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1040x Turbotax

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1040x Turbotax

1040x turbotax Publication 505 - Introductory Material Table of Contents IntroductionNonresident aliens. 1040x turbotax Ordering forms and publications. 1040x turbotax Tax questions. 1040x turbotax What's New for 2014 Reminders Introduction The federal income tax is a pay-as-you-go tax. 1040x turbotax You must pay the tax as you earn or receive income during the year. 1040x turbotax There are two ways to pay as you go. 1040x turbotax Withholding. 1040x turbotax If you are an employee, your employer probably withholds income tax from your pay. 1040x turbotax In addition, tax may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. 1040x turbotax The amount withheld is paid to the Internal Revenue Service (IRS) in your name. 1040x turbotax Estimated tax. 1040x turbotax If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 1040x turbotax People who are in business for themselves generally will have to pay their tax this way. 1040x turbotax You may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rents, and royalties. 1040x turbotax Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax. 1040x turbotax This publication explains both of these methods. 1040x turbotax It also explains how to take credit on your return for the tax that was withheld and for your estimated tax payments. 1040x turbotax If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. 1040x turbotax Generally, the IRS can figure this penalty for you. 1040x turbotax This underpayment penalty, and the exceptions to it, are discussed in chapter 4. 1040x turbotax Nonresident aliens. 1040x turbotax    Before completing Form W-4, nonresident alien employees should see the Instructions for Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. 1040x turbotax Also see chapter 8 of Publication 519, U. 1040x turbotax S. 1040x turbotax Tax Guide for Aliens, for important information on withholding. 1040x turbotax What's new for 2013 and 2014. 1040x turbotax   See What's New for 2014 in this Introduction, and What's New for 2013 in chapter 4. 1040x turbotax Comments and suggestions. 1040x turbotax   We welcome your comments about this publication and your suggestions for future editions. 1040x turbotax   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040x turbotax NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040x turbotax Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040x turbotax   You can send your comments from www. 1040x turbotax irs. 1040x turbotax gov/formspubs/. 1040x turbotax Click on “More Information” and then on Give us feedback on forms and publications. 1040x turbotax   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040x turbotax Ordering forms and publications. 1040x turbotax   Visit www. 1040x turbotax irs. 1040x turbotax gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 business days after your request is received. 1040x turbotax Internal Revenue Service 1201 N. 1040x turbotax Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040x turbotax   If you have a tax question, check the information available on IRS. 1040x turbotax gov or call 1-800-829-1040. 1040x turbotax We cannot answer tax questions sent to either of the above addresses. 1040x turbotax What's New for 2014 Use your 2013 tax return as a guide in figuring your 2014 estimated tax, but be sure to consider the following. 1040x turbotax Standard mileage rates. 1040x turbotax  The 2014 rate for business use of your vehicle is 56 cents per mile. 1040x turbotax The rate for use of your vehicle to get medical care or move is 23½ cents per mile. 1040x turbotax The rate of 14 cents per mile for charitable use is unchanged. 1040x turbotax Personal exemption increased for certain taxpayers. 1040x turbotax  For 2014, the personal exemption amount is increased to $3,950 for taxpayers with adjusted gross income at or below $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. 1040x turbotax The personal exemption amount for taxpayers with adjusted gross income above these thresholds may be reduced. 1040x turbotax Limitation on itemized deductions. 1040x turbotax  For 2014, itemized deductions for taxpayers with adjusted gross income above $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, and $152,525 if married filing separately may be reduced. 1040x turbotax Health care coverage. 1040x turbotax  When you file your 2014 tax return in 2015, you will need to either (1) indicate on your return that you and your family had health care coverage throughout 2014, (2) claim an exemption from the health care coverage requirement for some or all of 2014, or (3) make a payment if you do not have coverage or an exemption(s) for all 12 months of 2014. 1040x turbotax For examples on how this payment works, go to www. 1040x turbotax IRS. 1040x turbotax gov/aca and click under the “Individuals & Families” section. 1040x turbotax You may want to consider this when figuring your “Other taxes” on Line 12 of the 2014 Estimated Tax Worksheet (Worksheet 2-1). 1040x turbotax For general information on these requirements, go to www. 1040x turbotax IRS. 1040x turbotax gov/aca. 1040x turbotax Advance payments of the Premium Tax Credit. 