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1040ez Worksheet Line 5

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1040ez Worksheet Line 5

1040ez worksheet line 5 1. 1040ez worksheet line 5   2013 Filing Requirements Table of Contents General RequirementsSelf-employed persons. 1040ez worksheet line 5 Decedents If income tax was withheld from your pay, or if you qualify for the earned income credit, the additional child tax credit, the health coverage tax credit, or the American opportunity credit, you should file a return to get a refund even if you are not otherwise required to file a return. 1040ez worksheet line 5 Do not file a federal income tax return if you do not meet the filing requirements and are not due a refund. 1040ez worksheet line 5 If you need assistance to determine if you need to file a federal income tax return for 2013, go to IRS. 1040ez worksheet line 5 gov and use the Interactive Tax Assistant (ITA). 1040ez worksheet line 5 You can find the ITA by going to IRS. 1040ez worksheet line 5 gov and entering “interactive tax assistant” in the search box. 1040ez worksheet line 5 Open the ITA and click on Do I Need to File a Tax Return under Topics by Category. 1040ez worksheet line 5 General Requirements If you are a U. 1040ez worksheet line 5 S. 1040ez worksheet line 5 citizen or resident alien, you must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1-1. 1040ez worksheet line 5 For other filing requirements, see your tax return instructions or Publication 501, Exemptions, Standard Deduction, and Filing Information. 1040ez worksheet line 5 If you were a nonresident alien at any time during the year, the filing requirements that apply to you may be different from those that apply to U. 1040ez worksheet line 5 S. 1040ez worksheet line 5 citizens. 1040ez worksheet line 5 See Publication 519, U. 1040ez worksheet line 5 S. 1040ez worksheet line 5 Tax Guide for Aliens. 1040ez worksheet line 5 Table 1-1. 1040ez worksheet line 5 2013 Filing Requirements Chart for Most Taxpayers Note. 1040ez worksheet line 5 You must file a return if your gross income was at least the amount shown in the last column. 1040ez worksheet line 5 IF your filing status is. 1040ez worksheet line 5 . 1040ez worksheet line 5 . 1040ez worksheet line 5 AND at the end of 2013 you were*. 1040ez worksheet line 5 . 1040ez worksheet line 5 . 1040ez worksheet line 5 THEN file a return if your gross income** was at least. 1040ez worksheet line 5 . 1040ez worksheet line 5 . 1040ez worksheet line 5 Single under 65 $10,000 65 or older $11,500 Head of household under 65 $12,850 65 or older $14,350 Married filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 Married filing separately any age $3,900 Qualifying widow(er)  with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. 1040ez worksheet line 5 ** Gross income means all income you receive in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). 1040ez worksheet line 5 It also includes gains, but not losses, reported on Form 8949 or Schedule D. 1040ez worksheet line 5 Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. 1040ez worksheet line 5 But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. 1040ez worksheet line 5 Do not include any social security benefits unless (a) you are married filing separately and you lived with your spouse at any time in 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). 1040ez worksheet line 5 If (a) or (b) applies, see the Instructions for Form 1040 or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the taxable part of social security benefits you must include in gross income. 1040ez worksheet line 5 *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. 1040ez worksheet line 5 Gross income. 1040ez worksheet line 5   Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. 1040ez worksheet line 5 If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. 1040ez worksheet line 5 The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040ez worksheet line 5 A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. 1040ez worksheet line 5 For more information about community property, see Publication 555, Community Property. 1040ez worksheet line 5   For more information on what to include in gross income, see chapter 2. 1040ez worksheet line 5 Self-employed persons. 1040ez worksheet line 5    If you are self-employed in a business that provides services (where the production, purchase, or sale of merchandise is not an income-producing factor), gross income from that business is the gross receipts. 1040ez worksheet line 5   If you are self-employed in a business involving manufacturing, merchandising, or mining, gross income from that business is the total sales minus the cost of goods sold. 1040ez worksheet line 5 Then, to this figure, you add any income from investments and from incidental or outside operations or sources. 1040ez worksheet line 5 See Publication 334, Tax Guide for Small Business, for more information. 1040ez worksheet line 5 Dependents. 1040ez worksheet line 5   If you could be claimed as a dependent by another taxpayer (that is, you meet the dependency tests in Publication 501), special filing requirements apply. 1040ez worksheet line 5 See Publication 501. 1040ez worksheet line 5 Decedents A personal representative of a decedent's estate can be an executor, administrator, or anyone who is in charge of the decedent's property. 1040ez worksheet line 5 If you are acting as the personal representative of a person who died during the year, you may have to file a final return for that decedent. 1040ez worksheet line 5 You also have other duties, such as notifying the IRS that you are acting as the personal representative. 1040ez worksheet line 5 Form 56, Notice Concerning Fiduciary Relationship, is available for this purpose. 1040ez worksheet line 5 When you file a return for the decedent, either as the personal representative or as the surviving spouse, you should write “DECEASED,” the decedent's name, and the date of death across the top of the tax return. 1040ez worksheet line 5 If no personal representative has been appointed by the due date for filing the return, the surviving spouse (on a joint return) should sign the return and write in the signature area “Filing as surviving spouse. 1040ez worksheet line 5 ” For more information, see Publication 559, Survivors, Executors, and Administrators. 1040ez worksheet line 5 Surviving spouse. 1040ez worksheet line 5   If you are the surviving spouse, the year your spouse died is the last year for which you can file a joint return with that spouse. 1040ez worksheet line 5 After that, if you do not remarry, you must file as a qualifying widow(er) with dependent child, head of household, or single. 1040ez worksheet line 5 For more information about each of these filing statuses, see Publication 501. 1040ez worksheet line 5   If you remarry before the end of the year in which your spouse died, a final joint return with the deceased spouse cannot be filed. 1040ez worksheet line 5 You can, however, file a joint return with your new spouse. 1040ez worksheet line 5 In that case, the filing status of your deceased spouse for his or her final return is married filing separately. 1040ez worksheet line 5 The level of income that requires you to file an income tax return changes when your filing status changes (see Table 1-1). 1040ez worksheet line 5 Even if you and your deceased spouse were not required to file a return for several years, you may have to file a return for tax years after the year of death. 1040ez worksheet line 5 For example, if your filing status changes from filing jointly in 2012 to single in 2013 because of the death of your spouse, and your gross income is $17,500 for both years, you must file a return for 2013 even though you did not have to file a return for 2012. 1040ez worksheet line 5 Prev  Up  Next   Home   More Online Publications
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Understanding Your CP01A Notice

