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Sample 1040ez

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Sample 1040ez

Sample 1040ez Index Symbols 403(b) plans, 403(b) Plans A Accounting methods, Nonaccrual-Experience Method Acquisition date: Special depreciation allowance, Acquisition date test. Sample 1040ez Special Liberty Zone depreciation allowance, Acquisition date test. Sample 1040ez Annuities, tax-sheltered 403(b) plans, 403(b) Plans Assistance (see Tax help) Automobile (see Passenger automobile) B Bonds: New York Liberty, Tax Incentives for New York Liberty Zone Qualified zone academy, Issuance of Qualified Zone Academy Bonds C Car (see Passenger automobile) Car expenses, Car Expenses Catch-up contributions, 403(b), 403(b) Plans Child and dependent care, Child and Dependent Care Expenses Church employees and ministers, Years of service for church employees and ministers. Sample 1040ez Clean-fuel vehicle, Electric and Clean-Fuel Vehicles Comments, Comments and suggestions. Sample 1040ez Credit: Child and dependent care, Child and Dependent Care Expenses Credit for pension plan startup, Credit For Pension Plan Startup Costs Electric vehicles, Electric and Clean-Fuel Vehicles Indian employment, Indian Employment Credit Extended Renewable electricity production, Renewable Electricity Production Credit Welfare-to-work, Welfare-to-Work Credit Extended Work opportunity, Work Opportunity Credit Expanded in New York Liberty Zone , Work Opportunity Credit Extended D Deduction limit, automobile, Passenger Automobiles Deemed IRAs, Deemed IRAs Depletion, Depletion Depreciation: New property, Special Depreciation Allowance Property on reservations, Depreciation of Property Used on Indian Reservations Special depreciation allowance, Special Depreciation Allowance Special Liberty Zone depreciation allowance, Special Liberty Zone Depreciation Allowance Supplement to Publication 946, Depreciation E Election: Deemed not to claim special allowance, Deemed election. Sample 1040ez Not to claim special allowance, Election Not To Claim the Allowance Not to claim special Liberty Zone allowance, Election Not To Claim the Liberty Zone Allowance Electric vehicle, Electric and Clean-Fuel Vehicles Eligible educator, Deduction for Educator Expenses Estimated tax payments, Adjusting your withholding or estimated tax payments for 2002. Sample 1040ez Excepted property: Special depreciation allowance, Excepted Property Special Liberty Zone depreciation allowance, Excepted property. Sample 1040ez F Foreign missionaries, Foreign missionaries. Sample 1040ez Form 1099, Electronic Form 1099 Free tax services, How To Get Tax Help H Help (see Tax help) I Indian employment credit, Indian Employment Credit Extended Indian reservations, depreciation rules, Depreciation of Property Used on Indian Reservations IRAs, Deemed IRAs L Leasehold improvement property, defined, Qualified leasehold improvement property. Sample 1040ez Liberty Zone leasehold improvement property: Defined, Qualified New York Liberty Zone leasehold improvement property. Sample 1040ez Depreciated as 5-year property, Liberty Zone Leasehold Improvement Property Returns filed before June 1, 2002, Returns Filed Before June 1, 2002 Liberty Zone property: Increased section 179 dollar limit, Increased Dollar Limit Reduced section 179 dollar limit, Reduced Dollar Limit M Marginal production, Depletion More information (see Tax help) N Net operating losses, New 5-Year Carryback Rule for Net Operating Losses (NOLs), New 5-Year Carryback Rule for Net Operating Losses (NOLs) New York Liberty Zone: Area defined, New York Liberty Zone Benefits Leasehold improvement property, Liberty Zone Leasehold Improvement Property Section 179 deduction, Increased Section 179 Deduction Special depreciation, Special Liberty Zone Depreciation Allowance Tax incentives, Tax Incentives for New York Liberty Zone Work opportunity credit, Work Opportunity Credit Expanded in New York Liberty Zone NOLs, New 5-Year Carryback Rule for Net Operating Losses (NOLs), New 5-Year Carryback Rule for Net Operating Losses (NOLs) Nonaccrual-experience method, Nonaccrual-Experience Method Nonresidential real property, Nonresidential real property and residential rental property. Sample 1040ez P Passenger automobile, limit on, Passenger Automobiles Pension plan startup costs, Credit For Pension Plan Startup Costs Placed in service date, Placed in service date test. Sample 1040ez , Placed in service date test. Sample 1040ez Plans, tax-sheltered annuities, 403(b) plans, 403(b) Plans Publications (see Tax help) Q Qualified leasehold improvement property, defined, Qualified leasehold improvement property. Sample 1040ez Qualified Liberty Zone leasehold improvement property, Qualified New York Liberty Zone leasehold improvement property. Sample 1040ez Qualified property: Increased section 179 deduction, Qualified property. Sample 1040ez Special depreciation allowance, Qualified Property Special Liberty Zone depreciation allowance, Qualified Liberty Zone Property Qualified zone academy bonds, Issuance of Qualified Zone Academy Bonds R Recapture, section 179 deduction, Recapture Rules Renewable electricity, Renewable Electricity Production Credit Residential rental property, Nonresidential real property and residential rental property. Sample 1040ez Rollovers, 403(b) plans, Rollovers to and from 