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Irsfreetax Index A Additional child tax credit, Additional child tax credit. Irsfreetax Additional Medicare Tax, What's New, Useful Items - You may want to see:, Additional Medicare Tax. Irsfreetax , Additional Medicare Tax. Irsfreetax , Additional Medicare Tax. Irsfreetax , Additional Medicare Tax. Irsfreetax , Additional Medicare Tax. Irsfreetax , Additional Medicare Tax Aliens Nonresident (see specific possession) Resident (see specific possession) American Samoa, American Samoa, Double Taxation Form 4563, Form 4563. Irsfreetax Armed forces, U. Irsfreetax S. Irsfreetax Bona fide residence, Special rule for members of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Armed Forces, U. Irsfreetax S. Irsfreetax Earned income credit, Earned income credit. Irsfreetax , U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Source of income, U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Spouse, Special rule for civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Assistance (see Tax help) Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards B Bankruptcy cases, Chapter 11, Chapter 11 Bankruptcy cases. Irsfreetax Bona fide residence, Bona Fide Residence, Worldwide gross income. Irsfreetax Closer connection, Closer Connection, Exception for Year of Move Year of move, Exception for Year of Move, Special Rules in the Year of a Move, Puerto Rico Presence test, Presence Test, Charitable sports event, Charitable Sports Event Child, defined, Days of presence in a possession. Irsfreetax Nonresident aliens, Special rule for nonresident aliens. Irsfreetax Possession, days in, Days of presence in a possession. Irsfreetax Qualifying medical treatment, Qualifying Medical Treatment Significant connection, Significant Connection, Student, Student U. Irsfreetax S. Irsfreetax , days in, Days of presence in the United States. Irsfreetax Reporting change in residency status, Reporting a Change in Bona Fide Residence, Worldwide gross income. Irsfreetax Penalty for not reporting, Penalty for Not Filing Form 8898 Tax home, Tax Home, Year of Move Exceptions, Exceptions Government officials, Students and Government Officials Seafarers, Seafarers Students, Students and Government Officials Year of move, Year of Move, Special Rules in the Year of a Move, Puerto Rico Tests to meet, Bona Fide Residence U. Irsfreetax S. Irsfreetax Armed Forces, Special rule for members of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Year of move, Special Rules in the Year of a Move, Puerto Rico Puerto Rico, Puerto Rico C Change in residency status, reporting, Reporting a Change in Bona Fide Residence, Worldwide gross income. Irsfreetax Penalty for not reporting, Penalty for Not Filing Form 8898 Change of address, Reminders Charitable sports event, Charitable Sports Event Child tax credit, additional, Additional child tax credit. Irsfreetax Child, defined, Days of presence in a possession. Irsfreetax Closer connection, Closer Connection, Exception for Year of Move Year of move, Exception for Year of Move, Special Rules in the Year of a Move, Puerto Rico CNMI tax return, Nonresident Alien (Other Than a Bona Fide Resident of the CNMI) Commonwealth of Puerto Rico, The Commonwealth of Puerto Rico, Double Taxation Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of the Northern Mariana Islands, Double Taxation Form 5074, Form 5074. Irsfreetax Compensation for labor or personal services, Compensation for Labor or Personal Services, Pensions. Irsfreetax Alternative basis, Alternative basis. Irsfreetax Multi-year compensation, Multi-year compensation. Irsfreetax Time basis, Time basis. Irsfreetax Competent Authority Assistance, Competent Authority Assistance How to make your request, How to make your request. Irsfreetax Credit or Refund File a claim for credit or refund of any overpayment sought, Credit or Refund Credits Earned income, Reminders, Earned income credit. Irsfreetax Foreign tax, U. Irsfreetax S. Irsfreetax Government employees. Irsfreetax , Moving expense deduction. Irsfreetax , Foreign Tax Credit if Possession Income Is Excluded D Deductions IRA contribution, Individual retirement arrangement (IRA) deduction. Irsfreetax Moving expenses U. Irsfreetax S. Irsfreetax return, Moving expense