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Www Irs Gov Form1040ez

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Www irs gov form1040ez Publication 225 - Introductory Material Table of Contents IntroductionOrdering forms and publications. Www irs gov form1040ez Tax questions. Www irs gov form1040ez Future Developments What's New for 2013 What's New for 2014 Reminders Introduction You are in the business of farming if you cultivate, operate, or manage a farm for profit, either as owner or tenant. Www irs gov form1040ez A farm includes livestock, dairy, poultry, fish, fruit, and truck farms. Www irs gov form1040ez It also includes plantations, ranches, ranges, and orchards. Www irs gov form1040ez This publication explains how the federal tax laws apply to farming. Www irs gov form1040ez Use this publication as a guide to figure your taxes and complete your farm tax return. Www irs gov form1040ez If you need more information on a subject, get the specific IRS tax publication covering that subject. Www irs gov form1040ez We refer to many of these free publications throughout this publication. Www irs gov form1040ez See chapter 16 for information on ordering these publications. Www irs gov form1040ez The explanations and examples in this publication reflect the Internal Revenue Service's interpretation of tax laws enacted by Congress, Treasury regulations, and court decisions. Www irs gov form1040ez However, the information given does not cover every situation and is not intended to replace the law or change its meaning. Www irs gov form1040ez This publication covers subjects on which a court may have made a decision more favorable to taxpayers than the interpretation of the Service. Www irs gov form1040ez Until these differing interpretations are resolved by higher court decisions, or in some other way, this publication will continue to present the interpretation of the Service. Www irs gov form1040ez The IRS Mission. Www irs gov form1040ez   Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. Www irs gov form1040ez Comments and suggestions. Www irs gov form1040ez   We welcome your comments about this publication and your suggestions for future editions. Www irs gov form1040ez   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Www irs gov form1040ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Www irs gov form1040ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Www irs gov form1040ez   You can email us at taxforms@irs. Www irs gov form1040ez gov. Www irs gov form1040ez Please put “Publications Comment” on the subject line. Www irs gov form1040ez You can also send us comments from www. Www irs gov form1040ez irs. Www irs gov form1040ez gov/formspubs/, select “Comment on Tax Forms and Publications” under “More Information. Www irs gov form1040ez ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Www irs gov form1040ez Ordering forms and publications. Www irs gov form1040ez   Visit www. Www irs gov form1040ez irs. Www irs gov form1040ez gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Www irs gov form1040ez Internal Revenue Service 1201 N. Www irs gov form1040ez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Www irs gov form1040ez   If you have a tax question, check the information available on IRS. Www irs gov form1040ez gov or call 1-800-829-1040. Www irs gov form1040ez We cannot answer tax questions sent to either of the above addresses. Www irs gov form1040ez Comments on IRS enforcement actions. Www irs gov form1040ez   The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments from small business about federal agency enforcement actions. Www irs gov form1040ez The Ombudsman will annually evaluate the enforcement activities of each agency and rate its responsiveness to small business. Www irs gov form1040ez If you wish to comment on the enforcement actions of the IRS, you can: Call 1-888-734-3247, Fax your comments to 202-481-5719, Write to Office of the National Ombudsman U. Www irs gov form1040ez S. Www irs gov form1040ez Small Business Administration 409 3rd Street, S. Www irs gov form1040ez W. Www irs gov form1040ez  Washington, DC 20416 Send an email to ombudsman@sba. Www irs gov form1040ez gov, or Download the appraisal form at  www. Www irs gov form1040ez sba. Www irs gov form1040ez gov/ombudsman. Www irs gov form1040ez Treasury Inspector General for Tax Administration. Www irs gov form1040ez   If you want to confidentially report misconduct, waste, fraud, or abuse by an IRS employee, you can call 1-800-366-4484 (1-800-877-8339 for TTY/TDD users). Www irs gov form1040ez You can remain anonymous. Www irs gov form1040ez Farm tax classes. Www irs gov form1040ez   Many state Cooperative Extension Services conduct farm tax workshops in conjunction with the IRS. Www irs gov form1040ez Contact your county extension office for more information. Www irs gov form1040ez Rural tax education website. Www irs gov form1040ez   The Rural Tax Education website is a source for information concerning agriculturally related income and deductions and self-employment tax. Www irs gov form1040ez The website is available for farmers and ranchers, other agricultural producers, Extension educators, and any one interested in learning about the tax side of the agricultural community. Www irs gov form1040ez Members of the National Farm Income Tax Extension Committee are