403(b) plans. Sample 1040ez S Section 1256 contracts, Wash Sale Rules Do Not Apply to Section 1256 Contracts Section 179 deduction: Increased dollar limit for Liberty Zone property, Increased Dollar Limit Reduced dollar limit for Liberty Zone property, Reduced Dollar Limit Returns filed before June 1, 2002, Returns Filed Before June 1, 2002 Simplified employee pensions (SEPs), Simplified Employee Pensions (SEPs) Special depreciation allowance: Election not to claim, Election Not To Claim the Allowance Excepted property, Excepted Property Qualified property, Qualified Property Requirements for claiming, Qualified Property Returns filed before June 1, 2002, Rules for Returns Filed Before June 1, 2002 Tests for qualification, Tests To Be Met Special Liberty Zone depreciation allowance: Election not to claim, Election Not To Claim the Liberty Zone Allowance Excepted property, Excepted property. Sample 1040ez Qualified property, Qualified Liberty Zone Property Requirements for claiming, Qualified Liberty Zone Property Returns filed before June 1, 2002, Returns filed before June 1, 2002. Sample 1040ez Tests for qualification, Tests to be met. Sample 1040ez Substantial use, special Liberty Zone depreciation allowance, Substantial use test. Sample 1040ez Suggestions, Comments and suggestions. Sample 1040ez T Tax help, How To Get Tax Help Tax-sheltered annuity plans, 403(b) plans, 403(b) Plans Taxpayer Advocate, Contacting your Taxpayer Advocate. Sample 1040ez Teachers, classroom materials, Deduction for Educator Expenses Tests for qualification, Tests To Be Met, Tests to be met. Sample 1040ez TTY/TDD information, How To Get Tax Help W Wash sale rules, Wash Sale Rules Do Not Apply to Section 1256 Contracts Welfare-to-work credit, Welfare-to-Work Credit Extended Withholding, Adjusting your withholding or estimated tax payments for 2002. Sample 1040ez Work opportunity credit, Work Opportunity Credit Expanded in New York Liberty Zone , Work Opportunity Credit Extended Y Years of service, church employees and ministers, Years of service for church employees and ministers. Sample 1040ez Prev  Up     Home   More Online Publications
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The Sample 1040ez

Sample 1040ez 37. Sample 1040ez   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. Sample 1040ez  The maximum adoption credit is $12,970 for 2013. Sample 1040ez See Adoption Credit . Sample 1040ez Plug-in electric vehicle credit. Sample 1040ez  This credit has expired. Sample 1040ez Credit for prior year minimum tax. Sample 1040ez  The refundable portion of the credit for prior year minimum tax has expired. Sample 1040ez Excess withholding of social security and railroad retirement tax. Sample 1040ez  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. Sample 1040ez 2% of wages up to $113,700. Sample 1040ez If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. Sample 1040ez See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . Sample 1040ez Introduction This chapter discusses the following nonrefundable credits. Sample 1040ez Adoption credit. Sample 1040ez Alternative motor vehicle credit. Sample 1040ez Alternative fuel vehicle refueling property credit. Sample 1040ez Credit to holders of tax credit bonds. Sample 1040ez Foreign tax credit. Sample 1040ez Mortgage interest credit. Sample 1040ez Nonrefundable credit for prior year minimum tax. Sample 1040ez Plug-in electric drive motor vehicle credit. Sample 1040ez Residential energy credits. Sample 1040ez Retirement savings contributions credit. Sample 1040ez This chapter also discusses the following refundable credits. Sample 1040ez Credit for tax on undistributed capital gain. Sample 1040ez Health coverage tax credit. Sample 1040ez Credit for excess social security tax or railroad retirement tax withheld. Sample 1040ez Several other credits are discussed in other chapters in this publication. Sample 1040ez Child and dependent care credit (chapter 32). Sample 1040ez Credit for the elderly or the disabled (chapter 33). Sample 1040ez Child tax credit (chapter 34). Sample 1040ez Education credits (chapter 35). Sample 1040ez Earned income credit (chapter 36). Sample 1040ez Nonrefundable credits. Sample 1040ez   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. Sample 1040ez These credits may reduce your tax to zero. Sample 1040ez If these credits are more than your tax, the excess is not refunded to you. Sample 1040ez Refundable credits. Sample 1040ez   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. Sample 1040ez These credits are added to the federal income tax withheld and any estimated tax payments you made. Sample 1040ez If this total is more than your total tax, the excess will be refunded to you. Sample 1040ez Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. Sample 1040ez However, if the total of these credits is more than your tax, the excess is not refunded to you. Sample 1040ez Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. Sample 1040ez The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. Sample 1040ez If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. Sample 1040ez If your modified AGI is $234,580 or more, you cannot take the credit. Sample 1040ez Qualified adoption expenses. Sample 1040ez   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. Sample 1040ez These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. Sample 