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2010 New Car Tax Credit

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2010 New Car Tax Credit

2010 new car tax credit 4. 2010 new car tax credit   Farm Business Expenses Table of Contents What's New for 2013 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible ExpensesReasonable allocation. 2010 new car tax credit Prepaid Farm Supplies Prepaid Livestock Feed Labor Hired Repairs and Maintenance Interest Breeding Fees Fertilizer and Lime Taxes Insurance Rent and Leasing Depreciation Business Use of Your Home Truck and Car Expenses Travel Expenses Marketing Quota Penalties Tenant House Expenses Items Purchased for Resale Other Expenses Domestic Production Activities Deduction Capital ExpensesForestation and reforestation costs. 2010 new car tax credit Nondeductible ExpensesPersonal, Living, and Family Expenses Other Nondeductible Items Losses From Operating a FarmAt-Risk Limits Passive Activity Limits Excess Farm Loss Limit Not-for-Profit FarmingUsing the presumption later. 2010 new car tax credit Category 1. 2010 new car tax credit Category 2. 2010 new car tax credit Category 3. 2010 new car tax credit What's New for 2013 Standard mileage rate. 2010 new car tax credit  For 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. 2010 new car tax credit 5 cents. 2010 new car tax credit See Truck and Car Expenses , later. 2010 new car tax credit Simplified method for business use of home deduction. 2010 new car tax credit  The IRS now provides a simplified method to determine your expenses for business use of your home. 2010 new car tax credit For more information, see Schedule C (Form 1040), Part II, and its instructions. 2010 new car tax credit Introduction You can generally deduct the current costs of operating your farm. 2010 new car tax credit Current costs are expenses you do not have to capitalize or include in inventory costs. 2010 new car tax credit However, your deduction for the cost of livestock feed and certain other supplies may be limited. 2010 new car tax credit If you have an operating loss, you may not be able to deduct all of it. 2010 new car tax credit Topics - This chapter discusses: Deductible expenses Domestic production activities deduction Capital expenses Nondeductible expenses Losses from operating a farm Not-for-profit farming Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 587 Business Use of Your Home 925 Passive Activity and At-Risk Rules 936 Home Mortgage Interest Deduction Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch F (Form 1040) Profit or Loss From Farming 1045 Application for Tentative Refund 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8903 Domestic Production Activities Deduction See chapter 16 for information about getting publications and forms. 2010 new car tax credit Deductible Expenses The ordinary and necessary costs of operating a farm for profit are deductible business expenses. 2010 new car tax credit “Ordinary” means what most farmers do and “necessary” means what is useful and helpful in farming. 2010 new car tax credit Schedule F, Part II, lists some common farm expenses that are typically deductible. 2010 new car tax credit This chapter discusses many of these expenses, as well as others not listed on Schedule F. 2010 new car tax credit Reimbursed expenses. 2010 new car tax credit   If the reimbursement is received in the same year that the expense is claimed, reduce the expense by the amount of the reimbursement. 2010 new car tax credit If the reimbursement is received in a year after the expense is claimed, include the reimbursement amount in income. 2010 new car tax credit See Refund or reimbursement under Income From Other Sources in chapter 3. 2010 new car tax credit Personal and business expenses. 2010 new car tax credit   Some expenses you pay during the tax year may be part personal and part business. 2010 new car tax credit These may include expenses for gasoline, oil, fuel, water, rent, electricity, telephone, automobile upkeep, repairs, insurance, interest, and taxes. 2010 new car tax credit   You must allocate these mixed expenses between their business and personal parts. 2010 new car tax credit Generally, the personal part of these expenses is not deductible. 2010 new car tax credit The business portion of the expenses is deductible on Schedule F. 2010 new car tax credit Example. 2010 new car tax credit You paid $1,500 for electricity during the tax year. 2010 new car tax credit You used 1/3 of the electricity for personal purposes and 2/3 for farming. 2010 new car tax credit Under these circumstances, you can deduct $1,000 (2/3 of $1,500) of your electricity expense as a farm business expense. 2010 new car tax credit Reasonable allocation. 2010 new car tax credit   It is not always easy to determine the business and nonbusiness parts of an expense. 2010 new car tax credit There is no method of allocation that applies to all mixed expenses. 2010 new car tax credit Any reasonable allocation is acceptable. 2010 new car tax credit What is reasonable depends on the circumstances in each case. 2010 new car tax credit Prepaid Farm Supplies Prepaid farm supplies include the following items if paid for during the year. 2010 new car tax credit Feed, seed, fertilizer, and similar farm supplies not used or consumed during the year, but not including farm supplies that you would have consumed during the year if not for a fire, storm, flood, other casualty, disease, or drought. 2010 new car tax credit Poultry (including egg-laying hens and baby chicks) bought for use (or for both use and resale) in your farm business. 2010 new car tax credit However, include only the amount that would be deductible in the following year if you had capitalized the cost and deducted it ratably over the lesser of 12 months or the useful life of the poultry. 2010 new car tax credit Poultry bought for resale and not resold during the year. 2010 new car tax credit Deduction limit. 2010 new car tax credit   If you use the cash method of accounting to report your income and expenses, your deduction for prepaid farm supplies in the year you pay for them may be limited to 50% of your other deductible farm expenses for the year (all Schedule F deductions except prepaid farm supplies). 2010 new car tax credit This limit does not apply if you meet one of the exceptions described later. 2010 new car tax credit See Chapter 2 for a discussion of the cash method of accounting. 2010 new car tax credit   If the limit applies, you can deduct the excess cost of farm supplies other than poultry in the year you use or consume the supplies. 2010 new car tax credit The excess cost of poultry bought for use (or for both use and resale) in your farm business is deductible in the year following the year you pay for it. 2010 new car tax credit The excess cost of poultry bought for resale is deductible in the year you sell or otherwise dispose of that poultry. 2010 new car tax credit Example. 2010 new car tax credit You may not qualify for the exception described next. 2010 new car tax credit During 2013, you bought fertilizer ($4,000), feed ($1,000), and seed ($500) for use on your farm in the following year. 2010 new car tax credit Your total prepaid farm supplies expense for 2013 is $5,500. 2010 new car tax credit Your other deductible farm expenses totaled $10,000 for 2013. 2010 new car tax credit Therefore, your deduction for prepaid farm supplies cannot be more than $5,000 (50% of $10,000) for 2013. 2010 new car tax credit The excess prepaid farm supplies expense of $500 ($5,500 − $5,000) is deductible in a later tax year when you use or consume the supplies. 2010 new car tax credit Exceptions. 2010 new car tax credit   This limit on the deduction for prepaid farm supplies expense does not apply if you are a farm-related taxpayer and either of the following apply. 2010 new car tax credit Your prepaid farm supplies expense is more than 50% of your other deductible farm expenses because of a change in business operations caused by unusual circumstances. 2010 new car tax credit Your total prepaid farm supplies expense for the preceding 3 tax years is less than 50% of your total other deductible farm expenses for those 3 tax years. 2010 new car tax credit   You are a farm-related taxpayer if any of the following tests apply. 2010 new car tax credit Your main home is on a farm. 2010 new car tax credit Your principal business is farming. 2010 new car tax credit A member of your family meets (1) or (2). 2010 new car tax credit For this purpose, your family includes your brothers and sisters, half-brothers and half-sisters, spouse, parents, grandparents, children, grandchildren, and aunts and uncles and their children. 2010 new car tax credit    Whether or not the deduction limit for prepaid farm supplies applies, your expenses for prepaid livestock feed may be subject to the rules for advance payment of livestock feed, discussed next. 2010 new car tax credit Prepaid Livestock Feed If you report your income and expenses under the cash method of accounting, you cannot deduct in the year paid the cost of feed your livestock will consume in a later year unless you meet all the following tests. 2010 new car tax credit The payment is for the purchase of feed rather than a deposit. 2010 new car tax credit The prepayment has a business purpose and is not merely for tax avoidance. 2010 new car tax credit Deducting the prepayment does not result in a material distortion of your income. 2010 new car tax credit If you meet all three tests, you can deduct the prepaid feed, subject to the limit on prepaid farm supplies discussed earlier. 2010 new car tax credit If you fail any of these tests, you can deduct the prepaid feed only in the year it is consumed. 2010 new car tax credit This rule does not apply to the purchase of commodity futures contracts. 2010 new car tax credit Payment for the purchase of feed. 2010 new car tax credit   Whether a payment is for the purchase of feed or a deposit depends on the facts and circumstances in each case. 2010 new car tax credit It is for the purchase of feed if you can show you made it under a binding commitment to accept delivery of a specific quantity of feed at a fixed price and you are not entitled, by contract or business custom, to a refund or repurchase. 2010 new car tax credit   The following are some factors that show a payment is a deposit rather than for the purchase of feed. 2010 new car tax credit The absence of specific quantity terms. 2010 new car tax credit The right to a refund of any unapplied payment credit at the end of the contract. 2010 new car tax credit The seller's treatment of the payment as a deposit. 2010 new car tax credit The right to substitute other goods or products for those specified in the contract. 2010 new car tax credit   A provision permitting substitution of ingredients to vary the particular feed mix to meet your livestock's current diet requirements will not suggest a deposit. 2010 new car tax credit Further, a price adjustment to reflect market value at the date of delivery is not, by itself, proof of a deposit. 2010 new car tax credit Business purpose. 2010 new car tax credit   The prepayment has a business purpose only if you have a reasonable expectation of receiving some business benefit from prepaying the cost of livestock feed. 2010 new car tax credit The following are some examples of business benefits. 2010 new car tax credit Fixing maximum prices and securing an assured feed supply. 2010 new car tax credit Securing preferential treatment in anticipation of a feed shortage. 2010 new car tax credit   Other factors considered in determining the existence of a business purpose are whether the prepayment was a condition imposed by the seller and whether that condition was meaningful. 2010 new car tax credit No material distortion of income. 2010 new car tax credit   The following are some factors considered in determining whether deducting prepaid livestock feed materially distorts income. 2010 new car tax credit Your customary business practice in conducting your livestock operations. 2010 new car tax credit The expense in relation to past purchases. 2010 new car tax credit The time of year you made the purchase. 2010 new car tax credit The expense in relation to your income for the year. 2010 new car tax credit Labor Hired You can deduct reasonable wages paid for regular farm labor, piecework, contract labor, and other forms of labor hired to perform your farming operations. 2010 new car tax credit You can pay wages in cash or in noncash items such as inventory, capital assets, or assets used in your business. 2010 new car tax credit The cost of boarding farm labor is a deductible labor cost. 2010 new car tax credit Other deductible costs you incur for farm labor include health insurance, workers' compensation insurance, and other benefits. 2010 new car tax credit If you must withhold social security, Medicare, and income taxes from your employees' cash wages, you can still deduct the full amount of wages before withholding. 2010 new car tax credit See chapter 13 for more information on employment taxes. 2010 new car tax credit Also, deduct the employer's share of the social security and Medicare taxes you must pay on your employees' wages as a farm business expense on Schedule F, line 29. 2010 new car tax credit See Taxes , later. 2010 new car tax credit Property for services. 2010 new car tax credit   If you transfer property to an employee in payment for services, you can deduct as wages paid the fair market value of the property on the date of transfer. 2010 new car tax credit If the employee pays you anything for the property, deduct as wages the fair market value of the property minus the payment by the employee for the property. 2010 new car tax credit   Treat the wages deducted as an amount received for the property. 2010 new car tax credit You may have a gain or loss to report if the property's adjusted basis on the date of transfer is different from its fair market value. 2010 new car tax credit Any gain or loss has the same character the exchanged property had in your hands. 2010 new car tax credit For more information, see chapter 8. 2010 new car tax credit Child as an employee. 2010 new car tax credit   You can deduct reasonable wages or other compensation you pay to your child for doing farmwork if a true employer-employee relationship exists between you and your child. 2010 new car tax credit Include these wages in the child's income. 2010 new car tax credit The child may have to file an income tax return. 2010 new car tax credit These wages may also be subject to social security and Medicare taxes if your child is age 18 or older. 2010 new car tax credit For more information, see Family Employees in chapter 13. 2010 new car tax credit    A Form W-2, Wage and Tax Statement, should be issued to the child employee. 2010 new car tax credit   The fact that your child spends the wages to buy clothes or other necessities you normally furnish does not prevent you from deducting your child's wages as a farm expense. 2010 new car tax credit The amount of wages paid to the child could cause a loss of the dependency exemption depending on how the child uses the money. 2010 new car tax credit Spouse as an employee. 2010 new car tax credit   You can deduct reasonable wages or other compensation you pay to your spouse if a true employer-employee relationship exists between you and your spouse. 2010 new car tax credit Wages you pay to your spouse are subject to social security and Medicare taxes. 2010 new car tax credit For more information, see Family Employees in chapter 13. 2010 new car tax credit Nondeductible Pay You cannot deduct wages paid for certain household work, construction work, and maintenance of your home. 2010 new car tax credit However, those wages may be subject to the employment taxes discussed in chapter 13. 