deduction. Irsfreetax Personal exemptions, Personal Exemptions Self-employment tax, one-half of, Self-employment tax deduction. Irsfreetax Standard deduction, Standard Deduction Deductions if Possession Income Is Excluded, Deductions if Possession Income Is Excluded Dispositions of certain property, special rules for, Special Rules for Gains From Dispositions of Certain Property Dividends, Dividends. Irsfreetax Double taxation, inconsistent tax treatment Mutual agreement procedure, Double Taxation E Earned income credit, Reminders, Earned income credit. Irsfreetax Effectively connected income, Effectively Connected Income Estimated tax payments, Estimated tax payments. Irsfreetax , Estimated tax payments. Irsfreetax , Estimated tax payments. Irsfreetax , Estimated tax payments. Irsfreetax , Estimated tax payments. Irsfreetax , Estimated Tax Exemptions, deduction for, Personal Exemptions Extension of time to file U. Irsfreetax S. Irsfreetax return, Extension of Time To File USVI, Extension of time to file. Irsfreetax F Filing requirements American Samoa, American Samoa, Double Taxation Form 4563, Form 4563. Irsfreetax CNMI, The Commonwealth of the Northern Mariana Islands, Double Taxation Form 5074, Form 5074. Irsfreetax Guam, Guam, Double Taxation Form 5074, Form 5074. Irsfreetax Possessions, Filing Information for Individuals in Certain U. Irsfreetax S. Irsfreetax Possessions, Double Taxation Puerto Rico, The Commonwealth of Puerto Rico, Double Taxation U. Irsfreetax S. Irsfreetax return, Filing Requirement if Possession Income Is Excluded USVI, The U. Irsfreetax S. Irsfreetax Virgin Islands, Double Taxation Form 1040INFO, Form 1040INFO. Irsfreetax Form 4868, Extension of time to file. Irsfreetax Form 8689, Form 8689. Irsfreetax Foreign tax credit, Foreign Tax Credit if Possession Income Is Excluded Form 1040-ES, Estimated Tax 1040-PR, Additional child tax credit. Irsfreetax 1040-SS, Self-employment tax. Irsfreetax , Additional child tax credit. Irsfreetax , Self-employment tax. Irsfreetax , Self-employment tax. Irsfreetax , Self-employment tax. Irsfreetax 1040INFO, Form 1040INFO. Irsfreetax 1040NR, Nonresident alien. Irsfreetax , Nonresident alien. Irsfreetax , Nonresident Alien (Other Than a Bona Fide Resident of the CNMI), Nonresident Alien (Other Than a Bona Fide Resident of Guam), Nonresident Alien (Other Than a Bona Fide Resident of the USVI) 1116, U. Irsfreetax S. Irsfreetax Government employees. Irsfreetax , Moving expense deduction. Irsfreetax , Foreign Tax Credit if Possession Income Is Excluded 3903, Moving expense deduction. Irsfreetax , Moving expense deduction. Irsfreetax , Moving expense deduction. Irsfreetax , Moving expense deduction. Irsfreetax , Moving expense deduction. Irsfreetax , Moving expense deduction. Irsfreetax 4563, Form 4563. Irsfreetax 4563, illustrated example, Illustrated Example of Form 4563, Line 15. Irsfreetax , 4868, Extension of time to file. Irsfreetax , Automatic 6-Month Extension 5074, Form 5074. Irsfreetax , Moving expense deduction. Irsfreetax , Form 5074. Irsfreetax , Moving expense deduction. Irsfreetax 5074, illustrated example, Illustrated Example of Form 5074, Part III. Irsfreetax , 8689, Form 8689. Irsfreetax 8689, illustrated example, Illustrated Example of Form 8689, Part IV. Irsfreetax , 8822, Reminders 8898, Reporting a Change in Bona Fide Residence, Penalty for Not Filing Form 8898 Schedule A (Form 1040), Itemized Deductions Schedule SE (Form 1040), Self-Employment Tax Free tax services, Free help with your tax return. Irsfreetax Fringe benefits, Certain fringe benefits sourced on a geographical basis. Irsfreetax G Government employees, U. Irsfreetax S. Irsfreetax (see specific possession) Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Guam, Guam, Double Taxation Form 5074, Form 5074. Irsfreetax H Help (see Tax help) I Income Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Effectively connected income, Effectively Connected Income Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Investments, Investment Income, Royalties. Irsfreetax Labor or personal services, Compensation for Labor or Personal Services, Pensions. Irsfreetax Pensions, Pensions. Irsfreetax Sales or other dispositions of property, Sales or Other Dispositions of Property, Special Rules for Gains From