contributors for the website and the website is hosted by Utah State University Cooperative Extension. Www irs gov form1040ez You can visit the website at www. Www irs gov form1040ez ruraltax. Www irs gov form1040ez org. Www irs gov form1040ez Future Developments The IRS has created a page on IRS. Www irs gov form1040ez gov for information about Publication 225, at  www. Www irs gov form1040ez irs. Www irs gov form1040ez gov/pub225. Www irs gov form1040ez Information about recent developments affecting Publication 225 will be posted on that page. Www irs gov form1040ez What's New for 2013 The following items highlight a number of administrative and tax law changes for 2013. Www irs gov form1040ez They are discussed in more detail throughout the publication. Www irs gov form1040ez Standard mileage rate. Www irs gov form1040ez  For 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. Www irs gov form1040ez 5 cents. Www irs gov form1040ez See chapter 4. Www irs gov form1040ez Simplified method for business use of home deduction. Www irs gov form1040ez  The IRS now provides a simplified method to determine your expenses for business use of your home. Www irs gov form1040ez For more information, see Schedule C (Form 1040), Part II, and its instructions. Www irs gov form1040ez See chapter 4. Www irs gov form1040ez Increased section 179 expense deduction dollar limits. Www irs gov form1040ez  The maximum amount you can elect to deduct for most section 179 property you placed in service in 2013 is $500,000. Www irs gov form1040ez This limit is reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Www irs gov form1040ez See chapter 7. Www irs gov form1040ez Extension of special depreciation allowance for certain qualified property acquired after December 31, 2007. Www irs gov form1040ez  You may be able to take a 50% special depreciation allowance for certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2014. Www irs gov form1040ez See chapter 7. Www irs gov form1040ez Expiration of the 3-year recovery period for certain race horses. Www irs gov form1040ez . Www irs gov form1040ez  The 3-year recovery period for race horses two years old or younger will expire for such horses placed in service after December 31, 2013. Www irs gov form1040ez See chapter 7. Www irs gov form1040ez Tax rates. Www irs gov form1040ez  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Www irs gov form1040ez 4% to 12. Www irs gov form1040ez 4%. Www irs gov form1040ez As a result, the self-employment tax is increased from 13. Www irs gov form1040ez 3% to 15. Www irs gov form1040ez 3%. Www irs gov form1040ez See chapter 12. Www irs gov form1040ez Maximum net earnings. Www irs gov form1040ez  The maximum net self-employment earnings subject to the social security part (12. Www irs gov form1040ez 4%) of the self-employment tax increased to $113,700 for 2013. Www irs gov form1040ez There is no maximum limit on earnings subject to the Medicare part (2. Www irs gov form1040ez 9%). Www irs gov form1040ez See chapter 12. Www irs gov form1040ez Net investment income tax. Www irs gov form1040ez  For tax years beginning in 2013, individuals, estates, and trusts may be subject to the net investment income tax (NIIT). Www irs gov form1040ez If you are a trader in financial instruments and commodities and required to file Schedule C (Form 1040), your investment income (for purposes of the NIIT) may be reduced by your interest and other investment expenses to the extent those expenses are not used to reduce your self-employment income. Www irs gov form1040ez For information about NIIT and the special rule for traders in financial instruments and commodities, see the Instructions for Form 8960. Www irs gov form1040ez Social Security and Medicare Tax for 2013. Www irs gov form1040ez  The employee tax rate for social security is 6. Www irs gov form1040ez 2%. Www irs gov form1040ez The employer tax rate for social security remains unchanged at 6. Www irs gov form1040ez 2%. Www irs gov form1040ez The social security wage base limit is $113,700. Www irs gov form1040ez The Medicare tax rate is 1. Www irs gov form1040ez 45% each for the employee and employer, unchanged from 2012. Www irs gov form1040ez There is no wage base limit for Medicare tax. Www irs gov form1040ez See chapter 13. Www irs gov form1040ez Additional Medicare Tax. Www irs gov form1040ez  For tax years beginning in 2013, a 0. Www irs gov form1040ez 9% Additional Medicare Tax applies to your Medicare wages, Railroad Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Www irs gov form1040ez Use Form 8959, Additional Medicare Tax, to figure this tax. Www irs gov form1040ez For more information, see the Instructions for Form 8959 and the Instructions for Schedule SE (Form 1040). Www irs gov form1040ez In addition to withholding Medicare tax at 1. Www irs gov form1040ez 45%, you must withhold a 0. Www irs gov form1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Www irs gov form1040ez You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Www irs gov form1040ez Additional Medicare Tax is only imposed on the employee. Www irs gov form1040ez There is no employer share of Additional Medicare Tax. Www irs gov form1040ez All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Www irs gov form1040ez For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Www irs gov form1040ez For