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2011 Income Tax

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2011 Income Tax

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The 2011 Income Tax

2011 income tax Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. 2011 income tax Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. 2011 income tax Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. 2011 income tax Any forgiven tax liability owed to the IRS will not have to be paid. 2011 income tax Any forgiven tax liability that has already been paid will be refunded. 2011 income tax (See Refund of Taxes Paid, later. 2011 income tax ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. 2011 income tax Then read Amount of Tax Forgiven. 2011 income tax Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. 2011 income tax Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. 2011 income tax See Minimum Amount of Relief later under Amount of Tax Forgiven. 2011 income tax Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. 2011 income tax Oklahoma City attack. 2011 income tax   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. 2011 income tax Example 1. 2011 income tax A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. 2011 income tax His income tax is forgiven for 1994 and 1995. 2011 income tax Example 2. 2011 income tax A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. 2011 income tax She subsequently died of her wounds in 1996. 2011 income tax Her income tax is forgiven for 1994, 1995, and 1996. 2011 income tax September 11 attacks and anthrax attacks. 2011 income tax   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. 2011 income tax Example 1. 2011 income tax A Pentagon employee died in the September 11 attack. 2011 income tax Her income tax is forgiven for 2000 and 2001. 2011 income tax Example 2. 2011 income tax A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. 2011 income tax His income tax liability is forgiven for 2000, 2001, and 2002. 2011 income tax Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. 2011 income tax On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. 2011 income tax To figure the tax to be forgiven, use the following worksheets. 2011 income tax Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). 2011 income tax Use Worksheet B for any eligible year the decedent filed a joint return. 2011 income tax See the illustrated Worksheet B near the end of this publication. 2011 income tax Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. 2011 income tax Instead, complete Worksheet C and file a return for the decedent's last tax year. 2011 income tax See Minimum Amount of Relief, later. 2011 income tax If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. 2011 income tax In English–7 a. 2011 income tax m. 2011 income tax to 10 p. 2011 income tax m. 2011 income tax local time. 2011 income tax In Spanish–8 a. 2011 income tax m. 2011 income tax to 9:30 p. 2011 income tax m. 2011 income tax local time. 2011 income tax Both spouses died. 2011 income tax   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. 2011 income tax Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). 2011 income tax If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. 2011 income tax However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. 2011 income tax The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. 2011 income tax Residents of community property states. 2011 income tax   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. 2011 income tax Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. 2011 income tax Worksheet B. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. 2011 income tax 1       2 Enter the decedent's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 2       3 Enter the decedent's total tax. 2011 income tax See the instructions. 2011 income tax 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. 2011 income tax See the instructions. 2011 income tax 4       5 Subtract line 4 from line 3. 2011 income tax 5       6 Enter the surviving spouse's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 6       7 Enter the surviving spouse's total tax. 2011 income tax See the instructions. 2011 income tax 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. 2011 income tax 8       9 Subtract line 8 from line 7. 2011 income tax 9       10 Add lines 5 and 9. 2011 income tax 10       11 Enter the total tax from the joint return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 11       12 Add lines 4 and 8. 2011 income tax 12       13 Subtract line 12 from line 11. 2011 income tax 13       14 Divide line 5 by line 10. 2011 income tax Enter the result as a decimal. 2011 income tax 14       15 Tax to be forgiven. 2011 income tax Multiply line 13 by line 14 and enter the result. 2011 income tax 15       Note. 2011 income tax If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Worksheet B. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. 2011 income tax 1       2 Enter the decedent's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 2       3 Enter the decedent's total tax. 2011 income tax See the instructions. 2011 income tax 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. 2011 income tax See the instructions. 2011 income tax 4       5 Subtract line 4 from line 3. 2011 income tax 5       6 Enter the surviving spouse's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 6       7 Enter the surviving spouse's total tax. 2011 income tax See the instructions. 2011 income tax 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. 2011 income tax 8       9 Subtract line 8 from line 7. 2011 income tax 9       10 Add lines 5 and 9. 2011 income tax 10       11 Enter the total tax from the joint return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 11       12 Add lines 4 and 8. 2011 income tax 12       13 Subtract line 12 from line 11. 2011 income tax 13       14 Divide line 5 by line 10. 