Dispositions of Certain Property Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. Irsfreetax , Alternative basis. Irsfreetax Source of, Possession Source Income U. Irsfreetax S. Irsfreetax Armed Forces, U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax U. Irsfreetax S. Irsfreetax income rule, U. Irsfreetax S. Irsfreetax income rule. Irsfreetax Income from American Samoa or Puerto Rico excluded. Irsfreetax , Income from American Samoa or Puerto Rico excluded. Irsfreetax Deductions if income from American Samoa or Puerto Rico excluded, Deductions if Possession Income Is Excluded Interest income, Interest income. Irsfreetax Inventory Sales or other dispositions of, Inventory. Irsfreetax Investment income, Investment Income, Royalties. Irsfreetax IRA deduction, Individual retirement arrangement (IRA) deduction. Irsfreetax Itemized deductions, Itemized Deductions M Medical treatment, qualifying, Qualifying Medical Treatment Moving expense deduction U. Irsfreetax S. Irsfreetax return, Moving expense deduction. Irsfreetax N Net Investment Income Tax, What's New, Useful Items - You may want to see:, Net Investment Income Tax. Irsfreetax , Net Investment Income Tax. Irsfreetax , Net Investment Income Tax Nonresident alien (see specific possession) Northern Mariana Islands (CNMI), The Commonwealth of the Northern Mariana Islands, Double Taxation P Paying your taxes, Paying Your Taxes Penalty Failure to report change in residency status, Penalty for Not Filing Form 8898 Pension income, Pensions. Irsfreetax Permanent home, Permanent home. Irsfreetax Personal exemptions, deduction for, Personal Exemptions Personal property Sales or other dispositions of, Personal property. Irsfreetax Personal service income, Compensation for Labor or Personal Services, Pensions. Irsfreetax Possession source income, Possession Source Income, Effectively Connected Income Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Effectively connected income, Effectively Connected Income Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Investment income, Investment Income, Royalties. Irsfreetax Labor or personal services, Compensation for Labor or Personal Services, Pensions. Irsfreetax Pensions, Pensions. Irsfreetax Sales or other dispositions of property, Sales or Other Dispositions of Property, Special Rules for Gains From Dispositions of Certain Property Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. Irsfreetax , Alternative basis. Irsfreetax U. Irsfreetax S. Irsfreetax Armed Forces, U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax U. Irsfreetax S. Irsfreetax income rule, U. Irsfreetax S. Irsfreetax income rule. Irsfreetax Possessions, list of, Introduction Presence test, Presence Test, Charitable sports event, Charitable Sports Event Child, defined, Days of presence in a possession. Irsfreetax Nonresident aliens, Special rule for nonresident aliens. Irsfreetax Possession, days in, Days of presence in a possession. Irsfreetax Qualifying medical treatment, Qualifying Medical Treatment Significant connection, Significant Connection, Permanent home, Permanent home. Irsfreetax Student, Student U. Irsfreetax S. Irsfreetax , days in, Days of presence in the United States. Irsfreetax Prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Publications (see Tax help) Puerto Rico, The Commonwealth of Puerto Rico, Double Taxation Additional child tax credit, Additional child tax credit. Irsfreetax Bona fide residence Year of move, Puerto Rico Q Qualifying medical treatment, Qualifying Medical Treatment R Real property Sales or other dispositions of, Real property. Irsfreetax Reminders Earned income credit (EIC). Irsfreetax , Reminders Electronic filing. Irsfreetax , Reminders Rental income, Rental income. Irsfreetax Resident alien (see specific possession) Royalty income, Royalties. Irsfreetax S Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Self-employment tax U. Irsfreetax S. Irsfreetax return, Self-Employment Tax Self-employment tax deduction, Self-employment tax deduction. Irsfreetax Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. Irsfreetax , Alternative basis. Irsfreetax Significant connection, Significant Connection, Source of income, Possession Source Income, Effectively Connected Income Awards and