This notice tells you about the Identity Protection Personal Identification Number (IP PIN) we sent you.


What you need to do

  • Forms 1040, 1040A, 1040EZ and 1040 PR/SS
    Be sure to enter your IP PIN in the correct place when you file your 2013 federal tax return:
    • Electronic Returns (Caution: see new joint filing rules below)
      • Your tax software or practitioner will tell you when and where to enter the IP PIN.
      • If you can’t find where to enter your IP PIN, search within your software on Identity Protection PIN or IP PIN or contact the software provider’s help desk. Due to software variations, the IRS doesn't know the location of the IP PIN within each package.
    • Paper Returns
      • Enter your IP PIN in the gray box marked “Identity Protection PIN” to the right of “Spouse’s signature and occupation”.
  • Amended Returns, Extensions and Installment Agreements
    An IP PIN is not required to file:
    • Form 1040X, Amended U.S. Individual Income Tax Return ,
    • Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or
    • Form 433-D, Installment Agreement

If you are filing a joint return

  • Electronic Returns
    • Each taxpayer who receives an IP PIN must enter it on their tax return when filing as the primary (first SSN on the tax form) or secondary taxpayer.
      • If only one taxpayer receives an IP PIN, you must enter it with the taxpayer’s SSN to whom it belongs.
      • If both taxpayers receive an IP PIN, both taxpayers must enter the IP PIN that goes with their SSN.
  • Paper Returns
    • Only the primary taxpayer should enter their IP PIN on the tax return. The secondary taxpayer must not enter their IP PIN even if they received one
    • Note: The secondary taxpayer’s IP PIN still provides protection by preventing the fraudulent use of your SSN as the primary or secondary SSN on an e-filed return or as the primary SSN on a paper return

