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Taxact Online 2012

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Taxact Online 2012

Taxact online 2012 Publication 501 - Main Content Table of Contents Who Must FileSelf-employed persons. Taxact online 2012 Filing Requirements for Most Taxpayers Dependents Other Situations Who Should File Filing StatusMarital Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) With Dependent Child ExemptionsForm 1040EZ filers. Taxact online 2012 Form 1040A filers. Taxact online 2012 Form 1040 filers. Taxact online 2012 More information. Taxact online 2012 Personal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Taxact online 2012 Taxpayer identification numbers for aliens. Taxact online 2012 Taxpayer identification numbers for adoptees. Taxact online 2012 Standard DeductionStandard Deduction Amount Standard Deduction for Dependents Who Should Itemize How To Get Tax HelpLow Income Taxpayer Clinics Who Must File If you are a U. Taxact online 2012 S. Taxact online 2012 citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent. Taxact online 2012 For details, see Table 1 and Table 2. Taxact online 2012 You also must file if one of the situations described in Table 3 applies. Taxact online 2012 The filing requirements apply even if you owe no tax. Taxact online 2012 Table 1. Taxact online 2012 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Taxact online 2012 . Taxact online 2012 . Taxact online 2012 AND at the end of 2013 you were. Taxact online 2012 . Taxact online 2012 . Taxact online 2012 * THEN file a return if your gross income was at least. Taxact online 2012 . Taxact online 2012 . Taxact online 2012 ** single under 65  $10,000 65 or older $11,500 head of household under 65 $12,850 65 or older $14,350 married, filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married, filing separately any age  $3,900 qualifying widow(er) with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. Taxact online 2012 ** Gross income means all income you receive in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Taxact online 2012 Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Taxact online 2012 If (a) or (b) applies, see the Form 1040 instructions to figure the taxable part of social security benefits you must include in gross income. Taxact online 2012 Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Taxact online 2012 Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Taxact online 2012 But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Taxact online 2012 *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Taxact online 2012 You may have to pay a penalty if you are required to file a return but fail to do so. Taxact online 2012 If you willfully fail to file a return, you may be subject to criminal prosecution. Taxact online 2012 For information on what form to use — Form 1040EZ, Form 1040A, or Form 1040 — see the instructions for your tax return. Taxact online 2012 Gross income. Taxact online 2012    Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. Taxact online 2012 If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. Taxact online 2012 For a list of community property states, see Community property states under Married Filing Separately, later. Taxact online 2012 Self-employed persons. Taxact online 2012    If you are self-employed in a business that provides services (where products are not a factor), your gross income from that business is the gross receipts. Taxact online 2012 If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. Taxact online 2012 In either case, you must add any income from investments and from incidental or outside operations or sources. Taxact online 2012    You must file Form 1040 if you owe any self-employment tax. Taxact online 2012 Filing status. Taxact online 2012    Your filing status generally depends on whether you are single or married. Taxact online 2012 Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. Taxact online 2012 Filing status is discussed in detail later in this publication. Taxact online 2012 Age. Taxact online 2012    Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. Taxact online 2012 For 2013, you are 65 or older if you were born before January 2, 1949. Taxact online 2012 Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. Taxact online 2012 Dependents should see Table 2 instead. Taxact online 2012 Deceased Persons You must file an income tax return for a decedent (a person who died) if both of the following are true. Taxact online 2012 You are the surviving spouse, executor, administrator, or legal representative. Taxact online 2012 The decedent met the filing requirements described in this publication at the time of his or her death. Taxact online 2012 For more information, see Final Income Tax Return for Decedent — Form 1040 in Publication 559. Taxact online 2012 Table 2. Taxact online 2012 2013 Filing Requirements for Dependents See Exemptions for Dependents to find out if you are a dependent. Taxact online 2012 If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Taxact online 2012  In this table, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Taxact online 2012 It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Taxact online 2012 Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Taxact online 2012 Gross income is the total of your unearned and earned income. Taxact online 2012 If your gross income was $3,900 or more, you usually cannot be claimed as a dependent unless you are a qualifying child. Taxact online 2012 For details, see Exemptions for Dependents. Taxact online 2012 Single dependents—Were you either age 65 or older or blind? □ No. Taxact online 2012 You must file a return if any of the following apply. Taxact online 2012 Your unearned income was more than $1,000. Taxact online 2012 Your earned income was more than $6,100. Taxact online 2012 Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750) plus $350. Taxact online 2012     □ Yes. Taxact online 2012 You must file a return if any of the following apply. Taxact online 2012 Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Taxact online 2012 Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Taxact online 2012 Your gross income was more than the larger of—  $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Taxact online 2012     Married dependents—Were you either age 65 or older or blind? □ No. Taxact online 2012 You must file a return if any of the following apply. Taxact online 2012 Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Taxact online 2012 Your unearned income was more than $1,000. Taxact online 2012 Your earned income was more than $6,100. Taxact online 2012 Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750 plus $350. Taxact online 2012     □ Yes. Taxact online 2012 You must file a return if any of the following apply. Taxact online 2012 Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Taxact online 2012 Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Taxact online 2012 Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Taxact online 2012 Your gross income was more than the larger of— $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Taxact online 2012     U. Taxact online 2012 S. Taxact online 2012 Citizens or Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you earned or received abroad, including any income you can exclude under the foreign earned income exclusion. Taxact online 2012 For more information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Taxact online 2012 S. Taxact online 2012 Citizens and Resident Aliens Abroad. Taxact online 2012 Residents of Puerto Rico If you are a U. Taxact online 2012 S. Taxact online 2012 citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Taxact online 2012 S. Taxact online 2012 income tax return for any year in which you meet the income requirements. Taxact online 2012 This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Taxact online 2012 If you are a bona fide resident of Puerto Rico for the whole year, your U. Taxact online 2012 S. Taxact online 2012 gross income does not include income from sources within Puerto Rico. Taxact online 2012 It does, however, include any income you received for your services as an employee of the United States or any U. Taxact online 2012 S. Taxact online 2012 agency. Taxact online 2012 If you receive income from Puerto Rican sources that is not subject to U. Taxact online 2012 S. Taxact online 2012 tax, you must reduce your standard deduction, which reduces the amount of income you can have before you must file a U. Taxact online 2012 S. Taxact online 2012 income tax return. Taxact online 2012 For more information, see Publication 570, Tax Guide for Individuals With Income From U. Taxact online 2012 S. Taxact online 2012 Possessions. Taxact online 2012 Individuals With Income From U. Taxact online 2012 S. Taxact online 2012 Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Taxact online 2012 S. Taxact online 2012 Virgin Islands, special rules may apply when determining whether you must file a U. Taxact online 2012 S. Taxact online 2012 federal income tax return. Taxact online 2012 In addition, you may have to file a return with the individual possession government. Taxact online 2012 See Publication 570 for more information. Taxact online 2012 Dependents A person who is a dependent may still have to file a return. Taxact online 2012 It depends on his or her earned income, unearned income, and gross income. Taxact online 2012 For details, see Table 2. Taxact online 2012 A dependent must also file if one of the situations described in Table 3 applies. Taxact online 2012 Responsibility of parent. Taxact online 2012    If a dependent child must file an income tax return but cannot file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. Taxact online 2012 If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Taxact online 2012 ” Earned income. Taxact online 2012    Earned income includes salaries, wages, professional fees, and other amounts received as pay for work you actually perform. Taxact online 2012 Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a scholarship that you must include in your gross income. Taxact online 2012 See chapter 1 of Publication 970, Tax Benefits for Education, for more information on taxable and nontaxable scholarships. Taxact online 2012 Child's earnings. Taxact online 2012    Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Taxact online 2012 This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Taxact online 2012 But if the child does not pay the tax due on this income, the parent is liable for the tax. Taxact online 2012 Unearned income. Taxact online 2012    Unearned income includes income such as interest, dividends, and capital gains. Taxact online 2012 Trust distributions of interest, dividends, capital gains, and survivor annuities are also considered unearned income. Taxact online 2012 Election to report child's unearned income on parent's return. Taxact online 2012    You may be able to include your child's interest and dividend income on your tax return. Taxact online 2012 If you do this, your child will not have to file a