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1040 com 2. 1040 com   Filing Requirements and Required Disclosures Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Annual Information ReturnsSupporting Organization Annual Information Return Unrelated Business Income Tax ReturnEstimated tax. 1040 com Employment Tax ReturnsException. 1040 com FUTA tax exception. 1040 com FICA tax exemption election. 1040 com Revoking the election. 1040 com Definitions. 1040 com Effect on employees. 1040 com Political Organization Income Tax ReturnExempt function. 1040 com Political organization taxable income. 1040 com Separate fund. 1040 com Failure to file. 1040 com Failure to pay on time. 1040 com Reporting Requirements for a Political OrganizationForm 8871 Form 8872 Donee Information ReturnCharitable deduction property. 1040 com Publicly traded securities. 1040 com Exceptions. 1040 com Form 8283. 1040 com Information Provided to DonorsDisclosure of Quid Pro Quo Contributions Acknowledgment of Charitable Contributions of $250 or More Acknowledgment of Vehicle Contribution Qualified Intellectual Property Report of Cash Received Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting FormsAnnual Information Return Public Inspection of Exemption Application Political Organization Reporting Forms Required DisclosuresSolicitation of Nondeductible Contributions Sales of Information or Services Available Free From Government Dues Used for Lobbying or Political Activities Prohibited Tax Shelter Transactions Miscellaneous RulesOrganizational Changes and Exempt Status Introduction Most exempt organizations (including private foundations) must file various returns and reports at some time during (or following the close of) their accounting period. 1040 com Topics - This chapter discusses: Annual information returns Unrelated business income tax return Employment tax returns Political organization income tax return Reporting requirements for a political organization Donee information return Information provided to donors Report of cash received Public inspection of exemption applications, annual returns, and political organizations reporting forms Required disclosures Miscellaneous rules Useful Items - You may want to see: Publication 15 Circular E, Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 598 Tax on Unrelated Business Income of Exempt Organizations Form (and Instructions) 941 Employer's Quarterly Federal Tax Return 990 Return of Organization Exempt From Income Tax 990-EZ Short Form Return of Organization Exempt From Income Tax Schedule A (Form 990 or 990-EZ) Public Charity Status and Public Support Schedule B (Form 990, 990-EZ, or 990-PF) Schedule of Contributors Schedule C (Form 990 or 990-EZ) Political Campaign and Lobbying Activities Schedule D (Form 990) Supplemental Financial Statements Schedule E (Form 990 or 990-EZ) Schools Schedule F (Form 990) Statement of Activities Outside the United States Schedule G (Form 990 or 990-EZ) Supplemental Information Regarding Fundraising or Gaming Activities Schedule H (Form 990) Hospitals Schedule I (Form 990) Grants and Other Assistance to Organizations, Governments, and Individuals in the United States Schedule J (Form 990) Compensation Information Schedule K (Form 990) Supplemental Information on Tax-Exempt Bonds Schedule L (Form 990 or 990-EZ) Transactions With Interested Persons Schedule M (Form 990) Noncash Contributions Schedule N (Form 990 or 990-EZ) Liquidation, Termination, Dissolution, or Significant Disposition of Assets Schedule O (Form 990 or 990-EZ) Supplemental Information to Form 990 Schedule R (Form 990) Related Organizations and Unrelated Partnerships 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation 990-BL Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons 990-T Exempt Organization Business Income Tax Return 990-W Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations 1120-POL U. 1040 com S. 1040 com Income Tax Return for Certain Political Organizations 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code 5768 Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation 6069 Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes 8282 Donee Information Return 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business 8453-X Political Organization Declaration for Electronic Filing of Notice of Section 527 Status 8822-B Change of Address-Business 8868 Application for Extension of Time to File an Exempt Organization Return 8870 Information Return for Transfers Associated with Certain Personal Benefits Contracts 8871 Political Organization Notice of Section 527 Status 8872 Political Organization Report of Contributions and Expenditures 8886-T Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction 8899 Notice of Income from Donated Intellectual Property 8940 Request for Miscellaneous Determination See chapter 6 for information about getting these publications and forms. 1040 com Annual Information Returns Every organization exempt from federal income tax under section 501(a) must file an Annual Exempt Organization Return except: A church, an interchurch organization of local units of a church, a convention or association of churches, An integrated auxiliary of a church, A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs, A school below college level affiliated with a church or operated by a religious order, Church-affiliated mission societies if more than half of their activities are conducted in, or are directed at persons in, foreign countries, An exclusively religious activity of any religious order, A state institution, the income of which is excluded from gross income under section 115, A corporation described in section 501(c)(1) that is organized under an Act of Congress, an instrumentality of the United States, and is exempt from Federal income taxes, A stock bonus, pension, or profit-sharing trust that qualifies under section 401 (required to file Form 5500, Annual Return/Report of Employee Benefit Plan), A religious or apostolic organization described in section 501(d) (required to file Form 1065, U. 1040 com S. 1040 com Return of Partnership Income), A governmental unit or an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48, 1995-2 C. 1040 com B. 1040 com 418, www. 1040 com irs. 1040 com gov/pub/irs-tege/rp1995-48. 1040 com pdf, A private foundation described in section 501(c)(3) and exempt under section 501(a) (required to file Form 990-PF, Return of Private Foundation), A political organization that is a state or local committee of a political party, a political committee of a state or local candidate, a caucus or association of state or local officials, or required to report under the Federal Election Campaign Act of 1971 as a political committee, An exempt organization (other than a private foundation) that normally has annual gross receipts of $50,000 or less, or A foreign organization, or an organization located in a U. 1040 com S. 1040 com possession, that normally has annual gross receipts from sources within the United States of $50,000 or less. 1040 com Supporting Organization Annual Information Return For tax years ending after August 17, 2006, all section 509(a)(3) supporting organizations are required to file Form 990 or 990-EZ with the IRS regardless of the organization's gross receipts, unless it qualifies as one of the following: An integrated auxiliary of a church; The exclusively religious activities of a religious order; or An organization, the gross receipts of which are normally not more than $5,000, that supports a section 509(a)(3) religious order. 1040 com If the organization is described in item (3) above, then it must submit Form 990-N (e-Postcard) unless it voluntarily files Form 990 or 990-EZ. 1040 com On its annual information return, at Part I, Schedule A (Form 990 or 990-EZ) a supporting organization must: List the section 509(a)(3) organizations to which it provides support, Indicate whether it is a Type I, Type II, or Type III supporting organization, and Certify that the organization is not controlled directly or indirectly by disqualified persons (other than by foundation managers and other than one or more publicly supported organizations). 1040 com Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Small tax-exempt organizations with annual gross receipts normally $50,000 or less must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, with the IRS each year, if they choose not to file a Form 990 or 990-EZ. 1040 com Form 990-N requires the following information: The organization's legal name, and mailing address; Any name under which it operates and does business; Its Internet website address (if any); Its taxpayer identification number; The name and address of a principal officer; Organization's annual tax period; Verification that the organization's annual gross receipts are normally $50,000 or less; and Notification if the organization has terminated. 1040 com Form 990-N is due by the 15th day of the fifth month after the close of the tax year. 1040 com For tax years beginning after December 31, 2006, any organization that fails to meet its annual reporting requirement for 3 consecutive years will automatically lose its tax-exempt status. 1040 com To regain its exempt status an organization will have to reapply for recognition as a tax-exempt organization. 1040 com Exceptions. 1040 com   This filing requirement does not apply to: Churches, their integrated auxiliaries, and conventions or associations of churches; Organizations that are included in a group return; Private foundations required to file Form 990-PF; and Section 509(a)(3) supporting organizations required to file Form 990 or Form 990-EZ. 1040 com Forms 990 and 990-EZ Exempt organizations, other than private foundations, must file their annual information returns on Form 990 or 990-EZ, unless excepted from filing or allowed to submit Form 990-N, described earlier. 1040 com Generally, political organizations with gross receipts of $25,000 ($100,000 for a qualified state or local political organization (QSLPO)) or more for the tax year are required to file Form 990 or 990-EZ unless specifically excepted from filing the annual return. 1040 com The following political organizations are not required to file Form 990 or Form 990-EZ. 1040 com A state or local committee of a political party. 1040 com A political committee of a state or local candidate. 1040 com A caucus or association of state or local officials. 1040 com A political organization that is required to report as a political committee under the Federal Election Campaign Act. 1040 com A 501(c) organization that has expenditures for influencing or attempting to influence the selection, nomination, election, or appointment of any individual for a federal, state, or local public office. 1040 com Form 990-EZ. 1040 com   This is a shortened version of Form 990. 1040 com It is designed for use by small exempt organizations and nonexempt charitable trusts. 1040 com   Beginning in tax year 2010, an organization can file either Form 990 or 990-EZ if it meets the following: Its gross receipts during the year are less than $200,000. 1040 com Its total assets (line 25, column (B) of Form 990-EZ) at the end of the year are less than $500,000. 1040 com If your organization does not meet either of these conditions, you cannot file Form 990-EZ. 1040 com Instead you must file Form 990. 1040 com Group return. 1040 com   A group return on Form 990 may be filed by a central, parent, or like organization for two or more local organizations, none of which is a private foundation. 1040 com This return is in addition to the central organization's separate annual return if it must file a return. 1040 com It cannot be included in the group return. 1040 com See the instructions for Form 990 for the conditions under which this procedure may be used. 1040 com    In any year that an organization is properly included as a subordinate organization on a group return, it should not file its own Form 990. 1040 com Schedule A (Form 990 or 990-EZ). 1040 com   Organizations, other than private foundations, that are described in section 501(c)(3) and that are otherwise required to file Form 990 or 990-EZ must also complete Schedule A of that form. 1040 com Schedule B (Form 990, Form 990-EZ, or 990-PF). 1040 com   Organizations that file Form 990 or 990-EZ use this schedule to provide required information regarding their contributors. 1040 com Schedule O (Form 990). 1040 com   Organizations that file Form 990 must use this schedule to provide required additional information or if additional space is needed. 1040 com   Other schedules may be required to be filed with Form 990 or 990-EZ. 1040 com See the instructions for Form 990 or the instructions for Form 990-EZ for more information. 1040 com Report significant new or changed program services and changes to organizational documents. 1040 com    An organization should report new significant program services or significant changes in how it conducts program services, and significant changes to its organizational documents, on its Form 990 rather than in a letter to EO Determinations. 1040 com EO Determinations no longer issues letters confirming the tax-exempt status of organizations that report new services or significant changes, or changes to organizational documents. 1040 com See Miscellaneous Rules, Organization Changes and Exempt Status, later. 1040 com Form 990-PF All private foundations exempt under section 501(c)(3) must file Form 990-PF. 1040 com These organizations are discussed in chapter 3. 1040 com Electronic Filing You may be required to file Form 990, Form 990-EZ, or Form 990-PF, and related forms, schedules, and attachments electronically. 1040 com If an organization is required to file a return electronically but does not, the organization is considered to have not filed its return. 1040 com See Regulations section 301. 1040 com 6033-4 for more information. 1040 com The IRS may waive the requirement to file electronically in cases of undue hardship. 1040 com For information on filing a waiver, see Notice 2010-13, 2010-4 I. 1040 com R. 1040 com B. 1040 com 327, available at www. 1040 com irs. 1040 com gov/ir/2010-04_IRSB/ar14. 1040 com html. 1040 com Form 990. 1040 com   An organization is required to file Form 990 electronically if it files at least 250 returns during the calendar year and has total assets of $10 million or more at the end of the tax year. 1040 com Form 990-PF. 1040 com   An organization is required to file Form 990-PF electronically if it files at least 250 returns during the calendar year. 1040 com Due Date Forms 990, 990-EZ, or 990-PF must be filed by the 15th day of the fifth month after the end of your organization's accounting period. 1040 com Thus, for a calendar year taxpayer, Forms 990, 990-EZ, or 990-PF is due May 15 of the following year. 1040 com Extension of time to file. 1040 com   Use Form 8868 to request an automatic 3-month extension of time to file Forms 990, 990-EZ, or 990-PF and also to apply for an additional (not automatic) 3-month extension if needed. 1040 com   Do not apply for both the automatic 3-month extension and the additional 3-month extension at the same time. 1040 com For more information, see Form 8868 and its instructions. 1040 com   When filing Form 8868 for an automatic 3-month extension, neither a signature, nor an explanation is required. 1040 com However, when filing Form 8868 for an additional 3-month extension, both a signature and an explanation are required. 1040 com Application for exemption pending. 1040 com   An organization that claims to be exempt under section 501(a) but has not established its exempt status by the due date for filing an information return must complete and file Form 990, 990-EZ, 990–N or 990-PF (if it considers itself a private foundation), unless the organization is exempt from Form 990-series filing requirements. 1040 com If the organization's application is pending with the IRS, it must so indicate on Forms 990, 990-EZ, or 990-PF (whichever applies) by checking the application pending block at the top of page 1 of the return. 1040 com For more information on the filing requirements, see the Instructions for Forms 990, 990-EZ, and 990-PF. 1040 com State reporting requirements. 1040 com   Copies of Forms 990, 990-EZ, or 990-PF may be used to satisfy state reporting requirements. 1040 com See the instructions for those forms. 1040 com Form 8870. 