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1040z

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1040z

1040z 18. 1040z   Appendix This appendix contains models of the certificates, waivers, reports, and statements discussed in Part One. 1040z Model Certificate A   STATEMENT OF SUBSEQUENT SELLER     1. 1040z                 Name, address, and employer identification number of seller in subsequent sale             2. 1040z                 Name, address, and employer identification number of the buyer in subsequent sale             3. 1040z         Date and location of subsequent sale             4. 1040z         Volume and type of taxable fuel sold               The undersigned seller (“Seller”) has received the copy of the first taxpayer's report provided with this statement in     connection with Seller's purchase of the taxable fuel described in this statement. 1040z       Under penalties of perjury, Seller declares that Seller has examined this statement, including any accompanying     schedules and statements, and, to the best of Seller's knowledge and belief, they are true, correct and complete. 1040z                   Signature and date signed                   Printed or typed name of person signing this report                   Title—   Model Certificate B   FIRST TAXPAYER'S REPORT   1. 1040z                     First Taxpayer's name, address and employer identification number     2. 1040z                     Name, address, and employer identification number of the buyer of the taxable fuel subject to tax     3. 1040z           Date and location of removal, entry, or sale       4. 1040z           Volume and type of taxable fuel removed, entered or sold     5. 1040z Check type of taxable event:         Removal from refinery         Entry into United States         Bulk transfer from terminal by unregistered position holder       Bulk transfer not received at an approved terminal       Sale within the bulk transfer/terminal system       Removal at the terminal rack         Removal or sale by the blender                   6. 1040z           Amount of federal excise tax paid on account of the removal, entry, or sale                   The undersigned taxpayer (“Taxpayer”) has not received, and will not claim, a credit with respect to, or a refund of, the tax     on the taxable fuel to which this form relates. 1040z       Under penalties of perjury, Taxpayer declares that Taxpayer has examined this statement, including any accompanying     schedules and statements, and to the best of Taxpayer's knowledge and belief, they are true, correct and complete. 1040z             Signature and date signed               Printed or typed name of person signing this report               Title     Model Certificate C   NOTIFICATION CERTIFICATE OF TAXABLE FUEL REGISTRANT                           Name, address, and employer identification number of person receiving certificate       The undersigned taxable registrant (“Registrant”) hereby certifies under penalties of perjury that Registrant is registered     by the Internal Revenue Service with registration number and that Registrant's registration has not     been revoked or suspended by the Internal Revenue Service. 1040z                 Registrant understands that the fraudulent use of this certificate may subject Registrant and all parties making such     fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z                       Signature and date signed                         Printed or typed name of person signing                         Title of person signing                         Name of Registrant                         Employer identification number                         Address of Registrant     Model Certificate D   CERTIFICATE OF PERSON BUYING GASOLINE BLENDSTOCKS FOR USE OTHER THAN IN THE PRODUCTION OF FINISHED GASOLINE     (To support tax-free sales (other than LUST) under section 4081 of the Internal Revenue Code. 1040z )                 Name, address, and employer identification number of seller       The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:       The gasoline blendstocks to which this certificate relates will not be used to produce finished gasoline. 1040z       This certificate applies to the following (complete as applicable):       If this is a single purchase certificate, check here and enter:     1. 1040z Invoice or delivery ticket number       2. 1040z (number of gallons) of(type of gasoline blendstocks)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:     1. 1040z Effective date       2. 1040z Expiration date       (period not to exceed 1 year after the effective date)       3. 1040z Type (or types) of gasoline blendstocks     4. 1040z Buyer's account or order number         Buyer will not claim a credit or refund under section 6427(h) of the Internal Revenue Code for any gasoline blendstocks     covered by this certificate. 1040z         Buyer will provide a new certificate to the seller if any information in this certificate changes. 1040z       If Buyer resells the gasoline blendstocks to which this certificate relates, Buyer will be liable for tax unless Buyer obtains a     certificate from the purchaser stating that the gasoline blendstocks will not be used to produce finished gasoline and otherwise complies with the conditions of §48. 1040z 4081-4(b)(3) of the Manufacturers and Retailers Excise Tax Regulations. 1040z       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. 1040z       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 1040z     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells gasoline blendstocks tax free. 1040z       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z             Signature and date signed               Printed or typed name of person signing               Title of person signing               Name of Buyer               Employer identification number               Address of Buyer     Model Certificate G   CERTIFICATE OF REGISTERED FEEDSTOCK USER     (To support tax-free removals and entries (other than LUST) of kerosene under section 4082 of the Internal Revenue Code. 1040z )         (Buyer) certifies the following under penalties of perjury:       Name of buyer         Buyer is a registered feedstock user with registration number . 1040z Buyer's registration has not been revoked     or suspended. 1040z         The kerosene to which this certificate applies will be used by Buyer for a feedstock purpose. 1040z                 This certificate applies to percent of Buyer's purchases from (name, address, and employer     identification number of seller) as follows (complete as applicable):       1. 1040z A single purchase on invoice or delivery ticket number . 1040z                 2. 1040z All purchases between (effective date) and (expiration date) (period not to exceed     one year after the effective date) under account or order number(s) . 1040z If this certificate applies only to Buyer's     purchases for certain locations, check here and list the locations. 1040z                                   If Buyer sells the kerosene to which this certificate relates, Buyer will be liable for tax on that sale. 1040z                 Buyer will provide a new certificate to the seller if any information in this certificate changes. 1040z                 If Buyer violates the terms of this certificate, the Internal Revenue Service may revoke the Buyer's registration. 1040z                 Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of     this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z             Printed or typed name of person signing               Title of person signing               Employer identification number               Address of Buyer               Signature and date signed     Model Certificate J   CERTIFICATE OF PERSON BUYING COMPRESSED NATURAL GAS (CNG) FOR A NONTAXABLE USE     (To support tax-free sales of CNG under section 4041 of the Internal Revenue Code. 1040z )                                         Name, address, and employer identification number of seller                   (“Buyer”) certifies the following under penalties of perjury:     Name of buyer                     The CNG to which this certificate relates will be used in a nontaxable use. 1040z       This certificate applies to the following (complete as applicable):               If this is a single purchase certificate, check here and enter:       1. 1040z Invoice or delivery ticket number       2. 1040z (Gasoline gallon equivalents)       If this is a certificate covering all purchases under a specified account or order number, check here and enter:         1. 1040z Effective date         2. 1040z Expiration date         (period not to exceed 1 year after the effective date)         3. 1040z Buyer's account or order number       Buyer will not claim a credit or refund under section 6427 of the Internal Revenue Code for any CNG to which this certificate relates. 1040z       Buyer will provide a new certificate to the seller if any information in this certificate changes. 1040z       Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's     right to provide a certificate. 1040z       Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 1040z     In addition, the Internal Revenue Service has not notified Buyer that the right to provide a certificate has been withdrawn     from a purchaser to which Buyer sells CNG tax free. 1040z       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use     of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z             Printed or typed name of person signing               Title of person signing             Employer identification number               Address of Buyer               Signature and date signed     Model Certificate K   CERTIFICATE OF PERSON BUYING KEROSENE FOR USE IN AVIATION FOR     COMMERCIAL AVIATION OR NONTAXABLE USE     (To support operator liability for tax on removals of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation pursuant to § 4081 of the Internal Revenue Code or to support a tax rate of zero under § 4041(c) pursuant to §§4041(c) and 4082. 1040z )           Name, address, and employer identification number of position holder       The undersigned aircraft operator (“Buyer”) hereby certifies the following under the penalties of perjury:       The kerosene for use in aviation to which this certificate relates is purchased (check one): for     use on a farm for farming purposes; for use in foreign trade (reciprocal benefits required for foreign registered airlines); for use in certain helicopter and fixed-wing air ambulance uses; for use other than as a fuel in the propulsion engine of an aircraft; for the exclusive use of a qualified blood collector organization; for the exclusive use of a nonprofit educational organization; for the exclusive use of a state; for use in an aircraft owned by an aircraft museum; for use in military aircraft; or for use in commercial aviation (other than foreign trade). 