return. Taxact online 2012 To make this election, all of the following conditions must be met. Taxact online 2012 Your child was under age 19 (or under age 24 if a student) at the end of 2013. Taxact online 2012 (A child born on January 1, 1995, is considered to be age 19 at the end of 2013; you cannot make the election for this child unless the child was a student. Taxact online 2012 Similarly, a child born on January 1, 1990, is considered to be age 24 at the end of 2013; you cannot make the election for this child. Taxact online 2012 ) Your child had gross income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Taxact online 2012 The interest and dividend income was less than $10,000. Taxact online 2012 Your child is required to file a return for 2013 unless you make this election. Taxact online 2012 Your child does not file a joint return for 2013. Taxact online 2012 No estimated tax payment was made for 2013 and no 2012 overpayment was applied to 2013 under your child's name and social security number. Taxact online 2012 No federal income tax was withheld from your child's income under the backup withholding rules. Taxact online 2012 You are the parent whose return must be used when making the election to report your child's unearned income. Taxact online 2012   For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Publication 929. Taxact online 2012 Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. Taxact online 2012 See Table 3 for those other situations when you must file. Taxact online 2012 Table 3. Taxact online 2012 Other Situations When You Must File a 2013 Return If any of the four conditions listed below applied to you for 2013, you must file a return. Taxact online 2012 1. Taxact online 2012 You owe any special taxes, including any of the following. Taxact online 2012   a. Taxact online 2012 Alternative minimum tax. Taxact online 2012 (See Form 6251. Taxact online 2012 )   b. Taxact online 2012 Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Taxact online 2012 (See Publication 590, Individual Retirement Arrangements (IRAs), and Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Taxact online 2012 ) But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Taxact online 2012   c. Taxact online 2012 Social security or Medicare tax on tips you did not report to your employer (see Publication 531, Reporting Tip Income) or on wages you received from an employer who did not withhold these taxes (see Form 8919). Taxact online 2012   d. Taxact online 2012 Write-in taxes, including uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings accounts. Taxact online 2012 (See Publication 531, Publication 969, and the Form 1040 instructions for line 60. Taxact online 2012 )   e. Taxact online 2012 Household employment taxes. Taxact online 2012 But if you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself. Taxact online 2012   f. Taxact online 2012 Recapture taxes. Taxact online 2012 (See the Form 1040 instructions for lines 44, 59b, and 60. Taxact online 2012 ) 2. Taxact online 2012 You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account distributions. Taxact online 2012 3. Taxact online 2012 You had net earnings from self-employment of at least $400. Taxact online 2012 (See Schedule SE (Form 1040) and its instructions. Taxact online 2012 ) 4. Taxact online 2012 You had wages of $108. Taxact online 2012 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Taxact online 2012 (See Schedule SE (Form 1040) and its instructions. Taxact online 2012 ) Who Should File Even if you do not have to file, you should file a tax return if you can get money back. Taxact online 2012 For example, you should file if one of the following applies. Taxact online 2012 You had income tax withheld from your pay. Taxact online 2012 You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. Taxact online 2012 You qualify for the earned income credit. Taxact online 2012 See Publication 596, Earned Income Credit (EIC), for more information. Taxact online 2012 You qualify for the additional child tax credit. Taxact online 2012 See the instructions for the tax form you file (Form 1040 or 1040A) for more information. Taxact online 2012 You qualify for the refundable American opportunity education credit. Taxact online 2012 See Form 8863, Education Credits. Taxact online 2012 You qualify for the health coverage tax credit. Taxact online 2012 For information about this credit, see Form 8885, Health Coverage Tax Credit. Taxact online 2012 You qualify for the credit for federal tax on fuels. Taxact online 2012 See Form 4136, Credit for Federal Tax Paid on Fuels. Taxact online 2012 Form 1099-B received. Taxact online 2012    Even if you are not required to file a return, you should consider filing if all of the following apply. Taxact online 2012 You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement). Taxact online 2012 The amount in box 2a of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you. Taxact online 2012 Box 3 of Form 1099-B (or substitute statement) is blank. Taxact online 2012 In this case, filing a return may keep you from getting a notice from the IRS. Taxact online 2012 Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. Taxact online 2012 You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. Taxact online 2012 There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. Taxact online 2012 If more than one filing status applies to you, choose the one that will give you the lowest tax. Taxact online 2012 Marital Status In general, your filing status depends on whether you are considered unmarried or married. Taxact online 2012 Unmarried persons. Taxact online 2012    You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. Taxact online 2012   State law governs whether you are married or legally separated under a divorce or separate maintenance decree. Taxact online 2012 Divorced persons. Taxact online 2012    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. Taxact online 2012 Divorce and remarriage. Taxact online 2012    If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. Taxact online 2012 Annulled marriages. Taxact online 2012    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. Taxact online 2012 You must file amended returns (Form 1040X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. Taxact online 2012 Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Taxact online 2012 If you filed your original tax return early (for example, March 1), your return is considered filed on the due date (generally April 15). Taxact online 2012 However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. Taxact online 2012 Head of household or qualifying widow(er) with dependent child. Taxact online 2012    If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. Taxact online 2012 See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. Taxact online 2012 Married persons. Taxact online 2012    If you are considered married, you and your spouse can file a joint return or separate returns. Taxact online 2012 Considered married. Taxact online 2012    You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. Taxact online 2012 You are married and living together. Taxact online 2012 You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. Taxact online 2012 You are married and living apart but not legally separated under a decree of divorce or separate maintenance. Taxact online 2012 You are separated under an interlocutory (not final) decree of divorce. Taxact online 2012 Same-sex marriage. Taxact online 2012    For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Taxact online 2012 The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Taxact online 2012 However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. Taxact online 2012   The word “state” as used here includes the District of Columbia, Puerto Rico, and U. Taxact online 2012 S. Taxact online 2012 territories and possessions. Taxact online 2012 It means any domestic jurisdiction that has the legal authority to sanction marriages. Taxact online 2012 The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. Taxact online 2012   If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. Taxact online 2012 However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status, as explained later. Taxact online 2012   For more details, see Answers to Frequently Asked Questions For Individuals of the Same Sex Who Are Married Under State Law on IRS. Taxact online 2012 gov. Taxact online 2012 Spouse died during the year. Taxact online 2012    If your spouse died during the year, you are considered married for the whole year for filing status purposes. Taxact online 2012   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Taxact online 2012 For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . Taxact online 2012   If you remarried before the end of the tax year, you can file a joint return with your new spouse. Taxact online 2012 Your deceased spouse's filing status is married filing separately for that year. Taxact online 2012 Married persons living apart. Taxact online 2012    If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. Taxact online 2012 If you qualify to file as head of household instead of as married filing separately, your standard deduction will be higher. Taxact online 2012 Also, your tax may be lower, and you may be able to claim the earned income credit. Taxact online 2012 See Head of Household , later. Taxact online 2012 Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Taxact online 2012 To determine your marital status, see Marital Status , earlier. Taxact online 2012 Widow(er). Taxact online 2012    Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. Taxact online 2012 You may, however, be able to use another filing status that will give you a lower tax. Taxact online 2012 See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. Taxact online 2012 How to file. Taxact online 2012    You can file Form 1040. Taxact online 2012 If you have taxable income of less than $100,000, you may be able to file Form 1040A. Taxact online 2012 If, in addition, you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Taxact online 2012 If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. Taxact online 2012 Use the Single column of the Tax Table, or Section A of the Tax Computation Worksheet, to figure your tax. Taxact online 2012 Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. Taxact online 2012 On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. Taxact online 2012 You can file a joint return even if one of you had no income or deductions. Taxact online 2012 If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Taxact online 2012 Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. Taxact online 2012 If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Taxact online 2012 You can choose the method that gives the two of you the lower combined tax. Taxact online 2012 How to file. Taxact online 2012    If you file as married filing jointly, you can use Form 1040. Taxact online 2012 If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. Taxact online 2012 If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Taxact online 2012 