1040x turbotax  If you buy health care insurance through the Health Insurance Marketplace, you may be eligible for advance payments of the Premium Tax Credit to help pay for your insurance coverage. 1040x turbotax Receiving too little or too much in advance will affect your refund or balance due. 1040x turbotax Promptly report changes in your income or family size to your Marketplace. 1040x turbotax You may want to consider this when figuring your estimated taxes for 2014. 1040x turbotax For more information, go to www. 1040x turbotax IRS. 1040x turbotax gov/aca and see Publication 5120 and Publication 5121. 1040x turbotax http://www. 1040x turbotax IRS. 1040x turbotax gov/pub5120 Alternative minimum tax (AMT) exemption amount increased. 1040x turbotax  The AMT exemption amount is increased to $52,800 ($82,100 if married filing jointly or qualifying widow(er); $41,050 if married filing separately). 1040x turbotax Lifetime learning credit income limits. 1040x turbotax  In order to claim a lifetime learning credit, your MAGI must be less than $54,000 ($108,000 if married filing jointly). 1040x turbotax Retirement savings contribution credit income limits increased. 1040x turbotax  In order to claim this credit for 2014, your MAGI must be less than $30,000 ($60,000 if married filing jointly; $45,000 if head of household). 1040x turbotax Adoption credit or exclusion. 1040x turbotax  The maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $13,190. 1040x turbotax In order to claim either the credit or exclusion, your MAGI must be less than $237,880. 1040x turbotax Earned income credit (EIC). 1040x turbotax  You may be able to take the EIC in 2014 if: Three or more children lived with you and you earned less than $46,997 ($52,427 if married filing jointly), Two children lived with you and you earned less than $43,756 ($49,186 if married filing jointly), One child lived with you and you earned less than $38,511 ($43,941 if married filing jointly), or A child did not live with you and you earned less than $14,590 ($20,020 if married filing jointly). 1040x turbotax Also, the maximum MAGI you can have and still get the credit has increased. 1040x turbotax You may be able to take the credit if your MAGI is less than the amount in the above list that applies to you. 1040x turbotax The maximum investment income you can have and get the credit has increased to $3,350. 1040x turbotax Reminders Future developments. 1040x turbotax  The IRS has created a page on IRS. 1040x turbotax gov for information about Publication 505 at www. 1040x turbotax irs. 1040x turbotax gov/pub505. 1040x turbotax Information about any future developments affecting Publication 505 (such as legislation enacted after we release it) will be posted on that page. 1040x turbotax Social security tax. 1040x turbotax   Generally, each employer for whom you work during the tax year must withhold social security tax up to the annual limit. 1040x turbotax The annual limit is $117,000 in 2014. 1040x turbotax Photographs of missing children. 1040x turbotax  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040x turbotax Photographs of missing children selected by the Center may appear in this publication on pages that otherwise would be blank. 1040x turbotax You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040x turbotax Additional Medicare Tax. 1040x turbotax  Beginning in 2013, a 0. 1040x turbotax 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act compensation, and self-employment income over a threshold amount based on your filing status. 1040x turbotax You may need to include this amount when figuring your estimated tax. 1040x turbotax See the instructions for line 12 of the 2014 Estimated Tax Worksheet. 1040x turbotax You may also request that your employer deduct and withhold an additional amount of income tax withholding from your wages on Form W-4, Employee's Withholding Allowance Certificate. 1040x turbotax For more information on Additional Medicare Tax, go to IRS. 1040x turbotax gov and enter “Additional Medicare Tax” in the search box. 1040x turbotax Net Investment Income Tax. 1040x turbotax  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). 1040x turbotax NIIT is a 3. 1040x turbotax 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income (MAGI) over the threshold amount. 1040x turbotax NIIT may need to be included when figuring estimated tax. 1040x turbotax See the instructions for line 12 of the 2014 Estimated Tax Worksheet. 1040x turbotax You may also request that your employer deduct and withhold an additional amount of income tax withholding from your wages on Form W-4. 1040x turbotax For more information on NIIT, go to IRS. 1040x turbotax gov and enter “Net Investment Income Tax” in the search box. 1040x turbotax Prev  Up  Next   Home   More Online Publications

.gov Reform Effort: Improving Federal Websites

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Digital Government Strategy

The White House released its Digital Government Strategy, entitled Digital Government: Building a 21st Century Platform to Better Serve the American People, on May 23, 2012. You can also download the Digital Government Strategy as a PDF.