Important things to remember about your IP PIN

  • Store this letter with your tax records
  • A new IP PIN is assigned to you each year
  • The latest IP PIN assigned to you is your IP PIN of record and you should destroy all prior IP PINs securely
  • Do not reveal your IP PIN to anyone other than your tax preparer. Reveal it only when you are ready to sign and submit your federal income tax return
  • Use your IP PIN on your 2013 federal income tax return
    • Electronic Returns: We will reject your return if you fail to use your IP PIN.
    • Paper Returns: A significant delay processing your return and any refund you may be due will occur if you fail to use the primary taxpayer’s IP PIN.
  • Your IP PIN is not used on your state income tax return

Use on prior year returns

You must use your latest IP PIN on any delinquent 2012 or 2011 Forms 1040. 1040A, 1040EZ or 1040PR/SS returns you may file in calendar year 2014.


If you misplaced your IP PIN

Visit the Lost or Misplaced IP PINs page for instructions on how to recover your original IP PIN or request a replacement.


Answers to Common Questions

We have complete answers to questions you might have about the IP PIN process on our Frequently Asked Questions about the IP PIN page.

Page Last Reviewed or Updated: 19-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The 1040ez Worksheet Line 5

1040ez worksheet line 5 6. 1040ez worksheet line 5   How To Figure Cost of Goods Sold Table of Contents Introduction Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42Line 35 Inventory at Beginning of Year Line 36 Purchases Less Cost of Items Withdrawn for Personal Use Line 37 Cost of Labor Line 38 Materials and Supplies Line 39 Other Costs Line 40 Add Lines 35 through 39 Line 41 Inventory at End of Year Line 42 Cost of Goods Sold Introduction If you make or buy goods to sell, you can deduct the cost of goods sold from your gross receipts on Schedule C. 1040ez worksheet line 5 However, to determine these costs, you must value your inventory at the beginning and end of each tax year. 1040ez worksheet line 5 This chapter applies to you if you are a manufacturer, wholesaler, or retailer or if you are engaged in any business that makes, buys, or sells goods to produce income. 1040ez worksheet line 5 This chapter does not apply to a personal service business, such as the business of a doctor, lawyer, carpenter, or painter. 1040ez worksheet line 5 However, if you work in a personal service business and also sell or charge for the materials and supplies normally used in your business, this chapter applies to you. 1040ez worksheet line 5 If you must account for an inventory in your business, you must generally use an accrual method of accounting for your purchases and sales. 1040ez worksheet line 5 For more information, see chapter 2. 1040ez worksheet line 5 Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42 Figure your cost of goods sold by filling out lines 35 through 42 of Schedule C. 1040ez worksheet line 5 These lines are reproduced below and are explained in the discussion that follows. 1040ez worksheet line 5 35 Inventory at beginning of year. 1040ez worksheet line 5 If different from last year's closing inventory, attach explanation   36 Purchases less cost of items withdrawn for personal use   37 Cost of labor. 1040ez worksheet line 5 Do not include any amounts paid to yourself   38 Materials and supplies   39 Other costs   40 Add lines 35 through 39   41 Inventory at end of year   42 Cost of goods sold. 1040ez worksheet line 5 Subtract line 41 from line 40. 1040ez worksheet line 5  Enter the result here and on line 4   Line 35 Inventory at Beginning of Year If you are a merchant, beginning inventory is the cost of merchandise on hand at the beginning of the year that you will sell to customers. 1040ez worksheet line 5 If you are a manufacturer or producer, it includes the total cost of raw materials, work in process, finished goods, and materials and supplies used in manufacturing the goods (see Inventories in chapter 2). 1040ez worksheet line 5 Opening inventory usually will be identical to the closing inventory of the year before. 1040ez worksheet line 5 You must explain any difference in a schedule attached to your return. 1040ez worksheet line 5 Donation of inventory. 1040ez worksheet line 5   If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis. 1040ez worksheet line 5 The basis of donated inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. 