If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Taxact online 2012 Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax. Taxact online 2012 Spouse died. Taxact online 2012    If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. Taxact online 2012 See Spouse died during the year , under Married persons, earlier. Taxact online 2012   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. Taxact online 2012 Divorced persons. Taxact online 2012    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. Taxact online 2012 Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. Taxact online 2012 Accounting period. Taxact online 2012    Both of you must use the same accounting period, but you can use different accounting methods. Taxact online 2012 Joint responsibility. Taxact online 2012    Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Taxact online 2012 This means that if one spouse does not pay the tax due, the other may have to. Taxact online 2012 Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. Taxact online 2012 One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. Taxact online 2012   You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. Taxact online 2012 Divorced taxpayer. Taxact online 2012    You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. Taxact online 2012 This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Taxact online 2012 Relief from joint responsibility. Taxact online 2012    In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Taxact online 2012 You can ask for relief no matter how small the liability. Taxact online 2012   There are three types of relief available. Taxact online 2012 Innocent spouse relief. Taxact online 2012 Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date the election for this relief is filed). Taxact online 2012 Equitable relief. Taxact online 2012    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. Taxact online 2012 Publication 971, Innocent Spouse Relief, explains the kinds of relief and who may qualify for them. Taxact online 2012 Signing a joint return. Taxact online 2012    For a return to be considered a joint return, both spouses generally must sign the return. Taxact online 2012 Spouse died before signing. Taxact online 2012    If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. Taxact online 2012 If neither you nor anyone else has been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. Taxact online 2012 Spouse away from home. Taxact online 2012    If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so it can be filed on time. Taxact online 2012 Injury or disease prevents signing. Taxact online 2012    If your spouse cannot sign because of injury or disease and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). Taxact online 2012 ” Be sure to also sign in the space provided for your signature. Taxact online 2012 Attach a dated statement, signed by you, to the return. Taxact online 2012 The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. Taxact online 2012 Signing as guardian of spouse. Taxact online 2012    If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Taxact online 2012 Spouse in combat zone. Taxact online 2012    You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. Taxact online 2012 Attach a signed statement to your return explaining that your spouse is serving in a combat zone. Taxact online 2012 For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. Taxact online 2012 Other reasons spouse cannot sign. Taxact online 2012    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). Taxact online 2012 Attach the power of attorney (or a copy of it) to your tax return. Taxact online 2012 You can use Form 2848. Taxact online 2012 Nonresident alien or dual-status alien. Taxact online 2012    Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. Taxact online 2012 However, if one spouse was a nonresident alien or dual-status alien who was married to a U. Taxact online 2012 S. Taxact online 2012 citizen or resident alien at the end of the year, the spouses can choose to file a joint return. Taxact online 2012 If you do file a joint return, you and your spouse are both treated as U. Taxact online 2012 S. Taxact online 2012 residents for the entire tax year. Taxact online 2012 See chapter 1 of Publication 519. Taxact online 2012 Married Filing Separately You can choose married filing separately as your filing status if you are married. Taxact online 2012 This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Taxact online 2012 If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. Taxact online 2012 You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). Taxact online 2012 This can apply to you even if you are not divorced or legally separated. Taxact online 2012 If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. Taxact online 2012 The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. Taxact online 2012 See Head of Household , later, for more information. Taxact online 2012 You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. Taxact online 2012 However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). Taxact online 2012 This way you can make sure you are using the filing status that results in the lowest combined tax. Taxact online 2012 When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. Taxact online 2012 How to file. Taxact online 2012    If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. Taxact online 2012 You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. Taxact online 2012   You can file Form 1040. Taxact online 2012 If your taxable income is less than $100,000, you may be able to file Form 1040A. Taxact online 2012 Select this filing status by checking the box on line 3 of either form. Taxact online 2012 Enter your spouse's full name and SSN or ITIN in the spaces provided. Taxact online 2012 If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. Taxact online 2012 Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. Taxact online 2012 Special Rules If you choose married filing separately as your filing status, the following special rules apply. Taxact online 2012 Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. Taxact online 2012 Your tax rate generally is higher than on a joint return. Taxact online 2012 Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. Taxact online 2012 You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). Taxact online 2012 If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Taxact online 2012 See Joint Return Test in Publication 503, Child and Dependent Care Expenses, for more information. Taxact online 2012 You cannot take the earned income credit. Taxact online 2012 You cannot take the exclusion or credit for adoption expenses in most cases. Taxact online 2012 You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. Taxact online 2012 You cannot exclude any interest income from qualified U. Taxact online 2012 S. Taxact online 2012 savings bonds you used for higher education expenses. Taxact online 2012 If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. Taxact online 2012 The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. Taxact online 2012 Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Taxact online 2012 If your spouse itemizes deductions, you cannot claim the standard deduction. Taxact online 2012 If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. Taxact online 2012 Adjusted gross income (AGI) limits. Taxact online 2012    If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. Taxact online 2012 Individual retirement arrangements (IRAs). Taxact online 2012    You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. Taxact online 2012 Your deduction is reduced or eliminated if your income is more than a certain amount. Taxact online 2012 This amount is much lower for married individuals who file separately and lived together at any time during the year. Taxact online 2012 For more information, see How Much Can You Deduct? in chapter 1 of Publication 590. Taxact online 2012 Rental activity losses. Taxact online 2012    If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income up to $25,000. Taxact online 2012 This is called a special allowance. Taxact online 2012 However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. Taxact online 2012 Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. Taxact online 2012 See Rental Activities in Publication 925, Passive Activity and At-Risk Rules. Taxact online 2012 Community property states. Taxact online 2012    If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. Taxact online 2012 See Publication 555, Community Property. Taxact online 2012 Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. Taxact online 2012 You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. Taxact online 2012 This does not include any extensions. Taxact online 2012 A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. Taxact online 2012 Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Taxact online 2012 Exception. Taxact online 2012    A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Taxact online 2012 The personal representative has 1 year from the due date (including extensions) of the return to make the change. Taxact online 2012 See Publication 559 for more information on filing income tax returns for a decedent. Taxact online 2012 Head of Household You may be able to file as head of household if you meet all the following requirements. Taxact online 2012 You are unmarried or considered unmarried on the last day of the year. Taxact online 2012 See Marital Status , earlier, and Considered Unmarried , later. Taxact online 2012 You paid more than half the cost of keeping up a home for the year. Taxact online 2012 A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). Taxact online 2012 However, if the qualifying person is your dependent parent, he or she does not have to live with you. Taxact online 2012 See Special rule for parent , later, under Qualifying Person. Taxact online 2012 If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. Taxact online 2012 You will also receive a higher standard deduction than if you file as single or married filing separately. Taxact online 2012 How to file. Taxact online 2012    If you file as head of household, you can use Form 1040. Taxact online 2012 If you have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Taxact online 2012 Indicate your choice of this filing status by checking the box on line 4 of either form. Taxact online 2012 Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. Taxact online 2012 Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. Taxact online 2012 You are considered unmarried on the last day of the tax year if you meet all the following tests. Taxact online 2012 You file a separate return (defined earlier under Joint Return After Separate Returns ). Taxact online 2012 You paid more than half the cost of keeping up your home for the tax year. Taxact online 2012 Your spouse did not live in your home during the last 6 months of the tax year. Taxact online 2012 Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Taxact online 2012 See Temporary absences , later. Taxact