms 1040 2010 Passive activity losses or credits not allowed in one tax year can be carried forward to the next year. Irs tax forms 1040 2010   If a passive activity interest is transferred because a taxpayer dies, the accumulated unused passive activity losses are allowed as a deduction against the decedent's income in the year of death. Irs tax forms 1040 2010 Losses are allowed only to the extent they are greater than the excess of the transferee's (recipient of the interest transferred) basis in the property over the decedent's adjusted basis in the property immediately before death. Irs tax forms 1040 2010 The part of the accumulated losses equal to the excess is not allowed as a deduction for any tax year. Irs tax forms 1040 2010   Use Form 8582, Passive Activity Loss Limitations, to summarize losses and income from passive activities and to figure the amounts allowed. Irs tax forms 1040 2010 For more information, see Publication 925. Irs tax forms 1040 2010 Credits, Other Taxes, and Payments Discussed below are some of the tax credits, types of taxes that may be owed, income tax withheld, and estimated tax payments reported on the final return of a decedent. Irs tax forms 1040 2010 Credits On the final income tax return, you can claim any tax credits that applied to the decedent before death. Irs tax forms 1040 2010 Some of these credits are discussed next. Irs tax forms 1040 2010 Earned income credit. Irs tax forms 1040 2010   If the decedent was an eligible individual, you can claim the earned income credit on the decedent's final return even though the return covers less than 12 months. Irs tax forms 1040 2010 If the allowable credit is more than the tax liability for the year, the excess is refunded. Irs tax forms 1040 2010   For more information, see Publication 596, Earned Income Credit (EIC). Irs tax forms 1040 2010 Credit for the elderly or the disabled. Irs tax forms 1040 2010   This credit is allowable on a decedent's final income tax return if the decedent met both of the following requirements in the year of death. Irs tax forms 1040 2010 The decedent: Was a “qualified individual,” and Had income (adjusted gross income (AGI) and nontaxable social security and pensions) less than certain limits. Irs tax forms 1040 2010   For details on qualifying for or figuring the credit, see Publication 524, Credit for the Elderly or the Disabled. Irs tax forms 1040 2010 Child tax credit. Irs tax forms 1040 2010   If the decedent had a qualifying child, you may be able to claim the child tax credit on the decedent's final return even though the return covers less than 12 months. Irs tax forms 1040 2010 You may be able to claim the additional child tax credit and get a refund if the credit is more than the decedent's liability. Irs tax forms 1040 2010 For more information, see the Instructions for Form 1040. Irs tax forms 1040 2010 Adoption credit. Irs tax forms 1040 2010   Depending upon when the adoption was finalized, this credit may be taken on a decedent's final income tax return if the decedent: Adopted an eligible child and paid qualified adoption expenses, or Has a carryforward of an adoption credit from a prior year. Irs tax forms 1040 2010   Also, if the decedent is survived by a spouse who meets the filing status of qualifying widow(er), unused adoption credit may be carried forward and used following the death of the decedent. Irs tax forms 1040 2010 See Form 8839, Qualified Adoption Expenses, and its instructions for more details. Irs tax forms 1040 2010 General business tax credit. Irs tax forms 1040 2010   The general business credit available to a taxpayer is limited. Irs tax forms 1040 2010 Any credit arising in a tax year beginning before 1998 that has not been used up can be carried forward for up to 15 years. Irs tax forms 1040 2010 Any unused credit arising in a tax year beginning after 1997 has a 1-year carryback and a 20-year carryforward period. Irs tax forms 1040 2010   After the carryforward period, a deduction may be allowed for any unused business credit. Irs tax forms 1040 2010 If the taxpayer dies before the end of the carryforward period, the deduction generally is allowed in the year of death. Irs tax forms 1040 2010   For more information on the general business credit, see Publication 334, Tax Guide for Small Business. Irs tax forms 1040 2010 Other Taxes Taxes other than income tax that may be owed on the final return of a decedent include self-employment tax and alternative minimum tax, which are reported on Form 1040. Irs tax forms 1040 2010 Self-employment tax. Irs tax forms 1040 2010   Self-employment tax may be owed on the final return if either of the following applied to the decedent in the year of death: Net earnings from self-employment (excluding income described in (2)) were $400 or more; or Wages from services performed as a church employee were $108. Irs tax forms 1040 2010 28 or more. Irs tax forms 1040 2010 Alternative minimum tax (AMT). Irs tax forms 1040 2010   The tax laws give special treatment to certain types of income and allow special deductions and credits for certain types of expenses. Irs tax forms 1040 2010 The alternative minimum tax (AMT) was enacted so taxpayers who benefit from these laws still pay at least a minimum amount of tax. Irs tax forms 1040 2010 In general, the AMT is the excess of the tentative minimum tax over the regular tax shown on the return. Irs tax forms 1040 2010 Form 6251. Irs tax forms 1040 2010    Use Form 6251, Alternative Minimum Tax—Individuals, to determine if this tax applies to the decedent. Irs tax forms 1040 2010 See the form instructions for information on when you must attach Form 6251 to Form 1040. Irs tax forms 1040 2010 Form 8801. Irs tax forms 1040 2010   If the decedent paid AMT in a previous year or had a credit carryforward, the decedent may be eligible for a minimum tax credit. Irs tax forms 1040 2010 See Form 8801, Credit for Prior Year Minimum Tax—Individuals, Estates, and Trusts. Irs tax forms 1040 2010 Payments of Tax The income tax withheld from the decedent's salary, wages, pensions, or annuities, and the amount paid as estimated tax are credits (advance payments of tax) that must be claimed on the final return. Irs tax forms 1040 2010 Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts Income tax liability may be forgiven for a decedent who dies due to service in a combat zone, due to military or terrorist actions, as a result of a terrorist attack, or while serving in the line of duty as an astronaut. Irs tax forms 1040 2010 Combat Zone If a member of the Armed Forces of the United States dies while in active service in a combat zone or from wounds, disease, or injury incurred in a combat zone, the decedent's income tax liability is abated (forgiven) for the entire year in which death occurred and for any prior tax year ending on or after the first day the person served in a combat zone in active service. Irs tax forms 1040 2010 For this purpose, a qualified hazardous duty area is treated as a combat zone. Irs tax forms 1040 2010 If the tax (including interest, additions to the tax, and additional amounts) for these years has been assessed, the assessment will be forgiven. Irs tax forms 1040 2010 If the tax has been collected (regardless of the date of collection), that tax will be credited or refunded. Irs tax forms 1040 2010 Any of the decedent's income tax for tax years before those mentioned above that remains unpaid as of the actual (or presumptive) date of death will not be assessed. Irs tax forms 1040 2010 If any unpaid tax (including interest, additions to the tax, and additional amounts) has been assessed, this assessment will be forgiven. Irs tax forms 1040 2010 Also, if any tax was collected after the date of death, that amount will be credited or refunded. Irs tax forms 1040 2010 The date of death of a member of the Armed Forces reported as missing in action or as a prisoner of war is the date his or her name is removed from missing status for military pay purposes. Irs tax forms 1040 2010 This is true even if death actually occurred earlier. Irs tax forms 1040 2010 For other tax information for members of the Armed Forces, see Publication 3, Armed Forces' Tax Guide. Irs tax forms 1040 2010 Military or Terrorist Actions The decedent's income tax liability is forgiven if, at death, he or she was a military or civilian employee of the United States who died because of wounds or injury incurred: While a U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 employee, and In a military or terrorist action. Irs tax forms 1040 2010 The forgiveness applies to the tax year in which death occurred and for any earlier tax year, beginning with the year before the year in which the wounds or injury occurred. Irs tax forms 1040 2010 Example. Irs tax forms 1040 2010 The income tax liability of a civilian employee of the United States who died in 2013 because of wounds incurred while a U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 employee in a terrorist attack that occurred in 2008 will be forgiven for 2013 and for all prior tax years in the period 2007 through 2012. Irs tax forms 1040 2010 Refunds are allowed for the tax years for which the period for filing a claim for refund has not ended, as discussed later. Irs tax forms 1040 2010 Military or terrorist action defined. Irs tax forms 1040 2010   A military or terrorist action means the following. Irs tax forms 1040 2010 Any terrorist activity that most of the evidence indicates was directed against the United States or any of its allies. Irs tax forms 1040 2010 Any military action involving the U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 Armed Forces and resulting from violence or aggression against the United States or any of its allies, or the threat of such violence or aggression. Irs tax forms 1040 2010   Terrorist activity includes criminal offenses intended to coerce, intimidate, or retaliate against the government or civilian population. Irs tax forms 1040 2010 Military action does not include training exercises. Irs tax forms 1040 2010 Any multinational force in which the United States is participating is treated as an ally of the United States. Irs tax forms 1040 2010 Determining if a terrorist activity or military action has occurred. Irs tax forms 1040 2010   You may rely on published guidance from the IRS to determine if a particular event is considered a terrorist activity or military action. Irs tax forms 1040 2010 Specified Terrorist Victim The Victims of Terrorism Tax Relief Act of 2001 (the Act) provides tax relief for those injured or killed as a result of terrorist attacks, certain survivors of those killed as a result of terrorist attacks, and others who were affected by terrorist attacks. Irs tax forms 1040 2010 Under the Act, the federal income tax liability of those killed in the following attacks (specified terrorist victim) is forgiven for certain tax years. Irs tax forms 1040 2010 The April 19, 1995, terrorist attack on the Alfred P. Irs tax forms 1040 2010 Murrah Federal Building (Oklahoma City). Irs tax forms 1040 2010 The September 11, 2001, terrorist attacks. Irs tax forms 1040 2010 The terrorist