1040ez worksheet line 5 You must remove the amount of your contribution deduction from your opening inventory. 1040ez worksheet line 5 It is not part of the cost of goods sold. 1040ez worksheet line 5   If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. 1040ez worksheet line 5 Treat the inventory's cost as you would ordinarily treat it under your method of accounting. 1040ez worksheet line 5 For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. 1040ez worksheet line 5   A special rule may apply to certain donations of food inventory. 1040ez worksheet line 5 See Publication 526, Charitable Contributions. 1040ez worksheet line 5 Example 1. 1040ez worksheet line 5 You are a calendar year taxpayer who uses an accrual method of accounting. 1040ez worksheet line 5 In 2013, you contributed property from inventory to a church. 1040ez worksheet line 5 It had a fair market value of $600. 1040ez worksheet line 5 The closing inventory at the end of 2012 properly included $400 of costs due to the acquisition of the property, and in 2012, you properly deducted $50 of administrative and other expenses attributable to the property as business expenses. 1040ez worksheet line 5 The charitable contribution allowed for 2013 is $400 ($600 − $200). 1040ez worksheet line 5 The $200 is the amount that would be ordinary income if you had sold the contributed inventory at fair market value on the date of the gift. 1040ez worksheet line 5 The cost of goods sold you use in determining gross income for 2013 must not include the $400. 1040ez worksheet line 5 You remove that amount from opening inventory for 2013. 1040ez worksheet line 5 Example 2. 1040ez worksheet line 5 If, in Example 1, you acquired the contributed property in 2013 at a cost of $400, you would include the $400 cost of the property in figuring the cost of goods sold for 2013 and deduct the $50 of administrative and other expenses attributable to the property for that year. 1040ez worksheet line 5 You would not be allowed any charitable contribution deduction for the contributed property. 1040ez worksheet line 5 Line 36 Purchases Less Cost of Items Withdrawn for Personal Use If you are a merchant, use the cost of all merchandise you bought for sale. 1040ez worksheet line 5 If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into a finished product. 1040ez worksheet line 5 Trade discounts. 1040ez worksheet line 5   The differences between the stated prices of articles and the actual prices you pay for them are called trade discounts. 1040ez worksheet line 5 You must use the prices you pay (not the stated prices) in figuring your cost of purchases. 1040ez worksheet line 5 Do not show the discount amount separately as an item in gross income. 1040ez worksheet line 5   An automobile dealer must record the cost of a car in inventory reduced by any manufacturer's rebate that represents a trade discount. 1040ez worksheet line 5 Cash discounts. 1040ez worksheet line 5   Cash discounts are amounts your suppliers let you deduct from your purchase invoices for prompt payments. 1040ez worksheet line 5 There are two methods of accounting for cash discounts. 1040ez worksheet line 5 You can either credit them to a separate discount account or deduct them from total purchases for the year. 1040ez worksheet line 5 Whichever method you use, you must be consistent. 1040ez worksheet line 5 If you want to change your method of figuring inventory cost, you must file Form 3115, Application for Change in Accounting Method. 1040ez worksheet line 5 For more information, see Change in Accounting Method in chapter 2. 1040ez worksheet line 5   If you credit cash discounts to a separate account, you must include this credit balance in your business income at the end of the tax year. 1040ez worksheet line 5 If you use this method, do not reduce your cost of goods sold by the cash discounts. 1040ez worksheet line 5 Purchase returns and allowances. 1040ez worksheet line 5   You must deduct all returns and allowances from your total purchases during the year. 1040ez worksheet line 5 Merchandise withdrawn from sale. 1040ez worksheet line 5   If you withdraw merchandise for your personal or family use, you must exclude this cost from the total amount of merchandise you bought for sale. 1040ez worksheet line 5 Do this by crediting the purchases or sales account with the cost of merchandise you withdraw for personal use. 1040ez worksheet line 5 You must also charge the amount to your drawing account. 