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1040ez Form And Instructions

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1040ez Form And Instructions

1040ez form and instructions Publication 901 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 1040ez form and instructions How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 1040ez form and instructions By selecting the method that is best for you, you will have quick and easy access to tax help. 1040ez form and instructions Free help with your tax return. 1040ez form and instructions   Free help in preparing your return is available nationwide from IRS-certified volunteers. 1040ez form and instructions The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. 1040ez form and instructions The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 1040ez form and instructions Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 1040ez form and instructions Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. 1040ez form and instructions To find the nearest VITA or TCE site, visit IRS. 1040ez form and instructions gov or call 1-800-906-9887 or 1-800-829-1040. 1040ez form and instructions   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040ez form and instructions To find the nearest AARP Tax-Aide site, visit AARP's website at www. 1040ez form and instructions aarp. 1040ez form and instructions org/money/taxaide or call 1-888-227-7669. 1040ez form and instructions   For more information on these programs, go to IRS. 1040ez form and instructions gov and enter “VITA” in the search box. 1040ez form and instructions Internet. 1040ez form and instructions You can access the IRS website at IRS. 1040ez form and instructions gov 24 hours a day, 7 days a week to: E-file your return. 1040ez form and instructions Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 1040ez form and instructions Check the status of your 2012 refund. 1040ez form and instructions Go to IRS. 1040ez form and instructions gov and click on Where’s My Refund. 1040ez form and instructions Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 1040ez form and instructions If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040ez form and instructions Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 1040ez form and instructions Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. 1040ez form and instructions Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040ez form and instructions So in a change from previous filing seasons, you won't get an estimated refund date right away. 1040ez form and instructions Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 1040ez form and instructions You can obtain a free transcript online at IRS. 1040ez form and instructions gov by clicking on Order a Return or Account Transcript under “Tools. 1040ez form and instructions ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. 1040ez form and instructions You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. 1040ez form and instructions Download forms, including talking tax forms, instructions, and publications. 1040ez form and instructions Order IRS products. 1040ez form and instructions Research your tax questions. 1040ez form and instructions Search publications by topic or keyword. 1040ez form and instructions Use the Internal Revenue Code, regulations, or other official guidance. 1040ez form and instructions View Internal Revenue Bulletins (IRBs) published in the last few years. 1040ez form and instructions Figure your withholding allowances using the IRS Withholding Calculator at www. 1040ez form and instructions irs. 1040ez form and instructions gov/individuals. 1040ez form and instructions Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. 1040ez form and instructions gov by typing Alternative Minimum Tax Assistant in the search box. 1040ez form and instructions Sign up to receive local and national tax news by email. 1040ez form and instructions Get information on starting and operating a small business. 1040ez form and instructions Phone. 1040ez form and instructions Many services are available by phone. 1040ez form and instructions   Ordering forms, instructions, and publications. 1040ez form and instructions Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). 1040ez form and instructions You should receive your order within 10 days. 1040ez form and instructions Asking tax questions. 1040ez form and instructions Call the IRS with your tax questions at 1-800-829-1040. 1040ez form and instructions Solving problems. 1040ez form and instructions You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). 1040ez form and instructions An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 1040ez form and instructions Call your local Taxpayer Assistance Center for an appointment. 1040ez form and instructions To find the number, go to www. 1040ez form and instructions irs. 1040ez form and instructions gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040ez form and instructions TTY/TDD equipment. 1040ez form and instructions If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 1040ez form and instructions The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. 1040ez form and instructions These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 1040ez form and instructions gsa. 1040ez form and instructions gov/fedrelay. 1040ez form and instructions TeleTax topics. 1040ez form and instructions Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 1040ez form and instructions Checking the status of your 2012 refund. 1040ez form and instructions To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). 1040ez form and instructions Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 1040ez form and instructions If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 1040ez form and instructions Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 1040ez form and instructions Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040ez form and instructions Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 1040ez form and instructions Evaluating the quality of our telephone services. 1040ez form and instructions To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 1040ez form and instructions One method is for a second IRS representative to listen in on or record random telephone calls. 1040ez form and instructions Another is to ask some callers to complete a short survey at the end of the call. 1040ez form and instructions Walk-in. 1040ez form and instructions Some products and services are available on a walk-in basis. 1040ez form and instructions   Products. 1040ez form and instructions You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040ez form and instructions Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 1040ez form and instructions Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 1040ez form and instructions Services. 1040ez form and instructions You can walk in to your local TAC most business days for personal, face-to-face tax help. 1040ez form and instructions An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 1040ez form and instructions If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. 1040ez form and instructions No appointment is necessary—just walk in. 1040ez form and instructions Before visiting, check www. 1040ez form and instructions irs. 1040ez form and instructions gov/localcontacts for hours of operation and services provided. 1040ez form and instructions If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. 1040ez form and instructions You can leave a message and a representative will call you back within 2 business days. 1040ez form and instructions All other issues will be handled without an appointment. 