The strategy is a plan for delivering better online service to the American people, with three main objectives:

  • Enable citizens and an increasingly mobile workforce to access high-quality digital government information and services anywhere, anytime, on any device.
  • Ensure that as the government adjusts to this new digital world, we seize the opportunity to procure and manage devices, applications, and data in smart, secure and affordable ways.
  • Unlock the power of government data to spur innovation across our Nation and improve the quality of services for the American people.

The Digital Government Strategy was created from a broad range of input across government: the Mobility Strategy and Web Reform Task Forces, the Office of Management and Budget, the General Services Administration, Federal CIOs, new media directors, and web managers. The Strategy also draws on research from the State of the Federal Web Report (PDF) and public input from the National Dialogue for Improving Federal Websites and the National Dialogue on the Federal Mobility Strategy.

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What is the .gov reform effort?

The .gov reform effort began in 2011 as part of President Obama's Campaign to Cut Waste, identifying unnecessary websites that can be consolidated into other websites to reduce costs and improve the quality of service to the American public.

The reform effort led to the development of a federal web strategy, which was merged with the federal mobility strategy to create the Digital Government Strategy. This broader initiative focuses not only on website consolidation, but also on innovating with less and delivering better quality content and information to the public across multiple platforms and devices.

What is the federal government doing to improve federal websites?

In the June 13, 2011, OMB Memorandum M-11-24, Implementing Executive Order 13571 on Streamlining Service Delivery and Improving Customer Service (PDF), agencies are directed to improve online services and eliminate wasteful spending. They must work to manage web resources more efficiently and assure that valuable content is readily accessible and available online. To date, the reform effort has:

  • Instituted a freeze on the approval of new .gov domain names and developed stronger criteria for getting a new domain.
  • Set up the .gov Reform Task Force to recommend updates to federal web guidelines and policies.
  • Posted and updated a list of all registered .gov domain names on Data.gov.
  • Asked agencies to identify sites that can be eliminated, consolidated, and/or streamlined.
  • Conducted an inventory of federal domains and sites, a survey of federal web governance policies and a national dialogue on improving federal web sites, and used the data to create the State of the Federal Web report.
  • Required agencies to develop Web Improvement Plans (included in the State of the Federal Web Report).
  • Worked with others across government to develop the Digital Government Strategy.

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Who's responsible for managing this effort?

The Office of Management and Budget (OMB), the General Services Administration (GSA), the Office of Science and Technology Policy (OSTP), the Chief Information Officers Council, and the Federal Web Managers Council are working with agencies to manage this effort. The .gov Task Force, whose members are listed below, is leading this effort.

Where can I see a list of federal websites?

The list of federal executive branch .gov domains was published July 12, 2011 on Data.gov. It does not include .gov domains/URLs in the federal legislative or judicial branches or from state, local, or tribal governments. It also does not include sub-domains that are below the root domain, such as ers.usda.gov or niaid.nih.gov.

Since each domain can have an unlimited number of potential websites and URLs under them, the total number of websites in the entire federal government is much larger than the number of domains listed on Data.gov. The inventory will allow us to more closely identify the total number of federal websites over time.

The list of domains will be regularly updated and published on Data.gov. Putting the list on Data.gov will have several benefits:

  • Provide increased access to, and transparency of, government data.
  • Foster accountability in how we manage our federal websites and encourage input from public and private sector experts, customers, developers, and other members of the public.
  • Make it easier for agencies to see the websites they own, that are owned by other agencies, and to increase opportunities for collaboration across government.

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Who is on the .gov Task Force and how were they selected?