1040z       With respect to kerosene for use in aviation purchased after June 30, 2005, for use in commercial aviation     (other than foreign trade), Buyer's registration number is. 1040z Buyer's registration has not been suspended or revoked by the Internal Revenue Service. 1040z       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. 1040z Invoice or delivery ticket number       2. 1040z Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. 1040z Effective date       2. 1040z Expiration date (period not to exceed 1 year after the effective date)       3. 1040z Buyer's account number       Buyer agrees to provide the person liable for tax with a new certificate if any information in this certificate changes. 1040z       If the kerosene for use in aviation to which this certificate relates is being bought for use in commercial aviation     (other than foreign trade), Buyer is liable for tax on its use of the fuel and will pay that tax to the government. 1040z       If Buyer sells or uses the kerosene for use in aviation to which this certificate relates for a use other than the use     stated above, Buyer will be liable for tax. 1040z       Buyer understands that it must be prepared to establish by satisfactory evidence the purpose for which the     fuel purchased under this certificate was used. 1040z     Buyer has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. 1040z     If Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate. 1040z       The fraudulent use of this certificate may subject Buyer and all parties making any fraudulent use of this certificate     to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver L WAIVER FOR USE BY ULTIMATE PURCHASERS OF KEROSENE FOR CERTAIN USES IN AVIATION (To support vendor's claim for a credit or payment under § 6427(l)(4)(C)(i) of the Internal Revenue Code. 1040z )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. 1040z The kerosene to which this waiver relates is purchased for — (check one):       1. 1040z □ Use on a farm for farming purposes,       2. 1040z □ Use in foreign trade (reciprocal benefits required for foreign registered airlines),       3. 1040z □ Use in certain helicopter and fixed-wing air ambulance uses,       4. 1040z □ The exclusive use of a qualified blood collector organization,       5. 1040z □ The exclusive use of a nonprofit educational organization,       6. 1040z □ Use in an aircraft owned by an aircraft museum,       7. 1040z □ Use in military aircraft, or       8. 1040z □ Use in commercial aviation (other than foreign trade). 1040z     B. 1040z This waiver applies to the following (complete as applicable):       This is a single purchase waiver:           1. 1040z Invoice or delivery ticket number           2. 1040z Number of gallons       This is a waiver covering all purchases under a specified account or order number:           1. 1040z Effective date           2. 1040z Expiration date (period not to exceed 1 year after the effective date)           3. 1040z Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. 1040z       If Buyer uses the kerosene for use in aviation to which this waiver relates for a use other than the use stated above, Buyer will be liable for tax. 1040z       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the kerosene for use in aviation used in a nontaxable use. 1040z       Buyer acknowledges that it has not and will not claim any credit or payment for the kerosene for use in aviation to which this waiver relates. 1040z       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate M   CERTIFICATE FOR STATE USE OR NONPROFIT EDUCATIONAL     ORGANIZATION USE     (To support vendor's claim for a credit or payment under § 6416(a)(4) of the Internal Revenue Code. 1040z )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       Buyer will use the gasoline or aviation gasoline to which this certificate relates (check one):     For the exclusive use of a state or local government; or     For the exclusive use of a nonprofit educational organization. 1040z       This certificate applies to the following (complete as applicable):     This is a single purchase certificate:       1. 1040z Invoice or delivery ticket number       2. 1040z Number of gallons     This is a certificate covering all purchases under a specified account or order number:       1. 1040z Effective date       2. 1040z Expiration date (period not to exceed 1 year after the effective date)       3. 1040z Buyer's account number       Buyer will provide a new certificate to the vendor if any information in this certificate changes. 1040z       Buyer understands that by signing this certificate, Buyer gives up its right to claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. 1040z       Buyer acknowledges that it has not and will not claim any credit or payment for the gasoline or aviation gasoline to which this certificate relates. 1040z       Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Waiver N   WAIVER FOR USE BY ULTIMATE PURCHASERS OF DIESEL FUEL OR     KEROSENE USED IN INTERCITY BUS TRANSPORTATION     (To support vendor's claim for a credit or payment under § 6427 of the Internal Revenue Code. 1040z )                       Name, address, and employer identification number of ultimate vendor       The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:       The diesel fuel or kerosene to which this waiver relates is purchased for use in intercity bus transportation. 1040z       This waiver applies to the following (complete as applicable):     This is a single purchase waiver:       1. 1040z Invoice or delivery ticket number       2. 1040z Number of gallons     This is a waiver covering all purchases under a specified account or order number:       1. 1040z Effective date       2. 1040z Expiration date (period not to exceed 1 year after the effective date)       3. 1040z Buyer's account number       Buyer will provide a new waiver to the vendor if any information in this waiver changes. 1040z       If Buyer uses the diesel fuel or kerosene to which this waiver relates for a use other than in intercity bus transportation, Buyer will be liable for tax. 1040z       Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for the diesel fuel or kerosene used in intercity bus transportation. 1040z       Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this waiver relates. 1040z       Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate O   CERTIFICATE FOR BIODIESEL     Certificate Identification Number:     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. 1040z )     The undersigned biodiesel producer (“Producer”) hereby certifies the following under penalties of perjury:   1. 1040z             Producer's name, address, and employer identification number (EIN)   2. 1040z             Name, address, and EIN of person buying the biodiesel from Producer   3. 1040z       Date and location of sale to buyer   4. 1040z This certificate applies to gallons of biodiesel. 1040z   5. 1040z Producer certifies that the biodiesel to which this certificate relates is:       % Agri-biodiesel (derived solely from virgin oils)       % Biodiesel other than agri-biodiesel       This certificate applies to the following sale:       Invoice or delivery ticket number       Total number of gallons of biodiesel sold under that invoice or delivery ticket number (including biodiesel not covered by this certificate)       Total number of certificates issued for that invoice or delivery ticket number   6. 1040z             Name, address, and employer identification number of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after the return of the original certificate)   7. 1040z Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the original certificate). 1040z       Producer is registered as a biodiesel producer with registration number . 1040z  Producer's registration has not been suspended or revoked by the Internal Revenue Service. 1040z       Producer certifies that the biodiesel to which this certificate relates in monoalkyl esters of long chain fatty acids derived from plant or animal matter that meets the requirements of the American Society of Testing and Materials D6751 and the registration requirements for fuels and fuel additives established by EPA under section 211 of the Clean Air Act (42 U. 1040z S. 1040z C. 1040z 7545). 1040z       Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Model Certificate P CERTIFICATE OF STATE USE (To support vendor's claim for credit or payment under section 6427 of the Internal Revenue Code. 1040z )               Name, Address, and Employer Identification Number of Vendor     The undersigned buyer (“Buyer”) hereby certifies the following under penalties of perjury:     A. 1040z Buyer will use the diesel fuel or kerosene to which this certificate relates for the exclusive use of a state or local government, or the District of Columbia. 1040z     B. 1040z This certificate applies to the following (complete as applicable):       1. 1040z   If this is a single purchase certificate, check here □ and enter:           a. 1040z Invoice or delivery ticket number           b. 1040z Number of gallons       2. 1040z   If this is a certificate covering all purchases under a specified account or order number, check here □  and enter:           a. 1040z Effective date           b. 1040z Expiration date   (period not to exceed 1 year after effective date)           c. 1040z Buyer's account or order number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. 1040z     ▪ If Buyer uses the diesel fuel or kerosene to which this certificate relates for a purpose other than stated in the certificate, Buyer will be liable for any tax. 1040z     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this certificate relates. 1040z     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate Q CERTIFICATE OF ULTIMATE PURCHASER OF KEROSENE FOR USE IN NONEXEMPT, NONCOMMERCIAL AVIATION (To support vendor's claim for credit or payment under section 6427(l)(4)(C)(ii) of the Internal Revenue Code. 1040z )               Name, Address, and Employer Identification Number of Ultimate Vendor     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. 1040z The kerosene to which this certificate relates is purchased for a nonexempt use in noncommercial aviation. 1040z     B. 1040z This certificate applies to the following (complete as applicable):       1. 1040z   If this is a single purchase certificate, check here □ and enter:           a. 1040z Invoice or delivery ticket number           b. 1040z Number of gallons       2. 1040z   This is a certificate covering all purchases under a specified account or order number:           a. 1040z Effective date           b. 1040z Expiration date   (period not to exceed 1 year after effective date)           c. 1040z Buyer's account number     ▪ Buyer will provide a new certificate to the vendor if any information in this certificate changes. 