attacks involving anthrax occurring after September 10, 2001, and before January 1, 2002. Irs tax forms 1040 2010 The Act also exempts from federal income tax the following types of income. Irs tax forms 1040 2010 Qualified disaster relief payments made after September 10, 2001, to cover personal, family, living, or funeral expenses incurred because of a terrorist attack. Irs tax forms 1040 2010 Certain disability payments received in tax years ending after September 10, 2001, for injuries sustained in a terrorist attack. Irs tax forms 1040 2010 Certain death benefits paid by an employer to the survivor of an employee because the employee died as a result of a terrorist attack. Irs tax forms 1040 2010 Payments from the September 11th Victim Compensation Fund 2001. Irs tax forms 1040 2010 The Act also reduces the estate tax of individuals who die as a result of a terrorist attack. Irs tax forms 1040 2010 See Publication 3920, Tax Relief for Victims of Terrorist Attacks, for more information. Irs tax forms 1040 2010 Astronauts Legislation extended the tax relief available under the Victims of Terrorism Tax Relief Act of 2001 (the Act) to astronauts who died in the line of duty after December 31, 2002. Irs tax forms 1040 2010 The decedent's income tax liability is forgiven for the tax year in which death occurs, and for the tax year prior to death. Irs tax forms 1040 2010 For information on death benefit payments and the reduction of federal estate taxes, see Publication 3920. Irs tax forms 1040 2010 However, the discussions in that publication under Death Benefits and Estate Tax Reduction should be modified for astronauts (for example, by using the date of death of the astronaut instead of September 11, 2001). Irs tax forms 1040 2010 For more information on the Act, see Publication 3920. Irs tax forms 1040 2010 Claim for Credit or Refund If any of these tax-forgiveness situations applies to a prior year tax, any tax paid for which the period for filing a claim has not ended will be credited or refunded. Irs tax forms 1040 2010 If any tax is still due, it will be canceled. Irs tax forms 1040 2010 The normal period for filing a claim for credit or refund is 3 years after the return was filed or 2 years after the tax was paid, whichever is later. Irs tax forms 1040 2010 If death occurred in a combat zone or from wounds, disease, or injury incurred in a combat zone, the period for filing the claim is extended by: The amount of time served in the combat zone (including any period in which the individual was in missing status), plus The period of continuous qualified hospitalization for injury from service in the combat zone, if any, plus The next 180 days. Irs tax forms 1040 2010 Qualified hospitalization means any hospitalization outside the United States and any hospitalization in the United States of not more than 5 years. Irs tax forms 1040 2010 This extended period for filing the claim also applies to a member of the Armed Forces who was deployed outside the United States in a designated contingency operation. Irs tax forms 1040 2010 Filing a claim. Irs tax forms 1040 2010   Use the following procedures to file a claim. Irs tax forms 1040 2010 If a U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 individual income tax return (Form 1040, 1040A, or 1040EZ) has not been filed, you should make a claim for refund of any withheld income tax or estimated tax payments by filing Form 1040. Irs tax forms 1040 2010 Form W-2, Wage and Tax Statement, must accompany all returns. Irs tax forms 1040 2010 If a U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 individual income tax return has been filed, you should make a claim for refund by filing Form 1040X. Irs tax forms 1040 2010 You must file a separate Form 1040X for each year in question. Irs tax forms 1040 2010   You must file these returns and claims at the following address for regular mail (U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 Postal Service). Irs tax forms 1040 2010    Internal Revenue Service 333 W. Irs tax forms 1040 2010 Pershing, P5–6503 Kansas City, MO 64108   Identify all returns and claims for refund by writing “Iraq—KIA,” “Enduring Freedom—KIA,” “Kosovo Operation—KIA,” “Desert Storm—KIA,” or “Former Yugoslavia—KIA” in bold letters on the top of page 1 of the return or claim. Irs tax forms 1040 2010 On the applicable return, write the same phrase on the line for total tax. Irs tax forms 1040 2010 If the individual was killed in a terrorist or military action, put “KITA” on the front of the return and on the line for total tax. Irs tax forms 1040 2010   Include an attachment showing the computation of the decedent's tax liability and a computation of the amount to be forgiven. Irs tax forms 1040 2010 On joint returns, make an allocation of the tax as described below under Joint returns. Irs tax forms 1040 2010 If you cannot make a proper allocation, attach a statement of all income and deductions allocable to each spouse and the IRS will make the proper allocation. Irs tax forms 1040 2010   You must attach Form 1310 to all returns and claims for refund. Irs tax forms 1040 2010 However, for exceptions to filing Form 1310, see Form 1310. Irs tax forms 1040 2010 Statement of Person Claiming Refund Due a Deceased Taxpayer, under Refund, earlier. Irs tax forms 1040 2010   You must also attach proof of death that includes a statement that the individual was a U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 employee on the date of injury and on the date of death and died as the result of a military or terrorist action. Irs tax forms 1040 2010 For military and civilian employees of the Department of Defense, attach DD Form 1300, Report of Casualty. Irs tax forms 1040 2010 For other U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 civilian employees killed in the United States, attach a death certificate and a certification (letter) from the federal employer. Irs tax forms 1040 2010 For other U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 civilian employees killed overseas, attach a certification from the Department of State. Irs tax forms 1040 2010   If you do not have enough tax information to file a timely claim for refund, you can suspend the period for filing a claim by filing Form 1040X. Irs tax forms 1040 2010 Attach Form 1310, any required documentation currently available, and a statement that you will file an amended claim as soon as you have the required tax information. Irs tax forms 1040 2010 Joint returns. Irs tax forms 1040 2010   If a joint return was filed, only the decedent's part of the income tax liability is eligible for forgiveness. Irs tax forms 1040 2010 Determine the decedent's tax liability as follows. Irs tax forms 1040 2010 Figure the income tax for which the decedent would have been liable if a separate return had been filed. Irs tax forms 1040 2010 Figure the income tax for which the spouse would have been liable if a separate return had been filed. Irs tax forms 1040 2010 Multiply the joint tax liability by a fraction. Irs tax forms 1040 2010 The numerator of the fraction is the amount in (1), above. Irs tax forms 1040 2010 The denominator of the fraction is the total of (1) and (2). Irs tax forms 1040 2010   The resulting amount from (3) above is the decedent's tax liability eligible for forgiveness. Irs tax forms 1040 2010 Filing Reminders To minimize the time needed to process the decedent's final return and issue any refund, be sure to follow these procedures. Irs tax forms 1040 2010 Write “DECEASED,” the decedent's name, and the date of death across the top of the tax return. Irs tax forms 1040 2010 If a personal representative has been appointed, the personal representative must sign the return. Irs tax forms 1040 2010 If it is a joint return, the surviving spouse must also sign it. Irs tax forms 1040 2010 If you are the decedent's spouse filing a joint return with the decedent and no personal representative has been appointed, write “Filing as surviving spouse” in the area where you sign the return. Irs tax forms 1040 2010 If no personal representative has been appointed and if there is no surviving spouse, the person in charge of the decedent's property must file and sign the return as “personal representative. Irs tax forms 1040 2010 ” To claim a refund for the decedent, do the following. Irs tax forms 1040 2010 If you are the decedent's spouse filing a joint return with the decedent, file only the tax return to claim the refund. Irs tax forms 1040 2010 If you are the personal representative and the return is not a joint return filed with the decedent's surviving spouse, file the return and attach a copy of the certificate that shows your appointment by the court. Irs tax forms 1040 2010 (A power of attorney or a copy of the decedent's will is not acceptable evidence of your appointment as the personal representative. Irs tax forms 1040 2010 ) If you are filing an amended return, attach Form 1310 and a copy of the certificate of appointment (or, if you have already sent the certificate of appointment to IRS, write “Certificate Previously Filed” at the bottom of Form 1310). Irs tax forms 1040 2010 If you are not filing a joint return as the surviving spouse and a personal representative has not been appointed, file the return and attach Form 1310. Irs tax forms 1040 2010 Other Tax Information Discussed below is information about the effect of an individual's death on the income tax liability of the survivors (including widows and widowers), the beneficiaries, and the estate. Irs tax forms 1040 2010 Tax Benefits for Survivors Survivors can qualify for certain benefits when filing their own income tax returns. Irs tax forms 1040 2010 Joint return by surviving spouse. Irs tax forms 1040 2010   A surviving spouse can file a joint return for the year of death and may qualify for special tax rates for the following 2 years, as explained under Qualifying widows and widowers, later. Irs tax forms 1040 2010 Decedent as your dependent. Irs tax forms 1040 2010   If the decedent qualified as your dependent for a part of the year before death, you can claim the exemption for the dependent on your tax return, regardless of when death occurred during the year. Irs tax forms 1040 2010   If the decedent was your qualifying child, you may be able to claim the child tax credit or the earned income credit. Irs tax forms 1040 2010 To determine if you qualify for the child tax credit, see the instructions for Form 1040, line 51; Form 1040A, line 33; or Form 1040NR, line 48. Irs tax forms 1040 2010 To determine if you qualify for the earned income credit, see the instructions for Form 1040, lines 64a and 64b or Form 1040A, lines 38a and 38b. Irs tax forms 1040 2010 Qualifying widows and widowers. Irs tax forms 1040 2010   If your spouse died within the 2 tax years preceding the year for which your return is being filed, you may be eligible to claim the filing status of qualifying widow(er) with dependent child and qualify to use the married-filing-jointly tax rates. Irs tax forms 1040 2010 Requirements. Irs tax forms 1040 2010   Generally, you qualify for this special benefit if you meet all of the following