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1040ez Tax Form 2014

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1040ez Tax Form 2014

1040ez tax form 2014 Publication 907 - Main Content Table of Contents IncomeDependent Care Benefits Social Security and Railroad Retirement Benefits Disability Pensions Military and Government Disability Pensions Other Payments Itemized DeductionsMedical Expenses Impairment-Related Work Expenses Tax CreditsChild and Dependent Care Credit Credit for the Elderly or the Disabled Earned Income Credit Household Employers Business Tax Incentives How To Get Tax Help Income All income is taxable unless it is specifically excluded by law. 1040ez tax form 2014 The following discussions highlight some income items (both taxable and nontaxable) that are of particular interest to people with disabilities and those who care for people with disabilities. 1040ez tax form 2014 Dependent Care Benefits Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person(s) while you worked, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. 1040ez tax form 2014 Exclusion or deduction. 1040ez tax form 2014   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. 1040ez tax form 2014 Your employer can tell you whether your benefit plan qualifies. 1040ez tax form 2014 To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. 1040ez tax form 2014 You cannot use Form 1040EZ. 1040ez tax form 2014   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. 1040ez tax form 2014 Therefore, you would not get an exclusion from wages. 1040ez tax form 2014 Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. 1040ez tax form 2014 To claim the deduction, you must use Form 2441. 1040ez tax form 2014   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). 1040ez tax form 2014 Statement for employee. 1040ez tax form 2014   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. 1040ez tax form 2014 Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. 1040ez tax form 2014 Qualifying person(s). 1040ez tax form 2014   A qualifying person is: A qualifying child who is under age 13 whom you can claim as a dependent. 1040ez tax form 2014 If the child turned 13 during the year, the child is a qualifying person for the part of the year he or she was under age 13. 1040ez tax form 2014 Your disabled spouse who is not physically or mentally able to care for himself or herself. 1040ez tax form 2014 Any disabled person who was not physically or mentally able to care for himself or herself whom you can claim as a dependent (or could claim as a dependent except that the person had gross income of $3,900 or more or filed a joint return). 1040ez tax form 2014 Any disabled person who was not physically or mentally able to care for himself or herself whom you could claim as a dependent except that you (or your spouse if filing jointly) could be claimed as a dependent on another taxpayer's 2013 return. 1040ez tax form 2014 For information about excluding benefits on Form 1040, Form 1040NR, or Form 1040A, see Form 2441 and its instructions. 1040ez tax form 2014 Social Security and Railroad Retirement Benefits If you received social security or equivalent Tier 1 railroad retirement (RRTA) benefits during the year, part of the amount you received may be taxable. 1040ez tax form 2014 Are any of your benefits taxable?   If the only income you received during the year was your social security or equivalent Tier 1 railroad retirement (RRTA) benefits, your benefits generally are not taxable. 1040ez tax form 2014   If you received income during the year in addition to social security or equivalent Tier 1 railroad retirement (RRTA) benefits, part of your benefits may be taxable if all of your other income, including tax-exempt interest, plus half of your benefits are more than: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. 1040ez tax form 2014   For more information, see the instructions for Form 1040, lines 20a and 20b, or Form 1040A, lines 14a and 14b. 1040ez tax form 2014 Publication 915, Social Security and Equivalent Railroad Retirement Benefits, contains more detailed information. 1040ez tax form 2014 Supplemental security income (SSI) payments. 1040ez tax form 2014   Social security benefits do not include SSI payments, which are not taxable. 1040ez tax form 2014 Do not include these payments in your income. 1040ez tax form 2014 Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. 1040ez tax form 2014 You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. 1040ez tax form 2014 Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. 1040ez tax form 2014 You may be entitled to a tax credit if you were permanently and totally disabled when you retired. 1040ez tax form 2014 For information on this credit, see Publication 524, Credit for the Elderly or the Disabled. 1040ez tax form 2014 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. 1040ez tax form 2014 Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. 1040ez tax form 2014 For more information on pensions and annuities, see Publication 575, Pension and Annuity Income. 1040ez tax form 2014 Retirement and profit-sharing plans. 1040ez tax form 2014   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. 1040ez tax form 2014 The payments must be reported as a pension or annuity. 1040ez tax form 2014 Accrued leave payment. 1040ez tax form 2014   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. 1040ez tax form 2014 The payment is not a disability payment. 1040ez tax form 2014 Include it in your income in the tax year you receive it. 1040ez tax form 2014 See Publication 525, Taxable and Nontaxable Income, for more information. 1040ez tax form 2014 Military and Government Disability Pensions Generally, you must report disability pensions as income, but do not include certain military and government disability pensions. 1040ez tax form 2014 For information about military and government disability pensions, see Publication 525. 1040ez tax form 2014 VA disability benefits. 1040ez tax form 2014   Do not include disability benefits you receive from the Department of Veterans Affairs (VA) in your gross income. 1040ez tax form 2014 If you are a military retiree and do not receive your disability benefits from the VA, see Publication 525 for more information. 1040ez tax form 2014   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the VA. 1040ez tax form 2014 These include: Education, training, and subsistence allowances, Disability compensation and pension payments for disabilities paid either to veterans or their families, Grants for homes designed for wheelchair living, Grants for motor vehicles for veterans who lost their sight or the use of their limbs, Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death, Interest on insurance dividends left on deposit with the VA, Benefits under a dependent-care assistance program, The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001, or Payments made under the VA's compensated work therapy program. 