The Federal Chief Information Officer selected the members of the .gov Task Force, representing a broad range of agencies and a mix of perspectives and skills.

Task force members:

  • Les Benito, Director, Public Web at Defense Media Activity
  • Gray Brooks, Associate CIO, Federal Communications Commission
  • Sheila Campbell, Director, Center for Excellence in Digital Government, Office of Citizen Services, General Services Administration
  • Sarah Crane, Director, USA.gov, Office of Citizen Services, General Services Administration
  • Cammie Croft, Senior Advisor, Director of New Media and Citizen Engagement, Department of Energy
  • Linda Cureton, Chief Information Officer, NASA
  • Terry Davis, IT Specialist, Department of Defense
  • Nick Fraser, Office of Information and Regulatory Affairs, Office of Management and Budget, Executive Office of the President
  • Miguel Gomez, Director, AIDS.gov, Health and Human Services
  • Jeffrey Levy, Director of Web Communications, Environmental Protection Agency, and Co-Chair, Federal Web Managers Council
  • Dan Munz, IT Specialist, Consumer Financial Protection Bureau
  • Adam Neufeld, Office of Management and Budget, Executive Office of the President
  • Todd Park, U.S. Chief Technology Officer
  • Macon Phillips, Director of Digital Strategy, The White House
  • Stacy Riggs, Office of Government-wide Policy, General Services Administration
  • Rand Ruggieri, EGov Program Manager, Department of Commerce
  • Janet Stevens, Chief Information Officer, Food Safety and Inspection Service, Department of Agriculture
  • Kodiak Starr, Creative Director of New Media, Executive Office of the President
  • Haley Van Dyck, Office of E-Gov and Information Technology, Office of Management and Budget, Executive Office of the President
  • Chris Vein, Deputy U.S. Chief Technology Officer for Government Innovation, Office of Science and Technology Policy, Executive Office of the President
  • Jim Wilson, Senior Editor, NASA.gov

We plan to consult with additional subject matter experts, customers, and others as needed, to provide expertise on such areas as user-centered design, search, information management policy, privacy and security issues, and overall Internet trends such as the growth of mobile and social media.

How was the public involved in improving federal websites?

During this initiative we've invited you to join the conversation about improving federal websites. Releasing the .gov dataset on Data.gov was the first step. We enabled commenting on the dataset, and considered your ideas and comments as we developed the domain inventory.

As we've seen in other efforts, making government data transparent can spark the creativity of many bright minds across the country. We hope the public will continue to explore, discuss, and remix this data, and maybe even use it to map the .gov domain in ways we haven't seen before.

From September 19–30, 2011, we hosted a "national dialogue"–an online conversation that brought together experts, innovators, and ordinary citizens who rely on federal information every day. We discussed how federal agencies can learn from, and contribute to, the best practices of the modern web. It was a discussion filled with ideas and energy.

If you have questions about the .gov Task Force, contact Alycia Piazza at alycia.piazza@gsa.gov.

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Content Lead: Natalie Davidson and Andrea Sigritz
Page Reviewed/Updated: October 22, 2013