prizes, Scholarships, Fellowships, Grants, Prizes, and Awards Effectively connected income, Effectively Connected Income Grants, Scholarships, Fellowships, Grants, Prizes, and Awards Investment income, Investment Income, Royalties. Irsfreetax Labor or personal services, Compensation for Labor or Personal Services, Pensions. Irsfreetax Pensions, Pensions. Irsfreetax Sales or other dispositions of property, Sales or Other Dispositions of Property, Special Rules for Gains From Dispositions of Certain Property Scholarships and fellowships, Scholarships, Fellowships, Grants, Prizes, and Awards Services performed partly within a possession, Services performed partly inside and partly outside a relevant possession. Irsfreetax , Alternative basis. Irsfreetax U. Irsfreetax S. Irsfreetax Armed Forces, U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax U. Irsfreetax S. Irsfreetax income rule, U. Irsfreetax S. Irsfreetax income rule. Irsfreetax Special rules for filing (see specific possession) Special rules for gains from dispositions of certain property, Special Rules for Gains From Dispositions of Certain Property Sports event, charitable, Charitable Sports Event Standard deduction, Standard Deduction Statement of Specified Foreign Financial Assets, Form 8938,, Reminders Student, Student T Tables U. Irsfreetax S. Irsfreetax filing requirements for most taxpayers (Table 4-1), U. Irsfreetax S. Irsfreetax source of income (Table 2-1), Table 2-1. Irsfreetax General Rules for Determining U. Irsfreetax S. Irsfreetax Source of Income Tax help, How To Get Tax Help Tax home, Tax Home, Year of Move Exceptions, Exceptions Government officials, Students and Government Officials Seafarers, Seafarers Students, Students and Government Officials Year of move, Year of Move, Special Rules in the Year of a Move, Puerto Rico Taxpayer Clinics, Low Income Taxpayer Clinics, Low Income Taxpayer Clinics (LITCs). Irsfreetax TTY/TDD information, How To Get Tax Help U U. Irsfreetax S. Irsfreetax Armed Forces Bona fide residence, Special rule for members of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Earned income credit, Earned income credit. Irsfreetax , U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Source of income, U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax Spouse, Special rule for civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax , Civilian spouse of active duty member of the U. Irsfreetax S. Irsfreetax Armed Forces. Irsfreetax U. Irsfreetax S. Irsfreetax Government employees (see specific possession) U. Irsfreetax S. Irsfreetax income rule, U. Irsfreetax S. Irsfreetax income rule. Irsfreetax U. Irsfreetax S. Irsfreetax return with excluded income, Deductions if Possession Income Is Excluded U. Irsfreetax S. Irsfreetax return, possession income excluded on, Special Rules for Completing Your U. Irsfreetax S. Irsfreetax Tax Return, Foreign Tax Credit if Possession Income Is Excluded Credits Earned income credit, Earned income credit. Irsfreetax Foreign tax credit, Foreign Tax Credit if Possession Income Is Excluded Deductions IRA contribution, Individual retirement arrangement (IRA) deduction. Irsfreetax Itemized deductions, Itemized Deductions Moving expenses, Moving expense deduction. Irsfreetax Personal exemptions, Personal Exemptions Self-employment tax, one-half of, Self-employment tax deduction. Irsfreetax Standard deduction, Standard Deduction U. Irsfreetax S. Irsfreetax taxation of possession income, to get information on, Introduction U. Irsfreetax S. Irsfreetax Virgin Islands (USVI), The U. Irsfreetax S. Irsfreetax Virgin Islands, Double Taxation Form 1040INFO, Form 1040INFO. Irsfreetax Form 4868, Extension of time to file. Irsfreetax Form 8689, Form 8689. Irsfreetax V Virgin Islands, U. Irsfreetax S. Irsfreetax , The U. Irsfreetax S. Irsfreetax Virgin Islands, Double Taxation W When to file U. Irsfreetax S. Irsfreetax return, When To File, Extension beyond 2 months. Irsfreetax Where To File U. Irsfreetax S. Irsfreetax return, Where To File Which return to file (see specific possession) Who must file U. Irsfreetax S. Irsfreetax return, Filing Requirement if Possession Income Is Excluded Prev  Up     Home   More Online Publications
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TEB Financial Restructuring Compliance