1040ez tax form 2014 Other Payments You may receive other payments that are related to your disability. 1040ez tax form 2014 The following payments are not taxable. 1040ez tax form 2014 Benefit payments from a public welfare fund, such as payments due to blindness. 1040ez tax form 2014 Workers' compensation for an occupational sickness or injury if paid under a workers' compensation act or similar law. 1040ez tax form 2014 Compensatory (but not punitive) damages for physical injury or physical sickness. 1040ez tax form 2014 Disability benefits under a “no-fault” car insurance policy for loss of income or earning capacity as a result of injuries. 1040ez tax form 2014 Compensation for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. 1040ez tax form 2014 Long-Term Care Insurance Long-term care insurance contracts generally are treated as accident and health insurance contracts. 1040ez tax form 2014 Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. 1040ez tax form 2014 More detailed information can be found in Publication 525. 1040ez tax form 2014 Accelerated Death Benefits You can exclude from income accelerated death benefits you receive on the life of an insured individual if certain requirements are met. 1040ez tax form 2014 Accelerated death benefits are amounts received under a life insurance contract before the death of the insured. 1040ez tax form 2014 These benefits also include amounts received on the sale or assignment of the contract to a viatical settlement provider. 1040ez tax form 2014 This exclusion applies only if the insured was a terminally ill individual or a chronically ill individual. 1040ez tax form 2014 For more information, see Publication 525. 1040ez tax form 2014 Itemized Deductions If you file Form 1040, you generally can either claim the standard deduction or itemize your deductions. 1040ez tax form 2014 You must use Schedule A (Form 1040) to itemize your deductions. 1040ez tax form 2014 See your form instructions for information on the standard deduction and the deductions you can itemize. 1040ez tax form 2014 The following discussions highlight some itemized deductions that are of particular interest to persons with disabilities. 1040ez tax form 2014 Medical Expenses When figuring your deduction for medical expenses, you can generally include medical and dental expenses you pay for yourself, your spouse, and your dependents. 1040ez tax form 2014 Medical expenses are the cost of diagnosis, cure, mitigation, treatment, or prevention of disease and the costs for treatments affecting any part or function of the body. 1040ez tax form 2014 They include the costs of equipment, supplies, diagnostic devices, and transportation for needed medical care and payments for medical insurance. 1040ez tax form 2014 You can deduct only the amount of your medical and dental expenses that is more than 10% (7. 1040ez tax form 2014 5% if either you or your spouse was born before January 2, 1949) of your adjusted gross income shown on Form 1040, line 38. 1040ez tax form 2014 The following list highlights some of the medical expenses you can include in figuring your medical expense deduction. 1040ez tax form 2014 For more detailed information, see Publication 502, Medical and Dental Expenses (Including the Health Coverage Tax Credit). 1040ez tax form 2014 Artificial limbs, contact lenses, eyeglasses, and hearing aids. 1040ez tax form 2014 The part of the cost of Braille books and magazines that is more than the price of regular printed editions. 1040ez tax form 2014 Cost and repair of special telephone equipment for hearing-impaired persons. 1040ez tax form 2014 Cost and maintenance of a wheelchair or a three-wheel motor vehicle commercially known as an “autoette. 1040ez tax form 2014 ” Cost and care of a guide dog or other animal aiding a person with a physical disability. 1040ez tax form 2014 Costs for a school that furnishes special education if a principal reason for using the school is its resources for relieving a mental or physical disability. 1040ez tax form 2014 This includes the cost of teaching Braille and lip reading and the cost of remedial language training to correct a condition caused by a birth defect. 1040ez tax form 2014 Premiums for qualified long-term care insurance, up to certain amounts. 1040ez tax form 2014 Improvements to a home that do not increase its value if the main purpose is medical care. 1040ez tax form 2014 An example is constructing entrance or exit ramps. 1040ez tax form 2014 Improvements that increase a home's value, if the main purpose is medical care, may be partly included as a medical expense. 1040ez tax form 2014 See Publication 502 for more information. 1040ez tax form 2014 Impairment-Related Work Expenses If you are disabled, you can take a business deduction for expenses that are necessary for you to be able to work. 1040ez tax form 2014 If you take a business deduction for these impairment-related work expenses, they are not subject to the 10% (7. 1040ez tax form 2014 5% if you or your spouse is age 65 or older) limit that applies to medical expenses. 1040ez tax form 2014 You are disabled if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (including, but not limited to, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. 1040ez tax form 2014 Impairment-related expenses defined. 1040ez tax form 2014   Impairment-related expenses are those ordinary and necessary business expenses that are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. 1040ez tax form 2014 Publication 502 contains more detailed information. 1040ez tax form 2014 Tax Credits This discussion highlights three tax credits that may be of interest to people with disabilities and those who care for people with disabilities. 1040ez tax form 2014 Child and Dependent Care Credit If you pay someone to care for either your dependent under age 13 or your spouse or dependent who is not able to care for himself or herself, you may be able to get a credit of up to 35% of your expenses. 1040ez tax form 2014 To qualify, you must pay these expenses so you can work or look for work. 1040ez tax form 2014 The care must be provided for: Your qualifying child who is your dependent and who was under age 13 when the care was provided, Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. 1040ez tax form 2014 You can claim the credit on Form 1040 or 1040A. 1040ez tax form 2014 You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. 1040ez tax form 2014 You figure the credit on Form 2441. 1040ez tax form 2014 For more information, see the instructions for Form 1040, line 48, or Form 1040A, line 29. 1040ez tax form 2014 Publication 503, Child and Dependent Care Expenses, contains more detailed information. 