more information on Additional Medicare Tax, visit IRS. Www irs gov form1040ez gov and enter “Additional Medicare Tax” in the search box. Www irs gov form1040ez See chapter 13. Www irs gov form1040ez Leave-Based donation programs to aid victims of Hurricane Sandy. Www irs gov form1040ez  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. Www irs gov form1040ez The donated leave will not be included in the income or wages of the employee. Www irs gov form1040ez The employer may deduct the cash payments as business expenses or charitable contributions. Www irs gov form1040ez See chapter 13. Www irs gov form1040ez Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. Www irs gov form1040ez  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Www irs gov form1040ez Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Www irs gov form1040ez For more information, visit IRS. Www irs gov form1040ez gov and enter “work opportunity credit” in the search box. Www irs gov form1040ez See chapter 13. Www irs gov form1040ez Estimated tax. Www irs gov form1040ez  For tax years beginning in 2013, the Net Investment Income Tax (NIIT) may need to be included when calculating your estimated tax. Www irs gov form1040ez Also, when figuring your estimated tax, you may need to include the 0. Www irs gov form1040ez 9% Additional Medicare Tax applicable to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above the threshold amount based on your filing status. Www irs gov form1040ez For more information, see Publication 505. Www irs gov form1040ez What's New for 2014 Maximum net earnings. Www irs gov form1040ez  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Www irs gov form1040ez See chapter 12. Www irs gov form1040ez Social security and Medicare tax for 2014. Www irs gov form1040ez  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). Www irs gov form1040ez The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). Www irs gov form1040ez There is no limit on the amount of wages subject to Medicare tax. Www irs gov form1040ez See chapter 13. Www irs gov form1040ez Reminders The following reminders and other items may help you file your tax return. Www irs gov form1040ez   IRS e-file (Electronic Filing) You can file your tax returns electronically using an IRS e-file option. Www irs gov form1040ez The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. Www irs gov form1040ez You can use one of the following IRS e-file options. Www irs gov form1040ez Use an authorized IRS e-file provider. Www irs gov form1040ez Use a personal computer. Www irs gov form1040ez Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site. Www irs gov form1040ez For details on these fast filing methods, see your income tax package. Www irs gov form1040ez Principal agricultural activity codes. Www irs gov form1040ez  You must enter on line B of Schedule F (Form 1040) a code that identifies your principal agricultural activity. Www irs gov form1040ez It is important to use the correct code because this information will identify market segments of the public for IRS Taxpayer Education programs. Www irs gov form1040ez The U. Www irs gov form1040ez S. Www irs gov form1040ez Census Bureau also uses this information for its economic census. Www irs gov form1040ez See the list of Principal Agricultural Activity Codes on page 2 of Schedule F (Form 1040). Www irs gov form1040ez Publication on employer identification numbers (EIN). Www irs gov form1040ez  Publication 1635, Understanding Your Employer Identification Number, provides general information on employer identification numbers. Www irs gov form1040ez Topics include how to apply for an EIN and how to complete Form SS-4. Www irs gov form1040ez Change of address. Www irs gov form1040ez  If you change your home address, you should use Form 8822, Change of Addres, to notify the IRS. Www irs gov form1040ez If you change your business address, you should use Form 8822-B, Change of Address or Responsible Party — Business, to notify the IRS. Www irs gov form1040ez Be sure to include your suite, room, or other unit number. Www irs gov form1040ez Reportable transactions. Www irs gov form1040ez  You must file Form 8886, Reportable Transaction Disclosure Statement, to report certain transactions. Www irs gov form1040ez You may have to pay a penalty if you are required to file Form 8886 but do not do so. Www irs gov form1040ez Reportable transactions include (1) transactions the same as or substantially similar to tax avoidance transactions identified by the IRS, (2) transactions offered to you under conditions of confidentiality and for which you paid an advisor a minimum fee, (3) transactions for which you have or a related party has a right to a full or partial refund of fees if all or part of the intended tax consequences from the transaction are not sustained, (4) transactions that result in losses of at least $2 million in any single year or $4 million in any combination of years, and (5) transactions with asset holding periods of 45 days or less and that result in a tax credit of more than $250,000. Www irs gov form1040ez For more information, see the Instructions for Form 8886. Www irs gov form1040ez Form W-4 for 2014. Www irs gov form1040ez  You should make new Forms W-4 available to your employees and encourage them to check their income tax withholding for 2014. Www irs gov form1040ez