online 2012 Your home was the main home of your child, stepchild, or foster child for more than half the year. Taxact online 2012 (See Home of qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. Taxact online 2012 ) You must be able to claim an exemption for the child. Taxact online 2012 However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. Taxact online 2012 The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents . Taxact online 2012 If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. Taxact online 2012 See Publication 555 for more information. Taxact online 2012 Nonresident alien spouse. Taxact online 2012    You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. Taxact online 2012 However, your spouse is not a qualifying person for head of household purposes. Taxact online 2012 You must have another qualifying person and meet the other tests to be eligible to file as a head of household. Taxact online 2012 Choice to treat spouse as resident. Taxact online 2012    You are considered married if you choose to treat your spouse as a resident alien. Taxact online 2012 See chapter 1 of Publication 519. Taxact online 2012 Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. Taxact online 2012 You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 1. Taxact online 2012 Worksheet 1. Taxact online 2012 Cost of Keeping Up a Home         Amount You  Paid Total  Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $       Minus total amount you paid   ()       Amount others paid   $       If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Taxact online 2012 Costs you include. Taxact online 2012    Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Taxact online 2012   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. Taxact online 2012 However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Taxact online 2012 Costs you do not include. Taxact online 2012    Do not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation. Taxact online 2012 Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. Taxact online 2012 Qualifying Person See Table 4 to see who is a qualifying person. Taxact online 2012 Any person not described in Table 4 is not a qualifying person. Taxact online 2012 Example 1—child. Taxact online 2012 Your unmarried son lived with you all year and was 18 years old at the end of the year. Taxact online 2012 He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. Taxact online 2012 As a result, he is your qualifying child (see Qualifying Child , later) and, because he is single, your qualifying person for head of household purposes. Taxact online 2012 Example 2—child who is not qualifying person. Taxact online 2012 The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. Taxact online 2012 Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. Taxact online 2012 Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. Taxact online 2012 As a result, he is not your qualifying person for head of household purposes. Taxact online 2012 Example 3—girlfriend. Taxact online 2012 Your girlfriend lived with you all year. Taxact online 2012 Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you . Taxact online 2012 See Table 4. Taxact online 2012 Example 4—girlfriend's child. Taxact online 2012 The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. Taxact online 2012 He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test , later). Taxact online 2012 As a result, he is not your qualifying person for head of household purposes. Taxact online 2012 Home of qualifying person. Taxact online 2012    Generally, the qualifying person must live with you for more than half of the year. Taxact online 2012 Special rule for parent. Taxact online 2012    If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Taxact online 2012 However, you must be able to claim an exemption for your father or mother. Taxact online 2012 Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Taxact online 2012   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Taxact online 2012 Death or birth. Taxact online 2012    You may be eligible to file as head of household even if the qualifying person who qualifies you for this filing status is born or dies during the year. Taxact online 2012 To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. Taxact online 2012 Your qualifying child or qualifying relative who lived with you for more than half the part of the year he or she was alive. Taxact online 2012 Your parent for whom you paid, for the entire part of the year he or she was alive, more than half the cost of keeping up the home he or she lived in. Taxact online 2012 Example. Taxact online 2012 You are unmarried. Taxact online 2012 Your mother, for whom you can claim an exemption, lived in an apartment by herself. Taxact online 2012 She died on September 2. Taxact online 2012 The cost of the upkeep of her apartment for the year until her death was $6,000. Taxact online 2012 You paid $4,000 and your brother paid $2,000. Taxact online 2012 Your brother made no other payments towards your mother's support. Taxact online 2012 Your mother had no income. Taxact online 2012 Because you paid more than half of the cost of keeping up your mother's apartment from January 1 until her death, and you can claim an exemption for her, you can file as a head of household. Taxact online 2012 Temporary absences. Taxact online 2012    You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Taxact online 2012 It must be reasonable to assume the absent person will return to the home after the temporary absence. Taxact online 2012 You must continue to keep up the home during the absence. Taxact online 2012 Kidnapped child. Taxact online 2012    You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. Taxact online 2012 You can claim head of household filing status if all the following statements are true. Taxact online 2012 The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Taxact online 2012 In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Taxact online 2012 You would have qualified for head of household filing status if the child had not been kidnapped. Taxact online 2012   This treatment applies for all years until the earliest of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. Taxact online 2012 Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. Taxact online 2012 The year of death is the last year for which you can file jointly with your deceased spouse. Taxact online 2012 See Married Filing Jointly , earlier. Taxact online 2012 You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. Taxact online 2012 For example, if your spouse died in 2012 and you have not remarried, you may be able to use this filing status for 2013 and 2014. Taxact online 2012 The rules for using this filing status are explained in detail here. Taxact online 2012 This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). Taxact online 2012 It does not entitle you to file a joint return. Taxact online 2012 How to file. Taxact online 2012    If you file as a qualifying widow(er) with dependent child, you can use Form 1040. Taxact online 2012 If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Taxact online 2012 Check the box on line 5 of either form. Taxact online 2012 Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Taxact online 2012 Table 4. Taxact online 2012 Who Is a Qualifying Person Qualifying You To File as Head of Household?1 See the text of this publication for the other requirements you must meet to claim head of household filing status. Taxact online 2012 IF the person is your . Taxact online 2012 . Taxact online 2012 . Taxact online 2012   AND . Taxact online 2012 . Taxact online 2012 . Taxact online 2012   THEN that person is . Taxact online 2012 . Taxact online 2012 . Taxact online 2012 qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. Taxact online 2012   he or she is married and you can claim an exemption for him or her   a qualifying person. Taxact online 2012   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. Taxact online 2012 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. Taxact online 2012 6   you cannot claim an exemption for him or her   not a qualifying person. Taxact online 2012 qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests). Taxact online 2012   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you , later, and you can claim an exemption for him or her5   a qualifying person. Taxact online 2012   he or she did not live with you more than half the year   not a qualifying person. Taxact online 2012   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you , later, and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. Taxact online 2012   you cannot claim an exemption for him or her   not a qualifying person. Taxact online 2012 1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Taxact online 2012 2 The term “qualifying child” is defined under Exemptions for Dependents, later. Taxact online 2012 Note: If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child, later. Taxact online 2012 If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Taxact online 2012 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Taxact online 2012 4 The term “qualifying relative” is defined under Exemptions for Dependents, later. Taxact online 2012 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Taxact online 2012 See Multiple Support Agreement . Taxact online 2012 6 See Special rule for parent . Taxact online 2012 Eligibility rules. Taxact online 2012    You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all the following tests. Taxact online 2012 You were entitled to file a joint return with your spouse for the year your spouse died. Taxact online 2012 It does not matter whether you actually filed a joint return. Taxact online 2012 Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Taxact online 2012 You have a child or stepchild for whom you can claim an exemption. Taxact online 2012 This does not include a foster child. Taxact online 2012 This child lived in your home all year, except for temporary absences. Taxact online 2012 See Temporary absences , earlier, under Head of Household. Taxact online 2012 There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. Taxact online 2012 You paid more than half the cost of keeping up a home for the year. Taxact online 2012 See Keeping Up a Home , earlier, under Head of Household. Taxact online 2012 Example. Taxact online 2012 John's wife died in 2011. Taxact online 2012 John has not remarried. Taxact online 2012 He has continued during 2012 and 2013 to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. Taxact online 2012 For 2011 he was entitled to file a joint return for himself and his deceased wife. Taxact online 2012 For 2012 and 2013, he can file as a qualifying widower with a dependent child. Taxact online 2012 After 2013, he can file as head of household if he qualifies. Taxact online 2012 Death or birth. Taxact online 2012    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. Taxact online 2012 You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. Taxact online 2012 Kidnapped child. Taxact online 2012    You may be eligible to file as