1040ez tax form 2014 Credit for the Elderly or the Disabled You may be able to claim this credit if you are a U. 1040ez tax form 2014 S. 1040ez tax form 2014 citizen or a resident alien and either of the following apply. 1040ez tax form 2014 You were 65 or older at the end of 2013, You were under 65 at the end of 2013, and retired on permanent or total disability. 1040ez tax form 2014 You can claim the credit on Form 1040 or 1040A. 1040ez tax form 2014 You figure the credit on Schedule R. 1040ez tax form 2014 For more information, see the instructions for Form 1040, line 53, or Form 1040A, line 30. 1040ez tax form 2014 Publication 524, Credit for the Elderly or the Disabled, contains more detailed information. 1040ez tax form 2014 Earned Income Credit This credit is based on the amount of your earned income. 1040ez tax form 2014 You can get the credit if your adjusted gross income for 2013 is less than: $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, or $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children. 1040ez tax form 2014 To figure the credit, use the worksheet in the instructions for Form 1040, 1040A, or 1040EZ. 1040ez tax form 2014 If you have a qualifying child, also complete Schedule EIC, Earned Income Credit, and attach it to your Form 1040 or 1040A. 1040ez tax form 2014 You cannot use Form 1040EZ if you have a qualifying child. 1040ez tax form 2014 Qualifying child. 1040ez tax form 2014   To be a qualifying child, your child must be younger than you (or your spouse if married filing jointly) and under age 19 or a full-time student under age 24 at the end of 2013, or permanently and totally disabled at any time during 2013, regardless of age. 1040ez tax form 2014 Earned income. 1040ez tax form 2014   If you are retired on disability, benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. 1040ez tax form 2014 However, payments you received from a disability insurance policy that you paid the premiums for are not earned income. 1040ez tax form 2014 More information. 1040ez tax form 2014   For more information, including all the requirements to claim the earned income credit, see the instructions for Form 1040, line 64a; Form 1040A, line 38a; or Form 1040EZ, line 8a. 1040ez tax form 2014 Publication 596, Earned Income Credit (EIC), contains more detailed information. 1040ez tax form 2014 Household Employers If you pay someone to work in your home, such as a babysitter or housekeeper, you may be a household employer who has to pay employment taxes. 1040ez tax form 2014 A person you hire through an agency is not your employee if the agency controls what work is done and how it is done. 1040ez tax form 2014 This control could include setting the fee, requiring regular reports, and providing rules of conduct and appearance. 1040ez tax form 2014 In this case you do not have to pay employment taxes on the amount you pay. 1040ez tax form 2014 But if you control what work is done and how it is done, the worker is your employee. 1040ez tax form 2014 If you possess the right to discharge a worker, that worker is generally considered to be your employee. 1040ez tax form 2014 If a worker is your employee, it does not matter that you hired the worker through an agency or from a list provided by an agency. 1040ez tax form 2014 To find out if you have to pay employment taxes, see Publication 926, Household Employer's Tax Guide For Wages Paid in 2013. 1040ez tax form 2014 Business Tax Incentives If you own or operate a business, or you are looking for work, you should be aware of the following tax incentives for businesses to help persons with disabilities. 1040ez tax form 2014 Deduction for costs of removing barriers to the disabled and the elderly—This is a deduction a business can take for making a facility or public transportation vehicle more accessible to and usable by persons who are disabled or elderly. 1040ez tax form 2014 For more information, see chapter 7 of Publication 535, Business Expenses. 1040ez tax form 2014 Disabled access credit—This is a nonrefundable tax credit for an eligible small business that pays or incurs expenses to provide access to persons with disabilities. 1040ez tax form 2014 The expenses must be to enable the eligible small business to comply with the Americans With Disabilities Act of 1990. 1040ez tax form 2014 See Form 8826, Disabled Access Credit, for more information. 1040ez tax form 2014 Work opportunity credit—This credit provides businesses with an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. 1040ez tax form 2014 One targeted group consists of vocational rehabilitation referrals. 1040ez tax form 2014 These are individuals who have a physical or mental disability that results in a substantial handicap to employment. 1040ez tax form 2014 See Form 5884, Work Opportunity Credit. 1040ez tax form 2014 How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. 1040ez tax form 2014 Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. 1040ez tax form 2014 Free help with your tax return. 1040ez tax form 2014   Free help in preparing your return is available nationwide from IRS-certified volunteers. 1040ez tax form 2014 The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. 1040ez tax form 2014 The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 1040ez tax form 2014 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 tax form 2014 Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. 1040ez tax form 2014 To find the nearest VITA or TCE site, visit IRS. 1040ez tax form 2014 gov or call 1-800-906-9887. 1040ez tax form 2014   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040ez tax form 2014 To find the nearest AARP Tax-Aide site, visit AARP's website at www. 1040ez tax form 2014 aarp. 1040ez tax form 2014 org/money/taxaide or call 1-888-227-7669. 1040ez tax form 2014   For more information on these programs, go to IRS. 1040ez tax form 2014 gov and enter “VITA” in the search box. 1040ez tax form 2014 Internet. 1040ez tax form 2014 IRS. 1040ez tax form 2014 gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. 1040ez tax form 2014 Apply for an Employer Identification Number (EIN). 1040ez tax form 2014 Go to IRS. 1040ez tax form 2014 gov and enter Apply for an EIN in the search box. 1040ez tax form 2014 Request an Electronic Filing PIN by going to IRS. 1040ez tax form 2014 gov and entering Electronic Filing PIN in the search box. 1040ez tax form 2014 Check the status of your 2013 refund with Where's My Refund? Go to IRS. 1040ez tax form 2014 gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040ez tax form 2014 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 1040ez tax form 2014 Check the status of your amended return. 1040ez tax form 2014 Go to IRS. 1040ez tax form 2014 gov and enter Where's My Amended Return in the search box. 1040ez tax form 2014 Download forms, instructions, and publications, including some accessible versions. 1040ez tax form 2014 Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. 