requirements. Irs tax forms 1040 2010 You were entitled to file a joint return with your spouse for the year of death—whether or not you actually filed jointly. Irs tax forms 1040 2010 You did not remarry before the end of the current tax year. Irs tax forms 1040 2010 You have a child, stepchild, or foster child who qualifies as your dependent for the tax year. Irs tax forms 1040 2010 You provide more than half the cost of maintaining your home, which is the principal residence of that child for the entire year except for temporary absences. Irs tax forms 1040 2010 Example. Irs tax forms 1040 2010 William Burns' wife died in 2010. Irs tax forms 1040 2010 William has not remarried and continued throughout 2011 and 2012 to maintain a home for himself and his dependent child. Irs tax forms 1040 2010 For 2010, he was entitled to file a joint return for himself and his deceased wife. Irs tax forms 1040 2010 For 2011 and 2012, he qualifies to file as a qualifying widower with dependent child. Irs tax forms 1040 2010 For later years, he may qualify to file as a head of household. Irs tax forms 1040 2010 Figuring your tax. Irs tax forms 1040 2010   Check the box on line 5 (Form 1040 or 1040A) under Filing Status on your tax return. Irs tax forms 1040 2010 Use the Tax Rate Schedule or the column in the Tax Table for Married filing jointly, which gives you the split-income benefits. Irs tax forms 1040 2010   The last year you can file jointly with, or claim an exemption for, your deceased spouse is the year of death. Irs tax forms 1040 2010 Joint return filing rules. Irs tax forms 1040 2010   If you are the surviving spouse and a personal representative is handling the estate for the decedent, you should coordinate filing your return for the year of death with this personal representative. Irs tax forms 1040 2010 See Joint Return under Final Income Tax Return for Decedent—Form 1040, earlier. Irs tax forms 1040 2010 Income in Respect of a Decedent All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent. Irs tax forms 1040 2010 If the decedent is a specified terrorist victim (see Specified Terrorist Victim, earlier), income received after the date of death and before the end of the decedent's tax year (determined without regard to death) is excluded from the recipient's gross income. Irs tax forms 1040 2010 This exclusion does not apply to certain income. Irs tax forms 1040 2010 For more information, see Publication 3920. Irs tax forms 1040 2010 How To Report Income in respect of a decedent must be included in the income of one of the following. Irs tax forms 1040 2010 The decedent's estate, if the estate receives it. Irs tax forms 1040 2010 The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it. Irs tax forms 1040 2010 Any person to whom the estate properly distributes the right to receive it. Irs tax forms 1040 2010 If you have to include income in respect of a decedent in your gross income and an estate tax return (Form 706) was filed for the decedent, you may be able to claim a deduction for the estate tax paid on that income. Irs tax forms 1040 2010 See Estate Tax Deduction, later. Irs tax forms 1040 2010 Example 1. Irs tax forms 1040 2010 Frank Johnson owned and operated an apple orchard. Irs tax forms 1040 2010 He used the cash method of accounting. Irs tax forms 1040 2010 He sold and delivered 1,000 bushels of apples to a canning factory for $2,000, but did not receive payment before his death. Irs tax forms 1040 2010 The proceeds from the sale are income in respect of a decedent. Irs tax forms 1040 2010 When the estate was settled, payment had not been made and the estate transferred the right to the payment to his widow. Irs tax forms 1040 2010 When Frank's widow collects the $2,000, she must include that amount in her return. Irs tax forms 1040 2010 It is not reported on the final return of the decedent or on the return of the estate. Irs tax forms 1040 2010 Example 2. Irs tax forms 1040 2010 Assume the same facts as in Example 1, except that Frank used the accrual method of accounting. Irs tax forms 1040 2010 The amount accrued from the sale of the apples would be included on his final return. Irs tax forms 1040 2010 Neither the estate nor the widow would realize income in respect of a decedent when the money is later paid. Irs tax forms 1040 2010 Example 3. Irs tax forms 1040 2010 On February 1, George High, a cash method taxpayer, sold his tractor for $3,000, payable March 1 of the same year. Irs tax forms 1040 2010 His adjusted basis in the tractor was $2,000. Irs tax forms 1040 2010 George died on February 15, before receiving payment. Irs tax forms 1040 2010 The gain to be reported as income in respect of a decedent is the $1,000 difference between the decedent's basis in the property and the sale proceeds. Irs tax forms 1040 2010 In other words, the income in respect of a decedent is the gain the decedent would have realized had he lived. Irs tax forms 1040 2010 Example 4. Irs tax forms 1040 2010 Cathy O'Neil was entitled to a large salary payment at the date of her death. Irs tax forms 1040 2010 The amount was to be paid in five annual installments. Irs tax forms 1040 2010 The estate, after collecting two installments, distributed the right to the remaining installments to you, the beneficiary. Irs tax forms 1040 2010 The payments are income in respect of a decedent. Irs tax forms 1040 2010 None of the payments were includible on Cathy's final return. Irs tax forms 1040 2010 The estate must include in its income the two installments it received, and you must include in your income each of the three installments as you receive them. Irs tax forms 1040 2010 Example 5. Irs tax forms 1040 2010 You inherited the right to receive renewal commissions on life insurance sold by your father before his death. Irs tax forms 1040 2010 You inherited the right from your mother, who acquired it by bequest from your father. Irs tax forms 1040 2010 Your mother died before she received all the commissions she had the right to receive, so you received the rest. Irs tax forms 1040 2010 The commissions are income in respect of a decedent. Irs tax forms 1040 2010 None of these commissions were includible in your father's final return. Irs tax forms 1040 2010 The commissions received by your mother were included in her income. Irs tax forms 1040 2010 The commissions you received are not includible in your mother's income, even on her final return. Irs tax forms 1040 2010 You must include them in your income. Irs tax forms 1040 2010 Character of income. Irs tax forms 1040 2010   The character of the income you receive in respect of a decedent remains the same as it would have been to the decedent if he or she were alive. Irs tax forms 1040 2010 If the income would have been a capital gain to the decedent, it will be a capital gain to you. Irs tax forms 1040 2010 Transfer of right to income. Irs tax forms 1040 2010   If you transfer your right to income in respect of a decedent, you must include in your income the greater of: The amount you receive for the right, or The fair market value of the right you transfer. Irs tax forms 1040 2010   If you make a gift of such a right, you must include in your income the fair market value of the right at the time of the gift. Irs tax forms 1040 2010   If the right to income from an installment obligation is transferred, the amount you must include in income is reduced by the basis of the obligation. Irs tax forms 1040 2010 See Installment obligations, later. Irs tax forms 1040 2010 Transfer defined. Irs tax forms 1040 2010   A transfer for this purpose includes a sale, exchange, or other disposition, the satisfaction of an installment obligation at other than face value, or the cancellation of an installment obligation. Irs tax forms 1040 2010 Installment obligations. Irs tax forms 1040 2010   If the decedent sold property using the installment method and you are collecting payments on an installment obligation acquired from the decedent, use the same gross profit percentage the decedent used to figure the part of each payment that represents profit. Irs tax forms 1040 2010 Include in your income the same profit the decedent would have included had death not occurred. Irs tax forms 1040 2010 For more information, see Publication 537, Installment Sales. Irs tax forms 1040 2010   If you dispose of an installment obligation acquired from a decedent (other than by transfer to the obligor), the rules explained in Publication 537 for figuring gain or loss on the disposition apply to you. Irs tax forms 1040 2010 Transfer to obligor. Irs tax forms 1040 2010   A transfer of a right to income, discussed earlier, has occurred if the decedent (seller) sold property using the installment method and the installment obligation was transferred to the obligor (buyer or person legally obligated to pay the installments). Irs tax forms 1040 2010 A transfer also occurs if the obligation was canceled either at death or by the estate or person receiving the obligation from the decedent. Irs tax forms 1040 2010 An obligation that becomes unenforceable is treated as having been canceled. Irs tax forms 1040 2010   If such a transfer occurs, the amount included in the income of the transferor (the estate or beneficiary) is the greater of the amount received or the fair market value of the installment obligation at the time of transfer, reduced by the basis of the obligation. Irs tax forms 1040 2010 The basis of the obligation is the decedent's basis, adjusted for all installment payments received after the decedent's death and before the transfer. Irs tax forms 1040 2010   If the decedent and obligor were related persons, the fair market value of the obligation cannot be less than its face value. Irs tax forms 1040 2010 Specific Types of Income in Respect of a Decedent This section explains and provides examples of some specific types of income in respect of a decedent. Irs tax forms 1040 2010 Wages. Irs tax forms 1040 2010   The entire amount of wages or other employee compensation earned by the decedent but unpaid at the time of death is income in respect of a decedent. Irs tax forms 1040 2010 The income is not reduced by any amounts withheld by the employer. Irs tax forms 1040 2010 If the income is $600 or more, the employer should report it in box 3 of Form 1099-MISC, Miscellaneous Income, and give the recipient a copy of the form or a similar statement. Irs tax forms 1040 2010   Wages paid as income in respect of a decedent are not subject to federal income tax withholding. Irs tax forms 1040 2010 However, if paid during the calendar year of death, they are subject to withholding for social security and Medicare taxes. Irs tax forms 1040 2010 These taxes should be included on the decedent's Form W-2 along with the taxes withheld before death. Irs tax forms 1040 2010 These wages are not included in box 1 of Form W-2. Irs tax forms 1040 2010   Wages paid as income in respect of a decedent after the year of death generally are not subject to withholding for any federal taxe
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Treasury, IRS Will Issue Proposed Guidance for Tax-Exempt Social Welfare Organizations