1040ez Nonqualified expenses. Sample 1040ez   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. Sample 1040ez Eligible child. Sample 1040ez   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. Sample 1040ez Child with special needs. Sample 1040ez   An eligible child is a child with special needs if all three of the following apply. Sample 1040ez The child was a citizen or resident of the United States (including U. Sample 1040ez S. Sample 1040ez possessions) at the time the adoption process began. Sample 1040ez A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. Sample 1040ez The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. Sample 1040ez Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. Sample 1040ez When to take the credit. Sample 1040ez   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. Sample 1040ez If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. Sample 1040ez See the Instructions for Form 8839 for more specific information on when to take the credit. Sample 1040ez Foreign child. Sample 1040ez   If the child is not a U. Sample 1040ez S. Sample 1040ez citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. Sample 1040ez You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. Sample 1040ez How to take the credit. Sample 1040ez   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. Sample 1040ez Include the credit in your total for Form 1040, line 53. Sample 1040ez Check box c and enter “8839” on the line next to that box. Sample 1040ez More information. Sample 1040ez   For more information, see the Instructions for Form 8839. Sample 1040ez Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. Sample 1040ez Amount of credit. Sample 1040ez   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. Sample 1040ez In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. Sample 1040ez   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. Sample 1040ez How to take the credit. Sample 1040ez   To take the credit, you must complete Form 8910 and attach it to your Form 1040. Sample 1040ez Include the credit in your total for Form 1040, line 53. Sample 1040ez Check box c and enter “8910” on the line next to that box. Sample 1040ez More information. Sample 1040ez   For more information on the credit, see the Instructions for Form 8910. Sample 1040ez Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. Sample 1040ez Qualified alternative fuel vehicle refueling property. Sample 1040ez   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. Sample 1040ez To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. Sample 1040ez To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. Sample 1040ez   The following are alternative fuels. Sample 1040ez Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. Sample 1040ez Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. Sample 1040ez Electricity. Sample 1040ez Amount of the credit. Sample 1040ez   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. Sample 1040ez For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. Sample 1040ez How to take the credit. Sample 1040ez   To take the credit, you must complete Form 8911 and attach it to your Form 1040. Sample 1040ez Include the credit in your total for Form 1040, line 53. Sample 1040ez Check box c and enter “8911” on the line next to that box. Sample 1040ez More information. Sample 1040ez   For more information on the credit, see the Form 8911 instructions. Sample 1040ez Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. Sample 1040ez You may be able to take a credit if you are a holder of one of the following bonds. Sample 1040ez Clean renewable energy bonds (issued before 2010). Sample 1040ez New clean renewable energy bonds. Sample 1040ez Qualified energy conservation bonds. Sample 1040ez Qualified school construction bonds. Sample 1040ez Qualified zone academy bonds. Sample 1040ez Build America bonds. Sample 1040ez In some instances, an issuer may elect to receive a credit for interest paid on the bond. Sample 1040ez If the issuer makes this election, you cannot also claim a credit. Sample 1040ez Interest income. Sample 1040ez   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. Sample 1040ez How to take the credit. Sample 1040ez   Complete Form 8912 and attach it to your Form 1040. Sample 1040ez Include the credit in your total for Form 1040, line 53. Sample 1040ez Check box c and enter “8912” on the line next to that box. Sample 1040ez More information. Sample 1040ez   For more information, see the Instructions for Form 8912. Sample 1040ez Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. Sample 1040ez S. Sample 1040ez possession as a credit against your U. Sample 1040ez S. Sample 1040ez income tax. Sample 1040ez Or, you can deduct them as an itemized deduction (see chapter 22). Sample 1040ez You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. Sample 1040ez S. Sample 1040ez tax under any of the following. Sample 1040ez Foreign earned income exclusion. Sample 1040ez Foreign housing exclusion. Sample 1040ez Income from Puerto Rico exempt from U. Sample 1040ez S. Sample 1040ez tax. Sample 1040ez Possession exclusion. Sample 1040ez Limit on the credit. Sample 1040ez   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. Sample 1040ez S. Sample 1040ez tax liability (Form 1040, line 44), multiplied by