To promote voluntary compliance with federal tax laws, Tax Exempt Bonds (TEB) has compiled material to educate and assist issuers and conduit borrowers as they navigate the hazards of defaulted or distressed tax-exempt, tax credit or direct pay debt. Note, however, that these materials should not be relied upon as legal authority. The Internal Revenue Code and applicable regulations are complex and these materials do not address every situation.

Information on Reissuance of Obligations

Actions taken with respect to defaulted or distressed debt can inadvertently trigger a reissuance for federal tax purposes leading to the loss of tax exemption for the debt (or, in the case of tax credit or direct pay bonds, loss of the credit or subsidy). The reissuance rules apply to all tax-exempt, tax credit and direct pay bonds from a large bond issue to a small lease entered into to purchase equipment (for example, police cars) to a note held by a local bank.

  • Reissuance of Tax Exempt Obligations: Some Basic Concepts provides an educational overview on reissuance.
  • A Reissuance Lesson, part of IRS training materials, discusses situations in which post-issuance changes in the terms of an obligation cause a deemed reissuance. It also discusses the extinguishment of bonds and certain temporary relief provided to issuers who acquire and hold their own bonds.
  • Our Reissuance Contact Letter, mailed to some issuers as part of our education and outreach efforts, summarizes some of the causes and consequences of inadvertent reissuance.

Information on Sales or Leases of Bond-Financed Property

In addition to reissuance, the sale or lease of property financed with tax-exempt bonds may make the bonds taxable or, in the case of tax credit or direct pay bonds, cause a loss of the credit or subsidy.  Such actions can result in noncompliance with the qualified use requirements jeopardizing the tax-advantaged status of the bonds financing the property.  However, certain self-correction options are available to remediate such noncompliance.

Whatever the violation, TEB encourages voluntary compliance  (including the VCAP Program)  as a vehicle for expeditiously correcting self-discovered problems in bond issuances.

If you have questions, email them to TEB and indicate "Financial Restructuring" in the subject line.  Be sure to include your name, telephone number and the best time to reach you, as we may reply to your questions by telephone.