Initial Proposed Guidance Clarifies Qualification Requirements and Seeks Public Input

IR-2013-92, Nov. 26, 2013

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service today will issue initial guidance regarding qualification requirements for tax-exemption as a social welfare organization under section 501(c)(4) of the Internal Revenue Code. This proposed guidance defines the term “candidate-related political activity,” and would amend current regulations by indicating that the promotion of social welfare does not include this type of activity. The proposed guidance also seeks initial comments on other aspects of the qualification requirements, including what proportion of a 501(c)(4) organization’s activities must promote social welfare.

The proposed guidance is expected to be posted on the Federal Register later today.

There are a number of steps in the regulatory process that must be taken before any final guidance can be issued. Given the significant public interest in these and related issues, Treasury and the IRS expect to receive a large number of comments. Treasury and the IRS are committed to carefully and comprehensively considering all of the comments received before issuing additional proposed guidance or final rules.

“This is part of ongoing efforts within the IRS that are improving our work in the tax-exempt area,” said IRS Acting Commissioner Danny Werfel. “Once final, this proposed guidance will continue moving us forward and provide clarity for this important segment of exempt organizations.”

“This proposed guidance is a first critical step toward creating clear-cut definitions of political activity by tax-exempt social welfare organizations,” said Treasury Assistant Secretary for Tax Policy Mark J. Mazur. “We are committed to getting this right before issuing final guidance that may affect a broad group of organizations. It will take time to work through the regulatory process and carefully consider all public feedback as we strive to ensure that the standards for tax-exemption are clear and can be applied consistently.”

Organizations may apply for tax-exempt status under section 501(c)(4) of the tax code if they operate to promote social welfare. The IRS currently applies a “facts and circumstances” test to determine whether an organization is engaged in political campaign activities that do not promote social welfare. Today’s proposed guidance would reduce the need to conduct fact-intensive inquiries by replacing this test with more definitive rules.

In defining the new term, “candidate-related political activity,” Treasury and the IRS drew upon existing definitions of political activity under federal and state campaign finance laws, other IRS provisions, as well as suggestions made in unsolicited public comments.

Under the proposed guidelines, candidate-related political activity includes:

1. Communications

  • Communications that expressly advocate for a clearly identified political candidate or candidates of a political party.
  • Communications that are made within 60 days of a general election (or within 30 days of a primary election) and clearly identify a candidate or political party.
  • Communications expenditures that must be reported to the Federal Election Commission.

2. Grants and Contributions

  • Any contribution that is recognized under campaign finance law as a reportable contribution.
  • Grants to section 527 political organizations and other tax-exempt organizations that conduct candidate-related political activities (note that a grantor can rely on a written certification from a grantee stating that it does not engage in, and will not use grant funds for, candidate-related political activity).

3.  Activities Closely Related to Elections or Candidates

  • Voter registration drives and “get-out-the-vote” drives.
  • Distribution of any material prepared by or on behalf of a candidate or by a section 527 political organization.
  • Preparation or distribution of voter guides that refer to candidates (or, in a general election, to political parties).
  • Holding an event within 60 days of a general election (or within 30 days of a primary election) at which a candidate appears as part of the program.

These proposed rules reduce the need to conduct fact-intensive inquiries, including inquiries into whether activities or communications are neutral and unbiased.

Treasury and the IRS are planning to issue additional guidance that will address other issues relating to the standards for tax exemption under section 501(c)(4). In particular, there has been considerable public focus regarding the proportion of a section 501(c)(4) organization’s activities that must promote social welfare. Due to the importance of this aspect of the regulation, the proposed guidance requests initial comments on this issue.

The proposed guidance also seeks comments regarding whether standards similar to those proposed today should be adopted to define the political activities that do not further the tax-exempt purposes of other tax-exempt organizations and to promote consistent definitions across the tax-exempt sector.

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Page Last Reviewed or Updated: 02-Dec-2013