Those employees who owed a large amount of tax or received a large refund for 2013 may need to submit a new Form W-4. Www irs gov form1040ez See Publication 919, How Do I Adjust My Tax Withholding. Www irs gov form1040ez Form 1099-MISC. Www irs gov form1040ez  Generally, file Form 1099-MISC if you pay at least $600 in rents, services, and other miscellaneous payments in your farming business to an individual (for example, an accountant, an attorney, or a veterinarian) who is not your employee. Www irs gov form1040ez Limited Liability Company (LLC). Www irs gov form1040ez  For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. Www irs gov form1040ez Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. Www irs gov form1040ez An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. Www irs gov form1040ez 7701-3. Www irs gov form1040ez See Publication 3402 for more details. Www irs gov form1040ez Photographs of missing children. Www irs gov form1040ez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Www irs gov form1040ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Www irs gov form1040ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Www irs gov form1040ez Prev  Up  Next   Home   More Online Publications
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Hopefully, since you did your research and asked smart questions of the sales staff, you have made a purchase that you are completely satisfied with. However, even careful buyers can run into unforeseen problems later on. To minimize them, follow these steps after you buy:

  • Make sure to get your receipt at the end of your purchase. Keep all contracts, sales receipts, canceled checks, owner's manuals and warranty documents.
  • Read and follow product and service instructions. The way you use or take care of a product will affect your warranty rights. 

If you encounter a problem with your purchase, you can write a complaint letter to the seller to explain your problem and how you would like them to resolve it. If the seller will not help you or respond to your complaint, you should then contact the manufacturer. Continue this process of reporting the problem in writing to industry trade organizations, local consumer protection agencies, and if necessary the Better Business Bureau, until your problem is resolved.

The Www Irs Gov Form1040ez

Www irs gov form1040ez 5. Www irs gov form1040ez   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. Www irs gov form1040ez Making the election. Www irs gov form1040ez Form 3115. Www irs gov form1040ez Income TaxesAccrual of contested income taxes. Www irs gov form1040ez Employment Taxes Other TaxesAdditional Medicare Tax. Www irs gov form1040ez What's New Additional Medicare Tax. Www irs gov form1040ez  Beginning in 2013, you must withhold a 0. Www irs gov form1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Www irs gov form1040ez Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. Www irs gov form1040ez See Employment Taxes , and Self-employment tax , later. Www irs gov form1040ez Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. Www irs gov form1040ez You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. Www irs gov form1040ez Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. Www irs gov form1040ez When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. Www irs gov form1040ez This applies whether you use the cash method or an accrual method of accounting. Www irs gov form1040ez Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. Www irs gov form1040ez You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . Www irs gov form1040ez Limit on accrual of taxes. Www irs gov form1040ez   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. Www irs gov form1040ez However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. Www irs gov form1040ez Example. Www irs gov form1040ez Your state imposes a tax on personal property used in a trade or business conducted in the state. Www irs gov form1040ez This tax is assessed and becomes a lien as of July 1 (accrual date). Www irs gov form1040ez In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. Www irs gov form1040ez Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. Www irs gov form1040ez You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. Www irs gov form1040ez Uniform capitalization rules. Www irs gov form1040ez   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. Www irs gov form1040ez They also apply to certain taxpayers who acquire property for resale. Www irs gov form1040ez Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. Www irs gov form1040ez For more information, see chapter 1. Www irs gov form1040ez Carrying charges. Www irs gov form1040ez   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. Www irs gov form1040ez You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. Www irs gov form1040ez For more information, see chapter 7. Www irs gov form1040ez Refunds of taxes. Www irs gov form1040ez   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. Www irs gov form1040ez For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. Www irs gov form1040ez    You must include in income any interest you receive on tax refunds. Www irs gov form1040ez Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Www irs gov form1040ez The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Www irs