1040ez form and instructions To call your local TAC, go to  www. 1040ez form and instructions irs. 1040ez form and instructions gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 1040ez form and instructions Mail. 1040ez form and instructions You can send your order for forms, instructions, and publications to the address below. 1040ez form and instructions You should receive a response within 10 days after your request is received. 1040ez form and instructions  Internal Revenue Service 1201 N. 1040ez form and instructions Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. 1040ez form and instructions   The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040ez form and instructions Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. 1040ez form and instructions TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. 1040ez form and instructions Remember, the worst thing you can do is nothing at all. 1040ez form and instructions   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. 1040ez form and instructions You face (or your business is facing) an immediate threat of adverse action. 1040ez form and instructions You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. 1040ez form and instructions   If you qualify for help, they will do everything they can to get your problem resolved. 1040ez form and instructions You will be assigned to one advocate who will be with you at every turn. 1040ez form and instructions TAS has offices in every state, the District of Columbia, and Puerto Rico. 1040ez form and instructions Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. 1040ez form and instructions And its services are always free. 1040ez form and instructions   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. 1040ez form and instructions The TAS tax toolkit at www. 1040ez form and instructions TaxpayerAdvocate. 1040ez form and instructions irs. 1040ez form and instructions gov can help you understand these rights. 1040ez form and instructions   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. 1040ez form and instructions irs. 1040ez form and instructions gov/advocate. 1040ez form and instructions You can also call the toll-free number at 1-877-777-4778. 1040ez form and instructions Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. 1040ez form and instructions These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 1040ez form and instructions gsa. 1040ez form and instructions gov/fedrelay. 1040ez form and instructions   TAS also handles large-scale or systemic problems that affect many taxpayers. 1040ez form and instructions If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. 1040ez form and instructions irs. 1040ez form and instructions gov/advocate. 1040ez form and instructions Low Income Taxpayer Clinics (LITCs). 1040ez form and instructions   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. 1040ez form and instructions Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. 1040ez form and instructions These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. 1040ez form and instructions Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. 1040ez form and instructions For more information and to find a clinic near you, see the LITC page on www. 1040ez form and instructions irs. 1040ez form and instructions gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. 1040ez form and instructions This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. 1040ez form and instructions Free tax services. 1040ez form and instructions   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. 1040ez form and instructions Learn about free tax information from the IRS, including publications, services, and education and assistance programs. 1040ez form and instructions The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. 1040ez form and instructions The majority of the information and services listed in this publication are available to you free of charge. 1040ez form and instructions If there is a fee associated with a resource or service, it is listed in the publication. 1040ez form and instructions   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 1040ez form and instructions DVD for tax products. 1040ez form and instructions You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. 1040ez form and instructions Prior-year forms, instructions, and publications. 1040ez form and instructions Tax Map: an electronic research tool and finding aid. 1040ez form and instructions Tax law frequently asked questions. 1040ez form and instructions Tax Topics from the IRS telephone response system. 1040ez form and instructions Internal Revenue Code—Title 26 of the U. 1040ez form and instructions S. 1040ez form and instructions Code. 1040ez form and instructions Links to other Internet-based tax research materials. 1040ez form and instructions Fill-in, print, and save features for most tax forms. 1040ez form and instructions Internal Revenue Bulletins. 1040ez form and instructions Toll-free and email technical support. 1040ez form and instructions Two releases during the year. 1040ez form and instructions  – The first release will ship the beginning of January 2013. 1040ez form and instructions  – The final release will ship the beginning of March 2013. 1040ez form and instructions Purchase the DVD from National Technical Information Service (NTIS) at www. 1040ez form and instructions irs. 1040ez form and instructions gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). 1040ez form and instructions Prev  Up  Next   Home   More Online Publications
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You can check the status of your federal income tax refund using IRS2Go. Simply enter your Social Security number, which will be masked and encrypted for security purposes, then select your filing status and enter the amount of your anticipated refund from your 2013 tax return. A status tracker has been added so you can see where your tax return is in the process. If you filed your return electronically, you can check your refund status within a 24 hours after we receive your return. If you file a paper tax return, you will need to wait about four weeks to check your refund status because it takes longer to process a paper return.


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The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) Programs offer free tax help for taxpayers who qualify. You can use this brand new tool to help you find a VITA site right near your home. You simply enter your zip code and select a mileage range. To make it even more convenient if you click on the directions button within the results the maps application on your device will load with the address, making it easy to navigate to your desired location.  


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Page Last Reviewed or Updated: 20-Feb-2014

The 1040ez Form And Instructions