The Irs Tax Forms 1040 2010

Irs tax forms 1040 2010 4. Irs tax forms 1040 2010   Tax Withholding and Estimated Tax Table of Contents What's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 What's New for 2014 Tax law changes for 2014. Irs tax forms 1040 2010  When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2014. Irs tax forms 1040 2010 For more information, see Publication 505. Irs tax forms 1040 2010 Reminders Estimated tax safe harbor for higher income taxpayers. Irs tax forms 1040 2010  If your 2013 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2014 or 110% of the tax shown on your 2013 return to avoid an estimated tax penalty. Irs tax forms 1040 2010 Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Irs tax forms 1040 2010 In general, the federal income tax is a pay-as-you-go tax. Irs tax forms 1040 2010 There are two ways to pay as you go. Irs tax forms 1040 2010 Withholding. Irs tax forms 1040 2010 If you are an employee, your employer probably withholds income tax from your pay. Irs tax forms 1040 2010 Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Irs tax forms 1040 2010 The amount withheld is paid to the IRS in your name. Irs tax forms 1040 2010 Estimated tax. Irs tax forms 1040 2010 If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. Irs tax forms 1040 2010 People who are in business for themselves generally will have to pay their tax this way. Irs tax forms 1040 2010 Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Irs tax forms 1040 2010 Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Irs tax forms 1040 2010 This chapter explains these methods. Irs tax forms 1040 2010 In addition, it also explains the following. Irs tax forms 1040 2010 Credit for withholding and estimated tax. Irs tax forms 1040 2010 When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Irs tax forms 1040 2010 , and for the estimated tax you paid for 2013. Irs tax forms 1040 2010 Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Irs tax forms 1040 2010 Underpayment penalty. Irs tax forms 1040 2010 If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. Irs tax forms 1040 2010 In most cases, the IRS can figure this penalty for you. Irs tax forms 1040 2010 See Underpayment Penalty for 2013 at the end of this chapter. Irs tax forms 1040 2010 Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request 1040-ES Estimated Tax for Individuals 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen Tax Withholding for 2014 This section discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Irs tax forms 1040 2010 This section explains the rules for withholding tax from each of these types of income. Irs tax forms 1040 2010 This section also covers backup withholding on interest, dividends, and other payments. Irs tax forms 1040 2010 Salaries and Wages Income tax is withheld from the pay of most employees. Irs tax forms 1040 2010 Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Irs tax forms 1040 2010 It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Irs tax forms 1040 2010 See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Irs tax forms 1040 2010 If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Irs tax forms 1040 2010 This is explained under Exemption From Withholding , later. Irs tax forms 1040 2010 You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Irs tax forms 1040 2010 If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Irs tax forms 1040 2010 Military retirees. Irs tax forms 1040 2010   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Irs tax forms 1040 2010 Household workers. Irs tax forms 1040 2010   If you are a household worker, you can ask your employer to withhold income tax from your pay. Irs tax forms 1040 2010 A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Irs tax forms 1040 2010   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Irs tax forms 1040 2010 If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Irs tax forms 1040 2010 Farmworkers. Irs tax forms 1040 2010   Generally, income tax is withheld from your cash wages for work on a farm unless your employer does both of these: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Irs tax forms 1040 2010 Differential wage payments. Irs tax forms 1040 2010    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Irs tax forms 1040 2010 Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. Irs tax forms 1040 2010 The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Irs tax forms 1040 2010   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. Irs tax forms 1040 2010 Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. Irs tax forms 1040 2010 The amount you earn in each payroll period. Irs tax forms 1040 2010 The information you give your employer on Form W-4. Irs tax forms 1040 2010 Form W-4 includes four types of information that your employer will use to figure your withholding. Irs tax forms 1040 2010 Whether to withhold at the single rate or at the lower married rate. Irs tax forms 1040 2010 How many withholding allowances you claim (each allowance reduces the amount withheld). Irs tax forms 1040 2010 Whether you want an additional amount withheld. Irs tax forms 1040 2010 Whether you are claiming an exemption from withholding in 2014. Irs tax forms 1040 2010 See Exemption From Withholding , later. Irs tax forms 1040 2010 Note. Irs tax forms 1040 2010 You must specify a filing status and a number of withholding allowances on Form W-4. Irs tax forms 1040 2010 You cannot specify only a dollar amount of withholding. Irs tax forms 1040 2010 New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Irs tax forms 1040 2010 Your employer should have copies of the form. Irs tax forms 1040 2010 If you need to change the information later, you must fill out a new form. Irs tax forms 1040 2010 If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. Irs tax forms 1040 2010 You may be able to avoid overwithholding if your employer agrees to use the part-year method. Irs tax forms 1040 2010 See Part-Year Method in chapter 1 of Publication 505 for more information. Irs tax forms 1040 2010 Employee also receiving pension income. Irs tax forms 1040 2010   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Irs tax forms 1040 2010 However, you can choose to split your withholding allowances between your pension and job in any manner. Irs tax forms 1040 2010 Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. Irs tax forms 1040 2010 When this happens, you may need to give your employer a new Form W-4 to change your withholding status or your number of allowances. Irs tax forms 1040 2010 If the changes reduce the number of allowances you are claiming or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Irs tax forms 1040 2010 Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. Irs tax forms 1040 2010 Changing your withholding for 2015. Irs tax forms 1040 2010   If events in 2014 will decrease the number of your withholding allowances for 2015, you must give your employer a new Form W-4 by December 1, 2014. Irs tax forms 1040 2010 If the event occurs in December 2014, submit a new Form W-4 within 10 days. Irs tax forms 1040 2010 Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too little or too much. Irs tax forms 1040 2010 If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Irs tax forms 1040 2010 You should try to have your withholding match your actual tax liability. Irs tax forms 1040 2010 If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. Irs tax forms 1040 2010 If too much tax is withheld, you will lose the use of that money until you get your refund. Irs tax forms 1040 2010 Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. Irs tax forms 1040 2010 Note. Irs tax forms 1040 2010 You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. Irs tax forms 1040 2010 Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Irs tax forms 1040 2010 The worksheets are for your own records. Irs tax forms 1040 2010 Do not give them to your employer. Irs tax forms 1040 2010 Multiple jobs. Irs tax forms 1040 2010   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Irs tax forms 1040 2010 Then split your allowances between the Forms W-4 for each job. Irs tax forms 1040 2010 You cannot claim the same allowances with more than one employer at the same time. Irs tax forms 1040 2010 You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Irs tax forms 1040 2010 Married individuals. Irs tax forms 1040 2010   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. Irs tax forms 1040 2010 Use only one set of worksheets. Irs tax forms 1040 2010 You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Irs tax forms 1040 2010   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. Irs tax forms 1040 2010 Alternative method of figuring withholding allowances. Irs tax forms 1040 2010   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. Irs tax forms 1040 2010 For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Irs tax forms 1040 2010 Personal Allowances Worksheet. Irs tax forms 1040 2010   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Irs tax forms 1040 2010 Deduction and Adjustments Worksheet. Irs tax forms 1040 2010   Use the Deduction and Adjustments Worksheet on Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Irs tax forms 1040 2010 Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Irs tax forms 1040 2010 Two-Earners/Multiple Jobs Worksheet. Irs tax forms 1040 2010   You may need to complete the Two-Earners/Multiple Jobs Worksheet on Form W-4 if you have more than one job, a working spouse, or are also receiving a pension. Irs tax forms 1040 2010 Also, on this worksheet you can add any additional withholding necessary to cover any amount you expect to owe other than income tax, such as self-employment tax. Irs tax forms 1040 2010 Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. Irs tax forms 1040 2010 You accurately complete all the Form W-4 worksheets that apply to you. Irs tax forms 1040 2010 You give your employer a new Form W-4 when changes occur. Irs tax forms 1040 2010 But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Irs tax forms 1040 2010 This is most likely to happen in the following situations. Irs tax forms 1040 2010 You are married and both you and your spouse work. Irs tax forms 1040 2010 You have more than one job at a time. Irs tax forms 1040 2010 You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Irs tax forms 1040 2010 You will owe additional amounts with your return, such as self-employment tax. Irs tax forms 1040 2010 Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Irs tax forms 1040 2010 Your earnings are more than the amount shown under Check your withholding in the instructions at the top of page 1 of Form W-4. Irs tax forms 1040 2010 You work only part of the year. Irs tax forms 1040 2010 You change the number of your withholding allowances during the year. Irs tax forms 1040 2010 Cumulative wage method. Irs tax forms 1040 2010   If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. Irs tax forms 1040 2010 You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. Irs tax forms 1040 2010 You must ask your employer in writing to use this method. Irs tax forms 1040 2010   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Irs tax forms 1040 2010 ) since the beginning of the year. Irs tax forms 1040 2010 Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Irs tax forms 1040 2010 It will help you compare the total tax to be withheld during the year with the tax you can expect to figure on your return. Irs tax forms 1040 2010 It also will help you determine how much, if any, additional withholding is needed each payday to avoid owing tax when you file your return. Irs tax forms 1040 2010 If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Irs tax forms 1040 2010 You can use the IRS Withholding Calculator at www. Irs tax forms 1040 2010 irs. Irs tax forms 1040 2010 gov/Individuals, instead of Publication 505 or the worksheets included with Form W-4, to determine whether you need to have your withholding increased or decreased. Irs tax forms 1040 2010 Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Irs tax forms 1040 2010 These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Irs tax forms 1040 2010 New Form W-4. Irs tax forms 1040 2010   When you start a new job, your employer should have you complete a Form W-4. Irs tax forms 1040 2010 Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Irs tax forms 1040 2010   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Irs tax forms 1040 2010 The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. Irs tax forms 1040 2010 No Form W-4. Irs tax forms 1040 2010   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. Irs tax forms 1040 2010 Repaying withheld tax. Irs tax forms 1040 2010   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. Irs tax forms 1040 2010 Your employer