1040z     ▪ If Buyer uses the kerosene to which this certificate relates for a use other than the nontaxable use stated above, Buyer will be liable for tax. 1040z     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Certificate R CERTIFICATE OF BUYER OF TAXABLE FUEL FOR USE BY A STATE OR NONPROFIT EDUCATIONAL ORGANIZATION (To support credit card issuer's claim for credit, refund, or payment under section 6416(a)(4)(B) or section 6427(l)(5)(D) of the Internal Revenue Code. 1040z )               Name, Address, and Employer Identification Number of Credit Card Issuer. 1040z     The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under penalties of perjury:     A. 1040z Buyer will use the taxable fuel to which this certificate relates for the exclusive use of a state; or     B. 1040z Buyer will use the gasoline to which this certificate relates for the exclusive use of a nonprofit educational organization. 1040z     C. 1040z This certificate applies to all purchases made with the credit card identified below during the period specified:           a. 1040z Effective date of certificate           b. 1040z Expiration date of certificate   (period not to exceed 2 years after effective date)           c. 1040z Buyer's account number     ▪ Buyer will provide a new certificate to the credit card issuer if any information in this certificate changes. 1040z     ▪ Buyer understands that by signing this certificate, Buyer gives up its right to claim a credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. 1040z     ▪ Buyer acknowledges that it has not and will not claim any credit or payment for the taxable fuel purchased with the credit card to which this certificate relates. 1040z     ▪ Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing           Title of person signing           Name of Buyer           Employer identification number           Address of Buyer           Signature and date signed   Model Statement S   STATEMENT OF BIODIESEL RESELLER     (To support a claim related to biodiesel or a biodiesel mixture under section 6426 of the Internal Revenue Code. 1040z )     The undersigned biodiesel producer (“Reseller”) hereby certifies the following under penalties of perjury:   1. 1040z                   Reseller's name, address, and employer identification number (EIN)   2. 1040z                   Name, address, and EIN of Reseller's buyer   3. 1040z       Date and location of sale to buyer   4. 1040z Volume of biodiesel sold   5. 1040z Certificate Identification Number on the Certificate for Biodiesel       Reseller has bought the biodiesel described in the accompanying Certificate for Biodiesel and Reseller has no reason to believe that any information in the certificate is false. 1040z       Reseller has not been notified by the Internal Revenue Service that its right to provide a certificate or statement has been withdrawn. 1040z       Reseller understands that the fraudulent use of this statement may subject Reseller and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution. 1040z           Printed or typed name of person signing this certificate           Title of person signing           Signature and date signed   Prev  Up  Next   Home   More Online Publications
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The 1040z

1040z Publication 3 - Main Content Table of Contents Gross IncomeForeign Source Income Military Spouses Residency Relief Act (MSRRA) Community Property Form W-2 Codes Adjustments to IncomeArmed Forces Reservists Individual Retirement Arrangements Moving Expenses Combat Zone ExclusionCombat Zone Serving in a Combat Zone Amount of Exclusion Alien StatusResident Aliens Nonresident Aliens Dual-Status Aliens Sale of HomePeriod of suspension. 1040z Qualified official extended duty. 1040z ForeclosuresLump Sum Portion of Settlement Payment. 1040z Interest Payment on Lump Sum Portion of Settlement Payment. 1040z Lost Equity Portion of Settlement Payment. 1040z The rules that apply to a lost equity payment you received for the foreclosure of a property that was not your main home are different. 1040z Interest Payment on Lost Equity Portion of Settlement Payment. 1040z Itemized DeductionsEmployee Business Expenses Repayments CreditsFirst-Time Homebuyer Credit Child Tax Credit Earned Income Credit Credit for Excess Social Security Tax Withheld Forgiveness of Decedent's Tax LiabilityCombat Zone Related Forgiveness Terrorist or Military Action Related Forgiveness Claims for Tax Forgiveness Filing ReturnsSame-Sex Marriage Where To File When To File Signing Returns Extension of DeadlinesService That Qualifies for an Extension of Deadline Length of Extension Actions for Which Deadlines Are Extended Deferral of Payment Maximum Rate of Interest How To Get Tax HelpLow Income Taxpayer Clinics Gross Income Members of the Armed Forces receive many different types of pay and allowances. 1040z Some are included in gross income while others are excluded from gross income. 1040z Included items (Table 1) are subject to tax and must be reported on your tax return. 1040z Excluded items (Table 2) are not subject to tax, but may have to be shown on your tax return. 1040z For information on the exclusion of pay for service in a combat zone and other tax benefits for combat zone participants, see Combat Zone Exclusion and Extension of Deadlines , later. 1040z Table 1. 1040z Included Items These items are included in gross income, unless the pay is for service in a combat zone. 1040z Basic pay • Active duty   Bonus pay • Career status   • Attendance at a designated service school     • Enlistment  • Officer   • Back wages     • Overseas extension   • CONUS COLA       • Reenlistment   • Drills         • Reserve training         • Training duty   Other pay  • Accrued leave          • High deployment per diem Special • Aviation career incentives      • Personal money allowances paid to pay • Career sea     high-ranking officers   • Diving duty      • Student loan repayment from programs   • Foreign duty (outside the 48 contiguous     such as the Department of Defense   states and the District of Columbia)     Educational Loan Repayment Program   • Foreign language proficiency     when year's service (requirement) is not   • Hardship duty     attributable to a combat zone   • Hostile fire or imminent danger         • Medical and dental officers   Incentive pay  • Submarine   • Nuclear-qualified officers      • Flight   • Optometry      • Hazardous duty   • Pharmacy      • High altitude/Low Opening (HALO)   • Special compensation for assistance with activities of daily living (SCAADL)         • Special duty assignment pay         • Veterinarian         • Voluntary Separation Incentive       Basic allowance for housing (BAH). 1040z   You can still deduct mortgage interest and real estate taxes on your home if you pay these expenses with your BAH. 1040z Table 2. 1040z Excluded Items The exclusion for certain items applies whether the item is furnished in kind or is a reimbursement or allowance. 1040z There is no exclusion for the personal use of a government-provided vehicle. 1040z Combat  zone pay • Compensation for active service while in a combat zone Note: Limited amount for officers     • Housing and cost-of-living allowances abroad paid by the U. 1040z S. 1040z Government or by a foreign government         • OHA (Overseas Housing Allowance)                     Other pay • Defense counseling         • Disability, including payments received for injuries incurred as a direct result of a terrorist or military action         • Group-term life insurance   Moving • Dislocation   • Professional education   allowances • Military base realignment and   • ROTC educational and subsistence     closure benefit    allowances     (the exclusion is limited as   • State bonus pay for service in a     described above)   combat zone     • Move-in housing   • Survivor and retirement protection     • Moving household and   plan premiums     personal items   • Uniform allowances     • Moving trailers or mobile homes   • Uniforms furnished to enlisted     • Storage   personnel     • Temporary lodging and         temporary lodging expenses                 Travel • Annual round trip for dependent Death • Burial services   allowances students allowances • Death gratuity payments to     • Leave between consecutive   eligible survivors     overseas tours   • Travel of dependents to burial site     • Reassignment in a dependent         restricted status Family • Certain educational expenses for     • Transportation for you or your allowances dependents     dependents during ship overhaul   • Emergencies     or inactivation   • Evacuation to a place of safety     • Per diem   • Separation             In-kind military • Dependent-care assistance program Living • BAH (Basic Allowance for Housing)   benefits • Legal assistance allowances • BAS (Basic Allowance for Subsistence)     • Medical/dental care         • Commissary/exchange discounts         • Space-available travel on government aircraft           Death gratuity. 1040z   Any death gratuity paid to a survivor of a member of the Armed Forces is excluded from gross income. 1040z Differential wage payments. 1040z   Differential wage payments are any payments made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and that represent all or a portion of the wages the individual would have received from the employer if the individual was performing services for the employer. 1040z These amounts are taxable and cannot be excluded as combat pay. 1040z Military base realignment and closure benefit. 1040z   Payments made under the Homeowners Assistance Program (HAP) generally are excluded from income. 1040z However, the excludable amount cannot be more than the maximum amount described in subsection (c) of 42 USC 3374 as in effect on November 6, 2009. 1040z Any part of the payment that is more than this limit is included in gross income. 1040z For more information about the HAP, see http://hap. 1040z usace. 1040z army. 1040z mil/Overview. 1040z html. 1040z Qualified reservist distribution (QRD). 1040z   A QRD is a distribution to an individual of all or part of the individual's balance in a cafeteria plan or health flexible spending arrangement if: The individual was a reservist who was ordered or called to active duty for more than 179 days or for an indefinite period, and The distribution is made no sooner than the date the reservist was ordered or called to active duty and no later than the last day reimbursements could otherwise be made under the arrangement for the plan year which includes the date of the order or the call to duty. 1040z A QRD is included in gross income and is subject to employment taxes. 1040z The employer must include the QRD (reduced by after-tax contributions to the health flexible spending arrangement) as wages on Form W-2, Wage and Tax Statement. 1040z Thrift Savings Plan (TSP) distributions. 1040z   If you participate in the Uniformed Services TSP and receive a distribution from your account, the distribution is generally included in your taxable income. 