1040ez form and instructions 5. 1040ez form and instructions   Business Income Table of Contents Introduction Kinds of IncomeBartering for Property or Services Real Estate Rents Personal Property Rents Interest and Dividend Income Canceled Debt Other Income Items That Are Not IncomeAmount you can exclude. 1040ez form and instructions Short-term lease. 1040ez form and instructions Retail space. 1040ez form and instructions Qualified long-term real property. 1040ez form and instructions Guidelines for Selected Occupations Accounting for Your Income Introduction This chapter primarily explains business income and how to account for it on your tax return, what items are not considered income, and gives guidelines for selected occupations. 1040ez form and instructions If there is a connection between any income you receive and your business, the income is business income. 1040ez form and instructions A connection exists if it is clear that the payment of income would not have been made if you did not have the business. 1040ez form and instructions You can have business income even if you are not involved in the activity on a regular full-time basis. 1040ez form and instructions Income from work you do on the side in addition to your regular job can be business income. 1040ez form and instructions You report most business income, such as income from selling your products or services, on Schedule C or C-EZ. 1040ez form and instructions But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C-EZ. 1040ez form and instructions For information on selling business assets, see chapter 3. 1040ez form and instructions Nonemployee compensation. 1040ez form and instructions Business income includes amounts you received in your business that were properly shown on Forms 1099-MISC. 1040ez form and instructions This includes amounts reported as nonemployee compensation in box 7 of the form. 1040ez form and instructions You can find more information in the instructions on the back of the Form 1099-MISC you received. 1040ez form and instructions Kinds of Income You must report on your tax return all income you receive from your business unless it is excluded by law. 1040ez form and instructions In most cases, your business income will be in the form of cash, checks, and credit card charges. 1040ez form and instructions But business income can be in other forms, such as property or services. 1040ez form and instructions These and other types of income are explained next. 1040ez form and instructions If you are a U. 1040ez form and instructions S. 1040ez form and instructions citizen who has business income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt from tax under U. 1040ez form and instructions S. 1040ez form and instructions law. 1040ez form and instructions If you live outside the United States, you may be able to exclude part or all of your foreign-source business income. 1040ez form and instructions For details, see Publication 54, Tax Guide for U. 1040ez form and instructions S. 1040ez form and instructions Citizens and Resident Aliens Abroad. 1040ez form and instructions Bartering for Property or Services Bartering is an exchange of property or services. 1040ez form and instructions You must include in your gross receipts, at the time received, the fair market value of property or services you receive in exchange for something else. 1040ez form and instructions If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise. 1040ez form and instructions Example 1. 1040ez form and instructions You are a self-employed lawyer. 1040ez form and instructions You perform legal services for a client, a small corporation. 1040ez form and instructions In payment for your services, you receive shares of stock in the corporation. 1040ez form and instructions You must include the fair market value of the shares in income. 1040ez form and instructions Example 2. 1040ez form and instructions You are an artist and create a work of art to compensate your landlord for the rent-free use of your apartment. 1040ez form and instructions You must include the fair rental value of the apartment in your gross receipts. 1040ez form and instructions Your landlord must include the fair market value of the work of art in his or her rental income. 1040ez form and instructions Example 3. 1040ez form and instructions You are a self-employed accountant. 1040ez form and instructions Both you and a house painter are members of a barter club, an organization that each year gives its members a directory of members and the services each member provides. 1040ez form and instructions Members get in touch with other members directly and bargain for the value of the services to be performed. 1040ez form and instructions In return for accounting services you provided for the house painter's business, the house painter painted your home. 1040ez form and instructions You must include in gross receipts the fair market value of the services you received from the house painter. 1040ez form and instructions The house painter must include the fair market value of your accounting services in his or her gross receipts. 1040ez form and instructions Example 4. 1040ez form and instructions You are a member of a barter club that uses credit units to credit or debit members' accounts for goods or services provided or received. 1040ez form and instructions As soon as units are credited to your account, you can use them to buy goods or services or sell or transfer the units to other members. 1040ez form and instructions You must include the value of credit units you received in your gross receipts for the tax year in which the units are credited to your account. 1040ez form and instructions The dollar value of units received for services by an employee of the club, who can use the units in the same manner as other members, must be included in the employee's gross income for the tax year in which received. 1040ez form and instructions It is wages subject to social security and Medicare taxes (FICA), federal unemployment taxes (FUTA), and income tax withholding. 1040ez form and instructions See Publication 15 (Circular E), Employer's Tax Guide. 1040ez form and instructions Example 5. 1040ez form and instructions You operate a plumbing business and use the cash method of accounting. 1040ez form and instructions You join a barter club and agree to provide plumbing services to any member for a specified number of hours. 1040ez form and instructions Each member has access to a directory that lists the members of the club and the services available. 1040ez form and instructions Members contact each other directly and request services to be performed. 1040ez form and instructions You are not required to provide services unless requested by another member, but you can use as many of the offered services as you wish without paying a fee. 1040ez form and instructions You must include the fair market value of any services you receive from club members in your gross receipts when you receive them even if you have not provided any services to club members. 1040ez form and instructions Information returns. 1040ez form and instructions   If you are involved in a bartering transaction, you may have to file either of the following forms. 1040ez form and instructions Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. 1040ez form and instructions Form 1099-MISC, Miscellaneous Income. 1040ez form and instructions For information about these forms, see the General Instructions for Certain Information Returns. 1040ez form and instructions Real Estate Rents If you are a real estate dealer who receives income from renting real property or an owner of a hotel, motel, etc. 1040ez form and instructions , who provides services (maid services, etc. 1040ez form and instructions ) for guests, report the rental income and expenses on Schedule C or C-EZ. 1040ez form and instructions If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E. 1040ez form and instructions For more information, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes). 1040ez form and instructions Real estate dealer. 1040ez form and instructions   You are a real estate dealer if you are engaged in the business of selling real estate to customers with the purpose of making a profit from those sales. 