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The 1040x Turbotax

1040x turbotax 1. 1040x turbotax   Importance of Records Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Benefits of Recordkeeping Kinds of Records To Keep How Long To Keep Records Introduction A farmer, like other taxpayers, must keep records to prepare an accurate income tax return and determine the correct amount of tax. 1040x turbotax This chapter explains the benefits of keeping records, what kinds of records you must keep, and how long you must keep them for federal tax purposes. 1040x turbotax Tax records are not the only type of records you need to keep for your farming business. 1040x turbotax You should also keep records that measure your farm's financial performance. 1040x turbotax This publication only discusses tax records. 1040x turbotax The Farm Financial Standards Council has produced a publication that provides a detailed explanation of the recommendations of the Council for financial reporting and analysis. 1040x turbotax For information on recordkeeping, you can purchase and download Financial Guidelines for Agricultural Producers at www. 1040x turbotax ffsc. 1040x turbotax org. 1040x turbotax For more information, contact Countryside Marketing, Inc. 1040x turbotax in the following manner. 1040x turbotax Call 262-253-6902. 1040x turbotax Send a fax to 262-253-6903. 1040x turbotax Write to: Farm Financial Standards Council N78 W14573 Appleton Ave. 1040x turbotax , #287 Menomonee Falls, WI 53051. 1040x turbotax Topics - This chapter discusses: Benefits of recordkeeping Kinds of records to keep How long to keep records Useful Items - You may want to see: Publication 51 (Circular A), Agricultural Employer's Tax Guide 463 Travel, Entertainment, Gift, and Car Expenses See chapter 16 for information about getting publications. 1040x turbotax Benefits of Recordkeeping Everyone in business, including farmers, must keep appropriate records. 1040x turbotax Recordkeeping will help you do the following. 1040x turbotax Monitor the progress of your farming business. 1040x turbotax   You need records to monitor the progress of your farming business. 1040x turbotax Records can show whether your business is improving, which items are selling, or what changes you need to make. 1040x turbotax Records can help you make better decisions that may increase the likelihood of business success. 1040x turbotax Prepare your financial statements. 1040x turbotax   You need records to prepare accurate financial statements. 1040x turbotax These include income (profit and loss) statements and balance sheets. 1040x turbotax These statements can help you in dealing with your bank or creditors and help you to manage your farm business. 1040x turbotax Identify source of receipts. 1040x turbotax   You will receive money or property from many sources. 1040x turbotax Your records can identify the source of your receipts. 1040x turbotax You need this information to separate farm from nonfarm receipts and taxable from nontaxable income. 1040x turbotax Keep track of deductible expenses. 1040x turbotax   You may forget expenses when you prepare your tax return unless you record them when they occur. 1040x turbotax Prepare your tax returns. 1040x turbotax   You need records to prepare your tax return. 1040x turbotax For example, your records must support the income, expenses, and credits you report. 1040x turbotax Generally, these are the same records you use to monitor your farming business and prepare your financial statements. 1040x turbotax Support items reported on tax returns. 1040x turbotax   You must keep your business records available at all times for inspection by the IRS. 1040x turbotax If the IRS examines any of your tax returns, you may be asked to explain the items reported. 1040x turbotax A complete set of records will speed up the examination. 1040x turbotax Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. 1040x turbotax You can choose any recordkeeping system suited to your farming business that clearly shows, for example, your income and expenses. 1040x turbotax You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. 1040x turbotax See  chapter 2. 1040x turbotax If you are in more than one business, you should keep a complete and separate set of records for each business. 1040x turbotax A corporation should keep minutes of board of directors' meetings. 1040x turbotax Your recordkeeping system should include a summary of your business transactions. 1040x turbotax This summary is ordinarily made in accounting journals and ledgers. 1040x turbotax For example, they must show your gross income, as well as your deductions and credits. 1040x turbotax In addition, you must keep supporting documents. 1040x turbotax Purchases, sales, payroll, and other transactions you have in your business generate supporting documents such as invoices and receipts. 1040x turbotax These documents contain the information you need to record in your journals and ledgers. 1040x turbotax It is important to keep these documents because they support the entries in your journals and ledgers and on your tax return. 1040x turbotax Keep them in an orderly fashion and in a safe place. 1040x turbotax For instance, organize them by year and type of income or expense. 1040x turbotax Electronic records. 1040x turbotax   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. 1040x turbotax When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. 1040x turbotax An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. 1040x turbotax The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. 1040x turbotax All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. 1040x turbotax Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. 1040x turbotax The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. 