1040z   If your contributions included tax-exempt combat zone pay, the part of the distribution attributable to those contributions is tax exempt. 1040z However, the earnings on the tax-exempt portion of the distribution are taxable. 1040z The TSP will provide a statement showing the taxable and non-taxable portions of the distribution. 1040z Roth Thrift Savings Plan (TSP) balance. 1040z   You may be able to contribute to a designated Roth Account through the TSP known as the Roth TSP. 1040z Roth TSP contributions are after-tax contributions, subject to the same contribution limits as the traditional TSP. 1040z Qualified distributions from a Roth TSP are not included in your income. 1040z For more details, see Thrift Savings Accounts in Part II of Publication 721, Tax Guide to U. 1040z S. 1040z Civil Service Retirement Benefits. 1040z State bonus payments. 1040z   Bonus payments made by a state (or a political subdivision thereof) to a member or former member of the uniformed services of the United States or to a dependent of such member are considered combat pay (and therefore may not be taxable) if the payments are made only because of the member's service in a combat zone. 1040z See Combat Zone , later, for a list of designated combat zones. 1040z Foreign Source Income If you are a U. 1040z S. 1040z citizen with income from sources outside the United States (foreign income), you must report all of that income (except for amounts that U. 1040z S. 1040z law allows you to exclude) on your tax return. 1040z This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2 or a Form 1099. 1040z This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). 1040z Certain taxpayers can exclude income earned in foreign countries. 1040z For 2013, this exclusion amount can be as much as $97,600. 1040z However, the foreign earned income exclusion does not apply to the wages and salaries of military and civilian employees of the U. 1040z S. 1040z Government. 1040z Employees of the U. 1040z S. 1040z Government include those who work at United States Armed Forces exchanges, commissioned and noncommissioned officers' messes, Armed Forces motion picture services, and similar personnel. 1040z Other foreign income earned by military personnel or their spouses may be eligible for the foreign earned income exclusion. 1040z For more information on the exclusion, see Publication 54. 1040z Residents of American Samoa may be able to exclude income from American Samoa. 1040z This possession exclusion does not apply to wages and salaries of military and civilian employees of the U. 1040z S. 1040z Government. 1040z If you need information on the possession exclusion, see Publication 570, Tax Guide for Individuals With Income From U. 1040z S. 1040z Possessions. 1040z Military Spouses Residency Relief Act (MSRRA) If you are the civilian spouse of an active duty U. 1040z S. 1040z military servicemember and your domicile is the same as the servicemember's, you can choose to keep your prior residence or domicile for tax purposes when you accompany the servicemember spouse, who is relocating under military orders to a new duty station in one of the 50 states, the District of Columbia, or a U. 1040z S. 1040z possession. 1040z See Publication 570 for more information. 1040z Domicile. 1040z   Your domicile is the permanent legal home you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. 1040z It is not always where you presently live. 1040z Community Property The pay you earn as a member of the Armed Forces may be subject to community property laws depending on your marital status, your domicile, and the nature of the payment. 1040z The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. 1040z Marital status. 1040z   Community property rules apply to married persons whose domicile during the tax year was in a community property state. 1040z The rules may affect your tax liability if you file separate returns or are divorced during the year. 1040z Nevada, Washington, and California domestic partners. 1040z   A registered domestic partner in Nevada, Washington, or California generally must report half the combined income of the individual and his or her domestic partner. 1040z See Form 8958 and Publication 555, Community Property. 1040z Nature of the payment. 1040z   Active duty military pay is subject to community property laws. 1040z Armed Forces retired or retainer pay may be subject to community property laws. 1040z   For more information on community property laws, see Publication 555. 1040z Form W-2 Codes Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. 1040z Form W-2 also shows other amounts that you may find important in box 12. 1040z The amounts shown in box 12 are generally preceded by a code. 1040z A list of codes used in box 12 is shown, next. 1040z Form W-2 Reference Guide for Box 12 Codes A Uncollected social security or RRTA J Nontaxable sick pay T Adoption benefits   tax on tips             K 20% excise tax on excess golden V Income from exercise of B Uncollected Medicare tax on tips   parachute payments   nonstatutory stock option(s)             C Taxable cost of group-term life L Substantiated employee business W Employer contributions (including   insurance over $50,000   expense reimbursements   employee contributions through a           cafeteria plan) to an employee's D Elective deferrals under a section M Uncollected social security or RRTA   health savings account (HSA)   401(k) cash or deferred arrangement   tax on taxable cost of group-term life       plan (including a SIMPLE 401(k)   insurance over $50,000 (former Y Deferrals under a section 409A   arrangement)   employees only)   nonqualified deferred           compensation plan E Elective deferrals under a section N Uncollected Medicare tax on taxable       403(b) salary reduction agreement   cost of group-term life insurance Z Income under section 409A on a       over $50,000 (former employees only)   nonqualified deferred F Elective deferrals under a section       compensation plan   408(k)(6) salary reduction SEP P Excludable moving expense           reimbursements paid directly to AA Designated Roth contributions G Elective deferrals and employer   employee   under a section 401(k) plan   contributions (including nonelective           deferrals) to a section 457(b) Q Nontaxable combat pay BB Designated Roth contributions   deferred compensation plan       under a section 403(b) plan     R Employer contributions to an Archer     H Elective deferrals to a section   MSA DD Cost of employer-sponsored   501(c)(18)(D) tax-exempt       health coverage   organization plan S Employee salary reduction contributions under a section 408(p) SIMPLE  EE  Designated Roth contributions under a governmental section 457(b) plan  Note. 1040z For more information on these codes, see your Form(s) W-2. 1040z Adjustments to Income Adjusted gross income is your total income minus certain adjustments. 1040z The following adjustments are of particular interest to members of the Armed Forces. 1040z Armed Forces Reservists If you are a member of a reserve component of the Armed Forces and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your unreimbursed travel expenses as an adjustment to income on line 24 of Form 1040, U. 1040z S. 1040z Individual Income Tax Return, rather than as a miscellaneous itemized deduction. 1040z Include all unreimbursed expenses from the time you leave home until the time you return home. 1040z The deduction is limited to the amount the federal government generally reimburses its employees for travel expenses. 1040z For more information about this limit, see Per Diem and Car Allowances in chapter 6 of Publication 463. 1040z Member of a reserve component. 1040z   You are a member of a reserve component of the Armed Forces if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. 1040z How to report. 1040z   If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses. 1040z Then enter on Form 1040, line 24, the part of your expenses, up to the federal rate, included on Form 2106, line 10, or Form 2106-EZ, line 6, that is for reserve-related travel more than 100 miles from your home. 1040z Subtract this amount from the total on Form 2106, line 10, or Form 2106-EZ, line 6, and deduct the balance as an itemized deduction on Schedule A (Form 1040), line 21. 1040z Example. 1040z Captain Harris, a member of the Army Reserve, traveled to a location 220 miles from his home to perform his work in the reserves in April 2013. 1040z He incurred $1,549 of unreimbursed expenses consisting of $249 for mileage (440 miles × 56. 1040z 5 cents per mile), $300 for meals, and $1,000 for lodging. 1040z He also had other deductible mileage expenses of $110 for several trips to a location 20 miles from his home. 1040z Only 50% of his meal expenses are deductible. 1040z He shows his total deductible travel expenses of $1,509 ($249 + $150 (50% of $300) + $1,000 + $110) on Form 2106, line 10. 1040z He enters the $1,399 ($249 + $150 + $1,000) for travel over 100 miles from home on Form 1040, line 24. 1040z He then subtracts that $1,399 from the amount on Form 2106, $1,509, and enters $110 on Schedule A (Form 1040), line 21. 1040z Individual Retirement Arrangements Generally, you can deduct the lesser of the contributions to your traditional individual retirement arrangement (IRA) for the year or the general limit (or spousal IRA limit, if applicable). 1040z However, if you or your spouse was covered by an employer-maintained retirement plan at any time during the year for which contributions were made, you may not be able to deduct all of the contributions. 1040z The Form W-2 you or your spouse receives from an employer has a box used to indicate whether you were covered for the year. 1040z The “Retirement plan” box should have a mark in it if you were covered. 1040z For purposes of a deduction for contributions to a traditional IRA, Armed Forces members (including reservists on active duty for more than 90 days during the year) are considered covered by an employer-maintained retirement plan. 1040z Individuals serving in the U. 1040z S. 1040z Armed Forces or in support of the U. 1040z S. 1040z Armed Forces in designated combat zones have additional time to make a qualified retirement contribution to an IRA. 1040z For more information on this extension of deadline provision, see Extension of Deadlines , later. 1040z For more information on IRAs, see Publication 590. 1040z Combat Pay For IRA purposes, your compensation includes nontaxable combat pay. 1040z This means that even though you do not have to include the combat pay in your gross income, you do include it in your compensation when figuring the limits on contributions and deductions of contributions to IRAs. 1040z Qualified Reservist Distributions A qualified reservist distribution is defined below. 1040z It is not subject to the 10% additional tax on early distributions from certain retirement plans. 1040z Definition. 