1040ez form and instructions Rent you receive from real estate held for sale to customers is subject to SE tax. 1040ez form and instructions However, rent you receive from real estate held for speculation or investment is not subject to SE tax. 1040ez form and instructions Trailer park owner. 1040ez form and instructions   Rental income from a trailer park is subject to SE tax if you are a self-employed trailer park owner who provides trailer lots and facilities and substantial services for the convenience of your tenants. 1040ez form and instructions    You generally are considered to provide substantial services for tenants if they are primarily for the tenants' convenience and normally are not provided to maintain the lots in a condition for occupancy. 1040ez form and instructions Services are substantial if the compensation for the services makes up a material part of the tenants' rental payments. 1040ez form and instructions   Examples of services that are not normally provided for the tenants' convenience include supervising and maintaining a recreational hall provided by the park, distributing a monthly newsletter to tenants, operating a laundry facility, and helping tenants buy or sell their trailers. 1040ez form and instructions   Examples of services that are normally provided to maintain the lots in a condition for tenant occupancy include city sewerage, electrical connections, and roadways. 1040ez form and instructions Hotels, boarding houses, and apartments. 1040ez form and instructions   Rental income you receive for the use or occupancy of hotels, boarding houses, or apartment houses is subject to SE tax if you provide services for the occupants. 1040ez form and instructions   Generally, you are considered to provide services for the occupants if the services are primarily for their convenience and are not services normally provided with the rental of rooms for occupancy only. 1040ez form and instructions An example of a service that is not normally provided for the convenience of the occupants is maid service. 1040ez form and instructions However, providing heat and light, cleaning stairways and lobbies, and collecting trash are services normally provided for the occupants' convenience. 1040ez form and instructions Prepaid rent. 1040ez form and instructions   Advance payments received under a lease that does not put any restriction on their use or enjoyment are income in the year you receive them. 1040ez form and instructions This is true no matter what accounting method or period you use. 1040ez form and instructions Lease bonus. 1040ez form and instructions   A bonus you receive from a lessee for granting a lease is an addition to the rent. 1040ez form and instructions Include it in your gross receipts in the year received. 1040ez form and instructions Lease cancellation payments. 1040ez form and instructions   Report payments you receive from your lessee for canceling a lease in your gross receipts in the year received. 1040ez form and instructions Payments to third parties. 1040ez form and instructions   If your lessee makes payments to someone else under an agreement to pay your debts or obligations, include the payments in your gross receipts when the lessee makes the payments. 1040ez form and instructions A common example of this kind of income is a lessee's payment of your property taxes on leased real property. 1040ez form and instructions Settlement payments. 1040ez form and instructions   Payments you receive in settlement of a lessee's obligation to restore the leased property to its original condition are income in the amount that the payments exceed the adjusted basis of the leasehold improvements destroyed, damaged, removed, or disconnected by the lessee. 1040ez form and instructions Personal Property Rents If you are in the business of renting personal property (equipment, vehicles, formal wear, etc. 1040ez form and instructions ), include the rental amount you receive in your gross receipts on Schedule C or C-EZ. 1040ez form and instructions Prepaid rent and other payments described in the preceding Real Estate Rents discussion can also be received for renting personal property. 1040ez form and instructions If you receive any of those payments, include them in your gross receipts as explained in that discussion. 1040ez form and instructions Interest and Dividend Income Interest and dividends may be considered business income. 1040ez form and instructions Interest. 1040ez form and instructions   Interest received on notes receivable that you have accepted in the ordinary course of business is business income. 1040ez form and instructions Interest received on loans is business income if you are in the business of lending money. 1040ez form and instructions Uncollectible loans. 1040ez form and instructions   If a loan payable to you becomes uncollectible during the tax year and you use an accrual method of accounting, you must include in gross income interest accrued up to the time the loan became uncollectible. 1040ez form and instructions If the accrued interest later becomes uncollectible, you may be able to take a bad debt deduction. 1040ez form and instructions See Bad Debts in chapter 8. 1040ez form and instructions Unstated interest. 1040ez form and instructions   If little or no interest is charged on an installment sale, you may have to treat a part of each payment as unstated interest. 1040ez form and instructions See Unstated Interest and Original Issue Discount (OID) in Publication 537, Installment Sales. 1040ez form and instructions Dividends. 1040ez form and instructions   Generally, dividends are business income to dealers in securities. 1040ez form and instructions For most sole proprietors and statutory employees, however, dividends are nonbusiness income. 1040ez form and instructions If you hold stock as a personal investment separately from your business activity, the dividends from the stock are nonbusiness income. 1040ez form and instructions   If you receive dividends from business insurance premiums you deducted in an earlier year, you must report all or part of the dividend as business income on your return. 1040ez form and instructions To find out how much you have to report, see   Recovery of items previously deducted under Other Income, later. 1040ez form and instructions Canceled Debt The following explains the general rule for including canceled debt in income and the exceptions to the general rule. 1040ez form and instructions General Rule Generally, if your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the canceled amount in your gross income for tax purposes. 1040ez form and instructions Report the canceled amount on line 6 of Schedule C if you incurred the debt in your business. 1040ez form and instructions If the debt is a nonbusiness debt, report the canceled amount on line 21 of Form 1040. 1040ez form and instructions Exceptions The following discussion covers some exceptions to the general rule for canceled debt. 1040ez form and instructions Price reduced after purchase. 1040ez form and instructions   If you owe a debt to the seller for property you bought and the seller reduces the amount you owe, you generally do not have income from the reduction. 1040ez form and instructions Unless you are bankrupt or insolvent, treat the amount of the reduction as a purchase price adjustment and reduce your basis in the property. 1040ez form and instructions Deductible debt. 1040ez form and instructions   You do not realize income from a canceled debt to the extent the payment of the debt would have led to a deduction. 