gov form1040ez Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Www irs gov form1040ez See Taxes for local benefits , later. Www irs gov form1040ez If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. Www irs gov form1040ez However, you can elect to ratably accrue the taxes during the year. Www irs gov form1040ez See Electing to ratably accrue , later. Www irs gov form1040ez Taxes for local benefits. Www irs gov form1040ez   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. Www irs gov form1040ez These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. Www irs gov form1040ez You should increase the basis of your property by the amount of the assessment. Www irs gov form1040ez   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. Www irs gov form1040ez If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. Www irs gov form1040ez Example. Www irs gov form1040ez To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. Www irs gov form1040ez The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. Www irs gov form1040ez The city is paying the principal and interest with the annual payments made by the property owners. Www irs gov form1040ez The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. Www irs gov form1040ez The part of the payments used to pay the interest charges on the bonds is deductible as taxes. Www irs gov form1040ez Charges for services. Www irs gov form1040ez   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. Www irs gov form1040ez Purchase or sale of real estate. Www irs gov form1040ez   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. Www irs gov form1040ez   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. Www irs gov form1040ez Treat the seller as paying the taxes up to but not including the date of sale. Www irs gov form1040ez Treat the buyer as paying the taxes beginning with the date of sale. Www irs gov form1040ez You can usually find this information on the settlement statement you received at closing. Www irs gov form1040ez   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. Www irs gov form1040ez Example. Www irs gov form1040ez Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. Www irs gov form1040ez He has not elected to ratably accrue property taxes. Www irs gov form1040ez November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. Www irs gov form1040ez He sold the property on June 30, 2013. Www irs gov form1040ez Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. Www irs gov form1040ez He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. Www irs gov form1040ez Electing to ratably accrue. Www irs gov form1040ez   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. Www irs gov form1040ez Example. Www irs gov form1040ez Juan Sanchez is a calendar year taxpayer who uses an accrual method. Www irs gov form1040ez His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. Www irs gov form1040ez July 1 is the assessment and lien date. Www irs gov form1040ez If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. Www irs gov form1040ez Separate elections. Www irs gov form1040ez   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. Www irs gov form1040ez Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. Www irs gov form1040ez See Form 3115 , later. Www irs gov form1040ez Making the election. Www irs gov form1040ez   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. Www irs gov form1040ez The statement should show all the following items. Www irs gov form1040ez The trades or businesses to which the election applies and the accounting method or methods used. Www irs gov form1040ez The period to which the taxes relate. Www irs gov form1040ez The computation of the real estate tax deduction for that first year. Www irs gov form1040ez   Generally, you must file your return by the due date (including extensions). Www irs gov form1040ez However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Www irs gov form1040ez Attach the statement to the amended return and write “Filed pursuant to section 301. Www irs gov form1040ez 9100-2” on the statement. Www irs gov form1040ez File the amended return at the same address where you filed the original return. Www irs gov form1040ez Form 3115. Www irs gov form1040ez    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. Www irs gov form1040ez For more information, including applicable time frames for filing, see the Instructions for Form 3115. Www irs gov form1040ez Note. Www irs gov form1040ez If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. Www irs gov form1040ez R. Www irs gov form1040ez B. Www irs gov form1040ez 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. Www irs gov form1040ez R. Www irs gov form1040ez B. Www irs gov form1040ez 689, and Revenue Procedure 2012-20, 2012-14 I. Www irs gov form1040ez R. Www irs gov form1040ez B. Www irs gov form1040ez 700, or any successor. Www irs gov form1040ez Revenue Procedure 2011-14 is available at  www. Www irs gov form1040ez irs. Www irs gov form1040ez gov/irb/2011-04IRB/ar08. Www irs gov form1040ez html. Www irs gov form1040ez Income Taxes This section discusses federal, state, local, and foreign income taxes. Www irs gov form1040ez Federal income taxes. Www irs gov form1040ez   You cannot deduct federal income taxes. Www irs gov form1040ez State and local income taxes. Www irs gov form1040ez   