1040 com   Organizations that filed a Form 990, 990-EZ, or 990-PF, and paid premiums or received transfers on certain life insurance, annuity, and endowment contracts (personal benefit contracts), must file Form 8870. 1040 com For more information, see Form 8870 and the instructions for that form. 1040 com Automatic Revocation If the organization fails to file a Form 990, 990-EZ, or 990-PF, or fails to submit a Form 990-N, as required, for 3 consecutive years, it will automatically lose its tax-exempt status by operation of law. 1040 com The list of organizations whose tax-exempt status has been automatically revoked is available on IRS. 1040 com gov. 1040 com This list (Auto-Revocation List) may be viewed and searched on Exempt Organizations Select Check. 1040 com The Auto-Revocation List includes each organization's name, Employer Identification Number (EIN) and last known address. 1040 com It also includes the effective date of the automatic revocation and the date it was posted to the list. 1040 com The IRS updates the list monthly to include additional organizations that lose their tax-exempt status. 1040 com Tax Effect of Loss of Tax-Exempt Status If your organization’s tax-exempt status is automatically revoked, you may be required to file one of the following federal income tax returns and pay any applicable income taxes: Form 1120, U. 1040 com S. 1040 com Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of your organization’s tax year, or Form 1041, U. 1040 com S. 1040 com Income Tax Return for Estates and Trusts, due by the 15th day of the 4th month after the end of your organization’s tax year. 1040 com In addition, a section 501(c)(3) organization that loses its tax-exempt status cannot receive tax-deductible contributions and will not be identified in the IRS Business Master File extract as eligible to received tax-deductible contributions, or be included in Exempt Organizations Select Check (Pub 78 database). 1040 com An organization whose exemption was automatically revoked must apply for tax exemption in order to regain its tax exemption (even if it was not originally required to apply). 1040 com In some situations, an organization may be able to obtain exemption retroactive to its date of revocation. 1040 com For more information about automatic revocation, go to IRS. 1040 com gov and select Charities & Non-Profits and then select Revoked? Reinstated? Learn More. 1040 com Penalties Penalties for failure to file. 1040 com   Generally, an exempt organization that fails to file a required return must pay a penalty of $20 a day for each day the failure continues. 1040 com The same penalty will apply if the organization does not give all the information required on the return or does not give the correct information. 1040 com Maximum penalty. 1040 com   The maximum penalty for any one return is the smaller of $10,000 or 5% of the organization's gross receipts for the year. 1040 com Organization with gross receipts over $1 million. 1040 com   For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000. 1040 com Managers. 1040 com   If the organization is subject to this penalty, the IRS may specify a date by which the return or correct information must be supplied by the organization. 1040 com Failure to comply with this demand will result in a penalty imposed upon the manager of the organization, or upon any other person responsible for filing a correct return. 1040 com The penalty is $10 a day for each day that a return is not filed after the period given for filing. 1040 com The maximum penalty imposed on all persons with respect to any one return is $5,000. 1040 com Exception for reasonable cause. 1040 com   No penalty will be imposed if reasonable cause for failure to file timely can be shown. 1040 com Unrelated Business Income Tax Return Even though your organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. 1040 com Unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. 1040 com If your organization has $1,000 or more of unrelated business income, you must file Form 990-T in addition to your required annual information return. 1040 com Estimated tax. 1040 com   Quarterly estimated tax payments are due if your organization expects to owe $500 or more in tax including unrelated business income. 1040 com Use Form 990-W to figure your organization's estimated tax payments. 1040 com Travel tour programs. 1040 com   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose to which tax exemption was granted to the organization. 1040 com   Whether travel tour activities conducted by an organization are substantially related to the organization's tax exempt purpose is determined by looking at all the relevant facts and circumstances, including, but not limited to, how a travel tour is developed, promoted, and operated. 1040 com Example. 1040 com ABC, a university alumni association, is tax exempt as an educational organization under section 501(c)(3). 1040 com As part of its activities, ABC operates a travel tour program. 1040 com The program is open to all current members of ABC and their guests. 1040 com ABC works with travel agents to schedule approximately ten tours annually to various destinations around the world. 1040 com Members of ABC pay $1,000 to XYZ Travel Agency to participate in a tour. 1040 com XYZ pays ABC a per person fee for each participant. 1040 com Although the literature advertising the tours encourages ABC members to continue their lifelong learning by joining the tours, and a faculty member of ABC's related university frequently joins the tour as a guest of the alumni association, none of the tours include any scheduled instruction or curriculum related to the destinations being visited. 1040 com The travel tours made available to ABC's members do not contribute importantly to the accomplishment of ABC's educational purpose. 1040 com Rather, ABC's program is designed to generate revenues for ABC by regularly offering its members travel services. 1040 com Therefore, ABC's tour program is an unrelated trade or business. 1040 com For additional information on unrelated business income, see Publication 598 and the Instructions for Form 990-T. 1040 com Employment Tax Returns Every employer, including an organization exempt from federal income tax, who pays wages to employees is responsible for withholding, depositing, paying, and reporting federal income tax, social security and Medicare (FICA) taxes, and federal unemployment tax (FUTA), unless that employer is specifically excepted by law from those requirements, or if the taxes clearly do not apply. 1040 com For more information, obtain a copy of Publication 15, which summarizes the responsibilities of an employer, Publication 15-A, Publication 15-B, and Form 941. 1040 com Small Business Health Care Tax Credit. 1040 com   If your small tax-exempt organization provides health care coverage for your workers you may qualify for the small business health care tax credit. 1040 com Go to IRS. 1040 com gov and select Affordable Care Act Tax Provisions for more details. 1040 com See Small Business Health Care Tax Credit at www. 1040 com irs. 1040 com gov/newsroom/article/0,,id=223666,00. 1040 com html. 1040 com Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. 1040 com   The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). 1040 com The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer's share of social security tax. 1040 com The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013. 1040 com This tax credit was extended through December 31, 2013, under the American Taxpayer Relief Act, passed on January 1, 2013. 1040 com   The credit can be as high as $6,240 for qualified tax-exempt organizations. 1040 com The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. 1040 com The amount of the credit for qualified tax-exempt organizations may not exceed the organization's employer social security tax for the period for which the credit is claimed. 1040 com   All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit. 1040 com The process for certifying veterans for this credit is the same for all employers. 1040 com For more information, see Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit and the instructions to Form 8850. 1040 com Notice 2012-13, 2012-9 I. 1040 com R. 1040 com B. 1040 com 421, also provides additional guidance on submission Form 8850. 1040 com   Organizations described in section 501(c) and exempt from taxation under section 501(a) may claim the credit for qualified veterans who begin work on or after Nov. 1040 com 22, 2011, and before January 1, 2013. 1040 com After the required certification is secured, tax-exempt employers claim the credit against the employer social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans, Form 5884-C. 1040 com File Form 5884-C after filing the related employment tax return for the employment tax period for which the credit is claimed. 1040 com It is recommended that qualified tax-exempt employers do not reduce their required deposits in anticipation of any credit as the forms are processed separately. 1040 com In addition to Form 5884-C and its instructions, tax-exempt employers should see Notice 2012-13 and the Frequently Asked Questions & Answers for more details for claiming the credit. 1040 com Trust fund recovery penalty. 1040 com   If any person required to collect, truthfully account for, and pay over any of these taxes willfully fails to satisfy any of these requirements or willfully tries in any way to evade or defeat any of them, that person will be subject to a penalty. 1040 com The penalty is equal to the tax evaded, not collected, or not accounted for and paid over. 1040 com The term person includes: An officer or employee of a corporation, or A member or employee of a partnership. 1040 com Exception. 1040 com   The penalty is not imposed on any unpaid volunteer director or member of a board of trustees of an exempt organization if the unpaid volunteer serves solely in an honorary capacity, does not participate in the day-to-day or financial operations of the organization, and does not have actual knowledge of the failure on which the penalty is imposed. 1040 com   This exception does not apply if it results in no one being liable for the penalty. 1040 com FICA and FUTA tax exceptions. 1040 com   Payments for services performed by a minister of a church in the exercise of the ministry, or a member of a religious order performing duties required by the order, are generally not subject to FICA or FUTA taxes. 1040 com FUTA tax exception. 1040 com   Payments for services performed by an employee of a religious, charitable, educational, or other organization described in section 501(c)(3) that are generally subject to FICA taxes if the payments are $100 or more for the year, are not subject to FUTA taxes. 1040 com FICA tax exemption election. 1040 com   Churches and qualified church-controlled organizations can elect exemption from employer FICA taxes by filing Form 8274. 1040 com   To elect the exemption, Form 8274 must be filed before the first date on which a quarterly employment tax return would otherwise be due from the electing organization. 1040 com The organization can make the election only if it is opposed for religious reasons to the payment of FICA taxes. 1040 com   The election applies to payments for services of current and future employees other than services performed in an unrelated trade or business. 1040 com Revoking the election. 1040 com   The election can be revoked by the IRS if the organization fails to file Form W-2, Wage and Tax Statement, for 2 years and fails to furnish certain information upon request by the IRS. 1040 com Such revocation will apply retroactively to the beginning of the 2-year period. 1040 com Definitions. 1040 com   For purposes of this election, the term church means a church, a convention or association of churches, or an elementary or secondary school that is controlled, operated, or principally supported by a church or by a convention or association of churches. 1040 com   The term qualified church-controlled organization means any church-controlled section 501(c)(3) tax-exempt organization, other than an organization that both: Offers goods, services, or facilities for sale, other than on an incidental basis, to the general public at other than a nominal charge that is substantially less than the cost of providing such goods, services, or facilities, and Normally receives more than 25% of its support from the sum of governmental sources and receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in activities that are not unrelated trades or businesses. 1040 com Effect on employees. 1040 com   If a church or qualified church-controlled organization has made an election, payment for services performed for that church or organization, other than in an unrelated trade or business, will not be subject to FICA taxes. 1040 com However, the employee, unless otherwise exempt, will be subject to self-employment tax on the income. 1040 com The tax applies to income of $108. 1040 com 28 or more for the tax year from that church or organization, and no deductions for trade or business expenses are allowed against this self-employment income. 1040 com   Schedule SE (Form 1040), Self-Employment Tax, should be attached to the employee's income tax return. 1040 com Political Organization Income Tax Return Generally, a political organization is treated as an organization exempt from tax. 1040 com Certain political organizations, however, must file an annual income tax return, Form 1120-POL, U. 1040 com S. 1040 com Income Tax Return for Certain Political Organizations, for any year they have political organization taxable income in excess of the $100 specific deduction allowed under section 527. 1040 com A political organization that has $25,000 ($100,000 for a qualified state or local political organization) or more in gross receipts for the tax year must file Form 990 or Form 990-EZ (and Schedule B of the form), unless excepted. 1040 com See Forms 990 and 990-EZ , earlier. 1040 com Political organization. 1040 com   A political organization is a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function. 1040 com Exempt function. 1040 com   An exempt function means influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any federal, state, local public office or office in a political organization, or the election of the Presidential or Vice Presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed. 1040 com It also includes certain office expenses of a holder of public office or an office in a political organization. 1040 com Certain political organizations are required to notify the IRS that they are section 527 organizations. 1040 com These organizations must use Form 8871. 1040 com Some of these section 527 organizations must use Form 8872 to file periodic reports with the IRS disclosing their contributions and expenditures. 1040 com For a discussion on these forms, see Reporting Requirements for a Political Organization, later. 1040 com Political organization taxable income. 1040 com   Political organization taxable income is the excess of: Gross income for the tax year (excluding exempt function income) minus Deductions directly connected with the earning of gross income. 1040 com To figure taxable income, allow for a $100 specific deduction, but do not allow for the net operating loss deduction, the dividends-received deduction, and other special deductions for corporations. 1040 com Exempt organization not a political organization. 1040 com   An organization exempt under section 501(c) that spends any amount for an exempt function must file Form 1120-POL for any year which it has political taxable income. 1040 com These organizations must include in gross income the lesser of: The total amount of its exempt function expenditures, or The organization's net investment income. 1040 com Separate fund. 1040 com   A section 501(c) organization can set up a separate segregated fund that will be treated as an independent political organization. 1040 com The earnings and expenditures made by the separate fund will not be attributed to the section 501(c) organization. 1040 com Section 501(c)(3) organizations are precluded from, and may suffer loss of exemption for, engaging in any political campaign on behalf of, or in opposition to, any candidate for public office. 