2010 new car tax credit Household workers. 2010 new car tax credit   Do not deduct amounts paid to persons engaged in household work, except to the extent their services are used in boarding or otherwise caring for farm laborers. 2010 new car tax credit Construction labor. 2010 new car tax credit   Do not deduct wages paid to hired help for the construction of new buildings or other improvements. 2010 new car tax credit These wages are part of the cost of the building or other improvement. 2010 new car tax credit You must capitalize them. 2010 new car tax credit Maintaining your home. 2010 new car tax credit   If your farm employee spends time maintaining or repairing your home, the wages and employment taxes you pay for that work are nondeductible personal expenses. 2010 new car tax credit For example, assume you have a farm employee for the entire tax year and the employee spends 5% of the time maintaining your home. 2010 new car tax credit The employee devotes the remaining time to work on your farm. 2010 new car tax credit You cannot deduct 5% of the wages and employment taxes you pay for that employee. 2010 new car tax credit Employment Credits Reduce your deduction for wages by the amount of any employment credits you claim such as the work opportunity credit for qualified tax-exempt organizations hiring qualified veterans (Form 5884-C). 2010 new car tax credit Repairs and Maintenance You can deduct most expenses for the repair and maintenance of your farm property. 2010 new car tax credit Common items of repair and maintenance are repainting, replacing shingles and supports on farm buildings, and periodic or routine maintenance of trucks, tractors, and other farm machinery. 2010 new car tax credit However, repairs to, or overhauls of, depreciable property that substantially prolong the life of the property, increase its value, or adapt it to a different use are capital expenses. 2010 new car tax credit For example, if you repair the barn roof, the cost is deductible. 2010 new car tax credit But if you replace the roof, it is a capital expense. 2010 new car tax credit For more information, see Capital Expenses , later. 2010 new car tax credit Interest You can deduct as a farm business expense interest paid on farm mortgages and other obligations you incur in your farm business. 2010 new car tax credit Cash method. 2010 new car tax credit   If you use the cash method of accounting, you can generally deduct interest paid during the tax year. 2010 new car tax credit You cannot deduct interest paid with funds received from the original lender through another loan, advance, or other arrangement similar to a loan. 2010 new car tax credit You can, however, deduct the interest when you start making payments on the new loan. 2010 new car tax credit For more information, see Cash Method in chapter 2. 2010 new car tax credit Prepaid interest. 2010 new car tax credit   Under the cash method, you generally cannot deduct any interest paid before the year it is due. 2010 new car tax credit Interest paid in advance may be deducted only in the tax year in which it is due. 2010 new car tax credit Accrual method. 2010 new car tax credit   If you use an accrual method of accounting, you can deduct only interest that has accrued during the tax year. 2010 new car tax credit However, you cannot deduct interest owed to a related person who uses the cash method until payment is made and the interest is includible in the gross income of that person. 2010 new car tax credit For more information, see Accrual Method in chapter 2. 2010 new car tax credit Allocation of interest. 2010 new car tax credit   If you use the proceeds of a loan for more than one purpose, you must allocate the interest on that loan to each use. 2010 new car tax credit Allocate the interest to the following categories. 2010 new car tax credit Trade or business interest. 2010 new car tax credit Passive activity interest. 2010 new car tax credit Investment interest. 2010 new car tax credit Portfolio interest. 2010 new car tax credit Personal interest. 2010 new car tax credit   You generally allocate interest on a loan the same way you allocate the loan proceeds. 2010 new car tax credit You allocate loan proceeds by tracing disbursements to specific uses. 2010 new car tax credit The easiest way to trace disbursements to specific uses is to keep the proceeds of a particular loan separate from any other funds. 2010 new car tax credit Secured loan. 2010 new car tax credit   The allocation of loan proceeds and the related interest is generally not affected by the use of property that secures the loan. 2010 new car tax credit Example. 2010 new car tax credit You secure a loan with property used in your farming business. 2010 new car tax credit You use the loan proceeds to buy a car for personal use. 2010 new car tax credit You must allocate interest expense on the loan to personal use (purchase of the car) even though the loan is secured by farm business property. 2010 new car tax credit If the property that secures the loan is your home, you generally do not allocate the loan proceeds or the related interest. 2010 new car tax credit The interest is usually deductible as qualified home mortgage interest, regardless of how the loan proceeds are used. 2010 new car tax credit However, you can choose to treat the loan as not secured by your home. 2010 new car tax credit For more information, see Publication 936. 2010 new car tax credit Allocation period. 2010 new car tax credit   The period for which a loan is allocated to a particular use begins on the date the proceeds are used and ends on the earlier of the following dates. 2010 new car tax credit The date the loan is repaid. 2010 new car tax credit The date the loan is reallocated to another use. 2010 new car tax credit More information. 2010 new car tax credit   For more information on interest, see chapter 4 in Publication 535. 2010 new car tax credit Breeding Fees You can deduct breeding fees as a farm business expense. 2010 new car tax credit However, if you use an accrual method of accounting, you must capitalize breeding fees and allocate them to the cost basis of the calf, foal, etc. 2010 new car tax credit For more information on who must use an accrual method of accounting, see Accrual Method Required under Accounting Methods in chapter 2. 2010 new car tax credit Fertilizer and Lime You can deduct in the year paid or incurred the cost of fertilizer, lime, and other materials applied to farmland to enrich, neutralize, or condition it if the benefits last a year or less. 2010 new car tax credit You can also deduct the cost of applying these materials in the year you pay or incur it. 2010 new car tax credit However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these materials. 2010 new car tax credit If the benefits of the fertilizer, lime, or other materials last substantially more than one year, you generally capitalize their cost and deduct a part each year the benefits last. 2010 new car tax credit However, you can choose to deduct these expenses in the year paid or incurred. 2010 new car tax credit If you make this choice, you will need IRS approval if you later decide to capitalize the cost of previously deducted items. 2010 new car tax credit If you sell farmland on which fertilizer or lime has been applied and if the selling price of the land includes part or all of the cost of the fertilizer or lime, you report the sale amount attributable to the fertilizer or lime as ordinary income. 2010 new car tax credit Farmland, for these purposes, is land used for producing crops, fruits, or other agricultural products or for sustaining livestock. 2010 new car tax credit It does not include land you have never used previously for producing crops or sustaining livestock. 2010 new car tax credit You cannot deduct initial land preparation costs. 2010 new car tax credit (See Capital Expenses , later. 2010 new car tax credit ) Include government payments you receive for lime or fertilizer in income. 2010 new car tax credit See Fertilizer and Lime under Agricultural Program Payments in chapter 3. 2010 new car tax credit Taxes You can deduct as a farm business expense the real estate and personal property taxes on farm business assets, such as farm equipment, animals, farmland, and farm buildings. 2010 new car tax credit You also can deduct the social security and Medicare taxes you pay to match the amount withheld from the wages of farm employees and any federal unemployment tax you pay. 2010 new car tax credit For information on employment taxes, see chapter 13. 2010 new car tax credit Allocation of taxes. 2010 new car tax credit   The taxes on the part of your farm you use as your home (including the furnishings and surrounding land not used for farming) are nonbusiness taxes. 2010 new car tax credit You may be able to deduct these nonbusiness taxes as itemized deductions on Schedule A (Form 1040). 2010 new car tax credit To determine the nonbusiness part, allocate the taxes between the farm assets and nonbusiness assets. 2010 new car tax credit The allocation can be done from the assessed valuations. 2010 new car tax credit If your tax statement does not show the assessed valuations, you can usually get them from the tax assessor. 2010 new car tax credit State and local general sales taxes. 2010 new car tax credit   State and local general sales taxes on nondepreciable farm business expense items are deductible as part of the cost of those items. 2010 new car tax credit Include state and local general sales taxes imposed on the purchase of assets for use in your farm business as part of the cost you depreciate. 2010 new car tax credit Also treat the taxes as part of your cost if they are imposed on the seller and passed on to you. 2010 new car tax credit State and federal income taxes. 2010 new car tax credit   Individuals cannot deduct state and federal income taxes as farm business expenses. 2010 new car tax credit Individuals can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). 2010 new car tax credit However, you cannot deduct federal income tax. 2010 new car tax credit Highway use tax. 2010 new car tax credit   You can deduct the federal use tax on highway motor vehicles paid on a truck or truck tractor used in your farm business. 2010 new car tax credit For information on the tax itself, including information on vehicles subject to the tax, see the Instructions for Form 2290, Heavy Highway Vehicle Use Tax Return. 2010 new car tax credit Self-employment tax deduction. 2010 new car tax credit   You can deduct as an adjustment to income on Form 1040 one-half of your self-employment tax in figuring your adjusted gross income. 2010 new car tax credit For more information, see chapter 12. 2010 new car tax credit Insurance You generally can deduct the ordinary and necessary cost of insurance for your farm business as a business expense. 2010 new car tax credit This includes premiums you pay for the following types of insurance. 2010 new car tax credit Fire, storm, crop, theft, liability, and other insurance on farm business assets. 2010 new car tax credit Health and accident insurance on your farm employees. 2010 new car tax credit Workers' compensation insurance set by state law that covers any claims for job-related bodily injuries or diseases suffered by employees on your farm, regardless of fault. 2010 new car tax credit Business interruption insurance. 2010 new car tax credit State unemployment insurance on your farm employees (deductible as taxes if they are considered taxes under state law). 2010 new car tax credit Insurance to secure a loan. 2010 new car tax credit   If you take out a policy on your life or on the life of another person with a financial interest in your farm business to get or protect a business loan, you cannot deduct the premiums as a business expense. 2010 new car tax credit In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. 2010 new car tax credit Advance premiums. 2010 new car tax credit   Deduct advance payments of insurance premiums only in the year to which they apply, regardless of your accounting method. 2010 new car tax credit Example. 2010 new car tax credit On June 28, 2013, you paid a premium of $3,000 for fire insurance on your barn. 2010 new car tax credit The policy will cover a period of 3 years beginning on July 1, 2013. 2010 new car tax credit Only the cost for the 6 months in 2013 is deductible as an insurance expense on your 2013 calendar year tax return. 2010 new car tax credit Deduct $500, which is the premium for 6 months of the 36-month premium period, or 6/36 of $3,000. 2010 new car tax credit In both 2014 and 2015, deduct $1,000 (12/36 of $3,000). 2010 new car tax credit Deduct the remaining $500 in 2016. 2010 new car tax credit Had the policy been effective on January 1, 2013, the deductible expense would have been $1,000 for each of the years 2013, 2014, and 2015, based on one-third of the premium used each year. 2010 new car tax credit Business interruption insurance. 2010 new car tax credit   Use and occupancy and business interruption insurance premiums are deductible as a business expense. 2010 new car tax credit This insurance pays for lost profits if your business is shut down due to a fire or other cause. 2010 new car tax credit Report any proceeds in full on Schedule F, Part I. 2010 new car tax credit Self-employed health insurance deduction. 2010 new car tax credit   If you are self-employed, you can deduct as an adjustment to income on Form 1040 your payments for medical, dental, and qualified long-term care insurance coverage for yourself, your spouse, and your dependents when figuring your adjusted gross income on your Form 1040. 2010 new car tax credit Effective March 30, 2010, the insurance can also cover any child of yours under age 27 at the end of 2013, even if the child was not your dependent. 2010 new car tax credit Generally, this deduction cannot be more than the net profit from the business under which the plan was established. 2010 new car tax credit   If you or your spouse is also an employee of another person, you cannot take the deduction for any month in which you are eligible to participate in a subsidized health plan maintained by your employer or your spouse's employer. 2010 new car tax credit   Generally, use the Self-Employed Health Insurance Deduction Worksheet in the Instructions for Form 1040 to figure your deduction. 2010 new car tax credit Include the remaining part of the insurance payment in your medical expenses on Schedule A (Form 1040) if you itemize your deductions. 2010 new car tax credit   For more information, see Deductible Premiums in Publication 535, chapter 6. 2010 new car tax credit Rent and Leasing If you lease property for use in your farm business, you can generally deduct the rent you pay on Schedule F. 2010 new car tax credit However, you cannot deduct rent you pay in crop shares if you deduct the cost of raising the crops as farm expenses. 2010 new car tax credit Advance payments. 2010 new car tax credit   Deduct advance payments of rent only in the year to which they apply, regardless of your accounting method. 2010 new car tax credit Farm home. 2010 new car tax credit   If you rent a farm, do not deduct the part of the rental expense that represents the fair rental value of the farm home in which you live. 2010 new car tax credit Lease or Purchase If you lease a farm building or equipment, you must determine whether or not the agreement must be treated as a conditional sales contract rather than a lease. 2010 new car tax credit If the agreement is treated as a conditional sales contract, the payments under the agreement (so far as they do not represent interest or other charges) are payments for the purchase of the property. 