1040z   A distribution you receive is a qualified reservist distribution if the following requirements are met. 1040z You were ordered or called to active duty after September 11, 2001. 1040z You were ordered or called to active duty for a period of more than 179 days or for an indefinite period because you are a member of a reserve component (see Member of a reserve component , earlier, under Armed Forces Reservists. 1040z ) The distribution is from an IRA or from amounts attributable to elective deferrals under a section 401(k) or 403(b) plan or a similar arrangement. 1040z The distribution was made no earlier than the date of the order or call to active duty and no later than the close of the active duty period. 1040z Qualified Reservist Repayments You may be able to contribute (repay) to an IRA amounts equal to any qualified reservist distributions (defined earlier) you received. 1040z You can make these repayment contributions even if they would cause your total contributions to the IRA to be more than the general limit on contributions. 1040z You make these repayment contributions to an IRA, even if you received the qualified reservist distribution from a section 401(k) or 403(b) plan or a similar arrangement. 1040z Limit. 1040z   Your qualified reservist repayments cannot be more than your qualified reservist distributions. 1040z When repayment contributions can be made. 1040z   You cannot make these repayment contributions after the date that is 2 years after your active duty period ends. 1040z No deduction. 1040z   You cannot deduct qualified reservist repayments. 1040z Figuring your IRA deduction. 1040z   The repayment of qualified reservist distributions does not affect the amount you can deduct as an IRA contribution. 1040z Reporting the repayment. 1040z   If you repay a qualified reservist distribution, include the amount of the repayment with nondeductible contributions on line 1 of Form 8606, Nondeductible IRAs. 1040z Moving Expenses To deduct moving expenses, you generally must meet certain time and distance tests. 1040z However, if you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet these tests. 1040z You can deduct your unreimbursed moving expenses on Form 3903. 1040z Permanent change of station. 1040z   A permanent change of station includes: A move from your home to your first post of active duty, A move from one permanent post of duty to another, and A move from your last post of duty to your home or to a nearer point in the United States. 1040z The move must occur within 1 year of ending your active duty or within the period allowed under the Joint Federal Travel Regulations. 1040z Spouse and dependents. 1040z   If you are the spouse or dependent of a member of the Armed Forces who deserts, is imprisoned, or dies, a permanent change of station for you includes a move to: The member's place of enlistment or induction, Your, or the member's, home of record, or A nearer point in the United States. 1040z   If the military moves you to or from a different location than the member, the moves are treated as a single move to your new main job location. 1040z Services or reimbursements provided by the government. 1040z   Do not include in your income the value of moving and storage services provided by the government because of a permanent change of station. 1040z Similarly, do not include in income amounts received as a dislocation allowance, temporary lodging expense, temporary lodging allowance, or move-in housing allowance. 1040z   Generally, if the total reimbursements or allowances that you receive from the government because of the move are more than your actual moving expenses, the excess is included in your wages on Form W-2. 1040z However, if any reimbursements or allowances (other than dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances) exceed the cost of moving and the excess is not included in your wages on Form W-2, the excess still must be included in gross income on Form 1040, line 7. 1040z   Use Form 3903 to deduct qualified expenses that exceed your reimbursements and allowances (including dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances that are excluded from gross income). 1040z   If you must relocate and your spouse and dependents move to or from a different location, do not include in income reimbursements, allowances, or the value of moving and storage services provided by the government to move you and your spouse and dependents to and from the separate locations. 1040z   Do not deduct any expenses for moving services that were provided by the government. 1040z Also, do not deduct any expenses that were reimbursed by an allowance you did not include in income. 1040z Deductible Moving Expenses If you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household. 1040z You can deduct expenses (if not reimbursed or furnished in kind) for: Moving household goods and personal effects, and Travel. 1040z Moving household goods and personal effects. 1040z   You can deduct the expenses of moving your household goods and personal effects, including expenses for hauling a trailer, packing, crating, in-transit storage, and insurance. 1040z You cannot deduct expenses for moving furniture or other goods you bought on the way from your old home to your new home. 1040z Storing and insuring household goods and personal effects. 1040z   You can include only the cost of storing and insuring your household goods and personal effects within any period of 30 consecutive days after the day these goods and effects are moved from your former home and before they are delivered to your new home. 1040z Travel. 1040z   You can deduct the expenses of traveling (including lodging but not meals) from your old home to your new home, including car expenses and air fare. 1040z You can deduct as car expenses either: Your actual out-of-pocket expenses such as gas and oil, or The standard mileage rate of 24 cents a mile. 1040z   You can add parking fees and tolls to the amount claimed under either method. 1040z You cannot deduct any expenses for meals. 1040z You cannot deduct the cost of unnecessary side trips or lavish and extravagant lodging. 1040z Member of your household. 1040z   A member of your household is anyone who has both your former home and your new home as his or her main home. 1040z It does not include a tenant or employee unless you can claim that person as a dependent. 1040z Foreign Moves A foreign move is a move from the United States or its possessions to a foreign country or from one foreign country to another foreign country. 1040z A move from a foreign country to the United States or its possessions is not a foreign move. 1040z For a foreign move, the deductible moving expenses described earlier are expanded to include the reasonable expenses of: Moving your household goods and personal effects to and from storage, and Storing these items for part or all of the time the new job location remains your main job location. 1040z The new job location must be outside the United States. 1040z Reporting Moving Expenses Figure moving expense deductions on Form 3903. 1040z Carry the deduction from Form 3903 to Form 1040, line 26. 1040z For more information, see Publication 521 and Form 3903. 1040z Combat Zone Exclusion If you are a member of the U. 1040z S. 1040z Armed Forces who serves in a combat zone (defined later), you can exclude certain pay from your income. 1040z This pay is generally referred to as “combat pay. 1040z ” You do not actually need to show the exclusion on your tax return because income that qualifies for the combat zone exclusion is not included in the wages reported on your Form W-2. 1040z (See Form W-2 , later. 1040z ) The month for which you receive the pay must be a month in which you either served in a combat zone or were hospitalized as a result of wounds, disease, or injury incurred while serving in the combat zone. 1040z You do not have to receive the excluded pay while you are in a combat zone, are hospitalized, or in the same year you served in a combat zone. 1040z If you are an enlisted member, warrant officer, or commissioned warrant officer, you can exclude the following amounts from your income. 1040z (Other officer personnel are discussed under Amount of Exclusion , later. 1040z ) Active duty pay earned in any month you served in a combat zone. 1040z Imminent danger/hostile fire pay. 1040z A reenlistment bonus if the voluntary extension or reenlistment occurs in a month you served in a combat zone. 1040z Pay for accrued leave earned in any month you served in a combat zone. 1040z The Department of Defense must determine that the unused leave was earned during that period. 1040z Pay received for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other nonappropriated fund activities. 1040z The pay must be earned in a month you served in a combat zone. 1040z Awards for suggestions, inventions, or scientific achievements you are entitled to because of a submission you made in a month you served in a combat zone. 1040z Student loan repayments. 1040z If the entire year of service required to earn the repayment was performed in a combat zone, the entire repayment made because of that year of service is excluded. 1040z If only part of that year of service was performed in a combat zone, only part of the repayment qualifies for exclusion. 1040z For example, if you served in a combat zone for 5 months, 5/12 of your repayment qualifies for exclusion. 1040z Retirement pay and pensions do not qualify for the combat zone exclusion. 1040z Partial (month) service. 1040z   If you serve in a combat zone for any part of one or more days during a particular month, you are entitled to an exclusion for that entire month. 1040z Form W-2. 1040z   The wages shown in box 1 of your 2013 Form W-2 should not include military pay excluded from your income under the combat zone exclusion provisions. 1040z If it does, you will need to get a corrected Form W-2 from your finance office. 1040z   You cannot exclude as combat pay any wages shown in box 1 of Form W-2. 1040z Combat Zone A combat zone is any area the President of the United States designates by Executive Order as an area in which the U. 1040z S. 1040z Armed Forces are engaging or have engaged in combat. 1040z An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order. 1040z Afghanistan area. 1040z   By Executive Order No. 1040z 13239, Afghanistan (and airspace above) was designated as a combat zone beginning September 19, 2001. 1040z On December 14, 2001, the following countries were certified by the Department of Defense for combat zone tax benefits due to their direct support of military operations in the Afghanistan combat zone. 1040z Djibouti. 1040z Jordan. 1040z Kyrgyzstan. 1040z Pakistan. 1040z Somalia. 1040z Syria. 1040z Tajikistan. 1040z Uzbekistan. 1040z Yemen. 1040z The Philippines. 