1040ez tax form 2014 gov or IRS2Go. 1040ez tax form 2014 Tax return and tax account transcripts are generally available for the current year and past three years. 1040ez tax form 2014 Figure your income tax withholding with the IRS Withholding Calculator on IRS. 1040ez tax form 2014 gov. 1040ez tax form 2014 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 1040ez tax form 2014 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 1040ez tax form 2014 gov. 1040ez tax form 2014 Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. 1040ez tax form 2014 gov or IRS2Go. 1040ez tax form 2014 Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. 1040ez tax form 2014 An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. 1040ez tax form 2014 Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. 1040ez tax form 2014 If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. 1040ez tax form 2014 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 1040ez tax form 2014 Locate the nearest volunteer help site with the VITA Locator Tool on IRS. 1040ez tax form 2014 gov. 1040ez tax form 2014 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 1040ez tax form 2014 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. 1040ez tax form 2014 Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. 1040ez tax form 2014 AARP offers the Tax-Aide counseling program as part of the TCE program. 1040ez tax form 2014 Visit AARP's website to find the nearest Tax-Aide location. 1040ez tax form 2014 Research your tax questions. 1040ez tax form 2014 Search publications and instructions by topic or keyword. 1040ez tax form 2014 Read the Internal Revenue Code, regulations, or other official guidance. 1040ez tax form 2014 Read Internal Revenue Bulletins. 1040ez tax form 2014 Sign up to receive local and national tax news by email. 1040ez tax form 2014 Phone. 1040ez tax form 2014 You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 1040ez tax form 2014 Download the free IRS2Go mobile app from the iTunes app store or from Google Play. 1040ez tax form 2014 Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 1040ez tax form 2014 Call to locate the nearest volunteer help site, 1-800-906-9887. 1040ez tax form 2014 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 1040ez tax form 2014 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. 1040ez tax form 2014 Most VITA and TCE sites offer free electronic filing. 1040ez tax form 2014 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 1040ez tax form 2014 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 1040ez tax form 2014 Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. 1040ez tax form 2014 The automated Where's My Refund? information is available 24 hours a day, 7 days a week. 1040ez tax form 2014 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 1040ez tax form 2014 Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 1040ez tax form 2014 Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040ez tax form 2014 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 tax form 2014 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 1040ez tax form 2014 Call to order forms, instructions and publications, 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 tax form 2014 You should receive your order within 10 business days. 1040ez tax form 2014 Call to order transcripts of your tax returns or tax account, 1-800-908-9946. 1040ez tax form 2014 Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. 1040ez tax form 2014 Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. 1040ez tax form 2014 Call to ask tax questions, 1-800-829-1040. 1040ez tax form 2014 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 1040ez tax form 2014 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 1040ez tax form 2014 These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. 1040ez tax form 2014 gsa. 1040ez tax form 2014 gov/fedrelay. 1040ez tax form 2014 Walk-in. 1040ez tax form 2014 You can find a selection of forms, publications and services — in-person, face-to-face. 1040ez tax form 2014 Products. 1040ez tax form 2014 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040ez tax form 2014 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 1040ez tax form 2014 Services. 1040ez tax form 2014 You can walk in to your local TAC most business days for personal, face-to-face tax help. 1040ez tax form 2014 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 1040ez tax form 2014 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 tax form 2014 No appointment is necessary—just walk in. 1040ez tax form 2014 Before visiting, check www. 1040ez tax form 2014 irs. 1040ez tax form 2014 gov/localcontacts for hours of operation and services provided. 1040ez tax form 2014 Mail. 1040ez tax form 2014 You can send your order for forms, instructions, and publications to the address below. 1040ez tax form 2014 You should receive a response within 10 business days after your request is received. 1040ez tax form 2014  Internal Revenue Service 1201 N. 1040ez tax form 2014 Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. 1040ez tax form 2014   The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040ez tax form 2014 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 1040ez tax form 2014 What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. 1040ez tax form 2014 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 1040ez tax form 2014 You face (or your business is facing) an immediate threat of adverse action. 1040ez tax form 2014 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 1040ez tax form 2014   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 1040ez tax form 2014 Here's why we can help: TAS is an independent organization within the IRS. 1040ez tax form 2014 Our advocates know how to work with the IRS. 1040ez tax form 2014 Our services are free and tailored to meet your needs. 1040ez tax form 2014 We have offices in every state, the District of Columbia, and Puerto Rico. 1040ez tax form 2014 How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. 1040ez tax form 2014 irs. 1040ez tax form 2014 gov/advocate, or call us toll-free at 1-877-777-4778. 1040ez tax form 2014 How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 1040ez tax form 2014 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. 1040ez tax form 2014 irs. 1040ez tax form 2014 gov/sams. 1040ez tax form 2014 Low Income Taxpayer Clinics. 1040ez tax form 2014   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. 1040ez tax form 2014 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 1040ez tax form 2014 Visit www. 1040ez tax form 2014 TaxpayerAdvocate. 1040ez tax form 2014 irs. 1040ez tax form 2014 gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. 1040ez tax form 2014 Prev  Up  Next   Home   More Online Publications
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Understanding your CP71D Notice