a qualifying widow(er) with dependent child even if the child who qualifies you for this filing status has been kidnapped. Taxact online 2012 You can claim qualifying widow(er) with dependent child filing status if all the following statements are true. Taxact online 2012 The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Taxact online 2012 In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Taxact online 2012 You would have qualified for qualifying widow(er) with dependent child filing status if the child had not been kidnapped. Taxact online 2012 As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. Taxact online 2012 Exemptions Exemptions reduce your taxable income. Taxact online 2012 You can deduct $3,900 for each exemption you claim in 2013. Taxact online 2012 If you are entitled to two exemptions for 2013, you can deduct $7,800 ($3,900 × 2). Taxact online 2012 But you may lose the benefit of part or all of your exemptions if your adjusted gross income is above a certain amount. Taxact online 2012 See Phaseout of Exemptions , later. Taxact online 2012 Types of exemptions. Taxact online 2012    There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Taxact online 2012 While each is worth the same amount ($3,900 for 2013), different rules, discussed later, apply to each type. Taxact online 2012 Dependent cannot claim a personal exemption. Taxact online 2012    If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim a personal exemption on his or her own tax return. Taxact online 2012 How to claim exemptions. Taxact online 2012    How you claim an exemption on your tax return depends on which form you file. Taxact online 2012 Form 1040EZ filers. Taxact online 2012    If you file Form 1040EZ, the exemption amount is combined with the standard deduction and entered on line 5. Taxact online 2012 Form 1040A filers. Taxact online 2012    If you file Form 1040A, complete lines 6a through 6d. Taxact online 2012 The total number of exemptions you can claim is the total in the box on line 6d. Taxact online 2012 Also complete line 26. Taxact online 2012 Form 1040 filers. Taxact online 2012    If you file Form 1040, complete lines 6a through 6d. Taxact online 2012 The total number of exemptions you can claim is the total in the box on line 6d. Taxact online 2012 Also complete line 42. Taxact online 2012 If your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. Taxact online 2012 U. Taxact online 2012 S. Taxact online 2012 citizen or resident alien. Taxact online 2012    If you are a U. Taxact online 2012 S. Taxact online 2012 citizen, U. Taxact online 2012 S. Taxact online 2012 resident alien, U. Taxact online 2012 S. Taxact online 2012 national (defined later) or a resident of Canada or Mexico, you may qualify for any of the exemptions discussed here. Taxact online 2012 Nonresident aliens. Taxact online 2012    Generally, if you are a nonresident alien (other than a resident of Canada or Mexico, or certain residents of India or Korea), you can qualify for only one personal exemption for yourself. Taxact online 2012 You cannot claim exemptions for a spouse or dependents. Taxact online 2012   These restrictions do not apply if you are a nonresident alien married to a U. Taxact online 2012 S. Taxact online 2012 citizen or resident alien and have chosen to be treated as a resident of the United States. Taxact online 2012 More information. Taxact online 2012    For more information on exemptions if you are a nonresident alien, see chapter 5 in Publication 519. Taxact online 2012 Dual-status taxpayers. Taxact online 2012    If you have been both a nonresident alien and a resident alien in the same tax year, you should see Publication 519 for information on determining your exemptions. Taxact online 2012 Personal Exemptions You are generally allowed one exemption for yourself. Taxact online 2012 If you are married, you may be allowed one exemption for your spouse. Taxact online 2012 These are called personal exemptions. Taxact online 2012 Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Taxact online 2012 If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Taxact online 2012 Your Spouse's Exemption Your spouse is never considered your dependent. Taxact online 2012 Joint return. Taxact online 2012    On a joint return, you can claim one exemption for yourself and one for your spouse. Taxact online 2012 Separate return. Taxact online 2012    If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Taxact online 2012 This is true even if the other taxpayer does not actually claim your spouse as a dependent. Taxact online 2012 You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Taxact online 2012 S. Taxact online 2012 tax purposes and satisfy the other conditions listed above. Taxact online 2012 Head of household. Taxact online 2012    If you qualify for head of household filing status because you are considered unmarried, you can claim an exemption for your spouse if the conditions described in the preceding paragraph are satisfied. Taxact online 2012   To claim the exemption for your spouse, check the box on line 6b of Form 1040 or Form 1040A and enter the name of your spouse in the space to the right of the box. Taxact online 2012 Enter the SSN or ITIN of your spouse in the space provided at the top of Form 1040 or Form 1040A. Taxact online 2012 Death of spouse. Taxact online 2012    If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Taxact online 2012 If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Taxact online 2012   If you remarried during the year, you cannot take an exemption for your deceased spouse. Taxact online 2012   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Taxact online 2012 If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Taxact online 2012 Divorced or separated spouse. Taxact online 2012    If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Taxact online 2012 This rule applies even if you provided all of your former spouse's support. Taxact online 2012 Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Taxact online 2012 You can claim an exemption for a dependent even if your dependent files a return. Taxact online 2012 The term “dependent” means: A qualifying child, or A qualifying relative. Taxact online 2012 The terms “ qualifying child ” and “ qualifying relative ” are defined later. Taxact online 2012 You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Taxact online 2012 Dependent taxpayer test. Taxact online 2012 Joint return test. Taxact online 2012 Citizen or resident test. Taxact online 2012 These three tests are explained in detail later. Taxact online 2012 All the requirements for claiming an exemption for a dependent are summarized in Table 5. Taxact online 2012 Table 5. Taxact online 2012 Overview of the Rules for Claiming an Exemption for a Dependent This table is only an overview of the rules. Taxact online 2012 For details, see the rest of this publication. Taxact online 2012 You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. Taxact online 2012   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Taxact online 2012   You cannot claim a person as a dependent unless that person is a U. Taxact online 2012 S. Taxact online 2012 citizen, U. Taxact online 2012 S. Taxact online 2012 resident alien, U. Taxact online 2012 S. Taxact online 2012 national, or a resident of Canada or Mexico. Taxact online 2012 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Taxact online 2012   Tests To Be a Qualifying Child Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Taxact online 2012   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. Taxact online 2012   The child must have lived with you for more than half of the year. Taxact online 2012 2  The child must not have provided more than half of his or her own support for the year. Taxact online 2012   The child is not filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid). Taxact online 2012  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Taxact online 2012 See the Special Rule for Qualifying Child of More Than One Person described later to find out which person is the person entitled to claim the child as a qualifying child. Taxact online 2012 The person cannot be your qualifying child or the qualifying child of any other taxpayer. Taxact online 2012   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Taxact online 2012   The person's gross income for the year must be less than $3,900. Taxact online 2012 3  You must provide more than half of the person's total support for the year. Taxact online 2012 4  1 There is an exception for certain adopted children. Taxact online 2012 2 There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Taxact online 2012 3 There is an exception if the person is disabled and has income from a sheltered workshop. Taxact online 2012 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Taxact online 2012 Dependent not allowed a personal exemption. Taxact online 2012 If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Taxact online 2012 This is true even if you do not claim the dependent's exemption on your return. Taxact online 2012 It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Taxact online 2012 Housekeepers, maids, or servants. Taxact online 2012    If these people work for you, you cannot claim exemptions for them. Taxact online 2012 Child tax credit. Taxact online 2012    You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Taxact online 2012 For more information, see the instructions for the tax form you file (Form 1040 or 1040A). Taxact online 2012 Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Taxact online 2012 Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Taxact online 2012 If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Taxact online 2012 Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Taxact online 2012 Exception. Taxact online 2012    You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Taxact online 2012 Example 1—child files joint return. Taxact online 2012 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Taxact online 2012 He earned $25,000 for the year. Taxact online 2012 The couple files a joint return. Taxact online 2012 You cannot take an exemption for your daughter. Taxact online 2012 Example 2—child files joint return only as claim for refund of withheld tax. Taxact online 2012 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Taxact online 2012 Neither is required to file a tax return. Taxact online 2012 They do not have a child. Taxact online 2012 Taxes were taken out of their pay so they file a joint return only to get a refund of the withheld taxes. Taxact online 2012 The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Taxact online 2012 You can claim exemptions for each of them if all the other tests to do so are met. Taxact online 2012 Example 3—child files joint return to claim American opportunity credit. Taxact online 2012 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Taxact online 2012 He and his wife are not required to file a tax return. Taxact online 2012 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Taxact online 2012 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income