2010 new car tax credit Do not deduct these payments as rent, but capitalize the cost of the property and recover this cost through depreciation. 2010 new car tax credit Conditional sales contract. 2010 new car tax credit   Whether an agreement is a conditional sales contract depends on the intent of the parties. 2010 new car tax credit Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. 2010 new car tax credit No single test, or special combination of tests, always applies. 2010 new car tax credit However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. 2010 new car tax credit The agreement applies part of each payment toward an equity interest you will receive. 2010 new car tax credit You get title to the property after you make a stated amount of required payments. 2010 new car tax credit The amount you must pay to use the property for a short time is a large part of the amount you would pay to get title to the property. 2010 new car tax credit You pay much more than the current fair rental value of the property. 2010 new car tax credit You have an option to buy the property at a nominal price compared to the value of the property when you may exercise the option. 2010 new car tax credit Determine this value when you make the agreement. 2010 new car tax credit You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. 2010 new car tax credit The agreement designates part of the payments as interest, or part of the payments can be easily recognized as interest. 2010 new car tax credit Example. 2010 new car tax credit You lease new farm equipment from a dealer who both sells and leases. 2010 new car tax credit The agreement includes an option to purchase the equipment for a specified price. 2010 new car tax credit The lease payments and the specified option price equal the sales price of the equipment plus interest. 2010 new car tax credit Under the agreement, you are responsible for maintenance, repairs, and the risk of loss. 2010 new car tax credit For federal income tax purposes, the agreement is a conditional sales contract. 2010 new car tax credit You cannot deduct any of the lease payments as rent. 2010 new car tax credit You can deduct interest, repairs, insurance, depreciation, and other expenses related to the equipment. 2010 new car tax credit Motor vehicle leases. 2010 new car tax credit   Special rules apply to lease agreements that have a terminal rental adjustment clause. 2010 new car tax credit In general, this is a clause that provides for a rental price adjustment based on the amount the lessor is able to sell the vehicle for at the end of the lease. 2010 new car tax credit If your rental agreement contains a terminal rental adjustment clause, treat the agreement as a lease if the agreement otherwise qualifies as a lease. 2010 new car tax credit For more information, see Internal Revenue Code (IRC) section 7701(h). 2010 new car tax credit Leveraged leases. 2010 new car tax credit   Special rules apply to leveraged leases of equipment (arrangements in which the equipment is financed by a nonrecourse loan from a third party). 2010 new car tax credit For more information, see Publication 535, chapter 3, and Revenue Procedure 2001-28, which begins on page 1156 of Internal Revenue Bulletin 2001-19 at www. 2010 new car tax credit irs. 2010 new car tax credit gov/pub/irs-irbs/irb01-19. 2010 new car tax credit pdf. 2010 new car tax credit Depreciation If property you acquire to use in your farm business is expected to last more than one year, you generally cannot deduct the entire cost in the year you acquire it. 2010 new car tax credit You must recover the cost over more than one year and deduct part of it each year on Schedule F as depreciation or amortization. 2010 new car tax credit However, you can choose to deduct part or all of the cost of certain qualifying property, up to a limit, as a section 179 deduction in the year you place it in service. 2010 new car tax credit Depreciation, amortization, and the section 179 deduction are discussed in chapter 7. 2010 new car tax credit Business Use of Your Home You can deduct expenses for the business use of your home if you use part of your home exclusively and regularly: As the principal place of business for any trade or business in which you engage, As a place to meet or deal with patients, clients, or customers in the normal course of your trade or business, or In connection with your trade or business, if you are using a separate structure that is not attached to your home. 2010 new car tax credit Your home office will qualify as your principal place of business for deducting expenses for its use if you meet both of the following requirements. 2010 new car tax credit You use it exclusively and regularly for the administrative or management activities of your trade or business. 2010 new car tax credit You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. 2010 new car tax credit If you use part of your home for business, you must divide the expenses of operating your home between personal and business use. 2010 new car tax credit The IRS now provides a simplified method to determine your expenses for business use of your home. 2010 new car tax credit For more information, see Schedule C (Form 1040), Part II, and its instructions. 2010 new car tax credit Deduction limit. 2010 new car tax credit   If your gross income from farming equals or exceeds your total farm expenses (including expenses for the business use of your home), you can deduct all your farm expenses. 2010 new car tax credit But if your gross income from farming is less than your total farm expenses, your deduction for certain expenses for the use of your home in your farming business is limited. 2010 new car tax credit   Your deduction for otherwise nondeductible expenses, such as utilities, insurance, and depreciation (with depreciation taken last), cannot be more than the gross income from farming minus the following expenses. 2010 new car tax credit The business part of expenses you could deduct even if you did not use your home for business (such as deductible mortgage interest, real estate taxes, and casualty and theft losses). 2010 new car tax credit Farm expenses other than expenses that relate to the use of your home. 2010 new car tax credit If you are self-employed, do not include your deduction for half of your self-employment tax. 2010 new car tax credit   Deductions over the current year's limit can be carried over to your next tax year. 2010 new car tax credit They are subject to the deduction limit for the next tax year. 2010 new car tax credit More information. 2010 new car tax credit   See Publication 587 for more information on deducting expenses for the business use of your home. 2010 new car tax credit Telephone expense. 2010 new car tax credit   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. 2010 new car tax credit However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for your farm business, are deductible business expenses. 2010 new car tax credit Cell phone charges for calls relating to your farm business are deductible. 2010 new car tax credit If the cell phone you use for your farm business is part of a family cell phone plan, you must allocate and deduct only the portion of the charges attributable to farm business calls. 2010 new car tax credit Truck and Car Expenses You can deduct the actual cost of operating a truck or car in your farm business. 2010 new car tax credit Only expenses for business use are deductible. 2010 new car tax credit These include such items as gasoline, oil, repairs, license tags, insurance, and depreciation (subject to certain limits). 2010 new car tax credit Standard mileage rate. 2010 new car tax credit   Instead of using actual costs, under certain conditions you can use the standard mileage rate. 2010 new car tax credit The standard mileage rate for each mile of business use is 56. 2010 new car tax credit 5 cents in 2013. 2010 new car tax credit You can use the standard mileage rate for a car or a light truck, such as a van, pickup, or panel truck, you own or lease. 2010 new car tax credit   You cannot use the standard mileage rate if you operate five or more cars or light trucks at the same time. 2010 new car tax credit You are not using five or more vehicles at the same time if you alternate using the vehicles (you use them at different times) for business. 2010 new car tax credit Example. 2010 new car tax credit Maureen owns a car and four pickup trucks that are used in her farm business. 2010 new car tax credit Her farm employees use the trucks and she uses the car for business. 2010 new car tax credit Maureen cannot use the standard mileage rate for the car or the trucks. 2010 new car tax credit This is because all five vehicles are used in Maureen's farm business at the same time. 2010 new car tax credit She must use actual expenses for all vehicles. 2010 new car tax credit Business use percentage. 2010 new car tax credit   You can claim 75% of the use of a car or light truck as business use without any records if you used the vehicle during most of the normal business day directly in connection with the business of farming. 2010 new car tax credit You choose this method of substantiating business use the first year the vehicle is placed in service. 2010 new car tax credit Once you make this choice, you may not change to another method later. 2010 new car tax credit The following are uses directly connected with the business of farming. 2010 new car tax credit Cultivating land. 2010 new car tax credit Raising or harvesting any agricultural or horticultural commodity. 2010 new car tax credit Raising, shearing, feeding, caring for, training, and managing animals. 2010 new car tax credit Driving to the feed or supply store. 2010 new car tax credit   If you keep records and they show that your business use was more than 75%, you may be able to claim more. 2010 new car tax credit See Recordkeeping requirements under Travel Expenses , below. 2010 new car tax credit More information. 2010 new car tax credit   For more information on deductible truck and car expenses, see Publication 463, chapter 4. 2010 new car tax credit If you pay your employees for the use of their truck or car in your farm business, see Reimbursements to employees under Travel Expenses next. 2010 new car tax credit Travel Expenses You can deduct ordinary and necessary expenses you incur while traveling away from home for your farm business. 2010 new car tax credit You cannot deduct lavish or extravagant expenses. 2010 new car tax credit Usually, the location of your farm business is considered your home for tax purposes. 2010 new car tax credit You are traveling away from home if: Your duties require you to be absent from your farm substantially longer than an ordinary work day, and You need to get sleep or rest to meet the demands of your work while away from home. 2010 new car tax credit If you meet these requirements and can prove the time, place, and business purpose of your travel, you can deduct your ordinary and necessary travel expenses. 2010 new car tax credit The following are some types of deductible travel expenses. 2010 new car tax credit Air, rail, bus, and car transportation; Meals and lodging; Dry cleaning and laundry; Telephone and fax; Transportation between your hotel and your temporary work or business meeting location; and Tips for any of the above expenses. 2010 new car tax credit Meals. 2010 new car tax credit   You ordinarily can deduct only 50% of your business-related meals expenses. 2010 new car tax credit You can deduct the cost of your meals while traveling on business only if your business trip is overnight or long enough to require you to stop for sleep or rest to properly perform your duties. 2010 new car tax credit You cannot deduct any of the cost of meals if it is not necessary for you to rest, unless you meet the rules for business entertainment. 2010 new car tax credit For information on entertainment expenses, see Publication 463, chapter 2. 2010 new car tax credit   The expense of a meal includes amounts you spend for your food, beverages, taxes, and tips relating to the meal. 2010 new car tax credit You can deduct either 50% of the actual cost or 50% of a standard meal allowance that covers your daily meal and incidental expenses. 2010 new car tax credit    Recordkeeping requirements. 2010 new car tax credit You must be able to prove your deductions for travel by adequate records or other evidence that will support your own statement. 2010 new car tax credit Estimates or approximations do not qualify as proof of an expense. 2010 new car tax credit   You should keep an account book or similar record, supported by adequate documentary evidence, such as receipts, that together support each element of an expense. 2010 new car tax credit Generally, it is best to record the expense and get documentation of it at the time you pay it. 2010 new car tax credit   If you choose to deduct a standard meal allowance rather than the actual expense, you do not have to keep records to prove amounts spent for meals and incidental items. 2010 new car tax credit However, you must still keep records to prove the actual amount of other travel expenses, and the time, place, and business purpose of your travel. 2010 new car tax credit More information. 2010 new car tax credit   For detailed information on travel, recordkeeping, and the standard meal allowance, see Publication 463. 2010 new car tax credit Reimbursements to employees. 2010 new car tax credit   You generally can deduct reimbursements you pay to your employees for travel and transportation expenses they incur in the conduct of your business. 2010 new car tax credit Employees may be reimbursed under an accountable or nonaccountable plan. 2010 new car tax credit Under an accountable plan, the employee must provide evidence of expenses. 2010 new car tax credit Under a nonaccountable plan, no evidence of expenses is required. 2010 new car tax credit If you reimburse expenses under an accountable plan, deduct them as travel and transportation expenses. 2010 new car tax credit If you reimburse expenses under a nonaccountable plan, you must report the reimbursements as wages on Form W-2 and deduct them as wages. 2010 new car tax credit For more information, see Publication 535, chapter 11. 2010 new car tax credit Marketing Quota Penalties You can deduct as Other expenses on Schedule F penalties you pay for marketing crops in excess of farm marketing quotas. 2010 new car tax credit However, if you do not pay the penalty, but instead the purchaser of your crop deducts it from the payment to you, include in gross income only the amount you received. 2010 new car tax credit Do not take a separate deduction for the penalty. 2010 new car tax credit Tenant House Expenses You can deduct the costs of maintaining houses and their furnishings for tenants or hired help as farm business expenses. 2010 new car tax credit These costs include repairs, utilities, insurance, and depreciation. 2010 new car tax credit The value of a dwelling you furnish to a tenant under the usual tenant-farmer arrangement is not taxable income to the tenant. 2010 new car tax credit Items Purchased for Resale If you use the cash method of accounting, you ordinarily deduct the cost of livestock and other items purchased for resale only in the year of sale. 2010 new car tax credit You deduct this cost, including freight charges for transporting the livestock to the farm, on Schedule F, Part I. 2010 new car tax credit However, see Chickens, seeds, and young plants , below. 2010 new car tax credit Example. 2010 new car tax credit You use the cash method of accounting. 2010 new car tax credit In 2013, you buy 50 steers you will sell in 2014. 