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. Www irs gov form1040ez An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). Www irs gov form1040ez   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. Www irs gov form1040ez Accrual of contested income taxes. Www irs gov form1040ez   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. Www irs gov form1040ez   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. Www irs gov form1040ez You cannot deduct them in the year in which the liability is finally determined. Www irs gov form1040ez    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. Www irs gov form1040ez Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. Www irs gov form1040ez   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. Www irs gov form1040ez You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. Www irs gov form1040ez For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. Www irs gov form1040ez Foreign income taxes. Www irs gov form1040ez   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Www irs gov form1040ez S. Www irs gov form1040ez possession. Www irs gov form1040ez However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Www irs gov form1040ez S. Www irs gov form1040ez tax under the foreign earned income exclusion or the foreign housing exclusion. Www irs gov form1040ez For information on these exclusions, see Publication 54, Tax Guide for U. Www irs gov form1040ez S. Www irs gov form1040ez Citizens and Resident Aliens Abroad. Www irs gov form1040ez For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. Www irs gov form1040ez Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. Www irs gov form1040ez Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. Www irs gov form1040ez You may also need to pay certain employment taxes from your own funds. Www irs gov form1040ez These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. Www irs gov form1040ez Note. Www irs gov form1040ez Additional Medicare Tax is only imposed on the employee. Www irs gov form1040ez There is no employer share of Additional Medicare Tax. Www irs gov form1040ez Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. Www irs gov form1040ez You can deduct the employment taxes you must pay from your own funds as taxes. Www irs gov form1040ez Example. Www irs gov form1040ez You pay your employee $18,000 a year. Www irs gov form1040ez However, after you withhold various taxes, your employee receives $14,500. Www irs gov form1040ez You also pay an additional $1,500 in employment taxes. Www irs gov form1040ez You should deduct the full $18,000 as wages. Www irs gov form1040ez You can deduct the $1,500 you pay from your own funds as taxes. Www irs gov form1040ez For more information on employment taxes, see Publication 15 (Circular E). Www irs gov form1040ez Unemployment fund taxes. Www irs gov form1040ez   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. Www irs gov form1040ez Deduct these payments as taxes. Www irs gov form1040ez Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. Www irs gov form1040ez Excise taxes. Www irs gov form1040ez   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. Www irs gov form1040ez However, see Fuel taxes , later. Www irs gov form1040ez   For more information on excise taxes, see Publication 510. Www irs gov form1040ez Franchise taxes. Www irs gov form1040ez   You can deduct corporate franchise taxes as a business expense. Www irs gov form1040ez Fuel taxes. Www irs gov form1040ez   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. Www irs gov form1040ez Do not deduct these taxes as a separate item. Www irs gov form1040ez   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Www irs gov form1040ez For more information, see Publication 510. Www irs gov form1040ez Occupational taxes. Www irs gov form1040ez   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Www irs gov form1040ez Personal property tax. Www irs gov form1040ez   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. Www irs gov form1040ez Sales tax. Www irs gov form1040ez   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Www irs gov form1040ez If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Www irs gov form1040ez If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Www irs gov form1040ez If the property is depreciable, add the sales tax to the basis for depreciation. Www irs gov form1040ez For more information on basis, see Publication 551. Www irs gov form1040ez    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Www irs gov form1040ez Also, do not include these taxes in gross receipts or sales. Www irs gov form1040ez Self-employment tax. Www irs gov form1040ez   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. Www irs gov form1040ez This deduction only affects your income tax. Www irs gov form1040ez It does not affect your net earnings from self-employment or your self-employment tax. Www irs gov form1040ez   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). Www irs gov form1040ez   For more information on self-employment tax, see Publication 334. Www irs gov form1040ez Additional Medicare Tax. Www irs gov form1040ez   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. Www irs gov form1040ez See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. Www irs gov form1040ez Prev  Up  Next   Home   More Online Publications