cannot repay any of the tax previously withheld. Irs tax forms 1040 2010 Instead, claim the full amount withheld when you file your tax return. Irs tax forms 1040 2010   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. Irs tax forms 1040 2010 Your employer can repay the amount that was withheld incorrectly. Irs tax forms 1040 2010 If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. Irs tax forms 1040 2010 Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Irs tax forms 1040 2010 The exemption applies only to income tax, not to social security or Medicare tax. Irs tax forms 1040 2010 You can claim exemption from withholding for 2014 only if both of the following situations apply. Irs tax forms 1040 2010 For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Irs tax forms 1040 2010 For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Irs tax forms 1040 2010 Students. Irs tax forms 1040 2010   If you are a student, you are not automatically exempt. Irs tax forms 1040 2010 See chapter 1 to find out if you must file a return. Irs tax forms 1040 2010 If you work only part time or only during the summer, you may qualify for exemption from withholding. Irs tax forms 1040 2010 Age 65 or older or blind. Irs tax forms 1040 2010   If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. Irs tax forms 1040 2010 Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Irs tax forms 1040 2010 Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Irs tax forms 1040 2010 Claiming exemption from withholding. Irs tax forms 1040 2010   To claim exemption, you must give your employer a Form W-4. Irs tax forms 1040 2010 Do not complete lines 5 and 6. Irs tax forms 1040 2010 Enter “Exempt” on line 7. Irs tax forms 1040 2010   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. Irs tax forms 1040 2010 If you claim exemption in 2014, but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. Irs tax forms 1040 2010   Your claim of exempt status may be reviewed by the IRS. Irs tax forms 1040 2010 An exemption is good for only 1 year. Irs tax forms 1040 2010   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Irs tax forms 1040 2010 Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Irs tax forms 1040 2010 The payer can figure withholding on supplemental wages using the same method used for your regular wages. Irs tax forms 1040 2010 However, if these payments are identified separately from your regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Irs tax forms 1040 2010 Expense allowances. Irs tax forms 1040 2010   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Irs tax forms 1040 2010   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. Irs tax forms 1040 2010   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Irs tax forms 1040 2010 Penalties You may have to pay a penalty of $500 if both of the following apply. Irs tax forms 1040 2010 You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Irs tax forms 1040 2010 You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Irs tax forms 1040 2010 There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. Irs tax forms 1040 2010 The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Irs tax forms 1040 2010 These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. Irs tax forms 1040 2010 A simple error or an honest mistake will not result in one of these penalties. Irs tax forms 1040 2010 For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a W-4 penalty. Irs tax forms 1040 2010 Tips The tips you receive while working on your job are considered part of your pay. Irs tax forms 1040 2010 You must include your tips on your tax return on the same line as your regular pay. Irs tax forms 1040 2010 However, tax is not withheld directly from tip income, as it is from your regular pay. Irs tax forms 1040 2010 Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Irs tax forms 1040 2010 See chapter 6 for information on reporting your tips to your employer. Irs tax forms 1040 2010 For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Irs tax forms 1040 2010 How employer figures amount to withhold. Irs tax forms 1040 2010   The tips you report to your employer are counted as part of your income for the month you report them. Irs tax forms 1040 2010 Your employer can figure your withholding in either of two ways. Irs tax forms 1040 2010 By withholding at the regular rate on the sum of your pay plus your reported tips. Irs tax forms 1040 2010 By withholding at the regular rate on your pay plus a percentage of your reported tips. Irs tax forms 1040 2010 Not enough pay to cover taxes. Irs tax forms 1040 2010   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. Irs tax forms 1040 2010 See Giving your employer money for taxes in chapter 6. Irs tax forms 1040 2010 Allocated tips. Irs tax forms 1040 2010   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Irs tax forms 1040 2010 Withholding is based only on your pay plus your reported tips. Irs tax forms 1040 2010 Your employer should refund to you any incorrectly withheld tax. Irs tax forms 1040 2010 See Allocated Tips in chapter 6 for more information. Irs tax forms 1040 2010 Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Irs tax forms 1040 2010 Your employer generally must withhold income tax on these benefits from your regular pay. Irs tax forms 1040 2010 For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Irs tax forms 1040 2010 Although the value of your personal use of an employer-provided car, truck, or other highway motor vehicle is taxable, your employer can choose not to withhold income tax on that amount. Irs tax forms 1040 2010 Your employer must notify you if this choice is made. Irs tax forms 1040 2010 For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Irs tax forms 1040 2010 Sick Pay Sick pay is a payment to you to replace your regular wages while you are temporarily absent from work due to sickness or personal injury. Irs tax forms 1040 2010 To qualify as sick pay, it must be paid under a plan to which your employer is a party. Irs tax forms 1040 2010 If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Irs tax forms 1040 2010 An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Irs tax forms 1040 2010 However, if you receive sick pay from a third party who is not acting as an agent of your employer, income tax will be withheld only if you choose to have it withheld. Irs tax forms 1040 2010 See Form W-4S , later. Irs tax forms 1040 2010 If you receive payments under a plan in which your employer does not participate (such as an accident or health plan where you paid all the premiums), the payments are not sick pay and usually are not taxable. Irs tax forms 1040 2010 Union agreements. Irs tax forms 1040 2010   If you receive sick pay under a collective bargaining agreement between your union and your employer, the agreement may determine the amount of income tax withholding. Irs tax forms 1040 2010 See your union representative or your employer for more information. Irs tax forms 1040 2010 Form W-4S. Irs tax forms 1040 2010   If you choose to have income tax withheld from sick pay paid by a third party, such as an insurance company, you must fill out Form W-4S. Irs tax forms 1040 2010 Its instructions contain a worksheet you can use to figure the amount you want withheld. Irs tax forms 1040 2010 They also explain restrictions that may apply. Irs tax forms 1040 2010   Give the completed form to the payer of your sick pay. Irs tax forms 1040 2010 The payer must withhold according to your directions on the form. Irs tax forms 1040 2010 Estimated tax. Irs tax forms 1040 2010   If you do not request withholding on Form W-4S, or if you do not have enough tax withheld, you may have to make estimated tax payments. Irs tax forms 1040 2010 If you do not pay enough tax, either through estimated tax or withholding, or a combination of both, you may have to pay a penalty. Irs tax forms 1040 2010 See Underpayment Penalty for 2013 at the end of this chapter. Irs tax forms 1040 2010 Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Irs tax forms 1040 2010 This rule applies to distributions from: A traditional individual retirement arrangement (IRA); A life insurance company under an endowment, annuity, or life insurance contract; A pension, annuity, or profit-sharing plan; A stock bonus plan; and Any other plan that defers the time you receive compensation. Irs tax forms 1040 2010 The amount withheld depends on whether you receive payments spread out over more than 1 year (periodic payments), within 1 year (nonperiodic payments), or as an eligible rollover distribution (ERD). Irs tax forms 1040 2010 Income tax withholding from an ERD is mandatory. Irs tax forms 1040 2010 More information. Irs tax forms 1040 2010   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Irs tax forms 1040 2010 For information on IRAs, see chapter 17. Irs tax forms 1040 2010 For more information on withholding on pensions and annuities, including a discussion of Form W-4P, see Pensions and Annuities in chapter 1 of Publication 505. Irs tax forms 1040 2010 Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Irs tax forms 1040 2010 Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Irs tax forms 1040 2010 Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Irs tax forms 1040 2010 Any other wager, if the proceeds are at least 300 times the amount of the bet. Irs tax forms 1040 2010 It does not matter whether your winnings are paid in cash, in property, or as an annuity. Irs tax forms 1040 2010 Winnings not paid in cash are taken into account at their fair market value. Irs tax forms 1040 2010 Exception. Irs tax forms 1040 2010   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Irs tax forms 1040 2010 However, you may need to provide the payer with a social security number to avoid withholding. Irs tax forms 1040 2010 See Backup withholding on gambling winnings in chapter 1 of Publication 505. Irs tax forms 1040 2010 If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Irs tax forms 1040 2010 See Estimated Tax for 2014 , later. Irs tax forms 1040 2010 If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Irs tax forms 1040 2010 See Underpayment Penalty for 2013 at the end of this chapter. Irs tax forms 1040 2010 Form W-2G. Irs tax forms 1040 2010   If a payer withholds income tax from your gambling winnings, you should receive a Form W-2G, Certain Gambling Winnings, showing the amount you won and the amount withheld. Irs tax forms 1040 2010 Report the tax withheld on line 62 of Form 1040. Irs tax forms 1040 2010 Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Irs tax forms 1040 2010 To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Irs tax forms 1040 2010 All unemployment compensation is taxable. Irs tax forms 1040 2010 So, if you do not have income tax withheld, you may have to pay estimated tax. Irs tax forms 1040 2010 See Estimated Tax for 2014 , later. Irs tax forms 1040 2010 If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Irs tax forms 1040 2010 For information, see Underpayment Penalty for 2013 at the end of this chapter. Irs tax forms 1040 2010 Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Irs tax forms 1040 2010 These payments are: Social security benefits, Tier 1 railroad retirement benefits, Commodity credit corporation loans you choose to include in your gross income, Payments under the Agricultural Act of 1949 (7 U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 C. Irs tax forms 1040 2010 1421 et. Irs tax forms 1040 2010 seq. Irs tax forms 1040 2010 ), as amended, or title II of the Disaster Assistance Act of 1988, that are treated as insurance proceeds and that you receive because: Your crops were destroyed or damaged by drought, flood, or any other natural disaster, or You were unable to plant crops because of a natural disaster described in (a), and Any other payment under Federal law as determined by the Secretary. Irs tax forms 1040 2010 To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Irs tax forms 1040 2010 If you do not choose to have income tax withheld, you may have to pay estimated tax. Irs tax forms 1040 2010 See Estimated Tax for 2014 , later. Irs tax forms 1040 2010 If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Irs tax forms 1040 2010 For information, see Underpayment Penalty for 2013 at the end of this chapter. Irs tax forms 1040 2010 More information. Irs tax forms 1040 2010   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Irs tax forms 1040 2010 Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Irs tax forms 1040 2010 Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Irs tax forms 1040 2010 The information return shows how much you were paid during the year. Irs tax forms 1040 2010 It also includes your name and taxpayer identification number (TIN). Irs tax forms 1040 2010 TINs are explained in chapter 1 under Social Security Number (SSN) . Irs