Topic 352 - Which Form – 1040, 1040A or 1040EZ?

The three forms used for filing individual federal income tax returns are Form 1040EZ (PDF), Form 1040A (PDF), and Form 1040 (PDF).

Form 1040EZ is the simplest form to fill out. You may use Form 1040EZ if you meet all the following conditions:

  1. Your filing status is single or married filing jointly
  2. You claim no dependents
  3. You, and your spouse if filing a joint return, were under age 65 on January 1, 2014, and not blind at the end of 2013
  4. You have only wages, salaries, tips, taxable scholarship and fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500
  5. Your taxable income is less than $100,000
  6. Your earned tips, if any, are included in boxes 5 and 7 of your Form W-2
  7. You do not owe any household employment taxes on wages you paid to a household employee
  8. You are not a debtor in a Chapter 11 bankruptcy case filed after October 16, 2005
  9. You do not claim any adjustments to income, such as a deduction for IRA contributions, a student loan interest deduction, an educator expenses deduction, or a tuition and fees deduction
  10. You do not claim any credits other than the earned income credit

If you file Form 1040EZ, you cannot itemize deductions or claim any adjustments to income or tax credits (other than the earned income credit).

Form 1040EZ Links

References:

Form 1040EZ Instructions (PDF)

Return Preparation and Filing Options

If you cannot use Form 1040EZ, you may be able to use Form 1040A if:

  1. Your income is only from wages, salaries, tips, taxable scholarships and fellowship grants, interest, or ordinary dividends, capital gain distributions, pensions, annuities, IRAs, unemployment compensation, taxable social security or railroad retirement benefits, and Alaska Permanent Fund dividends
  2. Your taxable income is less than $100,000
  3. You do not itemize deductions
  4. You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option
  5. Your taxes are only from the Tax Table, the alternative minimum tax, recapture of an education credit, Form 8615 (PDF) or the Qualified Dividends and Capital Gain Tax Worksheet
  6. Your only adjustments to income are the IRA deduction, the student loan interest deduction, the educator expenses deduction, the tuition and fees deduction, and
  7. The only credits you are claiming are the credit for child and dependent care expenses, the earned income credit, the credit for the elderly or the disabled, education credits, the child tax credit, the additional child tax credit, or the retirement savings contribution credit

You can also use Form 1040A if you received dependent care benefits.

Form 1040A Links

References:

Form 1040A Instructions (PDF)

Return Preparation and Filing Options

Often used Schedules:

Form 1040A or 1040, Schedule B (PDF) - Interest and Ordinary Dividends

Form 1040A or 1040, Schedule R (PDF) - Credit for the Elderly or the Disabled

Form 1040A or 1040, Schedule EIC (PDF) - Earned Income Credit

Form 1040A or 1040, Schedule 8812 (PDF) - Child Tax Credit

Often used Forms:

Form 8917 (PDF) - Tuition and Fees Deduction

Form 2441 (PDF) - Child and Dependent Care Expenses

Form 8863 (PDF) - Education Credits (American Opportunity and Lifetime Learning Credits)

Form 8888 (PDF) - Allocation of Refund (Including Savings Bond Purchases)

Finally, you must use Form 1040 under certain circumstances, such as:

  1. Your taxable income is $100,000 or more
  2. You have certain types of income such as unreported tips; certain nontaxable distributions; self-employment earnings; or income received as a partner, a shareholder in an "S" Corporation, or a beneficiary of an estate or trust
  3. You itemize deductions or claim certain tax credits or adjustments to income, or
  4. You owe household employment taxes

A complete list of conditions outlining when Form 1040 must be used is in the Form 1040A Instructions (PDF).

Form 1040 Links

References:

Form 1040 Instructions (PDF)

1040 Central

Return Preparation and Filing Options

Often used Schedules:

Form 1040, Schedule A (PDF) - Itemized Deductions

Form 1040A or 1040, Schedule B (PDF) - Interest and Ordinary Dividends

Form 1040, Schedule C (PDF) - Profit or Loss From Business (Sole Proprietorship)

Form 1040, Schedule C-EZ (PDF) - Net Profit From Business

Form 1040, Schedule D (PDF) - Capital Gains and Losses

Form 1040, Schedule E (PDF) - Supplemental Income and Loss

Form 1040A or 1040, Schedule EIC (PDF) - Earned Income Credit

Form 1040A or 1040, Schedule 8812 (PDF) - Child Tax Credit

Form 1040A or 1040, Schedule R (PDF) - Credit for the Elderly or the Disabled

Often used Forms:

Form 8917 (PDF) - Tuition and Fees Deduction

Form 2441 (PDF) - Child and Dependent Care Expenses

Form 8863 (PDF) - Education Credits (American Opportunity and Lifetime Learning Credits)

Form 8888 (PDF) - Allocation of Refund (Including Savings Bond Purchases)

Form 8949 (PDF) - Sales and Other Dispositions of Capital Assets

If you were a nonresident alien during the tax year and you were married to a U.S. citizen or resident alien, you may use any one of these three forms, based on your circumstances, only if you elect to file a joint return with your spouse. Other nonresident aliens may have to file Form 1040NR (PDF) or Form 1040NR-EZ (PDF). For more information on resident and nonresident aliens, refer to Topic 851 and Publication 519, U.S. Tax Guide for Aliens.