You received this notice to remind you of the amount you owe in tax, penalty and interest.

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.
 


What you need to do

  • Read your notice carefully — it will explain how much money you owe on your taxes.

You may want to...


Answers to Common Questions

Am I charged interest on the money I owe?
Yes, interest accrues on your unpaid balance until you pay it in full.

Do I receive a penalty if I cannot pay the full amount?
Yes, you receive a late payment penalty.

What happens if I cannot pay the full amount I owe?
You can arrange to make a payment plan with us if you cannot pay the full amount you owe.

How can I set up a payment plan?
Call the toll-free number listed on the top right corner of your notice to discuss payment options or learn more about payment arrangements.


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.

Page Last Reviewed or Updated: 06-Mar-2014

The 1040ez Tax Form 2014

1040ez tax form 2014 2. 1040ez tax form 2014   Accounting Periods and Methods Table of Contents Introduction Useful Items - You may want to see: Accounting Periods Accounting MethodsCash Method Accrual Method Combination Method Inventories Uniform Capitalization Rules Special Methods Change in Accounting Method Introduction You must figure your taxable income and file an income tax return for an annual accounting period called a tax year. 1040ez tax form 2014 Also, you must consistently use an accounting method that clearly shows your income and expenses for the tax year. 1040ez tax form 2014 Useful Items - You may want to see: Publication 538 Accounting Periods and Methods See chapter 12 for information about getting publications and forms. 1040ez tax form 2014 Accounting Periods When preparing a statement of income and expenses (generally your income tax return), you must use your books and records for a specific interval of time called an accounting period. 1040ez tax form 2014 The annual accounting period for your income tax return is called a tax year. 1040ez tax form 2014 You can use one of the following tax years. 1040ez tax form 2014 A calendar tax year. 1040ez tax form 2014 A fiscal tax year. 1040ez tax form 2014 Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year. 1040ez tax form 2014 A required tax year is a tax year required under the Internal Revenue Code or the Income Tax Regulations. 1040ez tax form 2014 Calendar tax year. 1040ez tax form 2014   A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. 1040ez tax form 2014   You must adopt the calendar tax year if any of the following apply. 1040ez tax form 2014 You do not keep books. 1040ez tax form 2014 You have no annual accounting period. 1040ez tax form 2014 Your present tax year does not qualify as a fiscal year. 1040ez tax form 2014 Your use of the calendar tax year is required under the Internal Revenue Code or the Income Tax Regulations. 1040ez tax form 2014   If you filed your first income tax return using the calendar tax year and you later begin business as a sole proprietor, you must continue to use the calendar tax year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. 1040ez tax form 2014 For more information, see Change in tax year, later. 1040ez tax form 2014   If you adopt the calendar tax year, you must maintain your books and records and report your income and expenses for the period from January 1 through December 31 of each year. 1040ez tax form 2014 Fiscal tax year. 1040ez tax form 2014   A fiscal tax year is 12 consecutive months ending on the last day of any month except December. 1040ez tax form 2014 A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. 1040ez tax form 2014   If you adopt a fiscal tax year, you must maintain your books and records and report your income and expenses using the same tax year. 1040ez tax form 2014   For more information on a fiscal tax year, including a 52-53-week tax year, see Publication 538. 1040ez tax form 2014 Change in tax year. 1040ez tax form 2014   Generally, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year, to request IRS approval to change your tax year. 1040ez tax form 2014 See the Instructions for Form 1128 for exceptions. 1040ez tax form 2014 If you qualify for an automatic approval request, a user fee is not required. 1040ez tax form 2014 If you do not qualify for automatic approval, a ruling must be requested. 1040ez tax form 2014 See the instructions for Form 1128 for information about user fees if you are requesting a ruling. 1040ez tax form 2014 Accounting Methods An accounting method is a set of rules used to determine when and how income and expenses are reported. 1040ez tax form 2014 Your accounting method includes not only the overall method of accounting you use, but also the accounting treatment you use for any material item. 1040ez tax form 2014 You choose an accounting method for your business when you file your first income tax return that includes a Schedule C for the business. 1040ez tax form 2014 After that, if you want to change your accounting method, you must generally get IRS approval. 1040ez tax form 2014 See Change in Accounting Method, later. 1040ez tax form 2014 Kinds of methods. 1040ez tax form 2014   Generally, you can use any of the following accounting methods. 1040ez tax form 2014 Cash method. 1040ez tax form 2014 An accrual method. 1040ez tax form 2014 Special methods of accounting for certain items of income and expenses. 1040ez tax form 2014 Combination method using elements of two or more of the above. 1040ez tax form 2014 You must use the same accounting method to figure your taxable income and to keep your books. 1040ez tax form 2014 Also, you must use an accounting method that clearly shows your income. 1040ez tax form 2014 Business and personal items. 1040ez tax form 2014   You can account for business and personal items under different accounting methods. 1040ez tax form 2014 For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. 1040ez tax form 2014 Two or more businesses. 1040ez tax form 2014   If you have two or more separate and distinct businesses, you can use a different accounting method for each if the method clearly reflects the income of each business. 1040ez tax form 2014 They are separate and distinct only if you maintain complete and separate books and records for each business. 1040ez tax form 2014 Cash Method Most individuals and many sole proprietors with no inventory use the cash method because they find it easier to keep cash method records. 