1040x turbotax You still have the responsibility of retaining any other books and records that are required to be retained. 1040x turbotax The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. 1040x turbotax This test is not considered an examination and the results must be shared with you. 1040x turbotax If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. 1040x turbotax If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copybooks and records in a manner that allows you and the IRS to determine your correct tax. 1040x turbotax For details on electronic storage system requirements, see Rev. 1040x turbotax Proc. 1040x turbotax 97-22. 1040x turbotax You can find Rev. 1040x turbotax Proc. 1040x turbotax 97-22 on page 9 of Internal Revenue Bulletin 1997-13 at  www. 1040x turbotax irs. 1040x turbotax gov/pub/irs-irbs/irb97-13. 1040x turbotax pdf. 1040x turbotax Travel, transportation, entertainment, and gift expenses. 1040x turbotax   Specific recordkeeping rules apply to these expenses. 1040x turbotax For more information, see Publication 463. 1040x turbotax Employment taxes. 1040x turbotax   There are specific employment tax records you must keep. 1040x turbotax For a list, see Publication 51 (Circular A). 1040x turbotax Excise taxes. 1040x turbotax   See How To Claim a Credit or Refund in chapter 14 for the specific records you must keep to verify your claim for credit or refund of excise taxes on certain fuels. 1040x turbotax Assets. 1040x turbotax   Assets are the property, such as machinery and equipment, you own and use in your business. 1040x turbotax You must keep records to verify certain information about your business assets. 1040x turbotax You need records to figure your annual depreciation deduction and the gain or (loss) when you sell the assets. 1040x turbotax Your records should show all the following. 1040x turbotax When and how you acquired the asset. 1040x turbotax Purchase price. 1040x turbotax Cost of any improvements. 1040x turbotax Section 179 deduction taken. 1040x turbotax Deductions taken for depreciation. 1040x turbotax Deductions taken for casualty losses, such as losses resulting from fires or storms. 1040x turbotax How you used the asset. 1040x turbotax When and how you disposed of the asset. 1040x turbotax Selling price. 1040x turbotax Expenses of sale. 1040x turbotax   The following are examples of records that may show this information. 1040x turbotax Purchase and sales invoices. 1040x turbotax Real estate closing statements. 1040x turbotax Canceled checks. 1040x turbotax Bank statements. 1040x turbotax Financial account statements as proof of payment. 1040x turbotax   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. 1040x turbotax These include account statements prepared for the financial institution by a third party. 1040x turbotax These account statements must be legible. 1040x turbotax The following table lists acceptable account statements. 1040x turbotax IF payment is by. 1040x turbotax . 1040x turbotax . 1040x turbotax THEN the statement must show the. 1040x turbotax . 1040x turbotax . 1040x turbotax Check Check number. 1040x turbotax Amount. 1040x turbotax Payee's name. 1040x turbotax Date the check amount was posted to the account by the financial institution. 1040x turbotax Electronic funds  transfer Amount transferred. 1040x turbotax Payee's name. 1040x turbotax Date the transfer was posted to the account by the financial institution. 1040x turbotax Credit card Amount charged. 1040x turbotax Payee's name. 1040x turbotax Transaction date. 1040x turbotax    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. 1040x turbotax You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. 1040x turbotax Tax returns. 1040x turbotax   Keep copies of your filed tax returns. 1040x turbotax They help in preparing future tax returns and making computations if you file an amended return. 1040x turbotax Keep copies of your information returns such as Form 1099, Schedule K-1, and Form W-2. 1040x turbotax How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. 1040x turbotax Keep records that support an item of income or a deduction appearing on a return until the period of limitations for the return runs out. 1040x turbotax A period of limitations is the period of time after which no legal action can be brought. 1040x turbotax Generally, that means you must keep your records for at least 3 years from when your tax return was due or filed or within 2 years of the date the tax was paid, whichever is later. 1040x turbotax However, certain records must be kept for a longer period of time, as discussed below. 1040x turbotax Employment taxes. 1040x turbotax   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. 1040x turbotax Assets. 1040x turbotax   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. 1040x turbotax You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure your basis for computing gain or (loss) when you sell or otherwise dispose of the property. 1040x turbotax   You may need to keep records relating to the basis of property longer than the period of limitation. 1040x turbotax Keep those records as long as they are important in figuring the basis of the original or replacement property. 1040x turbotax Generally, this means as long as you own the property and, after you dispose of it, for the period of limitations that applies to you. 1040x turbotax For example, if you received property in a nontaxable exchange, you must keep the records for the old property, as well as for the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. 1040x turbotax For more information on basis, see chapter 6. 1040x turbotax Records for nontax purposes. 1040x turbotax   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. 1040x turbotax For example, your insurance company or creditors may require you to keep them longer than the IRS does. 1040x turbotax Prev  Up  Next   Home   More Online Publications