Page Last Reviewed or Updated: December 12, 2013

The Taxact Online 2012

Taxact online 2012 30. Taxact online 2012   How To Figure Your Tax Table of Contents Introduction Figuring Your Tax Alternative Minimum Tax (AMT) Tax Figured by IRSFiling the Return Introduction After you have figured your income and deductions as explained in Parts One through Five, your next step is to figure your tax. Taxact online 2012 This chapter discusses: The general steps you take to figure your tax, An additional tax you may have to pay called the alternative minimum tax (AMT), and The conditions you must meet if you want the IRS to figure your tax. Taxact online 2012 Figuring Your Tax Your income tax is based on your taxable income. Taxact online 2012 After you figure your income tax and AMT, if any, subtract your tax credits and add any other taxes you may owe. Taxact online 2012 The result is your total tax. Taxact online 2012 Compare your total tax with your total payments to determine whether you are entitled to a refund or if you must make a payment. Taxact online 2012 This section provides a general outline of how to figure your tax. Taxact online 2012 You can find step-by-step directions in the Instructions for Forms 1040EZ, 1040A, and 1040. Taxact online 2012 If you are unsure of which tax form you should file, see Which Form Should I Use? in chapter 1. Taxact online 2012 Tax. Taxact online 2012   Most taxpayers use either the Tax Table or the Tax Computation Worksheet to figure their income tax. Taxact online 2012 However, there are special methods if your income includes any of the following items. Taxact online 2012 A net capital gain. Taxact online 2012 (See chapter 16. Taxact online 2012 ) Qualified dividends taxed at the same rates as a net capital gain. Taxact online 2012 (See chapters 8 and 16. Taxact online 2012 ) Lump-sum distributions. Taxact online 2012 (See chapter 10. Taxact online 2012 ) Farming or fishing income. Taxact online 2012 (See Schedule J (Form 1040), Income Averaging for Farmers and Fishermen. Taxact online 2012 ) Unearned income over $2,000 for certain children. Taxact online 2012 (See chapter 31. Taxact online 2012 ) Parents' election to report child's interest and dividends. Taxact online 2012 (See chapter 31. Taxact online 2012 ) Foreign earned income exclusion or the housing exclusion. Taxact online 2012 (See Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion, and the Foreign Earned Income Tax Worksheet in the Form 1040 instructions. Taxact online 2012 ) Credits. Taxact online 2012   After you figure your income tax and any AMT (discussed later), determine if you are eligible for any tax credits. Taxact online 2012 Eligibility information for these tax credits is discussed in chapters 32 through 37 and your form instructions. Taxact online 2012 The following table lists the credits you may be able to subtract from your tax and shows where you can find more information on each credit. Taxact online 2012 CREDITS For information on: See  chapter: Adoption 37 Alternative motor vehicle 37 Alternative fuel vehicle refueling  property 37 Child and dependent care 32 Child tax 34 Credit to holders of tax credit  bonds 37 Education 35 Elderly or disabled 33 Electric vehicle 37 Foreign tax 37 Mortgage interest 37 Prior year minimum tax 37 Residential energy 37 Retirement savings contributions 37   Some credits (such as the earned income credit) are not listed because they are treated as payments. Taxact online 2012 See Payments , later. Taxact online 2012   There are other credits that are not discussed in this publication. Taxact online 2012 These include the following credits. Taxact online 2012 General business credit, which is made up of several separate business-related credits. Taxact online 2012 These generally are reported on Form 3800, General Business Credit, and are discussed in chapter 4 of Publication 334, Tax Guide for Small Business. Taxact online 2012 Renewable electricity, refined coal, and Indian coal production credit for electricity and refined coal produced at facilities placed in service after October 22, 2004 (after October 2, 2008, for electricity produced from marine and hydrokinetic renewables), and Indian coal produced at facilities placed in service after August 8, 2005. Taxact online 2012 See Form 8835, Part II. Taxact online 2012 Work opportunity credit. Taxact online 2012 See Form 5884. Taxact online 2012 Credit for employer social security and Medicare taxes paid on certain employee tips. Taxact online 2012 See Form 8846. Taxact online 2012 Other taxes. Taxact online 2012   After you subtract your tax credits, determine whether there are any other taxes you must pay. Taxact online 2012 This chapter does not explain these other taxes. Taxact online 2012 You can find that information in other chapters of this publication and your form instructions. Taxact online 2012 See the following table for other taxes you may need to add to your income tax. Taxact online 2012 OTHER TAXES For information on: See  chapter: Additional taxes on qualified retirement plans and IRAs 10, 17 Household employment taxes 32 Recapture of an education credit 35 Social security and Medicare tax on wages 5 Social security and Medicare tax on tips 6 Uncollected social security and Medicare tax on tips 6   You also may have to pay AMT (discussed later in this chapter). Taxact online 2012   There are other taxes that are not discussed in this publication. Taxact online 2012 These include the following items. Taxact online 2012 Self-employment tax. Taxact online 2012 You must figure this tax if either of the following applies to you (or your spouse if you file a joint return). Taxact online 2012 Your net earnings from self-employment from other than church employee income were $400 or more. Taxact online 2012 The term “net earnings from self-employment” may include certain nonemployee compensation and other amounts reported to you on Form 1099-MISC, Miscellaneous Income. Taxact online 2012 If you received a Form 1099-MISC, see the Instructions for Recipient on the back. Taxact online 2012 Also see the Instructions for Schedule SE (Form 1040), Self-Employment Tax; and Publication 334, Tax Guide for Small Business. Taxact online 2012 You had church employee income of $108. Taxact online 2012 28 or more. Taxact online 2012 Additional Medicare Tax. Taxact online 2012 Beginning in 2013, you may be subject to a 0. Taxact online 2012 9% Additional Medicare Tax that applies to Medicare wages, Railroad Retirement Act compensation, and self-employment income over a threshold based on your filing status. Taxact online 2012 For more information, see the Instructions for Form 1040, line 60 and Form 8959. Taxact online 2012 Net Investment Income Tax (NIIT). Taxact online 2012 Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). Taxact online 2012 NIIT is a 3. Taxact online 2012 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. Taxact online 2012 For more information, see the Instructions for Form 1040, line 60 and Form 8960. Taxact online 2012 Recapture taxes. Taxact online 2012 You may have to pay these taxes if you previously claimed an investment credit, a low-income housing credit, a new markets credit, a qualified plug-in electric drive motor vehicle credit, an alternative motor vehicle credit, a credit for employer-provided child care facilities, an Indian employment credit, or other credits listed in the instructions for Form 1040, line 60. Taxact online 2012 For more information, see the instructions for Form 1040, line 60. Taxact online 2012 Section 72(m)(5) excess benefits tax. Taxact online 2012 If you are (or were) a 5% owner of a business and you received a distribution that exceeds the benefits provided for you under the qualified pension or annuity plan formula, you may have to pay this additional tax. Taxact online 2012 See Tax on Excess Benefits in chapter 4 of Publication 560, Retirement Plans for Small Business. Taxact online 2012 Uncollected social security and Medicare tax on group-term life insurance. Taxact online 2012 If your former employer provides you with more than $50,000 of group-term life insurance coverage, you must pay the employee part of social security and Medicare taxes on those premiums. Taxact online 2012 The amount should be shown in box 12 of your Form W-2 with codes M and N. Taxact online 2012 Tax on golden parachute payments. Taxact online 2012 This tax applies if you received an “excess parachute payment” (EPP) due to a change in a corporation's ownership or control. Taxact online 2012 The amount should be shown in box 12 of your Form W-2 with code K. Taxact online 2012 See the instructions for Form 1040, line 60. Taxact online 2012 Tax on accumulation distribution of trusts. Taxact online 2012 This applies if you are the beneficiary of a trust that accumulated its income instead of distributing it currently. Taxact online 2012 See Form 4970 and its instructions. Taxact online 2012 Additional tax on HSAs or MSAs. Taxact online 2012 If amounts contributed to, or distributed from, your health savings account or medical savings account do not meet the rules for these accounts, you may have to pay additional taxes. Taxact online 2012 See Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans; Form 8853, Archer MSAs and Long-Term Care Insurance Contracts; Form 8889, Health Savings Accounts (HSAs); and Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. Taxact online 2012 Additional tax on Coverdell ESAs. Taxact online 2012 This applies if amounts contributed to, or distributed from, your Coverdell ESA do not meet the rules for these accounts. Taxact online 2012 See Publication 970, Tax Benefits for Education, and Form 5329. Taxact online 2012 Additional tax on qualified tuition programs. Taxact online 2012 This applies to amounts distributed from qualified tuition programs that do not meet the rules for these accounts. Taxact online 2012 See Publication 970 and Form 5329. Taxact online 2012 Excise tax on insider stock compensation from an expatriated corporation. Taxact online 2012 You may owe a 15% excise tax on the value of nonstatutory stock options and certain other stock-based compensation held by you or a member of your family from an expatriated corporation or its expanded affiliated group in which you were an officer, director, or more-than-10% owner. Taxact online 2012 For more information, see the instructions for Form 1040, line 60. Taxact online 2012 Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. Taxact online 2012 This income should be shown in Form W-2, box 12, with code Z, or in Form 1099-MISC, box 15b. Taxact online 2012 For more information, see the instructions for Form 1040, line 60. Taxact online 2012 Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Taxact online 2012 For more information, see the instructions for Form 1040, line 60. Taxact online 2012 Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Taxact online 2012 For more information, see the instructions for Form 1040, line 60. Taxact online 2012 Repayment of first-time homebuyer credit. Taxact online 2012 For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. Taxact online 2012 Also see the instructions for Form 1040, line 59b. Taxact online 2012 Payments. Taxact online 2012   After you determine your total tax, figure the total payments you have already made for the year. Taxact online 2012 Include credits that are treated as payments. Taxact online 2012 This chapter does not explain these payments and credits. Taxact online 2012 You can find that information in other chapters of this publication and your form instructions. Taxact online 2012 See the following table for amounts you can include in your total payments. Taxact online 2012 PAYMENTS For information on: See  chapter: Child tax credit (additional) 34 Earned income credit 36 Estimated tax paid 4 Excess social security   and RRTA tax withheld 37 Federal income tax withheld 4 Health coverage tax credit 37 Credit for tax on   undistributed capital gain 37 Tax paid with extension 1   Another credit that is treated as a payment is the credit for federal excise tax paid on fuels. Taxact