1040ez tax form 2014 However, if an inventory is necessary to account for your income, you must generally use an accrual method of accounting for sales and purchases. 1040ez tax form 2014 For more information, see Inventories, later. 1040ez tax form 2014 Income Under the cash method, include in your gross income all items of income you actually or constructively receive during your tax year. 1040ez tax form 2014 If you receive property or services, you must include their fair market value in income. 1040ez tax form 2014 Example. 1040ez tax form 2014 On December 30, 2012, Mrs. 1040ez tax form 2014 Sycamore sent you a check for interior decorating services you provided to her. 1040ez tax form 2014 You received the check on January 2, 2013. 1040ez tax form 2014 You must include the amount of the check in income for 2013. 1040ez tax form 2014 Constructive receipt. 1040ez tax form 2014   You have constructive receipt of income when an amount is credited to your account or made available to you without restriction. 1040ez tax form 2014 You do not need to have possession of it. 1040ez tax form 2014 If you authorize someone to be your agent and receive income for you, you are treated as having received it when your agent received it. 1040ez tax form 2014 Example. 1040ez tax form 2014 Interest is credited to your bank account in December 2013. 1040ez tax form 2014 You do not withdraw it or enter it into your passbook until 2014. 1040ez tax form 2014 You must include it in your gross income for 2013. 1040ez tax form 2014 Delaying receipt of income. 1040ez tax form 2014   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. 1040ez tax form 2014 You must report the income in the year the property is received or made available to you without restriction. 1040ez tax form 2014 Example. 1040ez tax form 2014 Frances Jones, a service contractor, was entitled to receive a $10,000 payment on a contract in December 2013. 1040ez tax form 2014 She was told in December that her payment was available. 1040ez tax form 2014 At her request, she was not paid until January 2014. 1040ez tax form 2014 She must include this payment in her 2013 income because it was constructively received in 2013. 1040ez tax form 2014 Checks. 1040ez tax form 2014   Receipt of a valid check by the end of the tax year is constructive receipt of income in that year, even if you cannot cash or deposit the check until the following year. 1040ez tax form 2014 Example. 1040ez tax form 2014 Dr. 1040ez tax form 2014 Redd received a check for $500 on December 31, 2013, from a patient. 1040ez tax form 2014 She could not deposit the check in her business account until January 2, 2014. 1040ez tax form 2014 She must include this fee in her income for 2013. 1040ez tax form 2014 Debts paid by another person or canceled. 1040ez tax form 2014   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. 1040ez tax form 2014 If you receive income in this way, you constructively receive the income when the debt is canceled or paid. 1040ez tax form 2014 For more information, see Canceled Debt under Kinds of Income in chapter 5. 1040ez tax form 2014 Repayment of income. 1040ez tax form 2014   If you include an amount in income and in a later year you have to repay all or part of it, you can usually deduct the repayment in the year in which you make it. 1040ez tax form 2014 If the amount you repay is over $3,000, a special rule applies. 1040ez tax form 2014 For details about the special rule, see Repayments in chapter 11 of Publication 535, Business Expenses. 1040ez tax form 2014 Expenses Under the cash method, you generally deduct expenses in the tax year in which you actually pay them. 1040ez tax form 2014 This includes business expenses for which you contest liability. 1040ez tax form 2014 However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained later under Uniform Capitalization Rules. 1040ez tax form 2014 Expenses paid in advance. 1040ez tax form 2014   You can deduct an expense you pay in advance only in the year to which it applies. 1040ez tax form 2014 Example. 1040ez tax form 2014 You are a calendar year taxpayer and you pay $1,000 in 2013 for a business insurance policy effective for one year, beginning July 1. 1040ez tax form 2014 You can deduct $500 in 2013 and $500 in 2014. 1040ez tax form 2014 Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. 1040ez tax form 2014 The purpose of an accrual method of accounting is to match income and expenses in the correct year. 1040ez tax form 2014 Income—General Rule Under an accrual method, you generally include an amount in your gross income for the tax year in which all events that fix your right to receive the income have occurred and you can determine the amount with reasonable accuracy. 1040ez tax form 2014 Example. 1040ez tax form 2014 You are a calendar year accrual method taxpayer. 1040ez tax form 2014 You sold a computer on December 28, 2013. 1040ez tax form 2014 You billed the customer in the first week of January 2014, but you did not receive payment until February 2014. 1040ez tax form 2014 You must include the amount received for the computer in your 2013 income. 1040ez tax form 2014 Income—Special Rules The following are special rules that apply to advance payments, estimating income, and changing a payment schedule for services. 1040ez tax form 2014 Estimated income. 1040ez tax form 2014   If you include a reasonably estimated amount in gross income, and later determine the exact amount is different, take the difference into account in the tax year in which you make the determination. 1040ez tax form 2014 Change in payment schedule for services. 1040ez tax form 2014   If you perform services for a basic rate specified in a contract, you must accrue the income at the basic rate, even if you agree to receive payments at a lower rate until you complete the services and then receive the difference. 1040ez tax form 2014 Advance payments for services. 1040ez tax form 2014   Generally, you report an advance payment for services to be performed in a later tax year as income in the year you receive the payment. 1040ez tax form 2014 However, if you receive an advance payment for services you agree to perform by the end of the next tax year, you can elect to postpone including the advance payment in income until the next tax year. 1040ez tax form 2014 However, you cannot postpone including any payment beyond that tax year. 1040ez tax form 2014   For more information, see Advance Payment for Services under Accrual Method in Publication 538. 