1040 com Due date. 1040 com   Form 1120-POL is due by the 15th day of the 3rd month after the end of the tax year. 1040 com Thus, for a calendar year taxpayer, Form 1120-POL is due on March 15 of the following year. 1040 com If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day. 1040 com    Form 1120-POL is not required of an exempt organization that makes expenditures for political purposes if its gross income does not exceed its directly connected deductions by more than $100 for the tax year. 1040 com Extension of time to file. 1040 com    Use Form 7004 to request an automatic 6-month extension of time to file Form 1120-POL. 1040 com The extension will be granted if you complete Form 7004 properly, make a proper estimate of the tax (if applicable), file Form 1120-POL by the due date, and pay any tax due. 1040 com Failure to file. 1040 com   A political organization that fails to file Form 1120-POL is subject to a penalty equal to 5% of the tax due for each month (or partial month) the return is late up to a maximum of 25% of the tax due, unless the organization shows the failure was due to reasonable cause. 1040 com For more information about filing Form 1120-POL, refer to the instructions accompanying the form. 1040 com Failure to pay on time. 1040 com   An organization that does not pay the tax when due generally may have to pay a penalty of 1/2 of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. 1040 com The penalty will not be imposed if the organization can show that the failure to pay on time was due to reasonable cause. 1040 com Reporting Requirements for a Political Organization Certain political organizations are required to notify the IRS that the organization is to be treated as a section 527 political organization. 1040 com The organization is also required to periodically report certain contributions received and expenditures made by the organization. 1040 com To notify the IRS of section 527 treatment, an organization must file Form 8871. 1040 com To report contributions and expenditures, certain tax-exempt political organizations must file Form 8872. 1040 com Form 8871 A political organization must electronically file Form 8871 to notify the IRS that it is to be treated as a section 527 organization. 1040 com However, an organization is not required to file Form 8871 if: It reasonably expects its annual gross receipts to always be less than $25,000. 1040 com It is a political committee required to report under the Federal Election Campaign Act of 1971 (FECA) (2 U. 1040 com S. 1040 com C. 1040 com 431(4)). 1040 com It is a state or local candidate committee. 1040 com It is a state or local committee of a political party. 1040 com It is a section 501(c) organization that has made an “exempt function expenditure. 1040 com ” All other political organizations are required to file Form 8871. 1040 com An organization must provide on Form 8871: Its name and address (including any business address, if different) and its electronic mailing address; Its purpose; The names and addresses of its officers, highly compensated employees, contact person, custodian of records, and members of its board of directors; The name and address of, and relationship to, any related entities (within the meaning of section 168(h)(4)); and Whether it intends to claim an exemption from filing Form 8872, Form 990, or Form 990-EZ. 1040 com Employer identification number. 1040 com   If your organization needs an EIN, you can apply for one: Online—Click on the Employer ID Numbers (EINs) link at www. 1040 com IRS. 1040 com gov/businesses/small. 1040 com By telephone at 1-800-829-4933 from 7:00 a. 1040 com m. 1040 com to 10:00 p. 1040 com m. 1040 com in the organization's local time zone. 1040 com By mailing or faxing Form SS-4. 1040 com   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. 1040 com Due dates. 1040 com   The initial Form 8871 must be filed within 24 hours of the date on which the organization was established. 1040 com If there is a material change, an amended Form 8871 must be filed within 30 days of the material change. 1040 com When the organization terminates its existence, it must file a final Form 8871 within 30 days of termination. 1040 com   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. 1040 com How to file. 1040 com   An organization must file Form 8871 electronically via the IRS Internet website at www. 1040 com IRS. 1040 com gov/polorgs (Keyword: political orgs). 1040 com Form 8453-X, Political Organization Declaration for Electronic Filing of Notice of Section 527 Status. 1040 com   After electronically submitting Form 8871, the political organization must print, sign, and mail Form 8453-X to the IRS. 1040 com Upon receipt of the Form 8453-X, the IRS will send the organization a username and password that must be used to file an amended or final Form 8871 or to electronically file Form 8872. 1040 com Penalties Failure to file. 1040 com   An organization that is required to file Form 8871, but fails to do so on a timely basis, will not be treated as a tax-exempt section 527 organization for any period before the date Form 8871 is filed. 1040 com Also, the taxable income of the organization for that period will include its exempt function income (including contributions received, membership dues, and political fundraising receipts) minus any deductions directly connected with the production of that income. 1040 com   Failure to file an amended Form 8871 will cause the organization not to be treated as a tax-exempt section 527 organization. 1040 com If an organization is treated as not being a tax-exempt section 527 organization, the taxable income of the organization will be determined by considering any exempt function income and deductions during the period beginning on the date of the material change and ending on the date that the amended Form 8871 is filed. 1040 com    The tax is computed by multiplying the organization's taxable income by the highest corporate tax rate. 1040 com Fraudulent returns. 1040 com   Any individual or corporation that willfully delivers or discloses to the IRS any list, return, account, statement or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation) or imprisoned for not more than 1 year or both. 1040 com Waiver of penalties. 1040 com   The IRS may waive any additional tax assessed on an organization for failure to file Form 8871 if the failure was due to reasonable cause and not willful neglect. 1040 com Additional information. 1040 com   For more information on Form 8871, see the form and its instructions. 1040 com For a discussion on the public inspection requirements for the form, see Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms , later. 1040 com Form 8872 Every tax-exempt section 527 political organization that accepts a contribution or makes an expenditure, for an exempt function during the calendar year, must file Form 8872 except: A political organization that is not required to file Form 8871 (discussed earlier). 1040 com A political organization that is subject to tax on its income because it did not file or amend Form 8871. 1040 com A qualified state or local political organization (QSLPO), discussed below. 1040 com All other tax-exempt section 527 organizations that accept contributions or make expenditures for an exempt function are required to file Form 8872. 1040 com Qualified state or local political organization. 1040 com   A state or local political organization may be a QSLPO if: All of its political activities relate solely to state or local public office (or office in a state or local political organization). 1040 com It is subject to a state law that requires it to report (and it does report) to a state agency information about contributions and expenditures that is similar to the information that the organization would otherwise be required to report to the IRS. 1040 com The state agency and the organization make the reports publicly available. 1040 com No federal candidate or office holder: Controls or materially participates in the direction of the organization, Solicits contributions for the organization, or Directs the disbursements of the organization. 1040 com Information required on Form 8872. 1040 com   If an organization pays an individual $500 or more for the calendar year, the organization is required to disclose the individual's name, address, occupation, employer, amount of the expense, the date the expense was paid, and the purpose of the expense on Form 8872. 1040 com   If an organization receives contributions of $200 or more from one contributor for the calendar year, the organization must disclose the donor's name, address, occupation, employer, and the date the contributions were made. 1040 com   For additional information that is required, see Form 8872. 1040 com Due dates. 1040 com   The due dates for filing Form 8872 vary depending on whether the form is due for a reporting period that occurs during a calendar year in which a regularly scheduled election is held, or any other calendar year (a nonelection year). 1040 com   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. 1040 com Election year filing. 1040 com    In election years, Form 8872 must be filed on either a quarterly or a monthly basis. 1040 com Both a pre-election report and a post-election report are also required to be filed in an election year. 1040 com An election year is any year in which a regularly scheduled general election for federal office is held (an even-numbered year). 1040 com Nonelection year filing. 1040 com    In nonelection years, the form must be filed on a semiannual or monthly basis. 1040 com A complete listing of these filing periods are in the Form 8872 Instructions. 1040 com A nonelection year is any odd-numbered year. 1040 com How to file. 1040 com   Form 8872 can be filed either electronically or by mail. 1040 com However, organizations that have, or expect to have, contributions or expenditures of $50,000 or more for the year must file electronically. 1040 com    To file by mail, send Form 8872 to the:   Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027 Electronic filing. 1040 com   File electronically via the IRS internet website at www. 1040 com IRS. 1040 com gov/polorgs. 1040 com You will need a user ID and password to electronically file Form 8872. 1040 com Organizations that have completed the electronic filing of Form 8871 and submitted a completed and signed Form 8453-X will receive a username and password in the mail. 1040 com   Organizations that have completed the electronic filing of Form 8871, but have not received their user ID and password can request one by writing to the following address: Internal Revenue Service Attn: Request for 8872 Password Mail Stop 6273 Ogden, UT 84201 Lost username and password. 1040 com   If you have forgotten or misplaced the username and password issued to your organization after you filed your initial Form 8871, send a letter requesting a new username and password to the address under Electronic filing. 1040 com You can also fax your request to (801) 620-3249. 1040 com It may take 3-6 weeks for your new username and password to arrive, as they will be mailed to the organization. 1040 com Penalty A penalty will be imposed if the organization is required to file Form 8872 and it: Fails to file the form by the due date, or Files the form but fails to report all of the information required or reports incorrect information. 1040 com The penalty is 35% of the total amount of contributions and expenditures to which a failure relates. 1040 com Fraudulent returns. 1040 com   Any individual or corporation that willfully delivers or discloses any list, return, account, statement, or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned for not more than 1 year, or both. 1040 com Waiver of penalties. 1040 com   The IRS may waive any additional tax assessed on an organization for failure to file Form 8872 if the failure was due to reasonable cause and not willful neglect. 1040 com Donee Information Return Dispositions of donated property. 1040 com   If an organization receives charitable deduction property and within three years sells, exchanges, or otherwise disposes of the property, the organization must file Form 8282, Donee Information Return. 1040 com However, an organization is not required to file Form 8282 if: The property is valued at $500 or less, or The property is consumed or distributed for charitable purposes. 1040 com   Form 8282 must be filed with the IRS within 125 days after the disposition. 1040 com Additionally, a copy of Form 8282 must be given to the donor. 1040 com If the organization fails to file the required information return, penalties may apply. 1040 com Charitable deduction property. 1040 com   This is any property (other than money or publicly traded securities) for which the donee organization signed an appraisal summary or Form 8283, Noncash Charitable Contributions. 1040 com Publicly traded securities. 1040 com   These are securities for which market quotations are readily available on an established securities market as of the date of the contribution. 1040 com Appraisal summary. 1040 com   If the value of the donated property exceeds $5,000, the donor must get a qualified appraisal for contributions of property, see the Exceptions. 1040 com below. 1040 com Exceptions. 1040 com   A written appraisal is not needed if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane), if your deduction for the vehicle is limited to the gross proceeds from its sale, Intellectual property, Certain securities considered to have market quotations readily available (see Regulations section 1. 1040 com 170A-13(c)(7)(xi)(B)), Inventory and other property donated by a corporation that are qualified contributions for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A), or Any donation of stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. 1040 com   The donee organization is not a qualified appraiser for the purpose of valuing the donated property. 1040 com For more information, get Publication 561, Determining the Value of Donated Property. 1040 com Form 8283. 1040 com   For noncash donations over $5,000, the donor must attach Form 8283 to the tax return to support the charitable deduction. 1040 com The donee must sign Part IV of Section B, Form 8283 unless publicly traded securities are donated. 1040 com The person who signs for the donee must be an official authorized to sign the donee's tax or information returns, or a person specifically authorized to sign by that official. 1040 com The signature does not represent concurrence in the appraised value of the contributed property. 1040 com A signed acknowledgment represents receipt of the property described on Form 8283 on the date specified on the form. 1040 com The signature also indicates knowledge of the information reporting requirements on dispositions, as previously discussed. 1040 com A copy of Form 8283 must be given to the donee. 1040 com Information Provided to Donors In some situations, a donor must obtain certain information from a donee organization to obtain a deduction for a charitable contribution. 1040 com In other situations, the donee organization is required to provide information to the donor. 1040 com A charitable organization must give a donor a disclosure statement for a quid pro quo contribution over $75. 1040 com (See Disclosure statement. 1040 com later. 1040 com ) This is a payment a donor makes to a charity partly as a contribution and partly for goods or services. 1040 com See Quid pro quo contribution below for an example. 1040 com Failure to make the required disclosure may result in a penalty to the organization. 1040 com A donor cannot deduct a charitable contribution of $250 or more unless the donor has a written acknowledgment from the charitable organization. 1040 com In certain circumstances, an organization may be able to meet both of these requirements with the same written document. 1040 com Disclosure of Quid Pro Quo Contributions A charitable organization must provide a written disclosure statement to donors of a quid pro quo contribution over $75. 1040 com Quid pro quo contribution. 1040 com   A contribution made by a donor in exchange for goods or services is known as a quid pro quo contribution. 1040 com Your charitable organization must provide the donor a written statement informing the donor of the fair market value of the items or services it provided in exchange for the contribution. 1040 com Generally, a written statement is required for each payment, whenever the contribution portion is over $75. 1040 com Example. 1040 com If a donor gives your charity $100 and receives a concert ticket valued at $40, the donor has made a quid pro quo contribution. 