1040z  Note. 1040z For the Philippines only, the personnel must be deployed in conjunction with Operation Enduring Freedom supporting military operations in the Afghanistan combat zone. 1040z The Kosovo area. 1040z   By Executive Order No. 1040z 13119, the following locations (including airspace above) were designated as a combat zone beginning March 24, 1999. 1040z Federal Republic of Yugoslavia (Serbia/Montenegro). 1040z Albania. 1040z Kosovo. 1040z The Adriatic Sea. 1040z The Ionian Sea—north of the 39th parallel. 1040z Note. 1040z The combat zone designation for Montenegro and Kosovo (previously a province within Serbia) under Executive Order 13119 remains in force even though Montenegro and Kosovo became independent nations since EO 13119 was signed. 1040z Arabian peninsula. 1040z   By Executive Order No. 1040z 12744, the following locations (and airspace above) were designated as a combat zone beginning January 17, 1991. 1040z The Persian Gulf. 1040z The Red Sea. 1040z The Gulf of Oman. 1040z The part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude. 1040z The Gulf of Aden. 1040z The total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates. 1040z Jordan which is in direct support of the Arabian Peninsula. 1040z Serving in a Combat Zone You are considered to be serving in a combat zone if you are either assigned on official temporary duty to a combat zone or you qualify for hostile fire/imminent danger pay while in a combat zone. 1040z Service in a combat zone includes any periods you are absent from duty because of sickness, wounds, or leave. 1040z If, as a result of serving in a combat zone, a person becomes a prisoner of war or is missing in action, that person is considered to be serving in the combat zone so long as he or she keeps that status for military pay purposes. 1040z Hospitalized While Serving in a Combat Zone If you are hospitalized while serving in a combat zone, the wound, disease, or injury causing the hospitalization will be presumed to have been incurred while serving in the combat zone unless there is clear evidence to the contrary. 1040z Example. 1040z You are hospitalized for a specific disease in a combat zone where you have been serving for 3 weeks, and the disease for which you are hospitalized has an incubation period of 2 to 4 weeks. 1040z The disease is presumed to have been incurred while you were serving in the combat zone. 1040z On the other hand, if the incubation period of the disease is 1 year, the disease would not have been incurred while you were serving in the combat zone. 1040z Hospitalized After Leaving a Combat Zone In some cases, the wound, disease, or injury may have been incurred while you were serving in the combat zone, even though you were not hospitalized until after you left. 1040z In that case, you can exclude military pay earned while you are hospitalized as a result of the wound, disease, or injury. 1040z Example. 1040z You were hospitalized for a specific disease 3 weeks after you left the combat zone. 1040z The incubation period of the disease is from 2 to 4 weeks. 1040z The disease is presumed to have been incurred while serving in the combat zone. 1040z Nonqualifying Presence in Combat Zone None of the following types of military service qualify as service in a combat zone. 1040z Presence in a combat zone while on leave from a duty station located outside the combat zone. 1040z Passage over or through a combat zone during a trip between two points that are outside a combat zone. 1040z Presence in a combat zone solely for your personal convenience. 1040z Service Outside Combat Zone Considered Service in Combat Zone Military service outside a combat zone is considered to be performed in a combat zone if: The Department of Defense designates that the service is in direct support of military operations in the combat zone, and The service qualifies you for special military pay for duty subject to hostile fire or imminent danger. 1040z Military pay received for this service will qualify for the combat zone exclusion if all of the requirements (other than service in a combat zone) are met and the pay is verifiable by reference to military pay records. 1040z Amount of Exclusion If you are an enlisted member, warrant officer, or commissioned warrant officer and you serve in a combat zone during any part of a month, you can exclude all of your military pay for that month. 1040z It should not be included in the wages reported on your Form W-2. 1040z You also can exclude military pay earned while you are hospitalized as a result of wounds, disease, or injury incurred in the combat zone. 1040z If you are hospitalized, you cannot exclude any military pay received for any month of service that begins more than 2 years after the end of combat activities in the combat zone. 1040z Your hospitalization does not have to be in the combat zone. 1040z If you are a commissioned officer (other than a commissioned warrant officer), you can exclude your pay according to the rules just discussed. 1040z However, the amount of your exclusion is limited to the highest rate of enlisted pay (plus imminent danger/hostile fire pay you received) for each month during any part of which you served in a combat zone or were hospitalized as a result of your service there. 1040z Alien Status For tax purposes, an alien is an individual who is not a U. 1040z S. 1040z citizen. 1040z An alien is in one of three categories: resident, nonresident, or dual-status. 1040z Placement in the correct category is crucial in determining what income to report and what forms to file. 1040z Under peacetime enlistment rules, you generally cannot enlist in the Armed Forces unless you are a citizen or have been legally admitted to the United States for permanent residence. 1040z If you are an alien enlistee in the Armed Forces, you are probably a resident alien. 1040z If, under an income tax treaty, you are considered a resident of a foreign country, see your base legal officer. 1040z Other aliens who are in the United States only because of military assignments and who have a home outside the United States are nonresident aliens. 1040z Guam and Puerto Rico have special rules. 1040z Residents of those areas should contact their taxing authority with their questions. 1040z Most members of the Armed Forces are U. 1040z S. 1040z citizens or resident aliens. 1040z However, if you have questions about your alien status or the alien status of your dependents or spouse, you should read the information in the following paragraphs and see Publication 519. 1040z Resident Aliens You are considered a resident alien of the United States for tax purposes if you meet either the “green card test” or the “substantial presence test” for the calendar year (January 1–December 31). 1040z If you meet the substantial presence test for 2014, you did not meet either the green card test or the substantial presence test for 2012 or 2013, and you did not choose to be treated as a resident for part of 2012, you may be able to choose to be treated as a U. 1040z S. 1040z resident for part of 2013. 1040z See First-Year Choice in Publication 519. 1040z These tests are explained in Publication 519. 1040z Generally, resident aliens are taxed on their worldwide income and file the same tax forms as U. 1040z S. 1040z citizens. 1040z Treating nonresident alien spouse as resident alien. 1040z   A nonresident alien spouse can be treated as a resident alien if all the following conditions are met. 1040z One spouse is a U. 1040z S. 1040z citizen or resident alien at the end of the tax year. 1040z That spouse is married to the nonresident alien at the end of the tax year. 1040z You both choose to treat the nonresident alien spouse as a resident alien. 1040z Making the choice. 1040z   Both you and your spouse must sign a statement and attach it to your joint return for the first tax year for which the choice applies. 1040z Include in the statement: A declaration that one spouse was a nonresident alien and the other was a U. 1040z S. 1040z citizen or resident alien on the last day of the year, A declaration that both spouses choose to be treated as U. 1040z S. 1040z residents for the entire tax year, and The name, address, and taxpayer identification number (social security number or individual taxpayer identification number) of each spouse. 1040z If the nonresident alien spouse is not eligible to get a social security number, he or she should file Form W-7, Application for IRS Individual Taxpayer Identification Number. 1040z    Once you make this choice, the nonresident alien spouse's worldwide income is subject to U. 1040z S. 1040z tax. 1040z If the nonresident alien spouse has substantial foreign income, there may be no advantage to making this choice. 1040z Ending the choice. 1040z   Once you make this choice, it applies to all later years unless one of the following situations occurs. 1040z You or your spouse revokes the choice. 1040z You or your spouse dies. 1040z You and your spouse become legally separated under a decree of divorce or separate maintenance. 1040z The Internal Revenue Service ends the choice because you or your spouse kept inadequate records. 1040z For specific details on these situations, see Publication 519. 1040z   If the choice is ended for any of these reasons, neither spouse can make the choice for any later year. 1040z Choice not made. 1040z   If you and your nonresident alien spouse do not make this choice: You cannot file a joint return. 1040z You can file as married filing separately, or head of household if you qualify. 1040z You can claim an exemption for your nonresident alien spouse if he or she has no gross income for U. 1040z S. 1040z tax purposes and is not another taxpayer's dependent. 1040z The nonresident alien spouse generally does not have to file a federal income tax return if he or she had no income from sources in the United States. 1040z If a return has to be filed, see the next discussion. 1040z The nonresident alien spouse is not eligible for the earned income credit if he or she has to file a return. 1040z Nonresident Aliens If you are an alien who does not meet the requirements discussed earlier to be a resident alien, you are a nonresident alien. 1040z If you are required to file a federal tax return, you must file either Form 1040NR, U. 1040z S. 1040z Nonresident Alien Income Tax Return, or Form 1040NR-EZ, U. 1040z S. 1040z Income Tax Return for Certain Nonresident Aliens With No Dependents. 1040z See the form instructions for information on who must file and filing status. 1040z If you are a nonresident alien, you generally must pay tax on income from sources in the United States. 1040z Your income from conducting a trade or business in the United States is taxed at graduated U. 1040z S. 1040z tax rates. 1040z Other income from U. 1040z S. 1040z sources is taxed at a flat 30% (or lower treaty) rate. 1040z For example, dividends from a U. 1040z S. 1040z corporation paid to a nonresident alien generally are subject to a 30% (or lower treaty) rate. 1040z Dual-Status Aliens You can be both a nonresident and resident alien during the same tax year. 1040z This usually occurs in the year you arrive in or depart from the United States. 