2010 new car tax credit You cannot deduct the cost of the steers on your 2013 tax return. 2010 new car tax credit You deduct their cost on your 2014 Schedule F, Part I. 2010 new car tax credit Chickens, seeds, and young plants. 2010 new car tax credit   If you are a cash method farmer, you can deduct the cost of hens and baby chicks bought for commercial egg production, or for raising and resale, as an expense on Schedule F, Part I, in the year paid if you do it consistently and it does not distort income. 2010 new car tax credit You also can deduct the cost of seeds and young plants bought for further development and cultivation before sale as an expense on Schedule F, Part I, when paid if you do this consistently and you do not figure your income on the crop method. 2010 new car tax credit However, see Prepaid Farm Supplies , earlier, for a rule that may limit your deduction for these items. 2010 new car tax credit   If you deduct the cost of chickens, seeds, and young plants as an expense, report their entire selling price as income. 2010 new car tax credit You cannot also deduct the cost from the selling price. 2010 new car tax credit   You cannot deduct the cost of seeds and young plants for Christmas trees and timber as an expense. 2010 new car tax credit Deduct the cost of these seeds and plants through depletion allowances. 2010 new car tax credit For more information, see Depletion in chapter 7. 2010 new car tax credit   The cost of chickens and plants used as food for your family is never deductible. 2010 new car tax credit   Capitalize the cost of plants with a preproductive period of more than 2 years, unless you can elect out of the uniform capitalization rules. 2010 new car tax credit These rules are discussed in chapter 6. 2010 new car tax credit Example. 2010 new car tax credit You use the cash method of accounting. 2010 new car tax credit In 2013, you buy 500 baby chicks to raise for resale in 2014. 2010 new car tax credit You also buy 50 bushels of winter wheat seed in 2013 that you sow in the fall. 2010 new car tax credit Unless you previously adopted the method of deducting these costs in the year you sell the chickens or the harvested crops, you can deduct the cost of both the baby chicks and the seed wheat in 2013. 2010 new car tax credit Election to use crop method. 2010 new car tax credit   If you use the crop method, you can delay deducting the cost of seeds and young plants until you sell them. 2010 new car tax credit You must get IRS approval to use the crop method. 2010 new car tax credit If you follow this method, deduct the cost from the selling price to determine your profit on Schedule F, Part I. 2010 new car tax credit For more information, see Crop method under Special Methods of Accounting in chapter 2. 2010 new car tax credit Choosing a method. 2010 new car tax credit   You can adopt either the crop method or the cash method for deducting the cost in the first year you buy egg-laying hens, pullets, chicks, or seeds and young plants. 2010 new car tax credit   Although you must use the same method for egg-laying hens, pullets, and chicks, you can use a different method for seeds and young plants. 2010 new car tax credit Once you use a particular method for any of these items, use it for those items until you get IRS approval to change your method. 2010 new car tax credit For more information, see Change in Accounting Method in chapter 2. 2010 new car tax credit Other Expenses The following list, while not all-inclusive, shows some expenses you can deduct as other farm expenses on Schedule F, Part II. 2010 new car tax credit These expenses must be for business purposes and  (1) paid, if you use the cash method of accounting, or (2) incurred, if you use an accrual method of accounting. 2010 new car tax credit Accounting fees. 2010 new car tax credit Advertising. 2010 new car tax credit Business travel and meals. 2010 new car tax credit Commissions. 2010 new car tax credit Consultant fees. 2010 new car tax credit Crop scouting expenses. 2010 new car tax credit Dues to cooperatives. 2010 new car tax credit Educational expenses (to maintain and improve farming skills). 2010 new car tax credit Farm-related attorney fees. 2010 new car tax credit Farm magazines. 2010 new car tax credit Ginning. 2010 new car tax credit Insect sprays and dusts. 2010 new car tax credit Litter and bedding. 2010 new car tax credit Livestock fees. 2010 new car tax credit Marketing fees. 2010 new car tax credit Milk assessment. 2010 new car tax credit Recordkeeping expenses. 2010 new car tax credit Service charges. 2010 new car tax credit Small tools expected to last one year or less. 2010 new car tax credit Stamps and stationery. 2010 new car tax credit Subscriptions to professional, technical, and trade journals that deal with farming. 2010 new car tax credit Tying material and containers. 2010 new car tax credit Loan expenses. 2010 new car tax credit   You prorate and deduct loan expenses, such as legal fees and commissions, you pay to get a farm loan over the term of the loan. 2010 new car tax credit Tax preparation fees. 2010 new car tax credit   You can deduct as a farm business expense on Schedule F the cost of preparing that part of your tax return relating to your farm business. 2010 new car tax credit You may be able to deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. 2010 new car tax credit   You also can deduct on Schedule F the amount you pay or incur in resolving tax issues relating to your farm business. 2010 new car tax credit Domestic Production Activities Deduction Generally, you are allowed a deduction for income attributable to domestic production activities. 2010 new car tax credit You can deduct 9% of the lesser of your qualified production activities income or your taxable income (adjusted gross income for individuals) for the tax year. 2010 new car tax credit Your deduction is limited to 50% of the Form W-2 wages you paid for the tax year that are properly allocable to domestic production gross receipts. 2010 new car tax credit For this purpose, Form W-2 wages do not include noncash wages paid for agricultural labor, such as compensation paid as commodities. 2010 new car tax credit Also, excluded from Form W-2 wages are wages paid to your children under age 18 and nontaxable fringe benefits. 2010 new car tax credit Income from cooperatives. 2010 new car tax credit   If you receive a patronage dividend or qualified per-unit retain allocation from a cooperative which is engaged in the manufacturing, production, growth, or extraction in whole or in significant part of any agricultural or horticultural product or in the marketing of agricultural or horticultural products, your income from the cooperative can give rise to a domestic production activities deduction. 2010 new car tax credit This deduction amount is reported on Form 1099-PATR, box 6. 2010 new car tax credit In order for you to qualify for the deduction, the cooperative is required to send you a written notice designating your portion of the domestic production activities deduction. 2010 new car tax credit More information. 2010 new car tax credit   For more information on the domestic production activities deduction, see the Instructions for Form 8903. 2010 new car tax credit Capital Expenses A capital expense is a payment, or a debt incurred, for the acquisition, improvement, or restoration of an asset that is expected to last more than one year. 2010 new car tax credit You include the expense in the basis of the asset. 2010 new car tax credit Uniform capitalization rules also require you to capitalize or include in inventory certain other expenses. 2010 new car tax credit See chapters 2  and 6. 2010 new car tax credit Capital expenses are generally not deductible, but they may be depreciable. 2010 new car tax credit However, you can elect to deduct certain capital expenses, such as the following. 2010 new car tax credit The cost of fertilizer, lime, etc. 2010 new car tax credit (See Fertilizer and Lime under Deductible Expenses , earlier. 2010 new car tax credit ) Soil and water conservation expenses. 2010 new car tax credit (See chapter 5. 2010 new car tax credit ) The cost of property that qualifies for a deduction under section 179. 2010 new car tax credit (See chapter 7. 2010 new car tax credit ) Business start-up costs. 2010 new car tax credit (See Business start-up and organizational costs , later. 2010 new car tax credit ) Forestation and reforestation costs. 2010 new car tax credit (See Forestation and reforestation costs , later. 2010 new car tax credit ) Generally, the costs of the following items, including the costs of material, hired labor, and installation, are capital expenses. 2010 new car tax credit Land and buildings. 2010 new car tax credit Additions, alterations, and improvements to buildings, etc. 2010 new car tax credit Cars and trucks. 2010 new car tax credit Equipment and machinery. 2010 new car tax credit Fences. 2010 new car tax credit Draft, breeding, sport, and dairy livestock. 2010 new car tax credit Repairs to machinery, equipment, trucks, and cars that prolong their useful life, increase their value, or adapt them to different use. 2010 new car tax credit Water wells, including drilling and equipping costs. 2010 new car tax credit Land preparation costs, such as: Clearing land for farming, Leveling and conditioning land, Purchasing and planting trees, Building irrigation canals and ditches, Laying irrigation pipes, Installing drain tile, Modifying channels or streams, Constructing earthen, masonry, or concrete tanks, reservoirs, or dams, and Building roads. 2010 new car tax credit Business start-up and organizational costs. 2010 new car tax credit   You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. 2010 new car tax credit The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. 2010 new car tax credit Any remaining costs must be amortized. 2010 new car tax credit See chapter 7. 2010 new car tax credit   You elect to deduct start-up or organizational costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. 2010 new car tax credit However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2010 new car tax credit Clearly indicate the election on your amended return and write “Filed pursuant to section 301. 2010 new car tax credit 9100-2” at the top of the amended return. 2010 new car tax credit File the amended return at the same address you filed the original return. 2010 new car tax credit The election applies when figuring taxable income for the current tax year and all subsequent years. 2010 new car tax credit   You can choose to forgo the election by clearly electing to capitalize your start-up or organizational costs on an income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. 2010 new car tax credit For more information about start-up and organizational costs, see chapter 7. 2010 new car tax credit Crop production expenses. 2010 new car tax credit   The uniform capitalization rules generally require you to capitalize expenses incurred in producing plants. 2010 new car tax credit However, except for certain taxpayers required to use an accrual method of accounting, the capitalization rules do not apply to plants with a preproductive period of 2 years or less. 2010 new car tax credit For more information, see Uniform Capitalization Rules in chapter 6. 2010 new car tax credit Timber. 2010 new car tax credit   Capitalize the cost of acquiring timber. 2010 new car tax credit Do not include the cost of land in the cost of the timber. 2010 new car tax credit You must generally capitalize direct costs incurred in reforestation. 2010 new car tax credit However, you can elect to deduct some forestation and reforestation costs. 2010 new car tax credit See Forestation and reforestation costs next. 2010 new car tax credit Reforestation costs include the following. 2010 new car tax credit Site preparation costs, such as: Girdling, Applying herbicide, Baiting rodents, and Clearing and controlling brush. 2010 new car tax credit The cost of seed or seedlings. 2010 new car tax credit Labor and tool expenses. 2010 new car tax credit Depreciation on equipment used in planting or seeding. 2010 new car tax credit Costs incurred in replanting to replace lost seedlings. 2010 new car tax credit You can choose to capitalize certain indirect reforestation costs. 2010 new car tax credit   These capitalized amounts are your basis for the timber. 2010 new car tax credit Recover your basis when you sell the timber or take depletion allowances when you cut the timber. 2010 new car tax credit See Depletion in chapter 7. 2010 new car tax credit Forestation and reforestation costs. 2010 new car tax credit   You can elect to deduct up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. 2010 new car tax credit Any remaining costs can be amortized over an 84-month period. 2010 new car tax credit See chapter 7. 2010 new car tax credit If you make an election to deduct or amortize qualifying reforestation costs, you should create and maintain separate timber accounts for each qualified timber property. 2010 new car tax credit The accounts should include all reforestation treatments and the dates they were applied. 2010 new car tax credit Any qualified timber property that is subject to the deduction or amortization election cannot be included in any other timber account for which depletion is allowed. 2010 new car tax credit The timber account should be maintained until the timber is disposed of. 2010 new car tax credit For more information, see Notice 2006-47, 2006-20 I. 2010 new car tax credit R. 2010 new car tax credit B. 2010 new car tax credit 892, available at  www. 2010 new car tax credit irs. 2010 new car tax credit gov/irb/2006-20_IRB/ar11. 2010 new car tax credit html. 2010 new car tax credit   You elect to deduct forestation and reforestation costs by claiming the deduction on the income tax return filed by the due date (including extensions) for the tax year in which the expenses were paid or incurred. 2010 new car tax credit If you are filing Form T (Timber), Forest Activities Schedule, also complete Form T (Timber), Part IV. 2010 new car tax credit If you are not filing Form T (Timber), attach a statement to your return with the following information. 2010 new car tax credit The unique stand identification numbers. 2010 new car tax credit The total number of acres reforested during the tax year. 2010 new car tax credit The nature of the reforestation treatments. 2010 new car tax credit The total amounts of the qualified reforestation expenditures eligible to be amortized or deducted. 2010 new car tax credit   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2010 new car tax credit Clearly indicate the election on your amended return and write “Filed pursuant to section 301. 2010 new car tax credit 9100-2” at the top of the amended return. 2010 new car tax credit File the amended return at the same address you filed the original return. 2010 new car tax credit    For more information about forestation and reforestation costs, see chapter 7. 2010 new car tax credit    For more information about timber, see Agriculture Handbook Number 731, Forest Landowners' Guide to the Federal Income Tax. 2010 new car tax credit You can view this publication on the Internet at  www. 2010 new car tax credit fs. 2010 new car tax credit fed. 2010 new car tax credit us/publications. 2010 new car tax credit Christmas tree cultivation. 2010 new car tax credit   If you are in the business of planting and cultivating Christmas trees to sell when they are more than 6 years old, capitalize expenses incurred for planting and stump culture and add them to the basis of the standing trees. 2010 new car tax credit Recover these expenses as part of your adjusted basis when you sell the standing trees or as depletion allowances when you cut the trees. 