a fraction. Sample 1040ez The numerator of the fraction is your taxable income from sources outside the United States. Sample 1040ez The denominator is your total taxable income from U. Sample 1040ez S. Sample 1040ez and foreign sources. Sample 1040ez See Publication 514 for more information. Sample 1040ez How to take the credit. Sample 1040ez   Complete Form 1116 and attach it to your Form 1040. Sample 1040ez Enter the credit on Form 1040, line 47. Sample 1040ez Exception. Sample 1040ez   You do not have to complete Form 1116 to take the credit if all of the following apply. Sample 1040ez All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). Sample 1040ez If you had dividend income from shares of stock, you held those shares for at least 16 days. Sample 1040ez You are not filing Form 4563 or excluding income from sources within Puerto Rico. Sample 1040ez The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). Sample 1040ez All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. Sample 1040ez More information. Sample 1040ez   For more information on the credit and these requirements, see the Instructions for Form 1116. Sample 1040ez Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. Sample 1040ez If you qualify, you can take the credit each year for part of the home mortgage interest you pay. Sample 1040ez Who qualifies. Sample 1040ez   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. Sample 1040ez Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. Sample 1040ez Amount of credit. Sample 1040ez   Figure your credit on Form 8396. Sample 1040ez If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. Sample 1040ez   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. Sample 1040ez To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. Sample 1040ez      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. Sample 1040ez   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. Sample 1040ez If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. Sample 1040ez See Publication 530 for more information. Sample 1040ez Carryforward. Sample 1040ez   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. Sample 1040ez If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. Sample 1040ez   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). Sample 1040ez How to take the credit. Sample 1040ez    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. Sample 1040ez Be sure to include any credit carryforward from 2010, 2011, and 2012. Sample 1040ez   Include the credit in your total for Form 1040, line 53. Sample 1040ez Check box c and enter “8396” on the line next to that box. Sample 1040ez Reduced home mortgage interest deduction. Sample 1040ez   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. Sample 1040ez You must do this even if part of that amount is to be carried forward to 2014. Sample 1040ez For more information about the home mortgage interest deduction, see chapter 23. Sample 1040ez Recapture of federal mortgage subsidy. Sample 1040ez   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. Sample 1040ez The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. Sample 1040ez See the Instructions for Form 8828 and chapter 15 for more information. Sample 1040ez More information. Sample 1040ez   For more information on the credit, see the Form 8396 instructions. Sample 1040ez Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. Sample 1040ez If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. Sample 1040ez This is called the alternative minimum tax. Sample 1040ez The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. Sample 1040ez If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. Sample 1040ez You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. Sample 1040ez How to take the credit. Sample 1040ez    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. Sample 1040ez Include the credit in your total for Form 1040, line 53, and check box b. Sample 1040ez You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. Sample 1040ez More information. Sample 1040ez   For more information on the credit, see the Instructions for Form 8801. Sample 1040ez Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. Sample 1040ez Qualified plug-in electric drive motor vehicle. Sample 1040ez   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Sample 1040ez Qualified two- or three-wheeled plug-in electric vehicle. Sample 1040ez   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. Sample 1040ez 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Sample 1040ez Certification and other requirements. Sample 1040ez   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. Sample 1040ez However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. Sample 1040ez   The following requirements must also be met to qualify for the credit. Sample 1040ez You are the owner of the vehicle. Sample 1040ez If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. Sample 1040ez You placed the vehicle in service during 2013. Sample 1040ez The vehicle is manufactured primarily for use on public streets, roads, and highways. Sample 1040ez The original use of the vehicle began with you. Sample 1040ez You acquired the vehicle for your use or to lease to others, and not for resale. Sample 1040ez In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. Sample 1040ez You use the