1040z If you are a dual-status alien, you are taxed on income from all sources for the part of the year you are a resident alien. 1040z Generally, for the part of the year you are a nonresident alien, you are taxed only on income from sources in the United States. 1040z Sale of Home You may not have to pay tax on all or part of the gain from the sale of your main home. 1040z Usually, your main home is the one you live in most of the time. 1040z It can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. 1040z You generally can exclude up to $250,000 of gain ($500,000, in most cases, if married filing a joint return) realized on the sale or exchange of a main home in 2013. 1040z The exclusion is allowed each time you sell or exchange a main home, but generally not more than once every 2 years. 1040z To be eligible, during the 5-year period ending on the date of the sale, you must have owned the home for at least 2 years (the ownership test), and lived in the home as your main home for at least 2 years (the use test). 1040z Exception to ownership and use tests. 1040z   You can exclude gain, but the maximum amount of gain you can exclude will be reduced if you do not meet the ownership and use tests due to a move to a new permanent duty station. 1040z 5-year test period suspended. 1040z   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on qualified official extended duty as a member of the Armed Forces. 1040z This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. 1040z Example. 1040z David bought and moved into a home in 2005. 1040z He lived in it as his main home for 2½ years. 1040z For the next 6 years, he did not live in it because he was on qualified official extended duty with the Army. 1040z He then sold the home at a gain in 2013. 1040z To meet the use test, David chooses to suspend the 5-year test period for the 6 years he was on qualifying official extended duty. 1040z This means he can disregard those 6 years. 1040z Therefore, David's 5-year test period consists of the 5 years before he went on qualifying official extended duty. 1040z He meets the ownership and use tests because he owned and lived in the home for 2½ years during this test period. 1040z Period of suspension. 1040z   The period of suspension cannot last more than 10 years. 1040z You cannot suspend the 5-year period for more than one property at a time. 1040z You can revoke your choice to suspend the 5-year period at any time. 1040z Qualified official extended duty. 1040z   You are on qualified official extended duty if you serve on extended duty either: At a duty station at least 50 miles from your main home, or While you live in Government quarters under Government orders. 1040z   You are on extended duty when you are called or ordered to active duty for a period of more than 90 days or for an indefinite period. 1040z Property used for rental or business. 1040z   You may be able to exclude your gain from the sale of a home that you have used as a rental property or for business. 1040z However, you must meet the ownership and use tests discussed in Publication 523. 1040z Nonqualified use. 1040z   If the sale of your main home results in a gain that is allocated to one or more period(s) of nonqualified use, you cannot exclude that gain from your income. 1040z   Nonqualified use means any period after 2008 when neither you nor your spouse (or your former spouse) used the property as a main home, with certain exceptions. 1040z For example, a period of nonqualified use does not include any period (not to exceed a total of 10 years) during which you or your spouse is serving on qualified official extended duty. 1040z Loss. 1040z   You cannot deduct a loss from the sale of your main home. 1040z More information. 1040z   For more information, see Publication 523. 1040z Foreclosures There may be tax consequences as a result of compensation payments for foreclosures. 1040z Payments made for violations of the Service Members Civil Relief Act (SCRA). 1040z   All service members who received a settlement payment reported on a Form 1099 may need to report the amount on their tax return. 1040z Generally, you must include settlement payments in income. 1040z However, the tax treatment of settlement payments will depend on the facts and circumstances. 1040z Lump Sum Portion of Settlement Payment. 1040z    Generally, you must include the lump sum payment in gross income. 1040z In limited circumstances you may be able to exclude part or all of the lump sum payment from gross income. 1040z For example, you may qualify to exclude part or all of the payment from gross income if you can show that the payment was made to reimburse specific nondeductible expenses (such as living expenses) you incurred because of the SCRA violation. 1040z Interest Payment on Lump Sum Portion of Settlement Payment. 1040z    You must include any interest on the lump sum portion of your settlement payment in your income. 1040z Lost Equity Portion of Settlement Payment. 1040z    If you lost your main home in foreclosure, you should treat the lost equity payment as an additional amount you received on the foreclosure of the home. 1040z You will have a gain on the foreclosure only if the sum of the lost equity payment and the value of the main home at foreclosure is more than what you paid for the home. 1040z In many cases, this gain may be excluded from income. 1040z For more information on the rules for excluding all or part of any gain from the sale (including a foreclosure) of a main home, see Pub. 1040z 523, Selling Your Home. 1040z The rules that apply to a lost equity payment you received for the foreclosure of a property that was not your main home are different. 1040z    To find rules for reporting gain or loss on the foreclosure of property that was not your main home, see Pub. 1040z 544, Sales and Other Dispositions of Assets. 1040z Interest Payment on Lost Equity Portion of Settlement Payment. 1040z    You must include any interest on the lost equity portion of your settlement payment in your income. 1040z Itemized Deductions To figure your taxable income, you must subtract either your standard deduction or your itemized deductions from adjusted gross income. 1040z For information on the standard deduction, see Publication 501. 1040z Itemized deductions are figured on Schedule A (Form 1040). 1040z This chapter discusses miscellaneous itemized deductions of particular interest to members of the Armed Forces. 1040z For information on other itemized deductions, see the publications listed below. 1040z Publication 502, Medical and Dental Expenses. 1040z Publication 526, Charitable Contributions. 1040z Publication 547, Casualties, Disasters, and Thefts. 1040z Publication 550, Investment Income and Expenses. 1040z You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. 1040z For information on deductions that are not subject to the 2% limit, see Publication 529. 1040z Employee Business Expenses Deductible employee business expenses generally are miscellaneous itemized deductions subject to the 2% limit. 1040z Certain employee business expenses are deductible as adjustments to income. 1040z For information on many employee business expenses, see Publication 463. 1040z Generally, you must file Form 2106, Employee Business Expenses, or Form 2106-EZ, Unreimbursed Employee Business Expenses, to claim these expenses. 1040z You do not have to file Form 2106 or Form 2106-EZ if you are claiming only unreimbursed expenses for uniforms, professional society dues, and work-related educational expenses (all discussed later). 1040z You can deduct these expenses directly on Schedule A (Form 1040). 1040z Reimbursement. 1040z   Generally, to receive advances, reimbursements, or other allowances from the government, you must adequately account for your expenses and return any excess reimbursement. 1040z Your reimbursed expenses are not deductible. 1040z   If your expenses are more than your reimbursement, the excess expenses are deductible (subject to the 2% limit) if you can prove them. 1040z You must file Form 2106 to report these expenses. 1040z   You can use the shorter Form 2106-EZ if you meet all three of the following conditions. 1040z You are an employee deducting expenses related to your job. 1040z You were not reimbursed by your employer for your expenses. 1040z (Amounts included in box 1 of Form W-2 are not considered reimbursements. 1040z ) If you claim car expenses, you use the standard mileage rate. 1040z    For 2013, the standard mileage rate is 56. 1040z 5 cents a mile for all business miles driven. 1040z This rate is adjusted periodically. 1040z Travel Expenses You can deduct unreimbursed travel expenses only if they are incurred while you are traveling away from home. 1040z If you are a member of the U. 1040z S. 1040z Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. 1040z You cannot deduct your expenses for meals and lodging while at your permanent duty station. 1040z You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. 1040z A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a home aboard ship for travel expense purposes. 1040z To be deductible, your travel expenses must be work related. 1040z You cannot deduct any expenses for personal travel, such as visits to family while on furlough, leave, or liberty. 1040z Away from home. 1040z   Home is your permanent duty station (which can be a ship or base), regardless of where you or your family live. 1040z You are away from home if you are away from your permanent duty station substantially longer than an ordinary day's work and you need to get sleep or rest to meet the demands of your work while away from home. 1040z   Examples of deductible travel expenses include: Expenses for business-related meals (generally limited to 50% of your unreimbursed cost), lodging, taxicabs, business telephone calls, tips, laundry, and dry cleaning while you are away from home on temporary duty or temporary additional duty, and Expenses of carrying out official business while on “No Cost” orders. 1040z    You cannot deduct any expenses for travel away from home if the temporary assignment in a single location is realistically expected to last (and does in fact last) for more than 1 year. 1040z This rule may not apply if you are participating in a federal crime investigation or prosecution. 1040z For more information, see Publication 463 and the Form 2106 instructions. 1040z Transportation Expenses These expenses include the ordinary and necessary costs of: Getting from one workplace to another when you are not away from home, Going to a business meeting away from your regular workplace, and Getting from your home to a temporary workplace when you have a regular place of work. 1040z These expenses include the costs of transportation by air, bus, rail, taxi, and driving and maintaining your car. 1040z Transportation expenses incurred while traveling away from home are included with your travel expenses, discussed earlier. 