1040ez worksheet line 5   A drawing account is a separate account you should keep to record the business income you withdraw to pay for personal and family expenses. 1040ez worksheet line 5 As stated above, you also use it to record withdrawals of merchandise for personal or family use. 1040ez worksheet line 5 This account is also known as a “withdrawals account” or “personal account. 1040ez worksheet line 5 ” Line 37 Cost of Labor Labor costs are usually an element of cost of goods sold only in a manufacturing or mining business. 1040ez worksheet line 5 Small merchandisers (wholesalers, retailers, etc. 1040ez worksheet line 5 ) usually do not have labor costs that can properly be charged to cost of goods sold. 1040ez worksheet line 5 In a manufacturing business, labor costs properly allocable to the cost of goods sold include both the direct and indirect labor used in fabricating the raw material into a finished, saleable product. 1040ez worksheet line 5 Direct labor. 1040ez worksheet line 5   Direct labor costs are the wages you pay to those employees who spend all their time working directly on the product being manufactured. 1040ez worksheet line 5 They also include a part of the wages you pay to employees who work directly on the product part time if you can determine that part of their wages. 1040ez worksheet line 5 Indirect labor. 1040ez worksheet line 5   Indirect labor costs are the wages you pay to employees who perform a general factory function that does not have any immediate or direct connection with making the saleable product, but that is a necessary part of the manufacturing process. 1040ez worksheet line 5 Other labor. 1040ez worksheet line 5   Other labor costs not properly chargeable to the cost of goods sold can be deducted as selling or administrative expenses. 1040ez worksheet line 5 Generally, the only kinds of labor costs properly chargeable to your cost of goods sold are the direct or indirect labor costs and certain other costs treated as overhead expenses properly charged to the manufacturing process, as discussed later under Line 39 Other Costs. 1040ez worksheet line 5 Line 38 Materials and Supplies Materials and supplies, such as hardware and chemicals, used in manufacturing goods are charged to cost of goods sold. 1040ez worksheet line 5 Those that are not used in the manufacturing process are treated as deferred charges. 1040ez worksheet line 5 You deduct them as a business expense when you use them. 1040ez worksheet line 5 Business expenses are discussed in chapter 8. 1040ez worksheet line 5 Line 39 Other Costs Examples of other costs incurred in a manufacturing or mining process that you charge to your cost of goods sold are as follows. 1040ez worksheet line 5 Containers. 1040ez worksheet line 5   Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. 1040ez worksheet line 5 If they are not an integral part of the manufactured product, their costs are shipping or selling expenses. 1040ez worksheet line 5 Freight-in. 1040ez worksheet line 5   Freight-in, express-in, and cartage-in on raw materials, supplies you use in production, and merchandise you purchase for sale are all part of cost of goods sold. 1040ez worksheet line 5 Overhead expenses. 1040ez worksheet line 5   Overhead expenses include expenses such as rent, heat, light, power, insurance, depreciation, taxes, maintenance, labor, and supervision. 1040ez worksheet line 5 The overhead expenses you have as direct and necessary expenses of the manufacturing operation are included in your cost of goods sold. 1040ez worksheet line 5 Line 40 Add Lines 35 through 39 The total of lines 35 through 39 equals the cost of the goods available for sale during the year. 1040ez worksheet line 5 Line 41 Inventory at End of Year Subtract the value of your closing inventory (including, as appropriate, the allocable parts of the cost of raw materials and supplies, direct labor, and overhead expenses) from line 40. 1040ez worksheet line 5 Inventory at the end of the year is also known as closing or ending inventory. 1040ez worksheet line 5 Your ending inventory will usually become the beginning inventory of your next tax year. 1040ez worksheet line 5 Line 42 Cost of Goods Sold When you subtract your closing inventory (inventory at the end of the year) from the cost of goods available for sale, the remainder is your cost of goods sold during the tax year. 1040ez worksheet line 5 Prev  Up  Next   Home   More Online Publications