tax forms 1040 2010 These payments generally are not subject to withholding. Irs tax forms 1040 2010 However, “backup” withholding is required in certain situations. Irs tax forms 1040 2010 Backup withholding can apply to most kinds of payments that are reported on Form 1099. Irs tax forms 1040 2010 The payer must withhold at a flat 28% rate in the following situations. Irs tax forms 1040 2010 You do not give the payer your TIN in the required manner. Irs tax forms 1040 2010 The IRS notifies the payer that the TIN you gave is incorrect. Irs tax forms 1040 2010 You are required, but fail, to certify that you are not subject to backup withholding. Irs tax forms 1040 2010 The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. Irs tax forms 1040 2010 The IRS will do this only after it has mailed you four notices over at least a 210-day period. Irs tax forms 1040 2010 See Backup Withholding in chapter 1 of Publication 505 for more information. Irs tax forms 1040 2010 Penalties. Irs tax forms 1040 2010   There are civil and criminal penalties for giving false information to avoid backup withholding. Irs tax forms 1040 2010 The civil penalty is $500. Irs tax forms 1040 2010 The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Irs tax forms 1040 2010 Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Irs tax forms 1040 2010 This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Irs tax forms 1040 2010 You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. Irs tax forms 1040 2010 Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. Irs tax forms 1040 2010 If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Irs tax forms 1040 2010 If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. Irs tax forms 1040 2010 For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Irs tax forms 1040 2010 Who Does Not Have To Pay Estimated Tax If you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. Irs tax forms 1040 2010 To do this, give a new Form W-4 to your employer. Irs tax forms 1040 2010 See chapter 1 of Publication 505. Irs tax forms 1040 2010 Estimated tax not required. Irs tax forms 1040 2010   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Irs tax forms 1040 2010 You had no tax liability for 2013. Irs tax forms 1040 2010 You were a U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 citizen or resident alien for the whole year. Irs tax forms 1040 2010 Your 2013 tax year covered a 12-month period. Irs tax forms 1040 2010   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. Irs tax forms 1040 2010 For the definition of “total tax” for 2013, see Publication 505, chapter 2. Irs tax forms 1040 2010 Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Irs tax forms 1040 2010 You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments. Irs tax forms 1040 2010 General rule. Irs tax forms 1040 2010   In most cases, you must pay estimated tax for 2014 if both of the following apply. Irs tax forms 1040 2010 You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Irs tax forms 1040 2010 You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers, later). Irs tax forms 1040 2010 Your 2013 tax return must cover all 12 months. Irs tax forms 1040 2010    If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet in Publication 505 for a more accurate calculation. Irs tax forms 1040 2010 Special rules for farmers, fishermen, and higher income taxpayers. Irs tax forms 1040 2010   If at least two-thirds of your gross income for tax year 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under the General rule, earlier. Irs tax forms 1040 2010 If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General rule , earlier. Irs tax forms 1040 2010 See Figure 4-A and Publication 505, chapter 2 for more information. Irs tax forms 1040 2010 Figure 4-A. Irs tax forms 1040 2010 Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Irs tax forms 1040 2010 Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Irs tax forms 1040 2010   Resident and nonresident aliens also may have to pay estimated tax. Irs tax forms 1040 2010 Resident aliens should follow the rules in this chapter unless noted otherwise. Irs tax forms 1040 2010 Nonresident aliens should get Form 1040-ES (NR), U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 Estimated Tax for Nonresident Alien Individuals. Irs tax forms 1040 2010   You are an alien if you are not a citizen or national of the United States. Irs tax forms 1040 2010 You are a resident alien if you either have a green card or meet the substantial presence test. Irs tax forms 1040 2010 For more information about the substantial presence test, see Publication 519, U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 Tax Guide for Aliens. Irs tax forms 1040 2010 Married taxpayers. Irs tax forms 1040 2010   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Irs tax forms 1040 2010   You and your spouse can make joint estimated tax payments even if you are not living together. Irs tax forms 1040 2010   However, you and your spouse cannot make joint estimated tax payments if:  You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, or Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes (see chapter 1 of Publication 519)). Irs tax forms 1040 2010   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Irs tax forms 1040 2010 Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Irs tax forms 1040 2010 2013 separate returns and 2014 joint return. Irs tax forms 1040 2010   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. Irs tax forms 1040 2010 You filed a separate return if you filed as single, head of household, or married filing separately. Irs tax forms 1040 2010 2013 joint return and 2014 separate returns. Irs tax forms 1040 2010   If you plan to file a separate return for 2014 but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. Irs tax forms 1040 2010 You file a separate return if you file as single, head of household, or married filing separately. Irs tax forms 1040 2010   To figure your share of the tax on the joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status as for 2014. Irs tax forms 1040 2010 Then multiply the tax on the joint return by the following fraction. Irs tax forms 1040 2010     The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. Irs tax forms 1040 2010 Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Irs tax forms 1040 2010 Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Irs tax forms 1040 2010 For 2014, they plan to file married filing separately. Irs tax forms 1040 2010 Joe figures his share of the tax on the 2013 joint return as follows. Irs tax forms 1040 2010   Tax on $40,100 based on a separate return $5,960     Tax on $8,400 based on a separate return 843     Total $6,803     Joe's percentage of total ($5,960 ÷ $6,803) 87. Irs tax forms 1040 2010 6%     Joe's share of tax on joint return  ($6,386 × 87. Irs tax forms 1040 2010 6%) $5,594   How To Figure Estimated Tax To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. Irs tax forms 1040 2010 When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Irs tax forms 1040 2010 Use your 2013 federal tax return as a guide. Irs tax forms 1040 2010 You can use Form 1040-ES and Publication 505 to figure your estimated tax. Irs tax forms 1040 2010 Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Irs tax forms 1040 2010 You must make adjustments both for changes in your own situation and for recent changes in the tax law. Irs tax forms 1040 2010 For a discussion of these changes, visit IRS. Irs tax forms 1040 2010 gov. Irs tax forms 1040 2010 For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Irs tax forms 1040 2010 When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Irs tax forms 1040 2010 Each period has a specific payment due date. Irs tax forms 1040 2010 If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return. Irs tax forms 1040 2010 The payment periods and due dates for estimated tax payments are shown next. Irs tax forms 1040 2010   For the period: Due date:*     Jan. Irs tax forms 1040 2010 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Irs tax forms 1040 2010 15     Sept. Irs tax forms 1040 2010 1– Dec. Irs tax forms 1040 2010 31 Jan. Irs tax forms 1040 2010 15, next year     *See Saturday, Sunday, holiday rule and January payment . Irs tax forms 1040 2010 Saturday, Sunday, holiday rule. Irs tax forms 1040 2010   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday. Irs tax forms 1040 2010 January payment. Irs tax forms 1040 2010   If you file your 2014 Form 1040 or Form 1040A by January 31, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. Irs tax forms 1040 2010 Fiscal year taxpayers. Irs tax forms 1040 2010   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Irs tax forms 1040 2010 When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Irs tax forms 1040 2010 If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. Irs tax forms 1040 2010 You can pay all your estimated tax at that time, or you can pay it in installments. Irs tax forms 1040 2010 If you choose to pay in installments, make your first payment by the due date for the first payment period. Irs tax forms 1040 2010 Make your remaining installment payments by the due dates for the later periods. Irs tax forms 1040 2010 No income subject to estimated tax during first period. Irs tax forms 1040 2010    If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. Irs tax forms 1040 2010 You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. Irs tax forms 1040 2010 The following chart shows when to make installment payments. Irs tax forms 1040 2010 If you first have income on which you must pay estimated tax: Make a payment  by:* Make later installments by:* Before April 1 April 15 June 16 Sept. Irs tax forms 1040 2010 15 Jan. Irs tax forms 1040 2010 15 next year April 1–May 31 June 16 Sept. Irs tax forms 1040 2010 15 Jan. Irs tax forms 1040 2010 15 next year June 1–Aug. Irs tax forms 1040 2010 31 Sept. Irs tax forms 1040 2010 15 Jan. Irs tax forms 1040 2010 15 next year After Aug. Irs tax forms 1040 2010 31 Jan. Irs tax forms 1040 2010 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Irs tax forms 1040 2010 How much to pay to avoid a penalty. Irs tax forms 1040 2010   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Irs tax forms 1040 2010 How To Figure Each Payment You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. Irs tax forms 1040 2010 You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Irs tax forms 1040 2010 These methods are described in chapter 2 of Publication 505. Irs tax forms 1040 2010 If you do not pay enough during each payment period, you may be charged a penalty even if you are due a refund when you file your tax return. Irs tax forms 1040 2010 If the earlier discussion of No income subject to estimated tax during first period or the later discussion of Change in estimated tax applies to you, you may benefit from reading Annualized Income Installment Method in chapter 2 of Publication 505 for information on how to avoid a penalty. Irs tax forms 1040 2010 Underpayment penalty. Irs tax forms 1040 2010   Under the regular installment method, if your estimated tax payment for any period is less than one-fourth of your estimated tax, you may be charged a penalty for underpayment of estimated tax for that period when you file your tax return. Irs tax forms 1040 2010 Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Irs tax forms 1040 2010 See chapter 4 of Publication 505 for more information. Irs tax forms 1040 2010 Change in estimated tax. Irs tax forms 1040 2010   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. Irs tax forms 1040 2010 Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. Irs tax forms 1040 2010 Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. Irs tax forms 1040 2010 You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you owe with your return under $1,000. Irs tax forms 1040 2010 How To Pay Estimated Tax There are several ways to pay estimated tax. Irs tax forms 1040 2010 Credit an overpayment on your 2013 return to your 2014 estimated tax. Irs tax forms 1040 2010 Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Irs tax forms 1040 2010 Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Irs tax forms 1040 2010 Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. Irs tax forms 1040 2010 On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Irs tax forms 1040 2010 Take the amount you have credited into account when figuring your estimated tax payments. Irs tax forms 1040 2010 You cannot have any of the amount you credited to your estimated tax refunded to you until you file your tax return for the following year. Irs tax forms 1040 2010 You also cannot use that overpayment in any other way. Irs tax forms 1040 2010 Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Irs tax forms 1040 2010 You can pay using either of