1040ez form and instructions Example. 1040ez form and instructions You get accounting services for your business on credit. 1040ez form and instructions Later, you have trouble paying your business debts, but you are not bankrupt or insolvent. 1040ez form and instructions Your accountant forgives part of the amount you owe for the accounting services. 1040ez form and instructions How you treat the canceled debt depends on your method of accounting. 1040ez form and instructions Cash method — You do not include the canceled debt in income because payment of the debt would have been deductible as a business expense. 1040ez form and instructions Accrual method — You include the canceled debt in income because the expense was deductible when you incurred the debt. 1040ez form and instructions   For information on the cash and accrual methods of accounting, see chapter 2. 1040ez form and instructions Exclusions Do not include canceled debt in income in the following situations. 1040ez form and instructions However, you may be required to file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. 1040ez form and instructions For more information, see Form 982. 1040ez form and instructions The cancellation takes place in a bankruptcy case under title 11 of the U. 1040ez form and instructions S. 1040ez form and instructions Code (relating to bankruptcy). 1040ez form and instructions See Publication 908, Bankruptcy Tax Guide. 1040ez form and instructions The cancellation takes place when you are insolvent. 1040ez form and instructions You can exclude the canceled debt to the extent you are insolvent. 1040ez form and instructions See Publication 908. 1040ez form and instructions The canceled debt is a qualified farm debt owed to a qualified person. 1040ez form and instructions See chapter 3 in Publication 225, Farmer's Tax Guide. 1040ez form and instructions The canceled debt is a qualified real property business debt. 1040ez form and instructions This situation is explained later. 1040ez form and instructions The canceled debt is qualified principal residence indebtedness which is discharged after 2006. 1040ez form and instructions See Form 982. 1040ez form and instructions If a canceled debt is excluded from income because it takes place in a bankruptcy case, the exclusions in situations 2 through 5 do not apply. 1040ez form and instructions If it takes place when you are insolvent, the exclusions in situations 3 and 4 do not apply to the extent you are insolvent. 1040ez form and instructions Debt. 1040ez form and instructions   For purposes of this discussion, debt includes any debt for which you are liable or which attaches to property you hold. 1040ez form and instructions Qualified real property business debt. 1040ez form and instructions   You can elect to exclude (up to certain limits) the cancellation of qualified real property business debt. 1040ez form and instructions If you make the election, you must reduce the basis of your depreciable real property by the amount excluded. 1040ez form and instructions Make this reduction at the beginning of your tax year following the tax year in which the cancellation occurs. 1040ez form and instructions However, if you dispose of the property before that time, you must reduce its basis immediately before the disposition. 1040ez form and instructions Cancellation of qualified real property business debt. 1040ez form and instructions   Qualified real property business debt is debt (other than qualified farm debt) that meets all the following conditions. 1040ez form and instructions It was incurred or assumed in connection with real property used in a trade or business. 1040ez form and instructions It was secured by such real property. 1040ez form and instructions It was incurred or assumed at either of the following times. 1040ez form and instructions Before January 1, 1993. 1040ez form and instructions After December 31, 1992, if incurred or assumed to acquire, construct, or substantially improve the real property. 1040ez form and instructions It is debt to which you choose to apply these rules. 1040ez form and instructions   Qualified real property business debt includes refinancing of debt described in (3) earlier, but only to the extent it does not exceed the debt being refinanced. 1040ez form and instructions   You cannot exclude more than either of the following amounts. 1040ez form and instructions The excess (if any) of: The outstanding principal of qualified real property business debt (immediately before the cancellation), over The fair market value (immediately before the cancellation) of the business real property that is security for the debt, reduced by the outstanding principal amount of any other qualified real property business debt secured by this property immediately before the cancellation. 1040ez form and instructions The total adjusted bases of depreciable real property held by you immediately before the cancellation. 1040ez form and instructions These adjusted bases are determined after any basis reduction due to a cancellation in bankruptcy, insolvency, or of qualified farm debt. 1040ez form and instructions Do not take into account depreciable real property acquired in contemplation of the cancellation. 1040ez form and instructions Election. 1040ez form and instructions   To make this election, complete Form 982 and attach it to your income tax return for the tax year in which the cancellation occurs. 1040ez form and instructions You must file your return by the due date (including extensions). 1040ez form and instructions If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 1040ez form and instructions For more information, see When To File in the form instructions. 1040ez form and instructions Other Income The following discussion explains how to treat other types of business income you may receive. 1040ez form and instructions Restricted property. 1040ez form and instructions   Restricted property is property that has certain restrictions that affect its value. 1040ez form and instructions If you receive restricted stock or other property for services performed, the fair market value of the property in excess of your cost is included in your income on Schedule C or C-EZ when the restriction is lifted. 1040ez form and instructions However, you can choose to be taxed in the year you receive the property. 1040ez form and instructions For more information on including restricted property in income, see Publication 525, Taxable and Nontaxable Income. 1040ez form and instructions Gains and losses. 1040ez form and instructions   Do not report on Schedule C or C-EZ a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. 1040ez form and instructions Instead, you must report these gains and losses on other forms. 1040ez form and instructions For more information, see chapter 3. 1040ez form and instructions Promissory notes. 1040ez form and instructions   Report promissory notes and other evidences of debt issued to you in a sale or exchange of property that is stock in trade or held primarily for sale to customers on Schedule C or C-EZ. 1040ez form and instructions In general, you report them at their stated principal amount (minus any unstated interest) when you receive them. 1040ez form and instructions Lost income payments. 1040ez form and instructions   If you reduce or stop your business activities, report on Schedule C or C-EZ any payment you receive for the lost income of your business from insurance or other sources. 1040ez form and instructions Report it on Schedule C or C-EZ even if your business is inactive when you receive the payment. 1040ez form and instructions Damages. 