online 2012 This credit is for persons who have a nontaxable use of certain fuels, such as diesel fuel and kerosene. Taxact online 2012 It is claimed on Form 1040, line 70. Taxact online 2012 See Form 4136, Credit for Federal Tax Paid on Fuels. Taxact online 2012 Refund or balance due. Taxact online 2012   To determine whether you are entitled to a refund or whether you must make a payment, compare your total payments with your total tax. Taxact online 2012 If you are entitled to a refund, see your form instructions for information on having it directly deposited into one or more of your accounts, or to purchase U. Taxact online 2012 S. Taxact online 2012 savings bonds instead of receiving a paper check. Taxact online 2012 Alternative Minimum Tax (AMT) This section briefly discusses an additional tax you may have to pay. Taxact online 2012 The tax law gives special treatment to some kinds of income and allows special deductions and credits for some kinds of expenses. Taxact online 2012 Taxpayers who benefit from this special treatment may have to pay at least a minimum amount of tax through an additional tax called AMT. Taxact online 2012 You may have to pay the AMT if your taxable income for regular tax purposes, combined with certain adjustments and tax preference items, is more than a certain amount. Taxact online 2012 See Form 6251, Alternative Minimum Tax — Individuals. Taxact online 2012 Adjustments and tax preference items. Taxact online 2012   The more common adjustments and tax preference items include: Addition of personal exemptions, Addition of the standard deduction (if claimed), Addition of itemized deductions claimed for state and local taxes, certain interest, most miscellaneous deductions, and part of medical expenses, Subtraction of any refund of state and local taxes included in gross income, Changes to accelerated depreciation of certain property, Difference between gain or loss on the sale of property reported for regular tax purposes and AMT purposes, Addition of certain income from incentive stock options, Change in certain passive activity loss deductions, Addition of certain depletion that is more than the adjusted basis of the property, Addition of part of the deduction for certain intangible drilling costs, and Addition of tax-exempt interest on certain private activity bonds. Taxact online 2012 More information. Taxact online 2012   For more information about the AMT, see the instructions for Form 6251. Taxact online 2012 Tax Figured by IRS If you file by April 15, 2014, you can have the IRS figure your tax for you on Form 1040EZ, Form 1040A, or Form 1040. Taxact online 2012 If the IRS figures your tax and you paid too much, you will receive a refund. Taxact online 2012 If you did not pay enough, you will receive a bill for the balance. Taxact online 2012 To avoid interest or the penalty for late payment, you must pay the bill within 30 days of the date of the bill or by the due date for your return, whichever is later. Taxact online 2012 The IRS can also figure the credit for the elderly or the disabled and the earned income credit for you. Taxact online 2012 When the IRS cannot figure your tax. Taxact online 2012   The IRS cannot figure your tax for you if any of the following apply. Taxact online 2012 You want your refund directly deposited into your accounts. Taxact online 2012 You want any part of your refund applied to your 2014 estimated tax. Taxact online 2012 You had income for the year from sources other than wages, salaries, tips, interest, dividends, taxable social security benefits, unemployment compensation, IRA distributions, pensions, and annuities. Taxact online 2012 Your taxable income is $100,000 or more. Taxact online 2012 You itemize deductions. Taxact online 2012 You file any of the following forms. Taxact online 2012 Form 2555, Foreign Earned Income. Taxact online 2012 Form 2555-EZ, Foreign Earned Income Exclusion. Taxact online 2012 Form 4137, Social Security and Medicare Tax on Unreported Tip Income. Taxact online 2012 Form 4970, Tax on Accumulation Distribution of Trusts. Taxact online 2012 Form 4972, Tax on Lump-Sum Distributions. Taxact online 2012 Form 6198, At-Risk Limitations. Taxact online 2012 Form 6251, Alternative Minimum Tax—Individuals. Taxact online 2012 Form 8606, Nondeductible IRAs. Taxact online 2012 Form 8615, Tax for Certain Children Who Have Unearned Income. Taxact online 2012 Form 8814, Parents' Election To Report Child's Interest and Dividends. Taxact online 2012 Form 8839, Qualified Adoption Expenses. Taxact online 2012 Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Taxact online 2012 Form 8889, Health Savings Accounts (HSAs). Taxact online 2012 Form 8919, Uncollected Social Security and Medicare Tax on Wages. Taxact online 2012 Filing the Return After you complete the line entries for the tax form you are filing, fill in your name and address. Taxact online 2012 Enter your social security number in the space provided. Taxact online 2012 If you are married, enter the social security numbers of you and your spouse even if you file separately. Taxact online 2012 Sign and date your return and enter your occupation(s). Taxact online 2012 If you are filing a joint return, both you and your spouse must sign it. Taxact online 2012 Enter your daytime phone number in the space provided. Taxact online 2012 This may help speed the processing of your return if we have a question that can be answered over the phone. Taxact online 2012 If you are filing a joint return, you may enter either your or your spouse's daytime phone number. Taxact online 2012 If you want to allow a friend, family member, or any other person you choose to discuss your 2013 tax return with the IRS, check the “Yes” box in the “Third party designee” area on your return. Taxact online 2012 Also enter the designee's name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN). Taxact online 2012 If you check the “Yes” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. Taxact online 2012 Fill in and attach any schedules and forms asked for on the lines you completed to your paper return. Taxact online 2012 Attach a copy of each of your Forms W-2 to your paper return. Taxact online 2012 Also attach to your paper return any Form 1099-R you received that has withholding tax in box 4. Taxact online 2012 Mail your return to the Internal Revenue Service Center for the area where you live. Taxact online 2012 A list of Service Center addresses is in the instructions for your tax return. Taxact online 2012 Form 1040EZ Line Entries Read lines 1 through 8b and fill in the lines that apply to you. Taxact online 2012 Do not complete lines 9 through 12. Taxact online 2012 If you are filing a joint return, use the space to the left of line 6 to separately show your taxable income and your spouse's taxable income. Taxact online 2012 Payments. Taxact online 2012   Enter any federal income tax withheld on line 7. Taxact online 2012 Federal income tax withheld is shown on Form W-2, box 2, or Form 1099, box 4. Taxact online 2012 Earned income credit. Taxact online 2012   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Taxact online 2012 Enter “EIC” in the space to the left of line 8a. Taxact online 2012 Enter the nontaxable combat pay you elect to include in earned income on line 8b. Taxact online 2012   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862, Information To Claim Earned Income Credit After Disallowance, with your return. Taxact online 2012 For details, see the Form 1040EZ Instructions. Taxact online 2012 Form 1040A Line Entries Read lines 1 through 27 and fill in the lines that apply to you. Taxact online 2012 If you are filing a joint return, use the space to the left of the entry space for line 27 to separately show your taxable income and your spouse's taxable income. Taxact online 2012 Do not complete line 28. Taxact online 2012 Complete lines 29 through 33 and 36 through 40 if they apply to you. Taxact online 2012 However, do not fill in lines 30 and 38a if you want the IRS to figure the credits shown on those lines. Taxact online 2012 Also, enter any write-in information that applies to you in the space to the left of line 41. Taxact online 2012 Do not complete lines 34, 35, and 42 through 46. Taxact online 2012 Payments. Taxact online 2012   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 36. Taxact online 2012 Enter any estimated tax payments you made on line 37. Taxact online 2012 Credit for child and dependent care expenses. Taxact online 2012   If you can take this credit, as discussed in chapter 32, complete Form 2441, Child and Dependent Care Expenses, and attach it to your return. Taxact online 2012 Enter the amount of the credit on line 29. Taxact online 2012 The IRS will not figure this credit. Taxact online 2012 Credit for the elderly or the disabled. Taxact online 2012   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. Taxact online 2012 Enter “CFE” in the space to the left of line 30 and attach Schedule R (Form 1040A or 1040), Credit for the Elderly or the Disabled, to your paper return. Taxact online 2012 On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. Taxact online 2012 Complete Part II and Part III, lines 11 and 13, if they apply. Taxact online 2012 Earned income credit. Taxact online 2012   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Taxact online 2012 Enter “EIC” to the left of the entry space for line 38a. Taxact online 2012 Enter the nontaxable combat pay you elect to include in earned income on line 38b. Taxact online 2012    If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. Taxact online 2012 If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. Taxact online 2012   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. Taxact online 2012 For details, see the Form 1040A Instructions. Taxact online 2012 Form 1040 Line Entries Read lines 1 through 43 and fill in the lines that apply to you. Taxact online 2012 Do not complete line 44. Taxact online 2012 If you are filing a joint return, use the space under the words “Adjusted Gross Income” on the front of your return to separately show your taxable income and your spouse's taxable income. Taxact online 2012 Read lines 45 through 71. Taxact online 2012 Fill in the lines that apply to you, but do not fill in lines 54, 61, and 72. Taxact online 2012 Also, do not complete line 55 and lines 73 through 77. Taxact online 2012 Do not fill in line 53, box “c,” if you are completing Schedule R (Form 1040A or 1040), or line 64a if you want the IRS to figure the credits shown on those lines. Taxact online 2012 Payments. Taxact online 2012   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 62. Taxact online 2012 Enter any estimated tax payments you made on line 63. Taxact online 2012 Credit for child and dependent care expenses. Taxact online 2012   If you can take this credit, as discussed in chapter 32, complete Form 2441 and attach it to your paper return. Taxact online 2012 Enter the amount of the credit on line 48. Taxact online 2012 The IRS will not figure this credit. Taxact online 2012 Credit for the elderly or the disabled. Taxact online 2012   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. Taxact online 2012 Enter “CFE” on the line next to line 53, check box “c,” and attach Schedule R (Form 1040A or 1040) to your paper return. Taxact online 2012 On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. Taxact online 2012 Complete Part II and Part III, lines 11 and 13, if they apply. Taxact online 2012 Earned income credit. Taxact online 2012   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Taxact online 2012 Enter “EIC” on the dotted line next to Form 1040, line 64a. Taxact online 2012 Enter the nontaxable combat pay you elect to include in earned income on line 64b. Taxact online 2012   If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. Taxact online 2012 If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. Taxact online 2012   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. Taxact online 2012 For details, see the Form 1040 Instructions. Taxact online 2012 Prev  Up  Next   Home   More Online Publications