vehicle primarily in the United States. Sample 1040ez How to take the credit. Sample 1040ez   To take the credit, you must complete Form 8936 and attach it to your Form 1040. Sample 1040ez Include the credit in your total for Form 1040, line 53. Sample 1040ez Check box c and enter “8936” on the line next to that box. Sample 1040ez More information. Sample 1040ez   For more information on the credit, see the Form 8936 instructions. Sample 1040ez Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. Sample 1040ez Nonbusiness energy property credit. Sample 1040ez Residential energy efficient property credit. Sample 1040ez If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. Sample 1040ez Nonbusiness energy property credit. Sample 1040ez   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. Sample 1040ez   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. Sample 1040ez    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. Sample 1040ez   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. Sample 1040ez Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. Sample 1040ez Exterior window (including skylights). Sample 1040ez Exterior doors. Sample 1040ez Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. Sample 1040ez   Residential energy property is any of the following. Sample 1040ez Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. Sample 1040ez Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. Sample 1040ez Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. Sample 1040ez Residential energy efficient property credit. Sample 1040ez   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. Sample 1040ez The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. Sample 1040ez Basis reduction. Sample 1040ez   You must reduce the basis of your home by the amount of any credit allowed. Sample 1040ez How to take the credit. Sample 1040ez   Complete Form 5695 and attach it to your Form 1040. Sample 1040ez Enter the credit on Form 1040, line 52. Sample 1040ez More information. Sample 1040ez   For more information on these credits, see the Form 5695 instructions. Sample 1040ez Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. Sample 1040ez However, you cannot take the credit if either of the following applies. Sample 1040ez The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). Sample 1040ez The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). Sample 1040ez Student. Sample 1040ez   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. Sample 1040ez School. Sample 1040ez   A school includes a technical, trade, or mechanical school. Sample 1040ez It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Sample 1040ez How to take the credit. Sample 1040ez   Figure the credit on Form 8880. Sample 1040ez Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. Sample 1040ez More information. Sample 1040ez   For more information on the credit, see the Form 8880 instructions. Sample 1040ez Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. Sample 1040ez If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. Sample 1040ez Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. Sample 1040ez If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. Sample 1040ez The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. Sample 1040ez How to take the credit. Sample 1040ez   To take the credit, attach Copy B of Form 2439 to your Form 1040. Sample 1040ez Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. Sample 1040ez More information. Sample 1040ez   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. Sample 1040ez Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. Sample 1040ez You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. Sample 1040ez You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. Sample 1040ez S. Sample 1040ez Treasury–HCTC. Sample 1040ez ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. Sample 1040ez You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). Sample 1040ez You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. Sample 1040ez S. Sample 1040ez military health system (TRICARE). Sample 1040ez You were not imprisoned under federal, state, or local authority. Sample 1040ez Your employer did not pay 50% or more of the cost of coverage. Sample 1040ez You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. Sample 1040ez But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. Sample 1040ez If you meet all of these conditions, you may be able to take a credit of up to 72. Sample 1040ez 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. Sample 1040ez You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. Sample 1040ez The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. Sample 1040ez You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. Sample 1040ez If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. Sample 1040ez TAA recipient. Sample 1040ez   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). Sample 1040ez Example. Sample 1040ez You received a trade adjustment allowance for January 2013. Sample 1040ez You were an eligible TAA recipient on the first day of January and February. Sample 1040ez Alternative TAA recipient. Sample 1040ez   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. Sample 1040ez Example. Sample 1040ez You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. Sample 