1040 com In this example, the charitable part of the payment is $60. 1040 com Even though the deductible part of the payment is not more than $75, a written statement must be filed because the total payment is more than $75. 1040 com If your organization fails to disclose quid pro quo contributions, the organization may be subject to a penalty. 1040 com Disclosure statement. 1040 com   The required written disclosure statement must: Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the fair market value of goods or services provided by the charity, and Provide the donor with a good faith estimate of the fair market value of the goods or services that the donor received. 1040 com The charity must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. 1040 com If the disclosure statement is furnished in connection with a particular solicitation, it is not necessary for the organization to provide another statement when it actually receives the contribution. 1040 com   No disclosure statement is required if any of the following are true. 1040 com The goods or services given to a donor have insubstantial value as described in Revenue Procedure 90-12, 1990-1 C. 1040 com B. 1040 com 471, Revenue Procedure 90-12, and Revenue Procedure 92-49, 1992-1 C. 1040 com B. 1040 com 507 (as adjusted for inflation), Revenue Procedure 92-49. 1040 com There is no donative element involved in a particular transaction with a charity (for example, there is generally no donative element involved in a visitor's purchase from a museum gift shop). 1040 com There is only an intangible religious benefit provided to the donor. 1040 com The intangible religious benefit must be provided to the donor by an organization organized exclusively for religious purposes, and must be of a type that generally is not sold in a commercial transaction outside the donative context. 1040 com For example, a donor who, for a payment, is granted admission to a religious ceremony for which there is no admission charge is provided an intangible religious benefit. 1040 com A donor is not provided intangible religious benefits for payments made for tuition for education leading to a recognized degree, travel services, or consumer goods. 1040 com The donor makes a payment of $75 or less per year and receives only annual membership benefits that consist of: Any rights or privileges (other than the right to purchase tickets for college athletic events) that the taxpayer can exercise often during the membership period, such as free or discounted admissions or parking or preferred access to goods or services, or Admission to events that are open only to members and the cost per person of which is within the limits for low-cost articles described in Revenue Procedure 90-12 (as adjusted for inflation), Revenue Procedure 90-12. 1040 com Good faith estimate of fair market value (FMV). 1040 com   An organization can use any reasonable method to estimate the FMV of goods or services it provided to a donor, as long as it applies the method in good faith. 1040 com   The organization can estimate the FMV of goods or services that generally are not commercially available by using the FMV of similar or comparable goods or services. 1040 com Goods or services may be similar or comparable even if they do not have the unique qualities of the goods or services being valued. 1040 com Example 1. 1040 com A charity provides a 1-hour tennis lesson with a tennis professional for the first $500 payment it receives. 1040 com The tennis professional provides 1-hour lessons on a commercial basis for $100. 1040 com A good faith estimate of the lesson's FMV is $100. 1040 com Example 2. 1040 com For a payment of $50,000, a museum allows a donor to hold a private event in a room of the museum. 1040 com A good faith estimate of the FMV of the right to hold the event in the museum can be made by using the cost of renting a hotel ballroom with a capacity, amenities, and atmosphere comparable to the museum room, even though the hotel ballroom lacks the unique art displayed in the museum room. 1040 com If the hotel ballroom rents for $2,500, a good faith estimate of the FMV of the right to hold the event in the museum is $2,500. 1040 com Example 3. 1040 com For a payment of $1,000, a charity provides an evening tour of a museum conducted by a well-known artist. 1040 com The artist does not provide tours on a commercial basis. 1040 com Tours of the museum normally are free to the public. 1040 com A good faith estimate of the FMV of the evening museum tour is $0 even though it is conducted by the artist. 1040 com Penalty for failure to disclose. 1040 com   A penalty is imposed on a charity that does not make the required disclosure of a quid pro quo contribution of more than $75. 1040 com The penalty is $10 per contribution, not to exceed $5,000 per fundraising event or mailing. 1040 com The charity can avoid the penalty if it can show that the failure was due to reasonable cause. 1040 com Acknowledgment of Charitable Contributions of $250 or More A donor can deduct a charitable contribution of $250 or more only if the donor has a written acknowledgment from the charitable organization. 1040 com The donor must get the acknowledgment by the earlier of: The date the donor files the original return for the year the contribution is made, or The due date, including extensions, for filing the return. 1040 com The donor is responsible for requesting and obtaining the written acknowledgment from the donee. 1040 com A charitable organization that receives a payment made as a contribution is treated as the donee organization for this purpose even if the organization (according to the donor's instructions or otherwise) distributes the amount received to one or more charities. 1040 com Quid pro quo contribution. 1040 com   If the donee provides goods or services to the donor in exchange for the contribution (a quid pro quo contribution), the acknowledgment must include a good faith estimate of the value of the goods or services. 1040 com See Disclosure of Quid Pro Quo Contributions earlier. 1040 com Form of acknowledgment. 1040 com   Although there is no prescribed format for the written acknowledgment, it must provide enough information to substantiate the amount of the contribution. 1040 com For more information, see IRS Publication 1771, Charitable Contributions – Substantiation and Disclosure Requirements. 1040 com Cash contributions. 1040 com   To deduct a contribution of cash, a check, or other monetary gift (regardless of the amount), a donor must maintain a bank record or a written communication from the donee organization showing the donee's name, date, and amount of the contribution. 1040 com In the case of a lump-sum contribution (rather than a contribution by payroll deduction) made through the Combined Federal Campaign or a similar program such as a United Way Campaign, the written communication must include the name of the donee organization that is the ultimate recipient of the charitable contribution. 1040 com Contributions by payroll deduction. 1040 com   An organization may substantiate an employee's contribution by deduction from its payroll by: A pay stub, Form W-2, or other document showing a contribution to a donee organization, together with A pledge card or other document from the donee organization that shows its name. 1040 com   For contributions of $250 or more, the document must state that the donee organization provides no goods or services for any payroll contributions. 1040 com The amount withheld from each payment of wages to a taxpayer is treated as a separate contribution. 1040 com Acknowledgment of Vehicle Contribution If an exempt organization receives a contribution of a qualified vehicle with a claimed value of more than $500, the donee organization is required to provide a contemporaneous written acknowledgment to the donor. 1040 com The donee organization can use a completed Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, for the contemporaneous written acknowledgment. 1040 com See section 3. 1040 com 03 of Notice 2005-44 for guidance on the information that must be included in a contemporaneous written acknowledgment and the deadline for furnishing the acknowledgment to the donor. 1040 com Any donee organization that provides a contemporaneous written acknowledgment to a donor is required to report to the IRS the information contained in the acknowledgment. 1040 com The report is due by February 28 (March 31 if filing electronically) of the year following the year in which the donee organization provides the acknowledgment to the donor. 1040 com The organization must file the report on Copy A of Form 1098-C. 1040 com An organization that files Form 1098-C on paper should send it with Form 1096, Annual Summary and Transmittal of U. 1040 com S. 1040 com Information Returns. 1040 com See the Instructions for Form 1096 for the correct filing location. 1040 com An organization that is required to file 250 or more Forms 1098-C during the calendar year must file the forms electronically or magnetically. 1040 com Specifications for filing Form 1098-C electronically or magnetically can be found in Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically at www. 1040 com IRS. 1040 com gov/pub/irs-pdf/p1220. 1040 com pdf. 1040 com Acknowledgment For a contribution of a qualified vehicle with a claimed value of $500 or less, do not file Form 1098-C. 1040 com However, you can use it as the contemporaneous written acknowledgment under section 170(f)(8) by providing the donor with Copy C only. 1040 com See the Instructions for Form 1098-C. 1040 com Generally, the organization should complete Form 1098-C as the written acknowledgment to the donor and the IRS. 1040 com The contents of the acknowledgment depend upon whether the organization: Sells a qualified vehicle without any significant intervening use or material improvement, Intends to make a significant intervening use of or material improvement to a qualified vehicle prior to sale, or Sells a qualified vehicle to a needy individual at a price significantly below fair market value, or a gratuitous transfer to a needy individual in direct furtherance of a charitable purpose of the organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation. 1040 com For more information on the acknowledgment, see Notice 2005-44, 2005-25 I. 1040 com R. 1040 com B. 1040 com 1287, at www. 1040 com irs. 1040 com gov/irb/2005-25_IRB/2005-25_IRB/ar09. 1040 com html. 1040 com Material improvements or significant intervening use. 1040 com   To constitute significant intervening use, the organization must actually use the vehicle to substantially further the organization's regularly conducted activities, and the use must be significant, not incidental. 1040 com Factors in determining whether a use is a significant intervening use depend on the nature, extent, frequency, and duration. 1040 com For this purpose, use includes providing transportation on a regular basis for a significant period of time or significant use directly related to training in vehicle repair. 1040 com Use does not include the use of a vehicle to provide training in business skills, such as marketing or sales. 1040 com Examples of significant use include: Driving a vehicle every day for 1 year to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. 1040 com Driving a vehicle for 10,000 miles over a 1-year period to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. 1040 com   Material improvements include major repairs and additions that improve the condition of the vehicle in a manner that significantly increases the value. 1040 com To be a material improvement, the improvement cannot be funded by an additional payment to the organization from the donor of the vehicle. 1040 com Material improvements do not include cleaning, minor repairs, routine maintenance, painting, removal of dents or scratches, cleaning or repair of upholstery, and installation of theft deterrent devices. 1040 com Penalties. 1040 com   If your charitable organization receives contributions of used motor vehicles, boats, and airplanes valued over $500 it may be subject to a penalty if it knowingly: Fails to furnish an acknowledgement in a timely manner, showing the required information, or Furnishes a false or fraudulent acknowledgement of the contribution. 1040 com    Other penalties may apply. 1040 com See Part O in the 2012 General Instructions for Certain Information Returns. 1040 com   An acknowledgment containing a certification will be presumed to be false or fraudulent if the qualified vehicle is sold to a buyer other than a needy individual without a significant intervening use or material improvement within 6 months of the date of the contribution. 1040 com   If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value. 1040 com Vehicles sold at auction are not sold at prices significantly below fair market value, and the IRS will not treat vehicles sold at auction as qualifying for this exception. 1040 com   The penalty for a false or fraudulent acknowledgment where the donee certifies that the vehicle will not be transferred for money, other property, or services before completion of material improvements or significant intervening use or the donee certifies that the vehicle is to be transferred to a needy individual for significantly below fair market value in furtherance of the donee's charitable purpose is the larger of $5,000 or the claimed value of the vehicle multiplied by 39. 1040 com 6%. 1040 com   The penalty for an acknowledgment relating to a qualified vehicle being sold in an arm's length transaction to an unrelated party is the larger of the gross proceeds from the sale or the sales price stated in the acknowledgment multiplied by 39. 1040 com 6%. 1040 com Qualified Intellectual Property A taxpayer who contributes qualified intellectual property to a charity may be entitled to a charitable deduction, in addition to any initial deduction allowed in the year of contribution. 1040 com The additional deduction is based on a specified percentage of the qualified donee income with respect to the qualified intellectual property. 1040 com To qualify for the additional charitable deduction, the donor must provide notice to the donee at the time of the contribution that the donor intends to treat the contribution as qualified intellectual property contribution for purposes of sections 170(m) and 6050L. 1040 com Every donee organization described in section 170(c) (except a private foundation as defined in section 509(a) that is not described in section 170(b)(1)(F)) that receives or accrues net income from a charitable gift of qualified intellectual property must file Form 8899. 1040 com Form 8899. 1040 com   Form 8899, Notice of Income From Donated Intellectual Property, is used by a donee to report net income from qualified intellectual property to the donor of the property and to the IRS and is due by the last day of the first full month following the close of the donee’s tax year. 1040 com This form must be filed for each tax year of the donee in which the donated property produces net income, but only if all or part of that tax year occurs during the 10-year period beginning on the date of the contribution and that tax year does not begin after the expiration of the legal life of the donated property. 1040 com Qualified donee income. 1040 com   Qualified donee income is any net income received by or accrued to the donee that is properly allocable to the qualified intellectual property for the tax year of the donee which ends within or with the tax year of the donor. 1040 com Income is not treated as allocated to qualified intellectual property if it is received or accrued after the earlier of the expiration of the legal life of the qualified intellectual property, or the 10-year period beginning with the date of
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Understanding your CP39 Notice

We used a refund from your spouse or former spouse to pay your past due tax debt. You may still owe money.


What you need to do

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Answers to Common Questions

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Call us at the toll free number on the top right corner of your notice. Please have your paperwork (such as cancelled checks, amended return, etc.) ready when you call.

What happens if I can't pay the full amount I owe?
You can make a payment plan with us when you can't pay the full amount you owe.