Page Last Reviewed or Updated: 04-Sep-2013

The Irsfreetax

Irsfreetax 33. Irsfreetax   Credit for the Elderly or the Disabled Table of Contents Introduction Useful Items - You may want to see: Are You Eligible for the Credit?Qualified Individual Income Limits How to Claim the CreditCredit Figured for You Credit Figured by You Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled which is figured on Schedule R (Form 1040A or 1040). Irsfreetax This chapter explains the following. Irsfreetax Who qualifies for the credit for the elderly or the disabled. Irsfreetax How to claim the credit. Irsfreetax You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. Irsfreetax Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 554 Tax Guide for Seniors Form (and Instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Irsfreetax You are a qualified individual. Irsfreetax Your income is not more than certain limits. Irsfreetax You can use Figure 33-A and Table 33-1 as guides to see if you are eligible for the credit. Irsfreetax Use Figure 33-A first to see if you are a qualified individual. Irsfreetax If you are, go to Table 33-1 to make sure your income is not too high to take the credit. Irsfreetax You can take the credit only if you file Form 1040 or Form 1040A. Irsfreetax You cannot take the credit if you file Form 1040EZ. Irsfreetax Qualified Individual You are a qualified individual for this credit if you are a U. Irsfreetax S. Irsfreetax citizen or resident alien, and either of the following applies. Irsfreetax You were age 65 or older at the end of 2013. Irsfreetax You were under age 65 at the end of 2013 and all three of the following statements are true. Irsfreetax You retired on permanent and total disability (explained later). Irsfreetax You received taxable disability income for 2013. Irsfreetax On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Irsfreetax Age 65. Irsfreetax   You are considered to be age 65 on the day before your 65th birthday. Irsfreetax Therefore, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Irsfreetax U. Irsfreetax S. Irsfreetax Citizen or Resident Alien You must be a U. Irsfreetax S. Irsfreetax citizen or resident alien (or be treated as a resident alien) to take the credit. Irsfreetax Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Irsfreetax Exceptions. Irsfreetax   You may be able to take the credit if you are a nonresident alien who is married to a U. Irsfreetax S. Irsfreetax citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Irsfreetax S. Irsfreetax resident alien. Irsfreetax If you make that choice, both you and your spouse are taxed on your worldwide incomes. Irsfreetax If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Irsfreetax S. Irsfreetax citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Irsfreetax S. Irsfreetax resident alien for the entire year. Irsfreetax In that case, you may be allowed to take the credit. Irsfreetax For information on these choices, see chapter 1 of Publication 519, U. Irsfreetax S. Irsfreetax Tax Guide for Aliens. Irsfreetax Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Irsfreetax However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Irsfreetax Head of household. Irsfreetax   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet certain tests. Irsfreetax See Head of Household in chapter 2 for the tests you must meet. Irsfreetax Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). Irsfreetax You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. Irsfreetax Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Irsfreetax If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Irsfreetax Permanent and total disability. Irsfreetax    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Irsfreetax A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Irsfreetax See Physician's statement , later. Irsfreetax Substantial gainful activity. Irsfreetax   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Irsfreetax Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Irsfreetax   Substantial gainful activity is not work you do to take care of yourself or your home. Irsfreetax It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Irsfreetax However, doing this kind of work may show that you are able to engage in substantial gainful activity. Irsfreetax    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Irsfreetax Sheltered employment. Irsfreetax   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. Irsfreetax These qualified locations are in sheltered workshops, hospitals, and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. Irsfreetax   Compared to commercial employment, pay is lower for sheltered employment. Irsfreetax Therefore, one usually does not look for sheltered employment if he or she can get other employment. Irsfreetax The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. Irsfreetax Physician's statement. Irsfreetax   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Irsfreetax You can use the statement in the Instructions for Schedule R. Irsfreetax    Figure 33-A. Irsfreetax Are You a Qualified Individual? This image is too large to be displayed in the current screen. Irsfreetax Please click the link to view the image. Irsfreetax Figure 33-A Are You a Qualified Individual?   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. Irsfreetax Veterans. Irsfreetax   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Irsfreetax VA Form 21-0172 must be signed by a person authorized by the VA to do so. Irsfreetax You can get this form from your local VA regional office. Irsfreetax Physician's statement obtained in earlier year. Irsfreetax   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Irsfreetax For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. Irsfreetax If you meet the required conditions, check the box on your Schedule R, Part II, line 2. Irsfreetax   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. Irsfreetax Table 33-1. Irsfreetax Income Limits IF your filing status is . Irsfreetax . Irsfreetax . Irsfreetax THEN, even if you qualify (see Figure 33-A ), you CANNOT take the credit if. Irsfreetax . Irsfreetax . Irsfreetax   Your adjusted gross income (AGI)* is equal to or more than. Irsfreetax . Irsfreetax . Irsfreetax     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Irsfreetax . Irsfreetax . Irsfreetax   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure 33-A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure 33-A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. Irsfreetax Disability income. Irsfreetax   If you are under age 65, you must also have taxable disability income to qualify for the credit. Irsfreetax Disability income must meet both of the following requirements. Irsfreetax It must be paid under your employer's accident or health plan or pension plan. Irsfreetax It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. Irsfreetax Payments that are not disability income. Irsfreetax   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Irsfreetax Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Irsfreetax   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Irsfreetax Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. Irsfreetax Income Limits To determine if you can claim the credit, you must consider two income limits. Irsfreetax The first limit is the amount of your adjusted gross income (AGI). Irsfreetax The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. Irsfreetax The limits are shown in Table 33-1. Irsfreetax If your AGI and nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. Irsfreetax See How to Claim the Credit , later. Irsfreetax If either your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. Irsfreetax How to Claim the Credit You can figure the credit yourself or the Internal Revenue Service will figure it for you. Irsfreetax Credit Figured for You If you choose to have the IRS figure the credit for you, read the following discussion for the form you will file (Form 1040 or 1040A). Irsfreetax If you want the IRS to figure your tax, see chapter 30. Irsfreetax Form 1040. Irsfreetax   If you want the IRS to figure your credit, see Form 1040 Line Entries under Tax Figured by IRS in chapter 30. Irsfreetax Form 1040A. Irsfreetax   If you want the IRS to figure your credit, see Form 1040A Line Entries under Tax Figured by IRS in chapter 30. Irsfreetax Credit Figured by You If you choose to figure the credit yourself, fill out the front of Schedule R. Irsfreetax Next, fill out Schedule R, Part III. Irsfreetax If you file Form 1040A, enter the amount from Schedule R, line 22, on Form 1040A, line 30. Irsfreetax If you file Form 1040, include the amount from Schedule R, line 22, on line 53; check box c, and enter “Sch R” on the line next to that box. Irsfreetax For a step-by-step discussion about filling out Part III of Schedule R, see Figuring the Credit Yourself in Publication 524. Irsfreetax Limit on credit. Irsfreetax   The amount of the credit you can claim is generally limited to the amount of your tax. Irsfreetax Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. Irsfreetax Prev  Up  Next   Home   More Online Publications