1040ez tax form 2014 That publication also explains special rules for reporting the following types of income. 1040ez tax form 2014 Advance payments for service agreements. 1040ez tax form 2014 Prepaid rent. 1040ez tax form 2014 Advance payments for sales. 1040ez tax form 2014   Special rules apply to including income from advance payments on agreements for future sales or other dispositions of goods you hold primarily for sale to your customers in the ordinary course of your business. 1040ez tax form 2014 If the advance payments are for contracts involving both the sale and service of goods, it may be necessary to treat them as two agreements. 1040ez tax form 2014 An agreement includes a gift certificate that can be redeemed for goods. 1040ez tax form 2014 Treat amounts that are due and payable as amounts you received. 1040ez tax form 2014   You generally include an advance payment in income for the tax year in which you receive it. 1040ez tax form 2014 However, you can use an alternative method. 1040ez tax form 2014 For information about the alternative method, see Publication 538. 1040ez tax form 2014 Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both the following apply. 1040ez tax form 2014 The all-events test has been met. 1040ez tax form 2014 The test has been met when: All events have occurred that fix the fact of liability, and The liability can be determined with reasonable accuracy. 1040ez tax form 2014 Economic performance has occurred. 1040ez tax form 2014 Economic performance. 1040ez tax form 2014   You generally cannot deduct or capitalize a business expense until economic performance occurs. 1040ez tax form 2014 If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. 1040ez tax form 2014 If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. 1040ez tax form 2014 An exception allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. 1040ez tax form 2014 For more information on economic performance, see Economic Performance under Accrual Method in Publication 538. 1040ez tax form 2014 Example. 1040ez tax form 2014 You are a calendar year taxpayer and use an accrual method of accounting. 1040ez tax form 2014 You buy office supplies in December 2013. 1040ez tax form 2014 You receive the supplies and the bill in December, but you pay the bill in January 2014. 1040ez tax form 2014 You can deduct the expense in 2013 because all events that fix the fact of liability have occurred, the amount of the liability could be reasonably determined, and economic performance occurred in that year. 1040ez tax form 2014 Your office supplies may qualify as a recurring expense. 1040ez tax form 2014 In that case, you can deduct them in 2013 even if the supplies are not delivered until 2014 (when economic performance occurs). 1040ez tax form 2014 Keeping inventories. 1040ez tax form 2014   When the production, purchase, or sale of merchandise is an income-producing factor in your business, you must generally take inventories into account at the beginning and the end of your tax year. 1040ez tax form 2014 If you must account for an inventory, you must generally use an accrual method of accounting for your purchases and sales. 1040ez tax form 2014 For more information, see Inventories , later. 1040ez tax form 2014 Special rule for related persons. 1040ez tax form 2014   You cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until you make the payment and the corresponding amount is includible in the related person's gross income. 1040ez tax form 2014 Determine the relationship, for this rule, as of the end of the tax year for which the expense or interest would otherwise be deductible. 1040ez tax form 2014 If a deduction is not allowed under this rule, the rule will continue to apply even if your relationship with the person ends before the expense or interest is includible in the gross income of that person. 1040ez tax form 2014   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. 1040ez tax form 2014 For a list of other related persons, see section 267 of the Internal Revenue Code. 1040ez tax form 2014 Combination Method You can generally use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. 1040ez tax form 2014 However, the following restrictions apply. 1040ez tax form 2014 If an inventory is necessary to account for your income, you must generally use an accrual method for purchases and sales. 1040ez tax form 2014 (See, however, Inventories, later. 1040ez tax form 2014 ) You can use the cash method for all other items of income and expenses. 1040ez tax form 2014 If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. 1040ez tax form 2014 If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. 1040ez tax form 2014 If you use a combination method that includes the cash method, treat that combination method as the cash method. 1040ez tax form 2014 Inventories Generally, if you produce, purchase, or sell merchandise in your business, you must keep an inventory and use the accrual method for purchases and sales of merchandise. 1040ez tax form 2014 However, the following taxpayers can use the cash method of accounting even if they produce, purchase, or sell merchandise. 1040ez tax form 2014 These taxpayers can also account for inventoriable items as materials and supplies that are not incidental (discussed later). 1040ez tax form 2014 A qualifying taxpayer under Revenue Procedure 2001-10 in Internal Revenue Bulletin 2001-2. 1040ez tax form 2014 A qualifying small business taxpayer under Revenue Procedure 2002-28 in Internal Revenue Bulletin 2002-18. 1040ez tax form 2014 Qualifying taxpayer. 1040ez tax form 2014   You are a qualifying taxpayer if: Your average annual gross receipts for each prior tax year ending on or after December 17, 1998, is $1 million or less. 1040ez tax form 2014 (Your average annual gross receipts for a tax year is figured by adding the gross receipts for that tax year and the 2 preceding tax years and dividing by 3. 1040ez tax form 2014 ) Your business is not a tax shelter, as defined under section 448(d)(3) of the Internal Revenue Code. 1040ez tax form 2014 Qualifying small business taxpayer. 1040ez tax form 2014   You are a qualifying small business taxpayer if: Your average annual gross receipts for each prior tax year ending on or after December 31, 2000, is more than $1 million but not more than $10 million. 1040ez tax form 2014 (Your average annual gross receipts for a tax year is figured by adding the gross receipts for that tax year and the 2 preceding tax years and dividing the total by 3. 