1040ez The program was established by the Department of Labor. Sample 1040ez You were an eligible alternative TAA recipient on the first day of October and November. Sample 1040ez RTAA recipient. Sample 1040ez   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. Sample 1040ez PBGC pension recipient. Sample 1040ez   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. Sample 1040ez You were age 55 or older on the first day of the month. Sample 1040ez You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). Sample 1040ez If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. Sample 1040ez How to take the credit. Sample 1040ez   To take the credit, complete Form 8885 and attach it to your Form 1040. Sample 1040ez Include your credit in the total for Form 1040, line 71, and check box c. Sample 1040ez   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. Sample 1040ez For details, see Publication 502 or Form 8885. Sample 1040ez More information. Sample 1040ez   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. Sample 1040ez Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. Sample 1040ez If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Sample 1040ez If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. Sample 1040ez If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. Sample 1040ez 2% rate. Sample 1040ez You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. Sample 1040ez For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. Sample 1040ez 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. Sample 1040ez 45%) or the Additional Medicare Tax rate (. Sample 1040ez 9%). Sample 1040ez The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. Sample 1040ez Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. Sample 1040ez 40 RRTA tier 2 $84,300 $3,709. Sample 1040ez 20 All wages are subject to Medicare tax withholding. Sample 1040ez   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. Sample 1040ez Be sure to attach a copy of all of your W-2 forms. Sample 1040ez Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. Sample 1040ez Employer's error. Sample 1040ez   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. Sample 1040ez The employer should adjust the tax for you. Sample 1040ez If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. Sample 1040ez Joint return. Sample 1040ez   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. Sample 1040ez Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. Sample 1040ez How to figure the credit if you did not work for a railroad. Sample 1040ez   If you did not work for a railroad during 2013, figure the credit as follows: 1. Sample 1040ez Add all social security tax withheld (but not more than $7,049. Sample 1040ez 40 for each employer). Sample 1040ez Enter the total here   2. Sample 1040ez Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Sample 1040ez Add lines 1 and 2. Sample 1040ez If $7,049. Sample 1040ez 40 or less, stop here. Sample 1040ez You cannot take  the credit   4. Sample 1040ez Social security tax limit 7,049. Sample 1040ez 40 5. Sample 1040ez Credit. Sample 1040ez Subtract line 4 from line 3. Sample 1040ez Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. Sample 1040ez You are married and file a joint return with your spouse who had no gross income in 2013. Sample 1040ez During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. Sample 1040ez Social security tax of $3,720 was withheld. Sample 1040ez You also worked for another employer in 2013 and earned $55,000 in wages. Sample 1040ez $3,410 of social security tax was withheld from these wages. Sample 1040ez Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. Sample 1040ez 60 for the excess social security tax withheld. Sample 1040ez 1. Sample 1040ez Add all social security tax withheld (but not more than $7,049. Sample 1040ez 40 for each employer). Sample 1040ez Enter the total here $7,130. Sample 1040ez 00 2. Sample 1040ez Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. Sample 1040ez Add lines 1 and 2. Sample 1040ez If $7,049. Sample 1040ez 40 or less, stop here. Sample 1040ez You cannot take the credit 7,130. Sample 1040ez 00 4. Sample 1040ez Social security tax limit 7,049. Sample 1040ez 40 5. Sample 1040ez Credit. Sample 1040ez Subtract line 4 from line 3. Sample 1040ez Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. Sample 1040ez 60 How to figure the credit if you worked for a railroad. Sample 1040ez   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. Sample 1040ez Add all social security and tier 1 RRTA tax withheld at the 6. Sample 1040ez 2% rate (but not more than $7,049. Sample 1040ez 40 for each employer). Sample 1040ez Enter the total here   2. Sample 1040ez Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Sample 1040ez Add lines 1 and 2. Sample 1040ez If $7,049. Sample 1040ez 40 or less, stop here. Sample 1040ez You cannot take  the credit   4. Sample 1040ez Social security and tier 1 RRTA  tax limit 7,049. Sample 1040ez 40 5. Sample 1040ez Credit. Sample 1040ez Subtract line 4 from line 3. Sample 1040ez Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. Sample 1040ez   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. Sample 1040ez More information. Sample 1040ez   For more information on the credit, see Publication 505. Sample 1040ez Prev  Up  Next   Home   More Online Publications