1040ez form and instructions   You must include in gross income compensation you receive during the tax year as a result of any of the following injuries connected with your business. 1040ez form and instructions Patent infringement. 1040ez form and instructions Breach of contract or fiduciary duty. 1040ez form and instructions Antitrust injury. 1040ez form and instructions Economic injury. 1040ez form and instructions   You may be entitled to a deduction against the income if it compensates you for actual economic injury. 1040ez form and instructions Your deduction is the smaller of the following amounts. 1040ez form and instructions The amount you receive or accrue for damages in the tax year reduced by the amount you pay or incur in the tax year to recover that amount. 1040ez form and instructions Your loss from the injury that you have not yet deducted. 1040ez form and instructions Punitive damages. 1040ez form and instructions   You must also include punitive damages in income. 1040ez form and instructions Kickbacks. 1040ez form and instructions   If you receive any kickbacks, include them in your income on Schedule C or C-EZ. 1040ez form and instructions However, do not include them if you properly treat them as a reduction of a related expense item, a capital expenditure, or cost of goods sold. 1040ez form and instructions Recovery of items previously deducted. 1040ez form and instructions   If you recover a bad debt or any other item deducted in a previous year, include the recovery in income on Schedule C or C-EZ. 1040ez form and instructions However, if all or part of the deduction in earlier years did not reduce your tax, you can exclude the part that did not reduce your tax. 1040ez form and instructions If you exclude part of the recovery from income, you must include with your return a computation showing how you figured the exclusion. 1040ez form and instructions Example. 1040ez form and instructions Joe Smith, a sole proprietor, had gross income of $8,000, a bad debt deduction of $300, and other allowable deductions of $7,700. 1040ez form and instructions He also had 2 personal exemptions for a total of $7,800. 1040ez form and instructions He would not pay income tax even if he did not deduct the bad debt. 1040ez form and instructions Therefore, he will not report as income any part of the $300 he may recover in any future year. 1040ez form and instructions Exception for depreciation. 1040ez form and instructions   This rule does not apply to depreciation. 1040ez form and instructions You recover depreciation using the rules explained next. 1040ez form and instructions Recapture of depreciation. 1040ez form and instructions   In the following situations, you have to recapture the depreciation deduction. 1040ez form and instructions This means you include in income part or all of the depreciation you deducted in previous years. 1040ez form and instructions Listed property. 1040ez form and instructions   If your business use of listed property (explained in chapter 8 under Depreciation ) falls to 50% or less in a tax year after the tax year you placed the property in service, you may have to recapture part of the depreciation deduction. 1040ez form and instructions You do this by including in income on Schedule C part of the depreciation you deducted in previous years. 1040ez form and instructions Use Part IV of Form 4797, Sales of Business Property, to figure the amount to include on Schedule C. 1040ez form and instructions For more information, see What is the Business-Use Requirement? in chapter 5 of Publication 946, How To Depreciate Property. 1040ez form and instructions That chapter explains how to determine whether property is used more than 50% in your business. 1040ez form and instructions Section 179 property. 1040ez form and instructions   If you take a section 179 deduction (explained in chapter 8 under Depreciation ) for an asset and before the end of the asset's recovery period the percentage of business use drops to 50% or less, you must recapture part of the section 179 deduction. 1040ez form and instructions You do this by including in income on Schedule C part of the deduction you took. 1040ez form and instructions Use Part IV of Form 4797 to figure the amount to include on Schedule C. 1040ez form and instructions See chapter 2 in Publication 946 to find out when you recapture the deduction. 1040ez form and instructions Sale or exchange of depreciable property. 1040ez form and instructions   If you sell or exchange depreciable property at a gain, you may have to treat all or part of the gain due to depreciation as ordinary income. 1040ez form and instructions You figure the income due to depreciation recapture in Part III of Form 4797. 1040ez form and instructions For more information, see chapter 4 in Publication 544, Sales and Other Dispositions of Assets. 1040ez form and instructions Items That Are Not Income In some cases the property or money you receive is not income. 1040ez form and instructions Appreciation. 1040ez form and instructions   Increases in value of your property are not income until you realize the increases through a sale or other taxable disposition. 1040ez form and instructions Consignments. 1040ez form and instructions   Consignments of merchandise to others to sell for you are not sales. 1040ez form and instructions The title of merchandise remains with you, the consignor, even after the consignee possesses the merchandise. 1040ez form and instructions Therefore, if you ship goods on consignment, you have no profit or loss until the consignee sells the merchandise. 1040ez form and instructions Merchandise you have shipped out on consignment is included in your inventory until it is sold. 1040ez form and instructions   Do not include merchandise you receive on consignment in your inventory. 1040ez form and instructions Include your profit or commission on merchandise consigned to you in your income when you sell the merchandise or when you receive your profit or commission, depending upon the method of accounting you use. 1040ez form and instructions Construction allowances. 1040ez form and instructions   If you enter into a lease after August 5, 1997, you can exclude from income the construction allowance you receive (in cash or as a rent reduction) from your landlord if you receive it under both the following conditions. 1040ez form and instructions Under a short-term lease of retail space. 1040ez form and instructions For the purpose of constructing or improving qualified long-term real property for use in your business at that retail space. 1040ez form and instructions Amount you can exclude. 1040ez form and instructions   You can exclude the construction allowance to the extent it does not exceed the amount you spent for construction or improvements. 1040ez form and instructions Short-term lease. 1040ez form and instructions   A short-term lease is a lease (or other agreement for occupancy or use) of retail space for 15 years or less. 1040ez form and instructions The following rules apply in determining whether the lease is for 15 years or less. 1040ez form and instructions Take into account options to renew when figuring whether the lease is for 15 years or less. 1040ez form and instructions But do not take into account any option to renew at fair market value determined at the time of renewal. 1040ez form and instructions Two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar retail space are treated as one lease. 1040ez form and instructions Retail space. 