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Call us at the toll free number on the top right corner of your notice to talk about payment plans or learn more about them.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 

Page Last Reviewed or Updated: 03-Mar-2014

The 1040 Com

1040 com 1. 1040 com   Filing Information Table of Contents What's New Reminders Introduction Do I Have To File a Return?Individuals—In General Dependents Certain Children Under Age 19 or Full-Time Students Self-Employed Persons Aliens Who Should File Which Form Should I Use?Form 1040EZ Form 1040A Form 1040 Does My Return Have To Be on Paper?IRS e-file When Do I Have To File?Private delivery services. 1040 com Extensions of Time To File How Do I Prepare My Return?When Do I Report My Income and Expenses? Social Security Number (SSN) Presidential Election Campaign Fund Computations Attachments Third Party Designee Signatures Paid Preparer Refunds Amount You Owe Gift To Reduce Debt Held by the Public Name and Address Where Do I File? What Happens After I File?What Records Should I Keep? Why Keep Records? Kinds of Records to Keep Basic Records How Long to Keep Records Refund Information Interest on Refunds Change of Address What If I Made a Mistake?Amended Returns and Claims for Refund Penalties Identity Theft What's New Filing status for same-sex married couple. 1040 com   If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. 1040 com See Publication 501 for more information. 1040 com Additional Medicare Tax. 1040 com  Beginning in 2013, a 0. 1040 com 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. 1040 com For more information, see the Instructions for Form 1040, line 60, and Form 8959. 1040 com Net Investment Income Tax. 1040 com  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). 1040 com NIIT is a 3. 1040 com 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. 1040 com For more information, see the Instructions for Form 1040, line 60, and Form 8960. 1040 com Refundable credit for prior year minimum tax. 1040 com  The refundable portion of the credit for prior year minimum tax is no longer available. 1040 com Who must file. 1040 com  Generally, the amount of income you can receive before you must file a return has been increased. 1040 com See Table 1-1, Table 1-2, and Table 1-3 for the specific amounts. 1040 com Reminders File online. 1040 com  Rather than filing a return on paper, you may be able to file electronically using IRS e-file. 1040 com Create your own personal identification number (PIN) and file a completely paperless tax return. 1040 com For more information, see Does My Return Have To Be on Paper , later. 1040 com Change of address. 1040 com  If you change your address, you should notify the IRS. 1040 com You can use Form 8822 to notify the IRS of the change. 1040 com See Change of Address , later, under What Happens After I File. 1040 com Enter your social security number. 1040 com  You must enter your social security number (SSN) in the spaces provided on your tax return. 1040 com If you file a joint return, enter the SSNs in the same order as the names. 1040 com Direct deposit of refund. 1040 com  Instead of getting a paper check, you may be able to have your refund deposited directly into your account at a bank or other financial institution. 1040 com See Direct Deposit under Refunds, later. 1040 com If you choose direct deposit of your refund, you may be able to split the refund among two or three accounts. 1040 com Pay online or by phone. 1040 com  If you owe additional tax, you may be able to pay online or by phone. 1040 com See How To Pay , later. 1040 com Installment agreement. 1040 com  If you cannot pay the full amount due with your return, you may ask to make monthly installment payments. 1040 com See Installment Agreement , later, under Amount You Owe. 1040 com You may be able to apply online for a payment agreement if you owe federal tax, interest, and penalties. 1040 com Automatic 6-month extension. 1040 com  You can get an automatic 6-month extension to file your tax return if, no later than the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. 1040 com S. 1040 com Individual Income Tax Return. 1040 com See Automatic Extension , later. 1040 com Service in combat zone. 1040 com  You are allowed extra time to take care of your tax matters if you are a member of the Armed Forces who served in a combat zone, or if you served in the combat zone in support of the Armed Forces. 1040 com See Individuals Serving in Combat Zone , later, under When Do I Have To File. 1040 com Adoption taxpayer identification number. 1040 com  If a child has been placed in your home for purposes of legal adoption and you will not be able to get a social security number for the child in time to file your return, you may be able to get an adoption taxpayer identification number (ATIN). 1040 com For more information, see Social Security Number (SSN) , later. 1040 com Taxpayer identification number for aliens. 1040 com  If you or your dependent is a nonresident or resident alien who does not have and is not eligible to get a social security number, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. 1040 com For more information, see Social Security Number (SSN) , later. 1040 com Frivolous tax submissions. 1040 com  The IRS has published a list of positions that are identified as frivolous. 1040 com The penalty for filing a frivolous tax return is $5,000. 1040 com Also, the $5,000 penalty will apply to other specified frivolous submissions. 1040 com For more information, see Civil Penalties , later. 1040 com Introduction This chapter discusses the following topics. 1040 com Whether you have to file a return. 1040 com Which form to use. 1040 com How to file electronically. 1040 com When, how, and where to file your return. 1040 com What happens if you pay too little or too much tax. 1040 com What records you should keep and how long you should keep them. 1040 com How you can change a return you have already filed. 1040 com Do I Have To File a Return? You must file a federal income tax return if you are a citizen or resident of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the following categories that apply to you. 1040 com Individuals in general. 1040 com (There are special rules for surviving spouses, executors, administrators, legal representatives, U. 1040 com S. 1040 com citizens and residents living outside the United States, residents of Puerto Rico, and individuals with income from U. 1040 com S. 1040 com possessions. 1040 com ) Dependents. 1040 com Certain children under age 19 or full-time students. 1040 com Self-employed persons. 1040 com Aliens. 1040 com The filing requirements for each category are explained in this chapter. 1040 com The filing requirements apply even if you do not owe tax. 1040 com Even if you do not have to file a return, it may be to your advantage to do so. 1040 com See Who Should File, later. 1040 com File only one federal income tax return for the year regardless of how many jobs you had, how many Forms W-2 you received, or how many states you lived in during the year. 1040 com Do not file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed. 1040 com Individuals—In General If you are a U. 1040 com S. 1040 com citizen or resident, whether you must file a return depends on three factors: Your gross income, Your filing status, and Your age. 1040 com To find out whether you must file, see Table 1-1, Table 1-2, and Table 1-3. 1040 com Even if no table shows that you must file, you may need to file to get money back. 1040 com (See Who Should File , later. 1040 com ) Gross income. 1040 com   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. 1040 com It also includes income from sources outside the United States or from the sale of your main home (even if you can exclude all or part of it). 1040 com Include part of your social security benefits if: You were married, filing a separate return, and you lived with your spouse at any time during 2013; or 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). 1040 com If either (1) or (2) applies, see the instructions for Form 1040 or 1040A, or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the social security benefits you must include in gross income. 1040 com   Common types of income are discussed in Part Two of this publication. 1040 com Community income. 1040 com   If you are married and your permanent home is in a community property state, half of any income described by state law as community income may be considered yours. 1040 com This affects your federal taxes, including whether you must file if you do not file a joint return with your spouse. 1040 com See Publication 555, Community Property, for more information. 1040 com Nevada, Washington, and California domestic partners. 1040 com   A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. 1040 com See Publication 555. 1040 com Self-employed individuals. 1040 com   If you are self-employed, your gross income includes the amount on line 7 of Schedule C (Form 1040), Profit or Loss From Business; line 1 of Schedule C-EZ (Form 1040), Net Profit From Business; and line 9 of Schedule F (Form 1040), Profit or Loss From Farming. 1040 com See Self-Employed Persons , later, for more information about your filing requirements. 1040 com    If you do not report all of your self-employment income, your social security benefits may be lower when you retire. 1040 com Filing status. 1040 com   Your filing status depends on whether you are single or married and on your family situation. 1040 com Your filing status is determined on the last day of your tax year, which is December 31 for most taxpayers. 1040 com See chapter 2 for an explanation of each filing status. 1040 com Age. 1040 com   If you are 65 or older at the end of the year, you generally can have a higher amount of gross income than other taxpayers before you must file. 1040 com See Table 1-1. 1040 com You are considered 65 on the day before your 65th birthday. 1040 com For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. 1040 com Table 1-1. 1040 com 2013 Filing Requirements for Most Taxpayers IF your filing status is. 1040 com . 1040 com . 1040 com AND at the end of 2013 you  were. 1040 com . 1040 com . 1040 com * THEN file a return if  your gross income  was at least. 1040 com . 1040 com . 1040 com ** single under 65 $10,000     65 or older $11,500   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   head of household under 65 $12,850     65 or older $14,350   qualifying widow(er) with dependent child under 65 $16,100   65 or older $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. 1040 com ** Gross income means all income you received 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). 1040 com 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). 1040 com If (a) or (b) applies, see the Instructions for Form 1040 or 1040A or Publication 915 to figure the taxable part of social security benefits you must include in gross income. 1040 com Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. 1040 com Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. 1040 com 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. 1040 com *** 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. 1040 com Surviving Spouses, Executors, Administrators, and Legal Representatives You must file a final return for a decedent (a person who died) if both of the following are true. 1040 com You are the surviving spouse, executor, administrator, or legal representative. 1040 com The decedent met the filing requirements at the date of death. 1040 com For more information on rules for filing a decedent's final return, see Publication 559, Survivors, Executors, and Administrators. 1040 com U. 1040 com S. 1040 com Citizens and Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you received abroad, including any income you can exclude under the foreign earned income exclusion. 1040 com For information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. 1040 com S. 1040 com Citizens and Resident Aliens Abroad. 1040 com It is available online and at most U. 1040 com S. 1040 com embassies and consulates. 1040 com See How To Get Tax Help in the back of this publication. 1040 com Residents of Puerto Rico If you are a U. 1040 com S. 1040 com citizen and also a bona fide resident of Puerto Rico, you generally must file a U. 1040 com S. 1040 com income tax return for any year in which you meet the income requirements. 1040 com This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. 1040 com If you are a bona fide resident of Puerto Rico for the entire year, your U. 1040 com S. 1040 com gross income does not include income from sources within Puerto Rico. 1040 com It does, however, include any income you received for your services as an employee of the United States or a U. 1040 com S. 1040 com agency. 1040 com If you receive income from Puerto Rican sources that is not subject to U. 1040 com S. 1040 com tax, you must reduce your standard deduction. 1040 com As a result, the amount of income you must have before you are required to file a U. 1040 com S. 1040 com income tax return is lower than the applicable amount in Table 1-1 or Table 1-2. 1040 com For more information, see Publication 570, Tax Guide for Individuals With Income From U. 1040 com S. 1040 com Possessions. 1040 com Individuals With Income From U. 1040 com S. 1040 com Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. 1040 com S. 1040 com Virgin Islands, special rules may apply when determining whether you must file a U. 1040 com S. 1040 com federal income tax return. 1040 com In addition, you may have to file a return with the individual island government. 1040 com See Publication 570 for more information. 1040 com Dependents If you are a dependent (one who meets the dependency tests in chapter 3), see Table 1-2 to find out whether you must file a return. 1040 com You also must file if your situation is described in Table 1-3. 1040 com Responsibility of parent. 1040 com   Generally, a child is responsible for filing his or her own tax return and for paying any tax on the return. 1040 com If a dependent child must file an income tax return but cannot file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child. 1040 com 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. 1040 com ” Child's earnings. 1040 com   Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. 1040 com This is true even if under local law the child's parent has the right to the earnings and may actually have received them. 1040 com But if the child does not pay the tax due on this income, the parent is liable for the tax. 1040 com Certain Children Under Age 19 or Full-Time Students If a child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends), the child was under age 19 at the end of 2013 or was a full-time student under age 24 at the end of 2013, and certain other conditions are met, a parent can elect to include the child's income on the parent's return. 1040 com If this election is made, the child does not have to file a return. 1040 com See Parent's Election To Report Child's Interest and Dividends in chapter 31. 1040 com Self-Employed Persons You are self-employed if you: Carry on a trade or business as a sole proprietor, Are an independent contractor, Are a member of a partnership, or Are in business for yourself in any other way. 1040 com Self-employment can include work in addition to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job. 1040 com You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1). 1040 com Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if: Your net earnings from self-employment (excluding church employee income) were $400 or more, or You had church employee income of $108. 1040 com 28 or more. 1040 com (See Table 1-3. 1040 com ) Use Schedule SE (Form 1040) to figure your self-employment tax. 1040 com Self-employment tax is comparable to the social security and Medicare tax withheld from an employee's wages. 1040 com For more information about this tax, see Publication 334, Tax Guide for Small Business. 1040 com Employees of foreign governments or international organizations. 