2010 new car tax credit For more information, see Timber Depletion under Depletion in chapter 7. 2010 new car tax credit   You can deduct as business expenses the costs incurred for shearing and basal pruning of these trees. 2010 new car tax credit Expenses incurred for silvicultural practices, such as weeding or cleaning, and noncommercial thinning are also deductible as business expenses. 2010 new car tax credit   Capitalize the cost of land improvements, such as road grading, ditching, and fire breaks, that have a useful life beyond the tax year. 2010 new car tax credit If the improvements do not have a determinable useful life, add their cost to the basis of the land. 2010 new car tax credit The cost is recovered when you sell or otherwise dispose of it. 2010 new car tax credit If the improvements have a determinable useful life, recover their cost through depreciation. 2010 new car tax credit Capitalize the cost of equipment and other depreciable assets, such as culverts and fences, to the extent you do not use them in planting Christmas trees. 2010 new car tax credit Recover these costs through depreciation. 2010 new car tax credit Nondeductible Expenses You cannot deduct personal expenses and certain other items on your tax return even if they relate to your farm. 2010 new car tax credit Personal, Living, and Family Expenses You cannot deduct certain personal, living, and family expenses as business expenses. 2010 new car tax credit These include rent and insurance premiums paid on property used as your home, life insurance premiums on yourself or your family, the cost of maintaining cars, trucks, or horses for personal use, allowances to minor children, attorneys' fees and legal expenses incurred in personal matters, and household expenses. 2010 new car tax credit Likewise, the cost of purchasing or raising produce or livestock consumed by you or your family is not deductible. 2010 new car tax credit Other Nondeductible Items You cannot deduct the following items on your tax return. 2010 new car tax credit Loss of growing plants, produce, and crops. 2010 new car tax credit   Losses of plants, produce, and crops raised for sale are generally not deductible. 2010 new car tax credit However, you may have a deductible loss on plants with a preproductive period of more than 2 years. 2010 new car tax credit See chapter 11 for more information. 2010 new car tax credit Repayment of loans. 2010 new car tax credit   You cannot deduct the repayment of a loan. 2010 new car tax credit However, if you use the proceeds of a loan for farm business expenses, you can deduct the interest on the loan. 2010 new car tax credit See Interest , earlier. 2010 new car tax credit Estate, inheritance, legacy, succession, and gift taxes. 2010 new car tax credit   You cannot deduct estate, inheritance, legacy, succession, and gift taxes. 2010 new car tax credit Loss of livestock. 2010 new car tax credit   You cannot deduct as a loss the value of raised livestock that die if you deducted the cost of raising them as an expense. 2010 new car tax credit Losses from sales or exchanges between related persons. 2010 new car tax credit   You cannot deduct losses from sales or exchanges of property between you and certain related persons, including your spouse, brother, sister, ancestor, or lineal descendant. 2010 new car tax credit For more information, see chapter 2 of Publication 544, Sales and Other Dispositions of Assets. 2010 new car tax credit Cost of raising unharvested crops. 2010 new car tax credit   You cannot deduct the cost of raising unharvested crops sold with land owned more than one year if you sell both at the same time and to the same person. 2010 new car tax credit Add these costs to the basis of the land to determine the gain or loss on the sale. 2010 new car tax credit For more information, see Section 1231 Gains and Losses in chapter 9. 2010 new car tax credit Cost of unharvested crops bought with land. 2010 new car tax credit   Capitalize the purchase price of land, including the cost allocable to unharvested crops. 2010 new car tax credit You cannot deduct the cost of the crops at the time of purchase. 2010 new car tax credit However, you can deduct this cost in figuring net profit or loss in the tax year you sell the crops. 2010 new car tax credit Cost related to gifts. 2010 new car tax credit   You cannot deduct costs related to your gifts of agricultural products or property held for sale in the ordinary course of your business. 2010 new car tax credit The costs are not deductible in the year of the gift or any later year. 2010 new car tax credit For example, you cannot deduct the cost of raising cattle or the cost of planting and raising unharvested wheat on parcels of land given as a gift to your children. 2010 new car tax credit Club dues and membership fees. 2010 new car tax credit   Generally, you cannot deduct amounts you pay or incur for membership in any club organized for business, pleasure, recreation, or any other social purpose. 2010 new car tax credit This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. 2010 new car tax credit Exception. 2010 new car tax credit   The following organizations will not be treated as a club organized for business, pleasure, recreation, or other social purposes, unless one of its main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. 2010 new car tax credit Boards of trade. 2010 new car tax credit Business leagues. 2010 new car tax credit Chambers of commerce. 2010 new car tax credit Civic or public service organizations. 2010 new car tax credit Professional associations. 2010 new car tax credit Trade associations. 2010 new car tax credit Real estate boards. 2010 new car tax credit Fines and penalties. 2010 new car tax credit   You cannot deduct fines and penalties, except penalties for exceeding marketing quotas, discussed earlier. 2010 new car tax credit Losses From Operating a Farm If your deductible farm expenses are more than your farm income, you have a loss from the operation of your farm. 2010 new car tax credit The amount of the loss you can deduct when figuring your taxable income may be limited. 2010 new car tax credit To figure your deductible loss, you must apply the following limits. 2010 new car tax credit The at-risk limits. 2010 new car tax credit The passive activity limits. 2010 new car tax credit The following discussions explain these limits. 2010 new car tax credit If your deductible loss after applying these limits is more than your other income for the year, you may have a net operating loss. 2010 new car tax credit See Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. 2010 new car tax credit If you do not carry on your farming activity to make a profit, your loss deduction may be limited by the not-for-profit rules. 2010 new car tax credit See Not-for-Profit Farming, later. 2010 new car tax credit At-Risk Limits The at-risk rules limit your deduction for losses from most business or income-producing activities, including farming. 2010 new car tax credit These rules limit the losses you can deduct when figuring your taxable income. 2010 new car tax credit The deductible loss from an activity is limited to the amount you have at risk in the activity. 2010 new car tax credit You are at risk in any activity for: The money and adjusted basis of property you contribute to the activity, and Amounts you borrow for use in the activity if: You are personally liable for repayment, or You pledge property (other than property used in the activity) as security for the loan. 2010 new car tax credit You are not at risk, however, for amounts you borrow for use in a farming activity from a person who has an interest in the activity (other than as a creditor) or a person related to someone (other than you) having such an interest. 2010 new car tax credit For more information, see Publication 925. 2010 new car tax credit Passive Activity Limits A passive activity is generally any activity involving the conduct of any trade or business in which you do not materially participate. 2010 new car tax credit Generally, a rental activity is a passive activity. 2010 new car tax credit If you have a passive activity, special rules limit the loss you can deduct in the tax year. 2010 new car tax credit You generally can deduct losses from passive activities only up to income from passive activities. 2010 new car tax credit Credits are similarly limited. 2010 new car tax credit For more information, see Publication 925. 2010 new car tax credit Excess Farm Loss Limit For tax years beginning after 2009, excess farm losses (defined below) are not deductible if you received certain applicable subsidies. 2010 new car tax credit This limit applies to any farming businesses, other than a C corporation, that received a direct or counter-cyclical payment (or any payment in lieu of such payments) under title I of the Food, Conservation, and Energy Act of 2008, or from a Commodity Credit Corporation loan. 2010 new car tax credit Your farming losses are limited to the greater of: $300,000 ($150,000 for a married person filing a separate return), or The total net farm income for the prior five tax years. 2010 new car tax credit Farming losses from casualty losses or losses by reason of disease or drought are disregarded for purposes of figuring this limitation. 2010 new car tax credit Also, the limitation on farm losses should be applied before the passive activity loss rules are applied. 2010 new car tax credit For more details, see IRC section 461(j). 2010 new car tax credit Excess farm loss. 2010 new car tax credit   Generally, an excess farm loss is the amount of your farming loss that exceeds the amount of the limitation (as described above). 2010 new car tax credit This loss can be determined by taking the excess of: The total deductions for the tax year from your farming businesses, over The total gross income or gain for the tax year from your farming businesses, plus the greater of: $300,000 ($150,000 for a married person filing a separate return), or The excess (if any) of the total gross income or gain from your farming businesses for the prior five tax years over the total deductions from your farming businesses for the prior five tax years. 2010 new car tax credit   Excess farm losses that are disallowed can be carried forward to the next tax year and treated as a deduction from that year. 2010 new car tax credit Not-for-Profit Farming If you operate a farm for profit, you can deduct all the ordinary and necessary expenses of carrying on the business of farming on Schedule F. 2010 new car tax credit However, if you do not carry on your farming activity, or other activity you engage or invest in, to make a profit, you report the income from the activity on Form 1040, line 21, and you can deduct expenses of carrying on the activity only if you itemize your deductions on Schedule A (Form 1040). 2010 new car tax credit Also, there is a limit on the deductions you can take. 2010 new car tax credit You cannot use a loss from that activity to offset income from other activities. 2010 new car tax credit Activities you do as a hobby, or mainly for sport or recreation, come under this limit. 2010 new car tax credit An investment activity intended only to produce tax losses for the investors also comes under this limit. 2010 new car tax credit The limit on not-for-profit losses applies to individuals, partnerships, estates, trusts, and S corporations. 2010 new car tax credit It does not apply to corporations other than S corporations. 2010 new car tax credit In determining whether you are carrying on your farming activity for profit, all the facts are taken into account. 2010 new car tax credit No one factor alone is decisive. 2010 new car tax credit Among the factors to consider are whether: You operate your farm in a businesslike manner; The time and effort you spend on farming indicate you intend to make it profitable; You depend on income from farming for your livelihood; Your losses are due to circumstances beyond your control or are normal in the start-up phase of farming; You change your methods of operation in an attempt to improve profitability; You, or your advisors, have the knowledge needed to carry on the farming activity as a successful business; You were successful in making a profit in similar activities in the past; You make a profit from farming in some years and the amount of profit you make; and You can expect to make a future profit from the appreciation of the assets used in the farming activity. 2010 new car tax credit Presumption of profit. 2010 new car tax credit   Your farming or other activity is presumed carried on for profit if it produced a profit in at least 3 of the last 5 tax years, including the current year. 2010 new car tax credit Activities that consist primarily of breeding, training, showing, or racing horses are presumed carried on for profit if they produced a profit in at least 2 of the last 7 tax years, including the current year. 2010 new car tax credit The activity must be substantially the same for each year within this period. 2010 new car tax credit You have a profit when the gross income from an activity is more than the deductions for it. 2010 new car tax credit   If a taxpayer dies before the end of the 5-year (or 7-year) period, the period ends on the date of the taxpayer's death. 2010 new car tax credit   If your business or investment activity passes this 3- (or 2-) years-of-profit test, presume it is carried on for profit. 2010 new car tax credit This means the limits discussed here do not apply. 2010 new car tax credit You can take all your business deductions from the activity on Schedule F, even for the years that you have a loss. 2010 new car tax credit You can rely on this presumption in every case, unless the IRS shows it is not valid. 2010 new car tax credit   If you fail the 3- (or 2-) years-of-profit test, you still may be considered to operate your farm for profit by considering the factors listed earlier. 2010 new car tax credit Using the presumption later. 2010 new car tax credit   If you are starting out in farming and do not have 3 (or 2) years showing a profit, you may want to take advantage of this presumption later, after you have had the 5 (or 7) years of experience allowed by the test. 2010 new car tax credit   You can choose to do this by filing Form 5213. 2010 new car tax credit Filing this form postpones any determination that your farming activity is not carried on for profit until 5 (or 7) years have passed since you first started farming. 2010 new car tax credit You must file Form 5213 within 3 years after the due date of your return for the year in which you first carried on the activity, or, if earlier, within 60 days after receiving a written notice from the IRS proposing to disallow deductions attributable to the activity. 2010 new car tax credit   The benefit gained by making this choice is that the IRS will not immediately question whether your farming activity is engaged in for profit. 2010 new car tax credit Accordingly, it will not limit your deductions. 2010 new car tax credit Rather, you will gain time to earn a profit in 3 (or 2) out of the first 5 (or 7) years you carry on the farming activity. 2010 new car tax credit If you show 3 (or 2) years of profit at the end of this period, your deductions are not limited under these rules. 2010 new car tax credit If you do not have 3 (or 2) years of profit (and cannot otherwise show that you operated your farm for profit), the limit applies retroactively to any year in the 5-year (or 7-year) period with a loss. 2010 new car tax credit   Filing Form 5213 automatically extends the period of limitations on any year
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IRS Warns of Pervasive Telephone Scam