1040ez form and instructions   Retail space is real property leased, occupied, or otherwise used by you as a tenant in your business of selling tangible personal property or services to the general public. 1040ez form and instructions Qualified long-term real property. 1040ez form and instructions   Qualified long-term real property is nonresidential real property that is part of, or otherwise present at, your retail space and that reverts to the landlord when the lease ends. 1040ez form and instructions Exchange of like-kind property. 1040ez form and instructions   If you exchange your business property or property you hold for investment solely for property of a like kind to be used in your business or to be held for investment, no gain or loss is recognized. 1040ez form and instructions This means that the gain is not taxable and the loss is not deductible. 1040ez form and instructions A common type of nontaxable exchange is the trade-in of a business automobile for another business automobile. 1040ez form and instructions For more information, see Form 8824. 1040ez form and instructions Leasehold improvements. 1040ez form and instructions   If a tenant erects buildings or makes improvements to your property, the increase in the value of the property due to the improvements is not income to you. 1040ez form and instructions However, if the facts indicate that the improvements are a payment of rent to you, then the increase in value would be income. 1040ez form and instructions Loans. 1040ez form and instructions   Money borrowed through a bona fide loan is not income. 1040ez form and instructions Sales tax. 1040ez form and instructions   State and local sales taxes imposed on the buyer, which you were required to collect and pay over to state or local governments, are not income. 1040ez form and instructions Guidelines for Selected Occupations This section provides information to determine whether your earnings should be reported on Schedule C (Form 1040) or C-EZ (Form 1040). 1040ez form and instructions Direct seller. 1040ez form and instructions   You must report all income you receive as a direct seller on Schedule C or C-EZ. 1040ez form and instructions This includes any of the following. 1040ez form and instructions Income from sales—payments you receive from customers for products they buy from you. 1040ez form and instructions Commissions, bonuses, or percentages you receive for sales and the sales of others who work under you. 1040ez form and instructions Prizes, awards, and gifts you receive from your selling business. 1040ez form and instructions You must report this income regardless of whether it is reported to you on an information return. 1040ez form and instructions   You are a direct seller if you meet all the following conditions. 1040ez form and instructions You are engaged in one of the following trades or businesses. 1040ez form and instructions Selling or soliciting the sale of consumer products either in a home or other place that is not a permanent retail establishment, or to any buyer on a buy-sell basis or a deposit-commission basis for resale in a home or other place of business that is not a permanent retail establishment. 1040ez form and instructions Delivering or distributing newspapers or shopping news (including any services directly related to that trade or business). 1040ez form and instructions Substantially all your pay (whether paid in cash or not) for services described above is directly related to sales or other output (including performance of services) rather than to the number of hours worked. 1040ez form and instructions Your services are performed under a written contract between you and the person for whom you perform the services, and the contract provides that you will not be treated as an employee for federal tax purposes. 1040ez form and instructions Executor or administrator. 1040ez form and instructions   If you administer a deceased person's estate, your fees are reported on Schedule C or C-EZ if you are one of the following: A professional fiduciary. 1040ez form and instructions A nonprofessional fiduciary (personal representative) and both of the following apply. 1040ez form and instructions The estate includes an active trade or business in which you actively participate. 1040ez form and instructions Your fees are related to the operation of that trade or business. 1040ez form and instructions A nonprofessional fiduciary of a single estate that requires extensive managerial activities on your part for a long period of time, provided these activities are enough to be considered a trade or business. 1040ez form and instructions    If the fees do not meet the above requirements, report them on line 21 of Form 1040. 1040ez form and instructions Fishing crew member. 1040ez form and instructions    If you are a member of the crew that catches fish or other water life, your earnings are reported on Schedule C or C-EZ if you meet all the requirements shown in chapter 10 under Fishing crew member . 1040ez form and instructions Insurance agent, former. 1040ez form and instructions   Termination payments you receive as a former self-employed insurance agent from an insurance company because of services you performed for that company are not reported on Schedule C or C-EZ if all the following conditions are met. 1040ez form and instructions You received payments after your agreement to perform services for the company ended. 1040ez form and instructions You did not perform any services for the company after your service agreement ended and before the end of the year in which you received the payment. 1040ez form and instructions You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date your service agreement ended. 1040ez form and instructions The amount of the payments depended primarily on policies sold by you or credited to your account during the last year of your service agreement or the extent to which those policies remain in force for some period after your service agreement ended, or both. 1040ez form and instructions The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payments depended on length of service). 1040ez form and instructions Insurance agent, retired. 1040ez form and instructions   Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is reported on Schedule C or C-EZ. 1040ez form and instructions Also, renewal commissions and deferred commissions for sales made before retirement are generally reported on Schedule C or C-EZ. 1040ez form and instructions   However, renewal commissions paid to the survivor of an insurance agent are not reported on Schedule C or C-EZ. 1040ez form and instructions Newspaper carrier or distributor. 1040ez form and instructions   You are a direct seller and your earnings are reported on Schedule C or C-EZ if all the following conditions apply. 1040ez form and instructions You are in the business of delivering or distributing newspapers or shopping news (including directly related services such as soliciting customers and collecting receipts). 1040ez form and instructions Substantially all your pay for these services directly relates to your sales or other output rather than to the number of hours you work. 1040ez form and instructions You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. 1040ez form and instructions   This rule applies whether or not you hire others to help you make deliveries. 1040ez form and instructions It also applies whether you buy the papers from the publisher or are paid based on the number of papers you deliver. 1040ez form and instructions Newspaper or magazine vendor. 1040ez form and instructions   If you are 18 or older and you sell newspapers or magazines, your earnings are reported on Schedule C or C-EZ if all the following conditions apply. 