1040 com   If you are a U. 1040 com S. 1040 com citizen who works in the United States for an international organization, a foreign government, or a wholly owned instrumentality of a foreign government, and your employer is not required to withhold social security and Medicare taxes from your wages, you must include your earnings from services performed in the United States when figuring your net earnings from self-employment. 1040 com Ministers. 1040 com   You must include income from services you performed as a minister when figuring your net earnings from self-employment, unless you have an exemption from self-employment tax. 1040 com This also applies to Christian Science practitioners and members of a religious order who have not taken a vow of poverty. 1040 com For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. 1040 com Table 1-2. 1040 com 2013 Filing Requirements for Dependents See chapter 3 to find out if someone can claim you as a dependent. 1040 com If your parents (or someone else) can claim you as a dependent, use this table to see if you must file a return. 1040 com (See Table 1-3 for other situations when you must file. 1040 com ) In this table, earned income includes salaries, wages, tips, and professional fees. 1040 com It also includes taxable scholarship and fellowship grants. 1040 com (See Scholarships and fellowships in chapter 12. 1040 com ) Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. 1040 com It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust. 1040 com Gross income is the total of your earned and unearned income. 1040 com   Single dependents—Were you either age 65 or older or blind? □ No. 1040 com You must file a return if any of the following apply. 1040 com     • Your unearned income was more than $1,000. 1040 com     • Your earned income was more than $6,100. 1040 com     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. 1040 com □ Yes. 1040 com You must file a return if any of the following apply. 1040 com     • Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). 1040 com     • Your earned income was more than $7,600 ($9,100 if 65 or older and blind). 1040 com     • 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). 1040 com Married dependents—Were you either age 65 or older or blind? □ No. 1040 com You must file a return if any of the following apply. 1040 com     • Your unearned income was more than $1,000. 1040 com     • Your earned income was more than $6,100. 1040 com     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 1040 com     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. 1040 com □ Yes. 1040 com You must file a return if any of the following apply. 1040 com     • Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). 1040 com     • Your earned income was more than $7,300 ($8,500 if 65 or older and blind). 1040 com     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 1040 com     • 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). 1040 com Aliens Your status as an alien—resident, nonresident, or dual-status—determines whether and how you must file an income tax return. 1040 com The rules used to determine your alien status are discussed in Publication 519, U. 1040 com S. 1040 com Tax Guide for Aliens. 1040 com Resident alien. 1040 com   If you are a resident alien for the entire year, you must file a tax return following the same rules that apply to U. 1040 com S. 1040 com citizens. 1040 com Use the forms discussed in this publication. 1040 com Nonresident alien. 1040 com   If you are a nonresident alien, the rules and tax forms that apply to you are different from those that apply to U. 1040 com S. 1040 com citizens and resident aliens. 1040 com See Publication 519 to find out if U. 1040 com S. 1040 com income tax laws apply to you and which forms you should file. 1040 com Dual-status taxpayer. 1040 com   If you are a resident alien for part of the tax year and a nonresident alien for the rest of the year, you are a dual-status taxpayer. 1040 com Different rules apply for each part of the year. 1040 com For information on dual-status taxpayers, see Publication 519. 1040 com Table 1-3. 1040 com Other Situations When You Must File a 2013 Return You must file a return if any of the four conditions below apply for 2013. 1040 com 1. 1040 com   You owe any special taxes, including any of the following. 1040 com   a. 1040 com Alternative minimum tax. 1040 com   b. 1040 com Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. 1040 com But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. 1040 com   c. 1040 com Household employment taxes. 1040 com But if you are filing a return only because you owe this tax, you can file Schedule H by itself. 1040 com   d. 1040 com Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes. 1040 com   e. 1040 com Recapture of first-time homebuyer credit. 1040 com   f. 1040 com Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. 1040 com   g. 1040 com Recapture taxes. 1040 com 2. 1040 com   You (or your spouse, if filing jointly) received HSA, Archer MSA, or Medicare Advantage MSA distributions. 1040 com 3. 1040 com   You had net earnings from self-employment of at least $400. 1040 com 4. 1040 com   You had wages of $108. 1040 com 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. 1040 com Who Should File Even if you do not have to file, you should file a federal income tax return to get money back if any of the following conditions apply. 1040 com You had federal income tax withheld or made estimated tax payments. 1040 com You qualify for the earned income credit. 1040 com See chapter 36 for more information. 1040 com You qualify for the additional child tax credit. 1040 com See chapter 34 for more information. 1040 com You qualify for the health coverage tax credit. 1040 com See chapter 37 for more information. 1040 com You qualify for the American opportunity credit. 1040 com See chapter 35 for more information. 1040 com You qualify for the credit for federal tax on fuels. 1040 com See chapter 37 for more information. 1040 com Which Form Should I Use? You must use one of three forms to file your return: Form 1040EZ, Form 1040A, or Form 1040. 1040 com (But also see Does My Return Have To Be on Paper , later. 1040 com ) See the discussion under Form 1040 for when you must use that form. 1040 com Form 1040EZ Form 1040EZ is the simplest form to use. 1040 com You can use Form 1040EZ if all of the following apply. 1040 com    Your filing status is single or married filing jointly. 1040 com If you were a nonresident alien at any time in 2013, your filing status must be married filing jointly. 1040 com You (and your spouse if married filing a joint return) were under age 65 and not blind at the end of 2013. 1040 com If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. 1040 com You do not claim any dependents. 1040 com Your taxable income is less than $100,000. 1040 com Your income is only from wages, salaries, tips, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less. 1040 com You do not claim any adjustments to income, such as a deduction for IRA contributions or student loan interest. 1040 com You do not claim any credits other than the earned income credit. 1040 com You do not owe any household employment taxes on wages you paid to a household employee. 1040 com If you earned tips, they are included in boxes 5 and 7 of your Form W-2. 1040 com You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005. 1040 com   You must meet all of these requirements to use Form 1040EZ. 1040 com If you do not, you must use Form 1040A or Form 1040. 1040 com Figuring tax. 1040 com   On Form 1040EZ, you can use only the tax table to figure your income tax. 1040 com You cannot use Form 1040EZ to report any other tax. 1040 com Form 1040A If you do not qualify to use Form 1040EZ, you may be able to use Form 1040A. 1040 com You can use Form 1040A if all of the following apply. 1040 com    Your income is only from: Wages, salaries, and tips, Interest, Ordinary dividends (including Alaska Permanent Fund dividends), Capital gain distributions, IRA distributions, Pensions and annuities, Unemployment compensation, Taxable social security and railroad retirement benefits, and Taxable scholarship and fellowship grants. 1040 com If you receive a capital gain distribution that includes unrecaptured section 1250 gain, section 1202 gain, or collectibles (28%) gain, you cannot use Form 1040A. 1040 com You must use Form 1040. 1040 com Your taxable income is less than $100,000. 1040 com Your adjustments to income are for only the following items. 1040 com Educator expenses. 1040 com IRA deduction. 1040 com Student loan interest deduction. 1040 com Tuition and fees. 1040 com You do not itemize your deductions. 1040 com You claim only the following tax credits. 1040 com The credit for child and dependent care expenses. 1040 com (See chapter 32. 1040 com ) The credit for the elderly or the disabled. 1040 com (See chapter 33. 1040 com ) The education credits. 1040 com (See chapter 35. 1040 com ) The retirement savings contribution credit. 1040 com (See chapter 37. 1040 com ) The child tax credit. 1040 com (See chapter 34. 1040 com ) The earned income credit. 1040 com (See chapter 36. 1040 com ) The additional child tax credit. 1040 com (See chapter 34. 1040 com ) You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option. 1040 com (See Publication 525, Taxable and Nontaxable Income. 1040 com )   You can also use Form 1040A if you received employer-provided dependent care benefits or if you owe tax from the recapture of an education credit or the alternative minimum tax. 1040 com   You must meet all these requirements to use Form 1040A. 1040 com If you do not, you must use Form 1040. 1040 com Form 1040 If you cannot use Form 1040EZ or Form 1040A, you must use Form 1040. 1040 com You can use Form 1040 to report all types of income, deductions, and credits. 1040 com You may pay less tax by filing Form 1040 because you can take itemized deductions, some adjustments to income, and credits you cannot take on Form 1040A or Form 1040EZ. 1040 com You must use Form 1040 if any of the following apply. 1040 com    Your taxable income is $100,000 or more. 1040 com You itemize your deductions on Schedule A. 1040 com You had income that cannot be reported on Form 1040EZ or Form 1040A, including tax-exempt interest from private activity bonds issued after August 7, 1986. 1040 com You claim any adjustments to gross income other than the adjustments listed earlier under Form 1040A. 1040 com Your Form W-2, box 12, shows uncollected employee tax (social security and Medicare tax) on tips (see chapter 6) or group-term life insurance (see chapter 5). 1040 com You received $20 or more in tips in any 1 month and did not report all of them to your employer. 1040 com (See chapter 6. 1040 com ) You were a bona fide resident of Puerto Rico and exclude income from sources in Puerto Rico. 1040 com You claim any credits other than the credits listed earlier under Form 1040A. 1040 com You owe the excise tax on insider stock compensation from an expatriated corporation. 1040 com Your Form W-2 shows an amount in box 12 with a code Z. 1040 com You had a qualified health savings account funding distribution from your IRA. 1040 com You are an employee and your employer did not withhold social security and Medicare tax. 1040 com You have to file other forms with your return to report certain exclusions, taxes, or transactions, such as Form 8959 or Form 8960. 1040 com You are a debtor in a bankruptcy case filed after October 16, 2005. 1040 com You must repay the first-time homebuyer credit. 1040 com You have adjusted gross income of more than $150,000 and must reduce the dollar amount of your exemptions. 1040 com Does My Return Have To Be on Paper? You may be able to file a paperless return using IRS e-file (electronic filing). 1040 com If your 2013 adjusted gross income (AGI) is less than a certain amount, you are eligible for Free File. 1040 com See your tax return instructions for details. 1040 com If you do not qualify for Free File, then you should check out IRS. 1040 com gov for low-cost e-file options or Free File Fillable Forms. 1040 com IRS e-file Table 1-4 lists the benefits of IRS e-file. 1040 com IRS e-file uses automation to replace most of the manual steps needed to process paper returns. 1040 com As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. 1040 com However, as with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. 1040 com Using e-file does not affect your chances of an IRS examination of your return. 1040 com Free File Fillable Forms. 1040 com   If you do not need the help of a tax preparer, then Free File Fillable Forms may be for you. 1040 com These forms: Do not have an income requirement so everyone is eligible, Are easy to use, Perform basic math calculations, Are available only at IRS. 1040 com gov, and Apply only to a federal tax return. 1040 com Electronic return signatures. 1040 com   To file your return electronically, you must sign the return electronically using a personal identification number (PIN). 1040 com If you are filing online, you must use a Self-Select PIN. 1040 com If you are filing electronically using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN. 1040 com Self-Select PIN. 1040 com   The Self-Select PIN method allows you to create your own PIN. 1040 com If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. 1040 com   A PIN is any combination of five digits you choose except five zeros. 1040 com If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. 1040 com   To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2012 federal income tax return, if applicable. 1040 com Do not use your AGI from an amended return (Form 1040X) or a math error correction made by the IRS. 1040 com AGI is the amount shown on your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. 1040 com If you do not have your 2012 income tax return, you can quickly request a transcript by using our automated self-service tool. 1040 com Visit us at IRS. 1040 com gov and click on Order a Return or Account Transcript or call 1-800-908-9946 to get a free transcript of your return. 1040 com (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. 1040 com The prior year PIN is the five digit PIN you used to electronically sign your 2012 return. 1040 com ) You will also be prompted to enter your date of birth. 1040 com Table 1-4. 1040 com Benefits of IRS e-file • Free File allows qualified taxpayers to prepare and e-file their own tax returns for free. 1040 com • Free File is available in English and Spanish. 1040 com • Free File is available online 24 hours a day, 7 days a week. 1040 com • Get your refund faster by e-filing using Direct Deposit. 1040 com • Sign electronically with a secure self-selected PIN and file a completely paperless return. 1040 com • Receive an acknowledgement that your return was received and accepted. 1040 com • If you owe, you can e-file and pay electronically either online or by phone, using your bank account or a credit or debit card. 1040 com You can also file a return early and pay the amount you owe by the due date of your return. 1040 com • Save time by preparing and e-filing federal and state returns together. 1040 com • IRS computers quickly and automatically check for errors or other missing information. 1040 com • Help the environment, use less paper, and save taxpayer money—it costs less to process an e-filed return than a paper return. 1040 com You cannot use the Self-Select PIN method if you are a first-time filer under age 16 at the end of 2013. 1040 com If you cannot locate your prior year AGI or prior year PIN, use the Electronic Filing PIN Request. 1040 com This can be found at IRS. 1040 com gov. 1040 com Click on Request an Electronic Filing PIN. 1040 com Or you can call 1-866-704-7388. 1040 com Practitioner PIN. 1040 com   The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN. 1040 com The practitioner can provide you with details. 1040 com Form 8453. 1040 com   You must send in a paper Form 8453 if you have to attach certain forms or other documents that cannot be electronically filed. 