1040z However, if you use your car while traveling away from home overnight, see the rules in chapter 4 of Publication 463 to figure your car expense deduction. 1040z If you must go from one workplace to another while on duty (for example, as a courier or to attend meetings) without being away from home, your unreimbursed transportation expenses are deductible. 1040z However, the expenses of getting to and from your regular place of work (commuting) are not deductible. 1040z Temporary work location. 1040z   If you have one or more regular places of business away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location. 1040z   Generally, if your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary. 1040z   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. 1040z If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. 1040z    If you do not have a regular place of business, but you ordinarily work in the metropolitan area where you live, you can deduct daily transportation expenses between your home and a temporary work site outside your metropolitan area. 1040z However, you cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. 1040z These are nondeductible commuting costs. 1040z Armed Forces reservists. 1040z   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. 1040z You can deduct the expense of getting from one workplace to the other. 1040z You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. 1040z In this case, your transportation generally is a nondeductible commuting expense. 1040z However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. 1040z   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. 1040z If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. 1040z See Armed Forces Reservists under Adjustments to Income, earlier. 1040z Uniforms You usually cannot deduct the expenses for uniform cost and upkeep. 1040z Generally, you must wear uniforms when on duty and you are allowed to wear them when off duty. 1040z If military regulations prohibit you from wearing certain uniforms when off duty, you can deduct the cost and upkeep of the uniforms, but you must reduce your expenses by any allowance or reimbursement you receive. 1040z Unreimbursed expenses for the cost and upkeep of the following articles are deductible. 1040z Military battle dress uniforms and utility uniforms that you cannot wear when off duty. 1040z Articles not replacing regular clothing, including insignia of rank, corps devices, epaulets, aiguillettes, and swords. 1040z Reservists' uniforms if you can wear the uniform only while performing duties as a reservist. 1040z Professional Dues You can deduct unreimbursed dues paid to professional societies directly related to your military position. 1040z However, you cannot deduct amounts paid to an officers' club or a noncommissioned officers' club. 1040z Example. 1040z Lieutenant Margaret Allen, an electrical engineer at Maxwell Air Force Base, can deduct professional dues paid to the American Society of Electrical Engineers. 1040z Educational Expenses You can deduct the unreimbursed costs of qualifying work-related education. 1040z This is education that meets at least one of the following two tests. 1040z The education is required by your employer or the law to keep your present salary, status, or job. 1040z The required education must serve a bona fide business purpose of your employer. 1040z The education maintains or improves skills needed in your present work. 1040z However, even if the education meets one or both of the above tests, it is not qualifying education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. 1040z You can deduct the expenses for qualifying work-related education even if the education could lead to a degree. 1040z Example 1. 1040z Lieutenant Colonel Mason has a degree in financial management and is in charge of base finances at her post of duty. 1040z She took an advanced finance course. 1040z She already meets the minimum qualifications for her job. 1040z By taking the course, she is improving skills in her current position. 1040z The course does not qualify her for a new trade or business. 1040z She can deduct educational expenses that are more than the educational allowance she received. 1040z Example 2. 1040z Major Williams worked in the military base legal office as a legal intern. 1040z He was placed in excess leave status by his employer to attend law school. 1040z He paid all his educational expenses and was not reimbursed. 1040z After obtaining his law degree, he passed the state bar exam and worked as a judge advocate. 1040z His educational expenses are not deductible because the law degree qualified him for a new trade or business, even though the education maintained and improved his skills in his work. 1040z Travel to obtain education. 1040z   If your work-related education qualifies, you can deduct the costs of travel, including meals (subject to the 50% limit), and lodging, if the main purpose of the trip is to obtain the education. 1040z   You cannot deduct the cost of travel that is itself a form of education, even if it is directly related to your duties in your work or business. 1040z Transportation for education. 1040z   If your work-related education qualifies for a deduction, you can deduct the costs of transportation to obtain that education. 1040z However, you cannot deduct the cost of services provided in kind, such as base-provided transportation to or from class. 1040z Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. 1040z   If you need more information on educational expenses, see Publication 970. 1040z Repayments If you had to repay to your employer an amount that you included in your income in an earlier year, you may be able to deduct the repaid amount from your income for the year in which you repaid it. 1040z Repayment of $3,000 or less. 1040z   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. 1040z If you reported it as wages, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. 1040z Repayment over $3,000. 1040z   If the amount you repaid was more than $3,000, see Repayments in Publication 525. 1040z Credits After you have figured your taxable income and tax liability, you can determine if you are entitled to any tax credits. 1040z This publication discusses the first-time homebuyer credit, child tax credit, earned income credit, and credit for excess social security tax withheld. 1040z For information on other credits, see your tax form instructions. 1040z First-Time Homebuyer Credit The first-time homebuyer credit is not available for homes purchased after 2011. 1040z In 2011, this credit had already expired for most taxpayers, however, certain members of the uniformed services and Foreign Service and certain employees of the intelligence community could claim the credit for homes purchased in 2011. 1040z If you bought the home (and claimed the credit) after 2008, you generally must repay the credit if you dispose of the home or the home stops being your main home within the 36-month period beginning on the purchase date. 1040z If the home continues to be your main home for at least 36 months beginning on the purchase date, you do not have to repay any of the credit. 1040z If you bought your home in 2008, you generally must repay the credit over a 15-year period in 15 equal installments. 1040z For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. 1040z Child Tax Credit The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children. 1040z The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit. 1040z The child tax credit is not the same as the credit for child and dependent care expenses. 1040z See Publication 503 for information on the credit for child and dependent care expenses. 1040z Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you, later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. 1040z S. 1040z citizen, a U. 1040z S. 1040z national, or a U. 1040z S. 1040z resident alien. 1040z If the child was adopted, see Adopted child . 1040z For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c, column (4). 1040z Exceptions to time lived with you. 1040z   A child is considered to have lived with you for all of 2013 if the child was born or died in 2013 and your home was this child's home for the entire time he or she was alive. 1040z Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. 1040z   There are also exceptions for kidnapped children and children of divorced or separated parents. 1040z For details, see Publication 501. 1040z Qualifying child of more than one person. 1040z   A special rule applies if your qualifying child is the qualifying child of more than one person. 1040z For details, see Publication 501. 1040z Adopted child. 1040z   An adopted child is always treated as your own child. 1040z An adopted child includes a child lawfully placed with you for legal adoption. 1040z   If you are a U. 1040z S. 1040z citizen or U. 1040z S. 1040z national and your adopted child lived with you as a member of your household all year, that child meets condition (7) above to be a qualifying child for the child tax credit. 1040z Amount of Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. 1040z Limits on the credit. 1040z   You must reduce your child tax credit if either (1) or (2), below, applies. 1040z The amount on Form 1040, line 46, or Form 1040A, line 28, is less than the credit. 1040z If the amount is zero, you cannot take this credit because there is no tax to reduce. 1040z However, you may be able to take the additional child tax credit. 1040z See Additional Child Tax Credit , later. 1040z Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. 1040z Married filing jointly — $110,000. 1040z Single, head of household,  or qualifying widow(er) — $75,000. 1040z Married filing separately — $55,000. 1040z Modified AGI. 1040z   For purposes of the child tax credit, your modified AGI is the amount on Form 1040, line 38, or Form 1040A, line 22, plus the following amounts that may apply to you. 1040z Any amount excluded from income because of the exclusion of income from Puerto Rico. 1040z Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. 1040z Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. 1040z Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. 1040z   If you do not have any of the above, your modified AGI is the same as your AGI. 1040z Claiming the Credit To claim the child tax credit, you must file Form 1040 or Form 1040A. 1040z For more information on the child tax credit, see the instructions for Form 1040 or Form 1040A. 1040z Also attach Schedule 8812, Child Tax Credit, if required. 1040z Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. 1040z The additional child tax credit may give you a refund even if you do not owe any tax. 1040z For more information, see the instructions for Form 1040 or Form 1040A, and Schedule 8812. 1040z Earned Income Credit The earned income credit (EIC) is a cr