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IR-2013-84, Oct. 31, 2013

WASHINGTON — The Internal Revenue Service today warned consumers about a sophisticated phone scam targeting taxpayers, including recent immigrants, throughout the country.

Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.

“This scam has hit taxpayers in nearly every state in the country.  We want to educate taxpayers so they can help protect themselves.  Rest assured, we do not and will not ask for credit card numbers over the phone, nor request a pre-paid debit card or wire transfer,” says IRS Acting Commissioner Danny Werfel. “If someone unexpectedly calls claiming to be from the IRS and threatens police arrest, deportation or license revocation if you don’t pay immediately, that is a sign that it really isn’t the IRS calling.” Werfel noted that the first IRS contact with taxpayers on a tax issue is likely to occur via mail

Other characteristics of this scam include:

  • Scammers use fake names and IRS badge numbers. They generally use common names and surnames to identify themselves.
  • Scammers may be able to recite the last four digits of a victim’s Social Security Number.
  • Scammers spoof the IRS toll-free number on caller ID to make it appear that it’s the IRS calling.
  • Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.
  • Victims hear background noise of other calls being conducted to mimic a call site.
  • After threatening victims with jail time or driver’s license revocation, scammers hang up and others soon call back pretending to be from the local police or DMV, and the caller ID supports their claim.

If you get a phone call from someone claiming to be from the IRS, here’s what you should do:

  • If you know you owe taxes or you think you might owe taxes, call the IRS at 1.800.829.1040. The IRS employees at that line can help you with a payment issue – if there really is such an issue.
  • If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill or the caller made some bogus threats as described above), then call and report the incident to the Treasury Inspector General for Tax Administration at 1.800.366.4484.
  • If you’ve been targeted by this scam, you should also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov.  Please add "IRS Telephone Scam" to the comments of your complaint.

Taxpayers should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as debt relief) that fraudulently claim to be from the IRS.

The IRS encourages taxpayers to be vigilant against phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information.  This includes any type of electronic communication, such as text messages and social media channels. The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message. Instead, forward the e-mail to phishing@irs.gov.

More information on how to report phishing scams involving the IRS is available on the genuine IRS website, IRS.gov.

You can reblog the IRS tax scam alert via Tumblr.

 

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Page Last Reviewed or Updated: 01-Nov-2013