1040 com For details, see Form 8453. 1040 com For more details, visit www. 1040 com irs. 1040 com gov/efile and click on “ Individuals. 1040 com ” Identity Protection PIN. 1040 com   If the IRS gave you an identity protection personal identification number (PIN) because you were a victim of identity theft, enter it in the spaces provided on your tax form. 1040 com If the IRS has not given you this type of number, leave these spaces blank. 1040 com For more information, see the Instructions for Form 1040A or Form 1040. 1040 com Power of attorney. 1040 com   If an agent is signing your return for you, a power of attorney (POA) must be filed. 1040 com Attach the POA to Form 8453 and file it using that form's instructions. 1040 com See Signatures , later, for more information on POAs. 1040 com State returns. 1040 com   In most states, you can file an electronic state return simultaneously with your federal return. 1040 com For more information, check with your local IRS office, state tax agency, tax professional, or the IRS website at  www. 1040 com irs. 1040 com gov/efile. 1040 com Refunds. 1040 com   You can have a refund check mailed to you, or you can have your refund deposited directly to your checking or savings account or split among two or three accounts. 1040 com With e-file, your refund will be issued faster than if you filed on paper. 1040 com   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain other federal nontax debts, such as student loans. 1040 com See Offset against debts under Refunds, later. 1040 com Refund inquiries. 1040 com   Information about your return will generally be available within 24 hours after the IRS receives your e-filed return. 1040 com See Refund Information , later. 1040 com Amount you owe. 1040 com   To avoid late-payment penalties and interest, pay your taxes in full by April 15, 2014. 1040 com See How To Pay , later, for information on how to pay the amount you owe. 1040 com Using Your Personal Computer You can file your tax return in a fast, easy, and convenient way using your personal computer. 1040 com A computer with Internet access and tax preparation software are all you need. 1040 com Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week. 1040 com IRS approved tax preparation software is available for online use on the Internet, for download from the Internet, and in retail stores. 1040 com For information, visit www. 1040 com irs. 1040 com gov/efile. 1040 com Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. 1040 com Others offer it for a fee. 1040 com Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. 1040 com Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. 1040 com The Volunteer Income Tax Assistance (VITA) program is designed to help low to moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. 1040 com Many VITA sites offer free electronic filing and all volunteers will let you know about the credits and deductions you may be entitled to claim. 1040 com To find a site near you, call 1-800-906-9887. 1040 com Or to find the nearest AARP TaxAide site, visit AARP's website at www. 1040 com aarp. 1040 com org/taxaide or call 1-888-227-7669. 1040 com For more information on these programs, go to IRS. 1040 com gov and enter keyword “VITA” in the search box. 1040 com Using a Tax Professional Many tax professionals electronically file tax returns for their clients. 1040 com You may personally enter your PIN or complete Form 8879, IRS e-file Signature Authorization, to authorize the tax professional to enter your PIN on your return. 1040 com Note. 1040 com Tax professionals may charge a fee for IRS e-file. 1040 com Fees can vary depending on the professional and the specific services rendered. 1040 com When Do I Have To File? April 15, 2014, is the due date for filing your 2013 income tax return if you use the calendar year. 1040 com For a quick view of due dates for filing a return with or without an extension of time to file (discussed later), see Table 1-5. 1040 com Table 1-5. 1040 com When To File Your 2013 Return For U. 1040 com S. 1040 com citizens and residents who file returns on a calendar year. 1040 com   For Most Taxpayers For Certain Taxpayers Outside the U. 1040 com S. 1040 com No extension requested April 15, 2014 June 16, 2014 Automatic extension October 15, 2014 October 15, 2014 If you use a fiscal year (a year ending on the last day of any month except December, or a 52-53-week year), your income tax return is due by the 15th day of the 4th month after the close of your fiscal year. 1040 com When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. 1040 com —falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. 1040 com Filing paper returns on time. 1040 com   Your paper return is filed on time if it is mailed in an envelope that is properly addressed, has enough postage, and is postmarked by the due date. 1040 com If you send your return by registered mail, the date of the registration is the postmark date. 1040 com The registration is evidence that the return was delivered. 1040 com If you send a return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. 1040 com The postmarked certified mail receipt is evidence that the return was delivered. 1040 com Private delivery services. 1040 com   If you use a private delivery service designated by the IRS to send your return, the postmark date generally is the date the private delivery service records in its database or marks on the mailing label. 1040 com The private delivery service can tell you how to get written proof of this date. 1040 com   For the IRS mailing address to use if you are using a private delivery service, go to IRS. 1040 com gov and enter “private delivery service” in the search box. 1040 com   The following are designated private delivery services. 1040 com DHL Express (DHL): Same Day Service. 1040 com Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. 1040 com United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. 1040 com M. 1040 com , UPS Worldwide Express Plus, and UPS Worldwide Express. 1040 com Filing electronic returns on time. 1040 com   If you use IRS e-file, your return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. 1040 com An authorized electronic return transmitter is a participant in the IRS e-file program that transmits electronic tax return information directly to the IRS. 1040 com   The electronic postmark is a record of when the authorized electronic return transmitter received the transmission of your electronically filed return on its host system. 1040 com The date and time in your time zone controls whether your electronically filed return is timely. 1040 com Filing late. 1040 com   If you do not file your return by the due date, you may have to pay a failure-to-file penalty and interest. 1040 com For more information, see Penalties , later. 1040 com Also see Interest under Amount You Owe. 1040 com   If you were due a refund but you did not file a return, you generally must file within 3 years from the date the return was due (including extensions) to get that refund. 1040 com Nonresident alien. 1040 com    If you are a nonresident alien and earn wages subject to U. 1040 com S. 1040 com income tax withholding, your 2013 U. 1040 com S. 1040 com income tax return (Form 1040NR or Form 1040NR-EZ) is due by: April 15, 2014, if you use a calendar year, or The 15th day of the 4th month after the end of your fiscal year if you use a fiscal year. 1040 com   If you do not earn wages subject to U. 1040 com S. 1040 com income tax withholding, your return is due by: June 16, 2014, if you use a calendar year, or The 15th day of the 6th month after the end of your fiscal year, if you use a fiscal year. 1040 com See Publication 519 for more filing information. 1040 com Filing for a decedent. 1040 com   If you must file a final income tax return for a taxpayer who died during the year (a decedent), the return is due by the 15th day of the 4th month after the end of the decedent's normal tax year. 1040 com See Publication 559. 1040 com Extensions of Time To File You may be able to get an extension of time to file your return. 1040 com There are three types of situations where you may qualify for an extension: Automatic extensions, You are outside the United States, or You are serving in a combat zone. 1040 com Automatic Extension If you cannot file your 2013 return by the due date, you may be able to get an automatic 6-month extension of time to file. 1040 com Example. 1040 com If your return is due on April 15, 2014, you will have until October 15, 2014, to file. 1040 com If you do not pay the tax due by the regular due date (generally, April 15), you will owe interest. 1040 com You may also be charged penalties, discussed later. 1040 com How to get the automatic extension. 1040 com   You can get the automatic extension by: Using IRS e-file (electronic filing), or Filing a paper form. 1040 com E-file options. 1040 com   There are two ways you can use e-file to get an extension of time to file. 1040 com Complete Form 4868, Application for Automatic Extension of Time To File U. 1040 com S. 1040 com Individual Income Tax Return, to use as a worksheet. 1040 com If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. 1040 com If you e-file Form 4868 to the IRS, do not also send a paper Form 4868. 1040 com E-file using your personal computer or a tax professional. 1040 com    You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. 1040 com You will need to provide certain information from your tax return for 2012. 1040 com If you wish to make a payment by direct transfer from your bank account, see Pay online , under How To Pay, later in this chapter. 1040 com E-file and pay by credit or debit card or by direct transfer from your bank account. 1040 com   You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card or by direct transfer from your bank account. 1040 com You can do this by phone or over the Internet. 1040 com You do not file Form 4868. 1040 com See Pay online , under How To Pay, later in this chapter. 1040 com Filing a paper Form 4868. 1040 com   You can get an extension of time to file by filing a paper Form 4868. 1040 com Mail it to the address shown in the form instructions. 1040 com   If you want to make a payment with the form, make your check or money order payable to “United States Treasury. 1040 com ” Write your SSN, daytime phone number, and “2013 Form 4868” on your check or money order. 1040 com When to file. 1040 com   You must request the automatic extension by the due date for your return. 1040 com You can file your return any time before the 6-month extension period ends. 1040 com When you file your return. 1040 com   Enter any payment you made related to the extension of time to file on Form 1040, line 68. 1040 com If you file Form 1040EZ or Form 1040A, include that payment in your total payments on Form 1040EZ, line 9, or Form 1040A, line 41. 1040 com Also enter “Form 4868” and the amount paid in the space to the left of line 9 or line 41. 1040 com Individuals Outside the United States You are allowed an automatic 2-month extension, without filing Form 4868, (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. 1040 com S. 1040 com citizen or resident, and On the due date of your return: You are living outside the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and  Puerto Rico. 1040 com However, if you pay the tax due after the regular due date (generally, April 15), interest will be charged from that date until the date the tax is paid. 1040 com If you served in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. 1040 com See Individuals Serving in Combat Zone , later, for special rules that apply to you. 1040 com Married taxpayers. 1040 com   If you file a joint return, only one spouse has to qualify for this automatic extension. 1040 com If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. 1040 com How to get the extension. 1040 com   To use this automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. 1040 com (See the situations listed under (2), earlier. 1040 com ) Extensions beyond 2 months. 1040 com   If you cannot file your return within the automatic 2-month extension period, you may be able to get an additional 4-month extension, for a total of 6 months. 1040 com File Form 4868 and check the box on line 8. 1040 com No further extension. 1040 com   An extension of more than 6 months will generally not be granted. 1040 com However, if you are outside the United States and meet certain tests, you may be granted a longer extension. 1040 com For more information, see When To File and Pay in Publication 54. 1040 com Individuals Serving in Combat Zone The deadline for filing your tax return, paying any tax you may owe, and filing a claim for refund is automatically extended if you serve in a combat zone. 1040 com This applies to members of the Armed Forces, as well as merchant marines serving aboard vessels under the operational control of the Department of Defense, Red Cross personnel, accredited correspondents, and civilians under the direction of the Armed Forces in support of the Armed Forces. 1040 com Combat zone. 1040 com   For purposes of the automatic extension, the term “combat zone” includes the following areas. 1040 com The Arabian peninsula area, effective January 17, 1991. 1040 com The Kosovo area, effective March 24, 1999. 1040 com Afghanistan area, effective September 19, 2001. 1040 com   See Publication 3, Armed Forces' Tax Guide, for more detailed information on the locations comprising each combat zone. 1040 com The publication also has information about other tax benefits available to military personnel serving in a combat zone. 1040 com Extension period. 1040 com   The deadline for filing your return, paying any tax due, and filing a claim for refund is extended for at least 180 days after the later of: The last day you are in a combat zone or the last day the area qualifies as a combat zone, or The last day of any continuous qualified hospitalization for injury from service in the combat zone. 1040 com   In addition to the 180 days, your deadline is also extended by the number of days you had left to take action with the IRS when you entered the combat zone. 1040 com For example, you have 3½ months (January 1 – April 15) to file your tax return. 1040 com Any days left in this period when you entered the combat zone (or the entire 3½ months if you entered it before the beginning of the year) are added to the 180 days. 1040 com See Extension of Deadlines in Publication 3 for more information. 1040 com   The rules on the extension for filing your return also apply when you are deployed outside the United States (away from your permanent duty station) while participating in a designated contingency operation. 1040 com How Do I Prepare My Return? This section explains how to get ready to fill in your tax return and when to report your income and expenses. 1040 com It also explains how to complete certain sections of the form. 1040 com You may find Table 1-6 helpful when you prepare your paper return. 1040 com Table 1-6. 1040 com Six Steps for Preparing Your Paper Return 1 — Get your records together for income and expenses. 1040 com 2 — Get the forms, schedules, and publications you need. 1040 com 3 — Fill in your return. 1040 com 4 — Check your return to make sure it is correct. 1040 com 5 — Sign and date your return. 1040 com 6 — Attach all required forms and schedules. 1040 com Electronic returns. 1040 com   For information you may find useful in preparing a paperless return, see Does My Return Have To Be on Paper , earlier. 1040 com Substitute tax forms. 1040 com   You cannot use your own version of a tax form unless it meets the requirements explained in Publication 1167, General Rules and Specifications for Substitute Forms and Schedules. 1040 com Form W-2. 1040 com   If you were an employee, you should receive Form W-2 from your employer. 1040 com You will need the information from this form to prepare your return. 1040 com See Form W-2 under Credit for Withholding and Estimated Tax in chapter 4. 1040 com   Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. 