the following electronic payment methods. Irs tax forms 1040 2010 Direct transfer from your bank account. Irs tax forms 1040 2010 Credit or debit card. Irs tax forms 1040 2010 To pay your taxes online or for more information, go to www. Irs tax forms 1040 2010 irs. Irs tax forms 1040 2010 gov/e-pay. Irs tax forms 1040 2010 Pay by Phone Paying by phone is another safe and secure method of paying electronically. Irs tax forms 1040 2010 Use one of the following methods. Irs tax forms 1040 2010 Direct transfer from your bank account. Irs tax forms 1040 2010 Credit or debit card. Irs tax forms 1040 2010 To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Irs tax forms 1040 2010 People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD can call 1-800-733-4829. Irs tax forms 1040 2010 To pay using a credit or debit card, you can call one of the following service providers. Irs tax forms 1040 2010 There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Irs tax forms 1040 2010 WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Irs tax forms 1040 2010 payUSAtax. Irs tax forms 1040 2010 com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Irs tax forms 1040 2010 officialpayments. Irs tax forms 1040 2010 com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Irs tax forms 1040 2010 PAY1040. Irs tax forms 1040 2010 com For the latest details on how to pay by phone, go to www. Irs tax forms 1040 2010 irs. Irs tax forms 1040 2010 gov/e-pay. Irs tax forms 1040 2010 Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. Irs tax forms 1040 2010 During 2013, if you: made at least one estimated tax payment but not by electronic means, did not use software or a paid preparer to prepare or file your return,  then you should receive a copy of the 2014 Form 1040-ES/V. Irs tax forms 1040 2010 The enclosed payment vouchers will be preprinted with your name, address, and social security number. Irs tax forms 1040 2010 Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Irs tax forms 1040 2010 Use the window envelopes that came with your Form 1040-ES package. Irs tax forms 1040 2010 If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. Irs tax forms 1040 2010 Note. Irs tax forms 1040 2010 These criteria can change without notice. Irs tax forms 1040 2010 If you do not receive a Form 1040-ES/V package and you are required to make an estimated tax payment, you should go to www. Irs tax forms 1040 2010 irs. Irs tax forms 1040 2010 gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Irs tax forms 1040 2010 Complete one of these and make your payment timely to avoid penalties for paying late. Irs tax forms 1040 2010 Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Irs tax forms 1040 2010 If you did not pay estimated tax last year, you can order Form 1040-ES from the IRS (see inside back cover of this publication) or download it from IRS. Irs tax forms 1040 2010 gov. Irs tax forms 1040 2010 Follow the instructions to make sure you use the vouchers correctly. Irs tax forms 1040 2010 Joint estimated tax payments. Irs tax forms 1040 2010   If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. Irs tax forms 1040 2010 Change of address. Irs tax forms 1040 2010   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Irs tax forms 1040 2010 Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Irs tax forms 1040 2010 Credit for Withholding and Estimated Tax for 2013 When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Irs tax forms 1040 2010 Also take credit for the estimated tax you paid for 2013. Irs tax forms 1040 2010 These credits are subtracted from your total tax. Irs tax forms 1040 2010 Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Irs tax forms 1040 2010 Two or more employers. Irs tax forms 1040 2010   If you had two or more employers in 2013 and were paid wages of more than $113,700, too much social security or tier 1 railroad retirement tax may have been withheld from your pay. Irs tax forms 1040 2010 You may be able to claim the excess as a credit against your income tax when you file your return. Irs tax forms 1040 2010 See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Irs tax forms 1040 2010 Withholding If you had income tax withheld during 2013, you should be sent a statement by January 31, 2014, showing your income and the tax withheld. Irs tax forms 1040 2010 Depending on the source of your income, you should receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Irs tax forms 1040 2010 Forms W-2 and W-2G. Irs tax forms 1040 2010   If you file a paper return, always file Form W-2 with your income tax return. Irs tax forms 1040 2010 File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Irs tax forms 1040 2010   You should get at least two copies of each form. Irs tax forms 1040 2010 If you file a paper return, attach one copy to the front of your federal income tax return. Irs tax forms 1040 2010 Keep one copy for your records. Irs tax forms 1040 2010 You also should receive copies to file with your state and local returns. Irs tax forms 1040 2010 Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Irs tax forms 1040 2010 You should receive a separate Form W-2 from each employer you worked for. Irs tax forms 1040 2010 If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Irs tax forms 1040 2010 However, your employer must provide or send it to you by January 31, 2014. Irs tax forms 1040 2010 If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Irs tax forms 1040 2010 If you have not received your Form W-2 by January 31, you should ask your employer for it. Irs tax forms 1040 2010 If you do not receive it by February 15, call the IRS. Irs tax forms 1040 2010 Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Irs tax forms 1040 2010 Include the federal income tax withheld (as shown in box 2 of Form W-2) on: Line 62 if you file Form 1040, Line 36 if you file Form 1040A, or Line 7 if you file Form 1040EZ. Irs tax forms 1040 2010 In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Irs tax forms 1040 2010 Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Irs tax forms 1040 2010 If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Irs tax forms 1040 2010 Report the amounts you won on line 21 of Form 1040. Irs tax forms 1040 2010 Take credit for the tax withheld on line 62 of Form 1040. Irs tax forms 1040 2010 If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Irs tax forms 1040 2010 The 1099 Series Most forms in the 1099 series are not filed with your return. Irs tax forms 1040 2010 These forms should be furnished to you by January 31, 2014 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2014). Irs tax forms 1040 2010 Unless instructed to file any of these forms with your return, keep them for your records. Irs tax forms 1040 2010 There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received from Cooperatives; Form 1099-Q, Payments From Qualified Education Programs; Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Irs tax forms 1040 2010 ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Irs tax forms 1040 2010 If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Irs tax forms 1040 2010 See the instructions to these forms for details. Irs tax forms 1040 2010 Form 1099-R. Irs tax forms 1040 2010   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Irs tax forms 1040 2010 Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Irs tax forms 1040 2010 You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Irs tax forms 1040 2010 Backup withholding. Irs tax forms 1040 2010   If you were subject to backup withholding on income you received during 2013, include the amount withheld, as shown on your Form 1099, in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Irs tax forms 1040 2010 Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Irs tax forms 1040 2010 Call the telephone number or write to the address given for the payer on the form. Irs tax forms 1040 2010 The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Irs tax forms 1040 2010 A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Irs tax forms 1040 2010 In certain situations, you will receive two forms in place of the original incorrect form. Irs tax forms 1040 2010 This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Irs tax forms 1040 2010 One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Irs tax forms 1040 2010 This form will have an “X” in the “CORRECTED” box at the top of the form. Irs tax forms 1040 2010 The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Irs tax forms 1040 2010 Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, you should report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Irs tax forms 1040 2010 S. Irs tax forms 1040 2010 Individual Income Tax Return. Irs tax forms 1040 2010 Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Irs tax forms 1040 2010 Do not include any amount withheld from your spouse's income. Irs tax forms 1040 2010 However, different rules may apply if you live in a community property state. Irs tax forms 1040 2010 Community property states are listed in chapter 2. Irs tax forms 1040 2010 For more information on these rules, and some exceptions, see Publication 555, Community Property. Irs tax forms 1040 2010 Fiscal Years If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules to determine your credit for federal income tax withholding. Irs tax forms 1040 2010 For a discussion of how to take credit for withholding on a fiscal year return, see Fiscal Years (FY) in chapter 3 of Publication 505. Irs tax forms 1040 2010 Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Irs tax forms 1040 2010 Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Irs tax forms 1040 2010 You must use Form 1040 or Form 1040A if you paid estimated tax. Irs tax forms 1040 2010 You cannot use Form 1040EZ. Irs tax forms 1040 2010 Name changed. Irs tax forms 1040 2010   If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and Your social security number. Irs tax forms 1040 2010 The statement should cover payments you made jointly with your spouse as well as any you made separately. Irs tax forms 1040 2010   Be sure to report the change to the Social Security Administration. Irs tax forms 1040 2010 This prevents delays in processing your return and issuing any refunds. Irs tax forms 1040 2010 Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Irs tax forms 1040 2010 If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Irs tax forms 1040 2010 One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Irs tax forms 1040 2010 If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Irs tax forms 1040 2010 Divorced Taxpayers If you made joint estimated tax payments for 2013, and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Irs tax forms 1040 2010 If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Irs tax forms 1040 2010 If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided on the front of Form 1040 or Form 1040A. Irs tax forms 1040 2010 If you divorced and remarried in 2013, enter your present spouse's SSN in that space and write your former spouse's SSN, followed by “DIV,” to the left of Form 1040, line 63, or Form 1040A, line 37. Irs tax forms 1040 2010 Underpayment Penalty for 2013 If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. Irs tax forms 1040 2010 Generally, you will not have to pay a penalty for 2013 if any of the following apply. Irs tax forms 1040 2010 The total of your withholding and estimated tax payments was at least as much as your 2012 tax (or 110% of your 2012 tax if your AGI was more than $150,000, $75,000 if your 2013 filing status is married filing separately) and you paid all required estimated tax payments on time. Irs tax forms 1040 2010 The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Irs tax forms 1040 2010 Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Irs tax forms 1040 2010 You did not have a tax liability for 2012 and your 2012 tax year was 12 months, or You did not have any withholding taxes and your current year tax less any household employment taxes is less than $1,000. Irs tax forms 1040 2010 See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Irs tax forms 1040 2010 Farmers and fishermen. Irs tax forms 1040 2010   Special rules apply if you are a farmer or fisherman. Irs tax forms 1040 2010 See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Irs tax forms 1040 2010 IRS can figure the penalty for you. Irs tax forms 1040 2010   If you think you owe the penalty but you do not want to figure it yourself when you file your tax return, you may not have to. Irs tax forms 1040 2010 Generally, the IRS will figure the penalty for you and send you a bill. Irs tax forms 1040 2010 However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-F and attach it to your paper return. Irs tax forms 1040 2010 See chapter 4 of Publication 505. Irs tax forms 1040 2010 Prev  Up  Next   Home   More Online Publications