The 2010 New Car Tax Credit

2010 new car tax credit Publication 516 - Main Content Table of Contents U. 2010 new car tax credit S. 2010 new car tax credit Tax ReturnFiling Information Foreign Bank Accounts U. 2010 new car tax credit S. 2010 new car tax credit Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). 2010 new car tax credit U. 2010 new car tax credit S. 2010 new car tax credit Tax Return Filing Information If you are a U. 2010 new car tax credit S. 2010 new car tax credit citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. 2010 new car tax credit However, the special rules explained in the following discussions may apply to you. 2010 new car tax credit See also Tax Treaty Benefits, later. 2010 new car tax credit When To File and Pay Most individual tax returns cover a calendar year, January through December. 2010 new car tax credit The regular due date for these tax returns is April 15 of the following year. 2010 new car tax credit If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. 2010 new car tax credit If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. 2010 new car tax credit You must pay interest on any tax not paid by the regular due date. 2010 new car tax credit Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. 2010 new car tax credit See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. 2010 new car tax credit If your return is filed late, the postmark or delivery service date does not determine the date of filing. 2010 new car tax credit In that case, your return is considered filed when it is received by the IRS. 2010 new car tax credit Extensions You may be able to get an extension of time to file your return and pay your tax. 2010 new car tax credit Automatic 2-month extension. 2010 new car tax credit   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. 2010 new car tax credit S. 2010 new car tax credit citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. 2010 new car tax credit To get this extension, you must attach a statement to your return explaining how you qualified. 2010 new car tax credit You will owe interest on any tax not paid by the regular due date of your return. 2010 new car tax credit Married taxpayers. 2010 new car tax credit   If you file a joint return, either you or your spouse can qualify for the automatic extension. 2010 new car tax credit If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. 2010 new car tax credit Additional extension. 2010 new car tax credit   You can apply for an additional extension of time to file your return by filing Form 4868. 2010 new car tax credit You must file Form 4868 by the due date for your income tax return. 2010 new car tax credit   Generally, you must file it by April 15. 2010 new car tax credit However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. 2010 new car tax credit Check the box on line 8 of Form 4868. 2010 new car tax credit Payment of tax. 2010 new car tax credit   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. 2010 new car tax credit The late-payment penalty applies if, through withholding, etc. 2010 new car tax credit , you paid less than 90% of your actual tax liability by the original due date of your income tax return. 2010 new car tax credit Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. 2010 new car tax credit Electronic filing. 2010 new car tax credit   You can file for the additional extension by phone, using your home computer, or through a tax professional. 2010 new car tax credit See Form 4868 for more information. 2010 new car tax credit Limit on additional extensions. 2010 new car tax credit   You generally cannot get a total extension of more than 6 months. 2010 new car tax credit However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. 2010 new car tax credit   For more information, see Publication 54. 2010 new car tax credit Foreign Bank Accounts You must file Form TD F 90-22. 2010 new car tax credit 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. 2010 new car tax credit This applies if the combined assets in the account(s) were more than $10,000. 2010 new car tax credit Do not include accounts in a U. 2010 new car tax credit S. 2010 new car tax credit military banking facility operated by a U. 2010 new car tax credit S. 2010 new car tax credit financial institution. 2010 new car tax credit File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. 2010 new car tax credit Do not attach it to Form 1040. 2010 new car tax credit If you are required to file Form TD F 90-22. 2010 new car tax credit 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). 2010 new car tax credit You also may be required to file Form 8938 with your U. 2010 new car tax credit S. 2010 new car tax credit income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. 2010 new car tax credit For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. 2010 new car tax credit For more information, see Form 8938 and its instructions. 2010 new car tax credit U. 2010 new car tax credit S. 2010 new car tax credit Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. 2010 new car tax credit If you are a U. 2010 new car tax credit S. 2010 new car tax credit citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. 2010 new car tax credit S. 2010 new car tax credit law. 2010 new car tax credit This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). 2010 new car tax credit If you are a nonresident alien, your income from sources outside the United States is not subject to U. 2010 new car tax credit S. 2010 new car tax credit tax. 2010 new car tax credit Foreign Earned Income Exclusion Employees of the U. 2010 new car tax credit S. 2010 new car tax credit Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. 2010 new car tax credit S. 2010 new car tax credit Government as an employee. 2010 new car tax credit But see Other Employment, later. 2010 new car tax credit Special Situations In the following two situations, your pay is from the U. 2010 new car tax credit S. 2010 new car tax credit Government and does not qualify for the foreign earned income exclusion. 2010 new car tax credit U. 2010 new car tax credit S. 2010 new car tax credit agency reimbursed by foreign country. 2010 new car tax credit   If you are a U. 2010 new car tax credit S. 2010 new car tax credit Government employee paid by a U. 2010 new car tax credit S. 2010 new car tax credit agency to perform services in a foreign country, your pay is from the U. 2010 new car tax credit S. 2010 new car tax credit Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. 2010 new car tax credit This is true even if the U. 2010 new car tax credit S. 2010 new car tax credit agency is reimbursed by the foreign government. 2010 new car tax credit Employees of post exchanges, etc. 2010 new car tax credit   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. 2010 new car tax credit S. 2010 new car tax credit Government, the earnings you receive are paid by the U. 2010 new car tax credit S. 2010 new car tax credit Government. 2010 new car tax credit This is true whether they are paid from appropriated or nonappropriated funds. 2010 new car tax credit These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. 2010 new car tax credit Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. 2010 new car tax credit Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. 2010 new car tax credit In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. 2010 new car tax credit S. 2010 new car tax credit citizens or green card holders. 2010 new car tax credit Consequently, if you are a U. 2010 new car tax credit S. 2010 new car tax credit citizen or green card holder, you will generally not be entitled to reduce your U. 2010 new car tax credit S. 2010 new car tax credit tax on your government pay. 2010 new car tax credit If you are neither a U. 2010 new car tax credit S. 2010 new car tax credit citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. 2010 new car tax credit Review the treaty text carefully. 2010 new car tax credit U. 2010 new car tax credit S. 2010 new car tax credit citizens must always file Form 1040. 2010 new car tax credit Non-U. 2010 new car tax credit S. 2010 new car tax credit citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. 2010 new car tax credit If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. 2010 new car tax credit Most income tax treaties contain an article providing relief from double taxation. 2010 new car tax credit Many treaties contain special foreign tax credit rules for U. 2010 new car tax credit S. 2010 new car tax credit citizens who are residents of a treaty country. 2010 new car tax credit For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. 2010 new car tax credit Allowances, Differentials, and Special Pay Most payments received by U. 2010 new car tax credit S. 2010 new car tax credit Government civilian employees for working abroad, including pay differentials, are taxable. 2010 new car tax credit However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. 2010 new car tax credit The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. 2010 new car tax credit Pay differentials. 2010 new car tax credit   Pay differentials you receive as financial incentives for employment abroad are taxable. 2010 new car tax credit Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. 2010 new car tax credit   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. 2010 new car tax credit The area does not have to be a qualified hazardous duty area as discussed in Publication 3. 2010 new car tax credit Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. 2010 new car tax credit Foreign areas allowances. 2010 new car tax credit   Certain foreign areas allowances are tax free. 2010 new car tax credit Your employer should not have included these allowances as wages on your Form W-2. 2010 new car tax credit   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. 2010 new car tax credit Title I, chapter 9, of the Foreign Service Act of 1980. 2010 new car tax credit Section 4 of the Central Intelligence Agency Act of 1949, as amended. 2010 new car tax credit Title II of the Overseas Differentials and Allowances Act. 2010 new car tax credit Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. 2010 new car tax credit These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. 2010 new car tax credit Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. 2010 new car tax credit Cost-of-living allowances. 2010 new car tax credit   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. 2010 new car tax credit The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. 2010 new car tax credit Cost-of-living allowances are not included on your Form W-2. 2010 new car tax credit Federal court employees. 2010 new car tax credit   If you are a federal court employee, the preceding paragraph also applies to you. 2010 new car tax credit The cost-of-living allowance must be granted by rules similar to regulations approved by the President. 2010 new car tax credit American Institute in Taiwan. 2010 new car tax credit   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. 2010 new car tax credit S. 2010 new car tax credit tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. 2010 new car tax credit S. 2010 new car tax credit Government. 2010 new car tax credit Federal reemployment payments after serving with an international organization. 2010 new car tax credit   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. 2010 new car tax credit These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. 2010 new car tax credit Allowances or reimbursements for travel and transportation expenses. 2010 new car tax credit   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. 2010 new car tax credit Lodging furnished to a principal representative of the United States. 2010 new car tax credit   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. 2010 new car tax credit However, amounts paid by the U. 2010 new car tax credit S. 2010 new car tax credit government for your usual costs of operating and maintaining your household are taxable. 2010 new car tax credit If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. 2010 new car tax credit Peace Corps. 2010 new car tax credit   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. 2010 new car tax credit Taxable allowances. 2010 new car tax credit   The following allowances must be included on your Form W-2 and reported on your return as wages. 2010 new car tax credit If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. 2010 new car tax credit The part of living allowances designated by the Director of the Peace Corps as basic compensation. 2010 new car tax credit This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. 2010 new car tax credit Leave allowances. 2010 new car tax credit Readjustment allowances or “termination payments. 2010 new car tax credit ” Taxable allowances are considered received by you when credited to your account. 2010 new car tax credit Example. 2010 new car tax credit Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. 2010 new car tax credit Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. 2010 new car tax credit Nontaxable allowances. 2010 new car tax credit   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. 2010 new car tax credit These allowances should not be included on your Form W-2. 2010 new car tax credit These allowances are tax free whether paid by the U. 2010 new car tax credit S. 2010 new car tax credit Government or the foreign country in which you are stationed. 2010 new car tax credit Other Income Other employment. 2010 new car tax credit   If, in addition to your U. 2010 new car tax credit S. 2010 new car tax credit government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. 2010 new car tax credit In addition, if your spouse is a U. 2010 new car tax credit S. 2010 new car tax credit citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. 2010 new car tax credit For more information, see Publication 54. 2010 new car tax credit The tax treaty rules relating to income from personal services generally apply to income from private employment. 2010 new car tax credit As discussed above, the saving clause applies to you if you are a U. 2010 new car tax credit S. 2010 new car tax credit citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). 2010 new car tax credit Sale of personal property. 2010 new car tax credit   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. 2010 new car tax credit S. 2010 new car tax credit dollars, the excess of the amount received in U. 2010 new car tax credit S. 2010 new car tax credit dollars over the cost or other basis of the property is a capital gain. 2010 new car tax credit Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. 2010 new car tax credit However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. 2010 new car tax credit Sale of your home. 2010 new car tax credit   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. 2010 new car tax credit Losses are not deductible. 2010 new car tax credit   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). 2010 new car tax credit Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. 2010 new car tax credit   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. 2010 new car tax credit   For detailed information on selling your home, see Publication 523. 2010 new car tax credit Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. 2010 new car tax credit Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. 2010 new car tax credit These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. 2010 new car tax credit Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. 2010 new car tax credit Your tax home is not limited to the Embassy, consulate, or duty station. 2010 new car tax credit It includes the entire city or general area in which your principal place of employment is located. 2010 new car tax credit Traveling away from home. 2010 new car tax credit   You are traveling away from home if you meet both of the following requirements. 2010 new car tax credit Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. 2010 new car tax credit You need to get sleep or rest to meet the demands of your work while away from home. 2010 new car tax credit This requirement is not satisfied by merely napping in your car. 2010 new car tax credit You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. 2010 new car tax credit Temporary assignment. 2010 new car tax credit   If your assignment or job away from your tax home is temporary, your tax home does not change. 2010 new car tax credit You are considered to be away from home for the whole period, and your travel expenses are deductible. 2010 new car tax credit Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. 2010 new car tax credit   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. 2010 new car tax credit An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. 2010 new car tax credit   You must determine whether your assignment is temporary or indefinite when you start work. 2010 new car tax credit If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. 2010 new car tax credit Employment that is initially temporary may become indefinite due to changed circumstances. 2010 new car tax credit A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. 2010 new car tax credit Exception for federal crime investigations or prosecutions. 2010 new car tax credit   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. 2010 new car tax credit This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. 2010 new car tax credit Limit on meals and entertainment. 2010 new car tax credit   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. 2010 new car tax credit However, the limit does not apply to expenses reimbursed under a U. 2010 new car tax credit S. 2010 new car tax credit Government expense allowance arrangement. 2010 new car tax credit Individuals subject to hours of service limits. 2010 new car tax credit   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. 2010 new car tax credit   Individuals subject to the Department of Transportation's “hours of service” limits include the following. 2010 new car tax credit Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. 2010 new car tax credit Interstate truck operators and bus drivers who are under Department of Transportation regulations. 2010 new car tax credit Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. 2010 new car tax credit Certain merchant mariners who are under Coast Guard regulations. 2010 new car tax credit Primary purpose of trip must be for business. 2010 new car tax credit   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. 2010 new car tax credit However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. 2010 new car tax credit   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. 2010 new car tax credit This applies even if you engage in business activities while there. 2010 new car tax credit However, you can deduct any expenses while at your destination that are directly related to your business. 2010 new car tax credit Expenses paid for others. 2010 new car tax credit   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. 2010 new car tax credit Home leave. 2010 new car tax credit   The Foreign Service Act requires U. 2010 new car tax credit S. 2010 new car tax credit citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. 2010 new car tax credit This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. 2010 new car tax credit   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. 2010 new car tax credit You must be able to verify these amounts in order to claim them. 2010 new car tax credit Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. 2010 new car tax credit More information. 2010 new car tax credit   See chapter 1 of Publication 463 for more information on travel expenses. 2010 new car tax credit Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. 2010 new car tax credit Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. 2010 new car tax credit They do not include expenses you have when traveling away from home overnight. 2010 new car tax credit Those expenses are deductible as travel expenses and are discussed earlier. 2010 new car tax credit Commuting. 2010 new car tax credit   You cannot deduct your transportation costs of going between your home and your regular business location. 2010 new car tax credit These costs are personal commuting expenses. 2010 new car tax credit   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. 2010 new car tax credit   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. 2010 new car tax credit More information. 2010 new car tax credit   For more information on transportation expenses, see chapter 4 of Publication 463. 2010 new car tax credit Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. 2010 new car tax credit Membership dues. 2010 new car tax credit   You can deduct membership dues you pay to professional societies that relate to your business or profession. 2010 new car tax credit Subscriptions. 2010 new car tax credit   You can deduct subscriptions to professional publications that relate to your business or profession. 2010 new car tax credit Educational expenses. 2010 new car tax credit   Generally, educational expenses are considered to be personal expenses and are not deductible. 2010 new car tax credit However, under some circumstances, educational expenses are deductible as business expenses. 2010 new car tax credit   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. 2010 new car tax credit   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. 2010 new car tax credit These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. 2010 new car tax credit   See Publication 970, Tax Benefits for Education, for more information on educational expenses. 2010 new car tax credit    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. 2010 new car tax credit However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. 2010 new car tax credit These benefits are explained in Publication 970. 2010 new car tax credit Foreign service representation expenses. 2010 new car tax credit   If you are an employee of the U. 2010 new car tax credit S. 2010 new car tax credit Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. 2010 new car tax credit If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. 2010 new car tax credit You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. 2010 new car tax credit The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. 2010 new car tax credit    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. 2010 new car tax credit These rules are explained in Publication 463. 2010 new car tax credit Representation expenses. 2010 new car tax credit   These are expenses that further the interest of the United States abroad. 2010 new car tax credit They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. 2010 new car tax credit They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. 2010 new car tax credit   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. 2010 new car tax credit These regulations are available on the Internet at www. 2010 new car tax credit state. 2010 new car tax credit gov/m/a/als. 2010 new car tax credit Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. 2010 new car tax credit ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. 2010 new car tax credit Impairment-related work expenses. 2010 new car tax credit   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. 2010 new car tax credit Attendant care includes a reader for a blind person and a helper for a person with a physical disability. 2010 new car tax credit These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). 2010 new car tax credit They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. 2010 new car tax credit Loss on conversion of U. 2010 new car tax credit S. 2010 new car tax credit dollars into foreign currency. 2010 new car tax credit   The conversion of U. 2010 new car tax credit S. 2010 new car tax credit dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. 2010 new car tax credit Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. 2010 new car tax credit For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). 2010 new car tax credit The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. 2010 new car tax credit You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. 2010 new car tax credit For each trip away from home, the dates you left and returned and the number of days spent on business. 2010 new car tax credit The destination or area of your travel, described by the name of the city, town, or similar designation. 2010 new car tax credit The business reason for your travel or the business benefit gained or expected to be gained from your travel. 2010 new car tax credit How to record your expenses. 2010 new car tax credit   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. 2010 new car tax credit They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. 2010 new car tax credit You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. 2010 new car tax credit   Each expense should be recorded separately in your records. 2010 new car tax credit However, some items can be totaled in reasonable categories. 2010 new car tax credit You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. 2010 new car tax credit You may record tips separately or with the cost of the service. 2010 new car tax credit    Documentary evidence generally is required to support all lodging expenses while traveling away from home. 2010 new car tax credit It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. 2010 new car tax credit Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. 2010 new car tax credit It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. 2010 new car tax credit    A canceled check by itself does not prove a business cost. 2010 new car tax credit You must have other evidence to show that the check was used for a business purpose. 2010 new car tax credit Your records must be timely. 2010 new car tax credit   Record the elements for the expense in your account book or other record at or near the time of the expense. 