1040ez tax form 2014 ) You are not prohibited from using the cash method under section 448 of the Internal Revenue Code. 1040ez tax form 2014 Your principal business activity is an eligible business (described in Publication 538 and Revenue Procedure 2002-28). 1040ez tax form 2014 Business not owned or not in existence for 3 years. 1040ez tax form 2014   If you did not own your business for all of the 3-tax-year period used in figuring your average annual gross receipts, include the period of any predecessor. 1040ez tax form 2014 If your business has not been in existence for the 3-tax-year period, base your average on the period it has existed including any short tax years, annualizing the short tax year's gross receipts. 1040ez tax form 2014 Materials and supplies that are not incidental. 1040ez tax form 2014   If you account for inventoriable items as materials and supplies that are not incidental, you will deduct the cost of the items you would otherwise include in inventory in the year you sell the items, or the year you pay for them, whichever is later. 1040ez tax form 2014 If you are a producer, you can use any reasonable method to estimate the raw material in your work in process and finished goods on hand at the end of the year to determine the raw material used to produce finished goods that were sold during the year. 1040ez tax form 2014 Changing accounting method. 1040ez tax form 2014   If you are a qualifying taxpayer or qualifying small business taxpayer and want to change to the cash method or to account for inventoriable items as non-incidental materials and supplies, you must file Form 3115, Application for Change in Accounting Method. 1040ez tax form 2014 See Change in Accounting Method, later. 1040ez tax form 2014 More information. 1040ez tax form 2014    For more information about the qualifying taxpayer exception, see Revenue Procedure 2001-10 in Internal Revenue Bulletin 2001-2. 1040ez tax form 2014 For more information about the qualifying small business taxpayer exception, see Revenue Procedure 2002-28 in Internal Revenue Bulletin 2002-18. 1040ez tax form 2014 Items included in inventory. 1040ez tax form 2014   If you are required to account for inventories, include the following items when accounting for your inventory. 1040ez tax form 2014 Merchandise or stock in trade. 1040ez tax form 2014 Raw materials. 1040ez tax form 2014 Work in process. 1040ez tax form 2014 Finished products. 1040ez tax form 2014 Supplies that physically become a part of the item intended for sale. 1040ez tax form 2014 Valuing inventory. 1040ez tax form 2014   You must value your inventory at the beginning and end of each tax year to determine your cost of goods sold (Schedule C, line 42). 1040ez tax form 2014 To determine the value of your inventory, you need a method for identifying the items in your inventory and a method for valuing these items. 1040ez tax form 2014   Inventory valuation rules cannot be the same for all kinds of businesses. 1040ez tax form 2014 The method you use to value your inventory must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. 1040ez tax form 2014 Your inventory practices must be consistent from year to year. 1040ez tax form 2014 More information. 1040ez tax form 2014   For more information about inventories, see Publication 538. 1040ez tax form 2014 Uniform Capitalization Rules Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for production or resale activities. 1040ez tax form 2014 Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. 1040ez tax form 2014 You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. 1040ez tax form 2014 Activities subject to the uniform capitalization rules. 1040ez tax form 2014   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. 1040ez tax form 2014 Produce real or tangible personal property. 1040ez tax form 2014 For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. 1040ez tax form 2014 Acquire property for resale. 1040ez tax form 2014 Exceptions. 1040ez tax form 2014   These rules do not apply to the following property. 1040ez tax form 2014 Personal property you acquire for resale if your average annual gross receipts are $10 million or less. 1040ez tax form 2014 Property you produce if you meet either of the following conditions. 1040ez tax form 2014 Your indirect costs of producing the property are $200,000 or less. 1040ez tax form 2014 You use the cash method of accounting and do not account for inventories. 1040ez tax form 2014 For more information, see Inventories, earlier. 1040ez tax form 2014 Special Methods There are special methods of accounting for certain items of income or expense. 1040ez tax form 2014 These include the following. 1040ez tax form 2014 Amortization, discussed in chapter 8 of Publication 535, Business Expenses. 1040ez tax form 2014 Bad debts, discussed in chapter 10 of Publication 535. 1040ez tax form 2014 Depletion, discussed in chapter 9 of Publication 535. 1040ez tax form 2014 Depreciation, discussed in Publication 946, How To Depreciate Property. 1040ez tax form 2014 Installment sales, discussed in Publication 537, Installment Sales. 1040ez tax form 2014 Change in Accounting Method Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. 1040ez tax form 2014 A change in your accounting method includes a change in: Your overall method, such as from cash to an accrual method, and Your treatment of any material item. 1040ez tax form 2014 To get approval, you must file Form 3115, Application for Change in Accounting Method. 1040ez tax form 2014 You can get IRS approval to change an accounting method under either the automatic change procedures or the advance consent request procedures. 1040ez tax form 2014 You may have to pay a user fee. 1040ez tax form 2014 For more information, see the form instructions. 1040ez tax form 2014 Automatic change procedures. 1040ez tax form 2014   Certain taxpayers can presume to have IRS approval to change their method of accounting. 1040ez tax form 2014 The approval is granted for the tax year for which the taxpayer requests a change (year of change), if the taxpayer complies with the provisions of the automatic change procedures. 1040ez tax form 2014 No user fee is required for an application filed under an automatic change procedure generally covered in Revenue Procedure 2002-9. 1040ez tax form 2014   Generally, you must use Form 3115 to request an automatic change. 1040ez tax form 2014 For more information, see the Instructions for Form 3115. 1040ez tax form 2014 Prev  Up  Next   Home   More Online Publications