1040ez form and instructions You sell newspapers or magazines to ultimate consumers. 1040ez form and instructions You sell them at a fixed price. 1040ez form and instructions Your earnings are based on the difference between the sales price and your cost of goods sold. 1040ez form and instructions   This rule applies whether or not you are guaranteed a minimum amount of earnings. 1040ez form and instructions It also applies whether or not you receive credit for unsold newspapers or magazines you return to your supplier. 1040ez form and instructions Notary public. 1040ez form and instructions   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ. 1040ez form and instructions These payments are not subject to self-employment tax (see the instructions for Schedule SE (Form 1040)). 1040ez form and instructions Public official. 1040ez form and instructions   Public officials generally do not report what they earn for serving in public office on Schedule C or C-EZ. 1040ez form and instructions This rule applies to payments received by an elected tax collector from state funds on the basis of a fixed percentage of the taxes collected. 1040ez form and instructions Public office includes any elective or appointive office of the United States or its possessions, the District of Columbia, a state or its political subdivisions, or a wholly owned instrumentality of any of these. 1040ez form and instructions   Public officials of state or local governments report their fees on Schedule C or C-EZ if they are paid solely on a fee basis and if their services are eligible for, but not covered by, social security under a federal-state agreement. 1040ez form and instructions Real estate agent or direct seller. 1040ez form and instructions   If you are a licensed real estate agent or a direct seller, your earnings are reported on Schedule C or C-EZ if both the following apply. 1040ez form and instructions Substantially all your pay for services as a real estate agent or direct seller directly relates to your sales or other output rather than to the number of hours you work. 1040ez form and instructions You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. 1040ez form and instructions Securities dealer. 1040ez form and instructions   If you are a dealer in options or commodities, your gains and losses from dealing or trading in section 1256 contracts (regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts) or property related to those contracts (such as stock used to hedge options) are reported on Schedule C or C-EZ. 1040ez form and instructions For more information, see sections 1256 and 1402(i). 1040ez form and instructions Securities trader. 1040ez form and instructions   You are a trader in securities if you are engaged in the business of buying and selling securities for your own account. 1040ez form and instructions As a trader in securities, your gain or loss from the disposition of securities is not reported on Schedule C or C-EZ. 1040ez form and instructions However, see Securities dealer , earlier, for an exception that applies to section 1256 contracts. 1040ez form and instructions For more information about securities traders, see Publication 550, Investment Income and Expenses. 1040ez form and instructions Accounting for Your Income Accounting for your income for income tax purposes differs at times from accounting for financial purposes. 1040ez form and instructions This section discusses some of the more common differences that may affect business transactions. 1040ez form and instructions Figure your business income on the basis of a tax year and according to your regular method of accounting (see chapter 2). 1040ez form and instructions If the sale of a product is an income-producing factor in your business, you usually have to use inventories to clearly show your income. 1040ez form and instructions Dealers in real estate are not allowed to use inventories. 1040ez form and instructions For more information on inventories, see chapter 2. 1040ez form and instructions Income paid to a third party. 1040ez form and instructions   All income you earn is taxable to you. 1040ez form and instructions You cannot avoid tax by having the income paid to a third party. 1040ez form and instructions Example. 1040ez form and instructions You rent out your property and the rental agreement directs the lessee to pay the rent to your son. 1040ez form and instructions The amount paid to your son is gross income to you. 1040ez form and instructions Cash discounts. 1040ez form and instructions   These are amounts the seller permits you to deduct from the invoice price for prompt payment. 1040ez form and instructions For income tax purposes, you can use either of the following two methods to account for cash discounts. 1040ez form and instructions Deduct the cash discount from purchases (see Line 36, Purchases Less Cost of Items Withdrawn for Personal Use in chapter 6). 1040ez form and instructions Credit the cash discount to a discount income account. 1040ez form and instructions You must use the chosen method every year for all your purchase discounts. 1040ez form and instructions   If you use the second method, the credit balance in the account at the end of your tax year is business income. 1040ez form and instructions Under this method, you do not reduce the cost of goods sold by the cash discounts you received. 1040ez form and instructions When valuing your closing inventory, you cannot reduce the invoice price of merchandise on hand at the close of the tax year by the average or estimated discounts received on the merchandise. 1040ez form and instructions Trade discounts. 1040ez form and instructions   These are reductions from list or catalog prices and usually are not written into the invoice or charged to the customer. 1040ez form and instructions Do not enter these discounts on your books of account. 1040ez form and instructions Instead, use only the net amount as the cost of the merchandise purchased. 1040ez form and instructions For more information, see Trade discounts in chapter 6. 1040ez form and instructions Payment placed in escrow. 1040ez form and instructions   If the buyer of your property places part or all of the purchase price in escrow, you do not include any part of it in gross sales until you actually or constructively receive it. 1040ez form and instructions However, upon completion of the terms of the contract and the escrow agreement, you will have taxable income, even if you do not accept the money until the next year. 1040ez form and instructions Sales returns and allowances. 1040ez form and instructions   Credits you allow customers for returned merchandise and any other allowances you make on sales are deductions from gross sales in figuring net sales. 1040ez form and instructions Advance payments. 1040ez form and instructions   Special rules dealing with an accrual method of accounting for payments received in advance are discussed in chapter 2 under Accrual Method. 1040ez form and instructions Insurance proceeds. 1040ez form and instructions   If you receive insurance or another type of reimbursement for a casualty or theft loss, you must subtract it from the loss when you figure your deduction. 1040ez form and instructions You cannot deduct the reimbursed part of a casualty or theft loss. 1040ez form and instructions   For information on casualty or theft losses, see Publication 547, Casualties, Disasters, and Thefts. 1040ez form and instructions Prev  Up  Next   Home   More Online 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