2010 new car tax credit A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. 2010 new car tax credit Confidential information. 2010 new car tax credit   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. 2010 new car tax credit However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. 2010 new car tax credit How To Report Business Expenses As a U. 2010 new car tax credit S. 2010 new car tax credit Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. 2010 new car tax credit If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. 2010 new car tax credit However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. 2010 new car tax credit If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. 2010 new car tax credit Form 2106 or Form 2106-EZ. 2010 new car tax credit   You must complete Form 2106 or 2106-EZ to deduct your expenses. 2010 new car tax credit Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. 2010 new car tax credit Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). 2010 new car tax credit Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. 2010 new car tax credit Form 2106-EZ. 2010 new car tax credit   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. 2010 new car tax credit You can use Form 2106-EZ if you meet both of the following conditions. 2010 new car tax credit You are not reimbursed by your employer for any expenses. 2010 new car tax credit (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. 2010 new car tax credit ) If you claim car expenses, you use the standard mileage rate. 2010 new car tax credit Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. 2010 new car tax credit Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. 2010 new car tax credit However, you cannot deduct any expenses for which you received a tax-free allowance as a U. 2010 new car tax credit S. 2010 new car tax credit Government employee. 2010 new car tax credit To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. 2010 new car tax credit Closely related to the start of work. 2010 new car tax credit   The move must be closely related, both in time and in place, to the start of work at the new location. 2010 new car tax credit In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. 2010 new car tax credit   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. 2010 new car tax credit A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. 2010 new car tax credit Distance test. 2010 new car tax credit   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. 2010 new car tax credit If you did not have an old job location, your new job location must be at least 50 miles from your former home. 2010 new car tax credit Time test. 2010 new car tax credit   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. 2010 new car tax credit Deductible moving expenses. 2010 new car tax credit   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). 2010 new car tax credit    The cost of your meals is not a deductible moving expense. 2010 new car tax credit   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. 2010 new car tax credit For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. 2010 new car tax credit Expenses must be reasonable. 2010 new car tax credit   You can deduct only those expenses that are reasonable for the circumstances of your move. 2010 new car tax credit For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. 2010 new car tax credit Members of your household. 2010 new car tax credit   A member of your household includes anyone who has both your former home and new home as his or her home. 2010 new car tax credit It does not include a tenant or employee unless you can claim that person as a dependent. 2010 new car tax credit Retirees. 2010 new car tax credit   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. 2010 new car tax credit You do not have to meet the time test described earlier. 2010 new car tax credit Survivors. 2010 new car tax credit   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. 2010 new car tax credit The move must begin within 6 months after the decedent's death. 2010 new car tax credit It must be from the decedent's former home outside the United States, and that home must also have been your home. 2010 new car tax credit You do not have to meet the time test described earlier. 2010 new car tax credit How to report moving expenses. 2010 new car tax credit   Use Form 3903 to report your moving expenses and figure your allowable deduction. 2010 new car tax credit Claim the deduction as an adjustment to income on Form 1040. 2010 new car tax credit (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. 2010 new car tax credit ) Reimbursements. 2010 new car tax credit   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. 2010 new car tax credit You also must include in gross income reimbursements paid to you under a nonaccountable plan. 2010 new car tax credit However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. 2010 new car tax credit Additional information. 2010 new car tax credit   For additional information about moving expenses, see Publication 521. 2010 new car tax credit Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. 2010 new car tax credit Contributions. 2010 new car tax credit   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. 2010 new car tax credit You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. 2010 new car tax credit For more information, see Publication 526, Charitable Contributions. 2010 new car tax credit Real estate tax and home mortgage interest. 2010 new car tax credit   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. 2010 new car tax credit You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. 2010 new car tax credit Example. 2010 new car tax credit Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. 2010 new car tax credit During the year, Adam used the allowance, with other funds, to provide a home for himself. 2010 new car tax credit His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). 2010 new car tax credit Adam did not have any other expenses related to providing a home for himself. 2010 new car tax credit Adam must reduce his deductions for home mortgage interest and real estate taxes. 2010 new car tax credit He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). 2010 new car tax credit The result is 3/4. 2010 new car tax credit Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). 2010 new car tax credit He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. 2010 new car tax credit Exception to the reduction. 2010 new car tax credit   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. 2010 new car tax credit Required statement. 2010 new car tax credit   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. 2010 new car tax credit The statement must contain all of the following information. 2010 new car tax credit The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. 2010 new car tax credit The amount of otherwise deductible expenses attributable to each type of tax-free income. 2010 new car tax credit The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. 2010 new car tax credit An explanation of how you determined the amounts not directly attributable to each type of tax-free income. 2010 new car tax credit   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. 2010 new car tax credit Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. 2010 new car tax credit S. 2010 new car tax credit income tax liability or deduct them as an itemized deduction when figuring your taxable income. 2010 new car tax credit Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. 2010 new car tax credit Foreign tax credit. 2010 new car tax credit   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. 2010 new car tax credit If you choose to figure a credit against your U. 2010 new car tax credit S. 2010 new car tax credit tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. 2010 new car tax credit S. 2010 new car tax credit income tax return. 2010 new car tax credit    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. 2010 new car tax credit If all your foreign income is exempt from U. 2010 new car tax credit S. 2010 new car tax credit tax, you will not be able to claim a foreign tax credit. 2010 new car tax credit   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. 2010 new car tax credit Exemption from limit. 2010 new car tax credit   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. 2010 new car tax credit Your only foreign income is passive income, such as interest, dividends, and royalties. 2010 new car tax credit The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). 2010 new car tax credit The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. 2010 new car tax credit If you make the election, you can claim a foreign tax credit without filing Form 1116. 2010 new car tax credit However, you cannot carry back or carry over any unused foreign tax to or from this year. 2010 new car tax credit See the instructions for the appropriate line in the Tax and Credits section of Form 1040. 2010 new car tax credit Foreign tax deduction. 2010 new car tax credit   If you choose to deduct all foreign income taxes on your U. 2010 new car tax credit S. 2010 new car tax credit income tax return, itemize the deduction on Schedule A (Form 1040). 2010 new car tax credit You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. 2010 new car tax credit Example. 2010 new car tax credit Dennis and Christina are married and live and work in Country X. 2010 new car tax credit Dennis works for the U. 2010 new car tax credit S. 2010 new car tax credit Government and Christina is employed by a private company. 2010 new car tax credit They pay income tax to Country X on Christina's income only. 2010 new car tax credit Dennis and Christina file a joint tax return and exclude all of Christina's income. 2010 new car tax credit They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. 2010 new car tax credit Deduction for other foreign taxes. 2010 new car tax credit   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. 2010 new car tax credit You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. 2010 new car tax credit   You can deduct real property taxes you pay that are imposed on you by a foreign country. 2010 new car tax credit You take this deduction on Schedule A (Form 1040). 2010 new car tax credit You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. 2010 new car tax credit More information. 2010 new car tax credit   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. 2010 new car tax credit Local (Foreign) Tax Return As a U. 2010 new car tax credit S. 2010 new car tax credit Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. 2010 new car tax credit Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. 2010 new car tax credit Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. 2010 new car tax credit Review the treaty text carefully to determine whether your U. 2010 new car tax credit S. 2010 new car tax credit Government remuneration is taxable in the host country. 2010 new car tax credit You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). 2010 new car tax credit If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. 2010 new car tax credit If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. 2010 new car tax credit Most income tax treaties contain an article providing relief from double taxation. 2010 new car tax credit Many treaties contain special foreign tax credit rules for U. 2010 new car tax credit S. 2010 new car tax credit citizens who are residents of a treaty country. 2010 new car tax credit For more information about the foreign tax credit, see Foreign Taxes, earlier. 2010 new car tax credit Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. 2010 new car tax credit For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. 2010 new car tax credit Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. 2010 new car tax credit Check with the appropriate U. 2010 new car tax credit S. 2010 new car tax credit Embassy for more information. 2010 new car tax credit Double Withholding If your U. 2010 new car tax credit S. 2010 new car tax credit government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. 2010 new car tax credit S. 2010 new car tax credit tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. 2010 new car tax credit S. 2010 new car tax credit income tax return on this income. 2010 new car tax credit Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. 2010 new car tax credit How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. 2010 new car tax credit By selecting the method that is best for you, you will have quick and easy access to tax help. 2010 new car tax credit Free help with your tax return. 2010 new car tax credit   Free help in preparing your return is available nationwide from IRS-certified volunteers. 2010 new car tax credit The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. 2010 new car tax credit The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 2010 new car tax credit Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2010 new car tax credit Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. 2010 new car tax credit To find the nearest VITA or TCE site, visit IRS. 2010 new car tax credit gov or call 1-800-906-9887 or 1-800-829-1040. 2010 new car tax credit   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2010 new car tax credit To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2010 new car tax credit aarp. 2010 new car tax credit org/money/taxaide or call 1-888-227-7669. 2010 new car tax credit   For more information on these programs, go to IRS. 2010 new car tax credit gov and enter “VITA” in the search box. 2010 new car tax credit Internet. 2010 new car tax credit You can access the IRS website at IRS. 2010 new car tax credit gov 24 hours a day, 7 days a week to: E-file your return. 2010 new car tax credit Find out about commercial tax preparation and e-file services available free to eligible taxpayers. 2010 new car tax credit Check the status of your 2012 refund. 2010 new car tax credit Go to IRS. 2010 new car tax credit gov and click on Where’s My Refund. 2010 new car tax credit Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 2010 new car tax credit If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 2010 new car tax credit Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 2010 new car tax credit Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. 2010 new car tax credit Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 2010 new car tax credit So in a change from previous filing seasons, you won't get an estimated refund date right away. 2010 new car tax credit Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 2010 new car tax credit You can obtain a free transcript online at IRS. 2010 new car tax credit gov by clicking on Order a Return or Account Transcript under “Tools. 2010 new car tax credit ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. 2010 new car tax credit You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. 2010 new car tax credit Download forms, including talking tax forms, instructions, and publications. 2010 new car tax credit Order IRS products. 2010 new car tax credit Research your tax questions. 2010 new car tax credit Search publications by topic or keyword. 2010 new car tax credit Use the Internal Revenue Code, regulations, or other official guidance. 2010 new car tax credit View Internal Revenue Bulletins (IRBs) published in the last few years. 2010 new car tax credit Figure your withholding allowances using the IRS Withholding Calculator at www. 2010 new car tax credit irs. 2010 new car tax credit gov/individuals. 2010 new car tax credit Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. 2010 new car tax credit gov by typing Alternative Minimum Tax Assistant in the search box. 2010 new car tax credit Sign up to receive local and national tax news by email. 2010 new car tax credit Get information on starting and operating a small business. 2010 new car tax credit Phone. 2010 new car tax credit Many services are available by phone. 2010 new car tax credit   Ordering forms, instructions, and publications. 2010 new car tax credit Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). 2010 new car tax credit You should receive your order within 10 days. 2010 new car tax credit Asking tax questions. 2010 new car tax credit Call the IRS with your tax questions at 1-800-829-1040. 2010 new car tax credit Solving problems. 2010 new car tax credit You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). 2010 new car tax credit An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. 2010 new car tax credit Call your local Taxpayer Assistance Center for an appointment. 2010 new car tax credit To find the number, go to www. 2010 new car tax credit irs. 2010 new car tax credit gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2010 new car tax credit TTY/TDD equipment. 2010 new car tax credit If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. 2010 new car tax credit The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. 2010 new car tax credit These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 2010 new car tax credit gsa. 2010 new car tax credit gov/fedrelay. 2010 new car tax credit TeleTax topics. 2010 new car tax credit Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. 2010 new car tax credit Checking the status of your 2012 refund. 2010 new car tax credit To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). 2010 new car tax credit Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. 2010 new car tax credit If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). 2010 new car tax credit Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 2010 new car tax credit Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. 2010 new car tax credit Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 2010 new car tax credit Outside the U. 2010 new car tax credit S. 2010 new car tax credit If you are outside the United States, taxpayer assistance is available at the following U. 2010 new car tax credit S Embassies or consulate. 2010 new car tax credit Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. 2010 new car tax credit If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). 2010 new car tax credit If you are in a U. 2010 new car tax credit S. 2010 new car tax credit territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. 2010 new car tax credit S. 2010 new car tax credit Virgin Islands) and have a tax question, you can call 1-800-829-1040. 2010 new car tax credit Evaluating the quality of our telephone services. 2010 new car tax credit To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. 2010 new car tax credit One method is for a second IRS representative to listen in on or record random telephone calls. 2010 new car tax credit Another is to ask some callers to complete a short survey at the end of the call. 2010 new car tax credit Walk-in. 2010 new car tax credit Some products and services are available on a walk-in basis. 2010 new car tax credit   Products. 2010 new car tax credit You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2010 new car tax credit Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2010 new car tax credit Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. 2010 new car tax credit Services. 2010 new car tax credit You can walk in to your local TAC most business days for personal, face-to-face tax help. 2010 new car tax credit An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 2010 new car tax credit If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. 2010 new car tax credit No appointment is necessary—just walk in. 2010 new car tax credit Before visiting, check www. 2010 new car tax credit irs. 2010 new car tax credit gov/localcontacts for hours of operation and services provided. 2010 new car tax credit If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. 2010 new car tax credit You can leave a message and a representative will call you back within 2 business days. 2010 new car tax credit All other issues will be handled without an appointment. 2010 new car tax credit To call your local TAC, go to  www. 2010 new car tax credit irs. 2010 new car tax credit gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. 2010 new car tax credit Outside the U. 2010 new car tax credit S. 2010 new car tax credit If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. 2010 new car tax credit S. 2010 new car tax credit Embassies and consulates. 2010 new car tax credit Mail. 2010 new car tax credit You can send your order for forms, instructions, and publications to the address below. 2010 new car tax credit You should receive a response within 10 days after your request is received. 2010 new car tax credit  Internal Revenue Service 1201 N. 2010 new car tax credit Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. 2010 new car tax credit S. 2010 new car tax credit If you are outside the United States, you can get tax assistance by writing to the address below. 2010 new car tax credit  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. 2010 new car tax credit   The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2010 new car tax credit Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. 2010 new car tax credit TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. 2010 new car tax credit Remember, the worst thing you can do is nothing at all. 2010 new car tax credit   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. 2010 new car tax credit You face (or your business is facing) an immediate threat of adverse action. 2010 new car tax credit You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. 2010 new car tax credit   If you qualify for help, they will do everything they can to get your problem resolved. 2010 new car tax credit You will be assigned to one advocate who will be with you at every turn. 2010 new car tax credit TAS has offices in every state, the District of Columbia, and Puerto Rico. 2010 new car tax credit Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. 2010 new car tax credit And its services are always free. 2010 new car tax credit   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. 2010 new car tax credit The TAS tax toolkit at www. 2010 new car tax credit TaxpayerAdvocate. 2010 new car tax credit irs. 2010 new car tax credit gov can help you understand these rights. 2010 new car tax credit   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. 2010 new car tax credit irs. 2010 new car tax credit gov/advocate. 2010 new car tax credit You can also call the toll-free number at 1-877-777-4778. 2010 new car tax credit Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. 2010 new car tax credit These individuals can also access the IRS through relay services such as the Federal Relay Service at www. 2010 new car tax credit gsa. 2010 new car tax credit gov/fedrelay. 2010 new car tax credit   TAS also handles large-scale or systemic problems that affect many taxpayers. 2010 new car tax credit If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. 2010 new car tax credit irs. 2010 new car tax credit gov/advocate. 2010 new car tax credit    Outside the U. 2010 new car tax credit S. 2010 new car tax credit If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. 2010 new car tax credit You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. 2010 new car tax credit R. 2010 new car tax credit 00968-8000 Low Income Taxpayer Clinics (LITCs). 2010 new car tax credit   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. 2010 new car tax credit Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. 2010 new car tax credit These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. 2010 new car tax credit Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. 2010 new car tax credit For more information and to find a clinic near you, see the LITC page on www. 2010 new car tax credit irs. 2010 new car tax credit gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. 2010 new car tax credit This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. 2010 new car tax credit Free tax services. 2010 new car tax credit   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. 2010 new car tax credit Learn about free tax information from the IRS, including publications, services, and education and assistance programs. 2010 new car tax credit The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. 2010 new car tax credit The majority of the information and services listed in this publication are available to you free of charge. 2010 new car tax credit If there is a fee associated with a resource or service, it is listed in the publication. 2010 new car tax credit   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. 2010 new car tax credit DVD for tax products. 2010 new car tax credit You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. 2010 new car tax credit Prior-year forms, instructions, and publications. 2010 new car tax credit Tax Map: an electronic research tool and finding aid. 2010 new car tax credit Tax law frequently asked questions. 2010 new car tax credit Tax Topics from the IRS telephone response system. 2010 new car tax credit Internal Revenue Code—Title 26 of the U. 2010 new car tax credit S. 2010 new car tax credit Code. 2010 new car tax credit Links to other Internet-based tax research materials. 2010 new car tax credit Fill-in, print, and save features for most tax forms. 2010 new car tax credit Internal Revenue Bulletins. 2010 new car tax credit Toll-free and email technical support. 2010 new car tax credit Two releases during the year. 2010 new car tax credit  – The first release will ship the beginning of January 2013. 2010 new car tax credit  – The final release will ship the beginning of March 2013. 2010 new car tax credit Purchase the DVD from National Technical Information Service (NTIS) at www. 2010 new car tax credit irs. 2010 new car tax credit gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). 2010 new car tax credit Prev  Up  Next   Home   More Online Publications