1040 com If it is mailed, you should allow adequate time to receive it before contacting your employer. 1040 com If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. 1040 com When you request IRS help, be prepared to provide the following information. 1040 com Your name, address (including ZIP code), and phone number. 1040 com Your SSN. 1040 com Your dates of employment. 1040 com Your employer's name, address (including ZIP code), and phone number. 1040 com Form 1099. 1040 com   If you received certain types of income, you may receive a Form 1099. 1040 com For example, if you received taxable interest of $10 or more, the payer is required to provide or send Form 1099 to you no later than January 31, 2014 (or by February 18, 2014, if furnished by a broker). 1040 com If it is mailed, you should allow adequate time to receive it before contacting the payer. 1040 com If you still do not get the form by February 18 (or by March 5, 2014, if furnished by a broker), call the IRS for help. 1040 com When Do I Report My Income and Expenses? You must figure your taxable income on the basis of a tax year. 1040 com A “tax year” is an annual accounting period used for keeping records and reporting income and expenses. 1040 com You must account for your income and expenses in a way that clearly shows your taxable income. 1040 com The way you do this is called an accounting method. 1040 com This section explains which accounting periods and methods you can use. 1040 com Accounting Periods Most individual tax returns cover a calendar year—the 12 months from January 1 through December 31. 1040 com If you do not use a calendar year, your accounting period is a fiscal year. 1040 com A regular fiscal year is a 12-month period that ends on the last day of any month except December. 1040 com A 52-53-week fiscal year varies from 52 to 53 weeks and always ends on the same day of the week. 1040 com You choose your accounting period (tax year) when you file your first income tax return. 1040 com It cannot be longer than 12 months. 1040 com More information. 1040 com   For more information on accounting periods, including how to change your accounting period, see Publication 538, Accounting Periods and Methods. 1040 com Accounting Methods Your accounting method is the way you account for your income and expenses. 1040 com Most taxpayers use either the cash method or an accrual method. 1040 com You choose a method when you file your first income tax return. 1040 com If you want to change your accounting method after that, you generally must get IRS approval. 1040 com Cash method. 1040 com   If you use this method, report all items of income in the year in which you actually or constructively receive them. 1040 com Generally, you deduct all expenses in the year you actually pay them. 1040 com This is the method most individual taxpayers use. 1040 com Constructive receipt. 1040 com   Generally, you constructively receive income when it is credited to your account or set apart in any way that makes it available to you. 1040 com You do not need to have physical possession of it. 1040 com For example, interest credited to your bank account on December 31, 2013, is taxable income to you in 2013 if you could have withdrawn it in 2013 (even if the amount is not entered in your records or withdrawn until 2014). 1040 com Garnisheed wages. 1040 com   If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you. 1040 com You must include these wages in income for the year you would have received them. 1040 com Debts paid for you. 1040 com   If another person cancels or pays your debts (but not as a gift or loan), you have constructively received the amount and generally must include it in your gross income for the year. 1040 com See Canceled Debts in chapter 12 for more information. 1040 com Payment to third party. 1040 com   If a third party is paid income from property you own, you have constructively received the income. 1040 com It is the same as if you had actually received the income and paid it to the third party. 1040 com Payment to an agent. 1040 com   Income an agent receives for you is income you constructively received in the year the agent receives it. 1040 com If you indicate in a contract that your income is to be paid to another person, you must include the amount in your gross income when the other person receives it. 1040 com Check received or available. 1040 com   A valid check that was made available to you before the end of the tax year is constructively received by you in that year. 1040 com A check that was “made available to you” includes a check you have already received, but not cashed or deposited. 1040 com It also includes, for example, your last paycheck of the year that your employer made available for you to pick up at the office before the end of the year. 1040 com It is constructively received by you in that year whether or not you pick it up before the end of the year or wait to receive it by mail after the end of the year. 1040 com No constructive receipt. 1040 com   There may be facts to show that you did not constructively receive income. 1040 com Example. 1040 com Alice Johnson, a teacher, agreed to her school board's condition that, in her absence, she would receive only the difference between her regular salary and the salary of a substitute teacher hired by the school board. 1040 com Therefore, Alice did not constructively receive the amount by which her salary was reduced to pay the substitute teacher. 1040 com Accrual method. 1040 com   If you use an accrual method, you generally report income when you earn it, rather than when you receive it. 1040 com You generally deduct your expenses when you incur them, rather than when you pay them. 1040 com Income paid in advance. 1040 com   An advance payment of income is generally included in gross income in the year you receive it. 1040 com Your method of accounting does not matter as long as the income is available to you. 1040 com An advance payment may include rent or interest you receive in advance and pay for services you will perform later. 1040 com   A limited deferral until the next tax year may be allowed for certain advance payments. 1040 com See Publication 538 for specific information. 1040 com Additional information. 1040 com   For more information on accounting methods, including how to change your accounting method, see Publication 538. 1040 com Social Security Number (SSN) You must enter your SSN on your return. 1040 com If you are married, enter the SSNs for both you and your spouse, whether you file jointly or separately. 1040 com If you are filing a joint return, include the SSNs in the same order as the names. 1040 com Use this same order in submitting other forms and documents to the IRS. 1040 com Check that both the name and SSN on your Form 1040, W-2, and 1099 agree with your social security card. 1040 com If they do not, certain deductions and credits on your Form 1040 may be reduced or disallowed and you may not receive credit for your social security earnings. 1040 com If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. 1040 com If the name or SSN on your social security card is incorrect, call the SSA at 1-800-772-1213. 1040 com Name change. 1040 com   If you changed your name because of marriage, divorce, etc. 1040 com , be sure to report the change to your local Social Security Administration (SSA) office before filing your return. 1040 com This prevents delays in processing your return and issuing refunds. 1040 com It also safeguards your future social security benefits. 1040 com Dependent's SSN. 1040 com   You must provide the SSN of each dependent you claim, regardless of the dependent's age. 1040 com This requirement applies to all dependents (not just your children) claimed on your tax return. 1040 com Exception. 1040 com    If your child was born and died in 2013 and did not have an SSN, enter “DIED” in column (2) of line 6c (Form 1040 or 1040A) and include a copy of the child's birth certificate, death certificate, or hospital records. 1040 com The document must show that the child was born alive. 1040 com No SSN. 1040 com   File Form SS-5, Application for a Social Security Card, with your local SSA office to get an SSN for yourself or your dependent. 1040 com It usually takes about 2 weeks to get an SSN. 1040 com If you or your dependent is not eligible for an SSN, see Individual taxpayer identification number (ITIN) , later. 1040 com   If you are a U. 1040 com S. 1040 com citizen or resident alien, you must show proof of age, identity, and citizenship or alien status with your Form SS-5. 1040 com If you are 12 or older and have never been assigned an SSN, you must appear in person with this proof at an SSA office. 1040 com   Form SS-5 is available at any SSA office, on the Internet at www. 1040 com socialsecurity. 1040 com gov, or by calling 1-800-772-1213. 1040 com If you have any questions about which documents you can use as proof of age, identity, or citizenship, contact your SSA office. 1040 com   If your dependent does not have an SSN by the time your return is due, you may want to ask for an extension of time to file, as explained earlier under When Do I Have To File . 1040 com   If you do not provide a required SSN or if you provide an incorrect SSN, your tax may be increased and any refund may be reduced. 1040 com Adoption taxpayer identification number (ATIN). 1040 com   If you are in the process of adopting a child who is a U. 1040 com S. 1040 com citizen or resident and cannot get an SSN for the child until the adoption is final, you can apply for an ATIN to use instead of an SSN. 1040 com    File Form W-7A, Application for Taxpayer Identification Number for Pending U. 1040 com S. 1040 com Adoptions, with the IRS to get an ATIN if all of the following are true. 1040 com You have a child living with you who was placed in your home for legal adoption. 1040 com You cannot get the child's existing SSN even though you have made a reasonable attempt to get it from the birth parents, the placement agency, and other persons. 1040 com You cannot get an SSN for the child from the SSA because, for example, the adoption is not final. 1040 com You are eligible to claim the child as a dependent on your tax return. 1040 com After the adoption is final, you must apply for an SSN for the child. 1040 com You cannot continue using the ATIN. 1040 com   See Form W-7A for more information. 1040 com Nonresident alien spouse. 1040 com   If your spouse is a nonresident alien, your spouse must have either an SSN or an ITIN if: You file a joint return, You file a separate return and claim an exemption for your spouse, or Your spouse is filing a separate return. 1040 com If your spouse is not eligible for an SSN, see the following discussion on ITINs. 1040 com Individual taxpayer identification number (ITIN). 1040 com   The IRS will issue you an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. 1040 com This also applies to an alien spouse or dependent. 1040 com To apply for an ITIN, file Form W-7 with the IRS. 1040 com It usually takes about 6 to 10 weeks to get an ITIN. 1040 com Enter the ITIN on your tax return wherever an SSN is requested. 1040 com    If you are applying for an ITIN for yourself, your spouse, or a dependent in order to file your tax return, attach your completed tax return to your Form W-7. 1040 com See the Form W-7 instructions for how and where to file. 1040 com You cannot e-file a return using an ITIN in the calendar year the ITIN is issued; however, you can e-file returns in the following years. 1040 com ITIN for tax use only. 1040 com   An ITIN is for tax use only. 1040 com It does not entitle you or your dependent to social security benefits or change the employment or immigration status of either of you under U. 1040 com S. 1040 com law. 1040 com Penalty for not providing social security number. 1040 com   If you do not include your SSN or the SSN of your spouse or dependent as required, you may have to pay a penalty. 1040 com See the discussion on Penalties , later, for more information. 1040 com SSN on correspondence. 1040 com   If you write to the IRS about your tax account, be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in your correspondence. 1040 com Because your SSN is used to identify your account, this helps the IRS respond to your correspondence promptly. 1040 com Presidential Election Campaign Fund This fund helps pay for Presidential election campaigns. 1040 com If you want $3 to go to this fund, check the box. 1040 com If you are filing a joint return, your spouse can also have $3 go to the fund. 1040 com If you check a box, your tax or refund will not change. 1040 com Computations The following information may be useful in making the return easier to complete. 1040 com Rounding off dollars. 1040 com   You can round off cents to whole dollars on your return and schedules. 1040 com If you do round to whole dollars, you must round all amounts. 1040 com To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. 1040 com For example, $1. 1040 com 39 becomes $1 and $2. 1040 com 50 becomes $3. 1040 com   If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. 1040 com Example. 1040 com You receive two Forms W-2: one showing wages of $5,000. 1040 com 55 and one showing wages of $18,500. 1040 com 73. 1040 com On Form 1040, line 7, you would enter $23,501 ($5,000. 1040 com 55 + $18,500. 1040 com 73 = $23,501. 1040 com 28), not $23,502 ($5,001 + $18,501). 1040 com Equal amounts. 1040 com   If you are asked to enter the smaller or larger of two equal amounts, enter that amount. 1040 com Example. 1040 com Line 1 is $500. 1040 com Line 3 is $500. 1040 com Line 5 asks you to enter the smaller of line 1 or 3. 1040 com Enter $500 on line 5. 1040 com Negative amounts. 1040 com   If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. 1040 com To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts. 1040 com Attachments Depending on the form you file and the items reported on your return, you may have to complete additional schedules and forms and attach them to your paper return. 1040 com You may be able to file a paperless return using IRS e-file. 1040 com There's nothing to attach or mail, not even your Forms W-2. 1040 com See Does My Return Have To Be on Paper, earlier. 1040 com Form W-2. 1040 com   Form W-2 is a statement from your employer of wages and other compensation paid to you and taxes withheld from your pay. 1040 com You should have a Form W-2 from each employer. 1040 com If you file a paper return, be sure to attach a copy of Form W-2 in the place indicated on the front page of your return. 1040 com Attach it to the front page of your paper return, not to any attachments. 1040 com For more information, see Form W-2 in chapter 4. 1040 com   If you received a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1040 com , showing federal income tax withheld, and you file a paper return, attach a copy of that form in the place indicated on the front page of your return. 1040 com Form 1040EZ. 1040 com   There are no additional schedules to file with Form 1040EZ. 1040 com Form 1040A. 1040 com   If you file a paper return, attach any forms and schedules behind Form 1040A in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. 1040 com Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. 1040 com Do not attach items unless required to do so. 1040 com Form 1040. 1040 com   If you file a paper return, attach any forms and schedules behind Form 1040 in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. 1040 com Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. 1040 com Do not attach items unless required to do so. 1040 com Third Party Designee You can authorize the IRS to discuss your return with your preparer, a friend, family member, or any other person you choose. 1040 com If you check the “Yes” box in the Third party designee area of your 2013 tax return and provide the information required, you are authorizing: The IRS to call the designee to answer any questions that arise during the processing of your return, and The designee to: Give information that is missing from your return to the IRS, Call the IRS for information about th