2011 income tax Enter the result as a decimal. 2011 income tax 14       15 Tax to be forgiven. 2011 income tax Multiply line 13 by line 14 and enter the result. 2011 income tax 15       Note. 2011 income tax If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Instructions for Worksheet B Table 1. 2011 income tax Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. 2011 income tax * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. 2011 income tax ** File Form 4506 to get a transcript of the decedent's account. 2011 income tax Table 1. 2011 income tax Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. 2011 income tax * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. 2011 income tax ** File Form 4506 to get a transcript of the decedent's account. 2011 income tax Lines 2 and 6. 2011 income tax   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. 2011 income tax   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. 2011 income tax Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. 2011 income tax Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. 2011 income tax   Allocate business deductions to the owner of the business. 2011 income tax Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. 2011 income tax Lines 3 and 7. 2011 income tax   Figure the total tax as if a separate return had been filed. 2011 income tax The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. 2011 income tax When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. 2011 income tax   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. 2011 income tax If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. 2011 income tax Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. 2011 income tax Line 4. 2011 income tax   Enter the total, if any, of the following taxes. 2011 income tax Self-employment tax. 2011 income tax Social security and Medicare tax on tip income not reported to employer. 2011 income tax Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). 2011 income tax Tax on excess accumulation in qualified retirement plans. 2011 income tax Household employment taxes. 2011 income tax Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. 2011 income tax Tax on golden parachute payments. 2011 income tax Minimum Amount of Relief The minimum amount of relief is $10,000. 2011 income tax If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. 2011 income tax The IRS will refund the difference as explained under Refund of Taxes Paid. 2011 income tax Use Worksheet C to figure the additional tax payment. 2011 income tax But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. 2011 income tax Example 1. 2011 income tax An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. 2011 income tax The $6,400 is eligible for forgiveness. 2011 income tax The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. 2011 income tax Example 2. 2011 income tax A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. 2011 income tax The IRS will treat $10,000 as a tax payment for 2001. 2011 income tax Income received after date of death. 2011 income tax   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. 2011 income tax Examples are the final paycheck or dividends on stock owned by the decedent. 2011 income tax However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). 2011 income tax Nonqualifying income. 2011 income tax   The following income is not exempt from tax. 2011 income tax The tax on it is not eligible for forgiveness. 2011 income tax Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. 2011 income tax Amounts that would not have been payable but for an action taken after September 11, 2001. 2011 income tax The following are examples of nonqualifying income. 2011 income tax Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. 2011 income tax Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. 2011 income tax Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. 2011 income tax Interest on savings bonds cashed by the beneficiary of the decedent. 2011 income tax If you are responsible for the estate of a decedent, see Publication 559. 2011 income tax Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. 2011 income tax Instructions for lines 2–9 of Worksheet C. 2011 income tax   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. 2011 income tax To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. 2011 income tax Or, if special requirements are met, you can use the alternative computation instead. 2011 income tax See Alternative computation, later. 2011 income tax   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. 2011 income tax Use Form 1041 to figure what the taxable income would be without including the exempt income. 2011 income tax Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). 2011 income tax Alternative computation. 2011 income tax   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. 2011 income tax You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. 2011 income tax The estate claimed an income distribution deduction on line 18 (Form 1041). 2011 income tax Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. 2011 income tax If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. 2011 income tax If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. 2011 income tax Complete the rest of Worksheet C to determine the additional payment allowed. 2011 income tax Worksheet C. 2011 income tax Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. 2011 income tax Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. 2011 income tax 1 Minimum relief amount. 2011 income tax Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. 2011 income tax 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . 2011 income tax 3       4 Add lines 2 and 3. 2011 income tax 4       5 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 5       6 Add lines 4 and 5. 2011 income tax 6       7 Figure the tax on line 6 using Schedule G (Form 1041). 2011 income tax 7       8 Figure the tax on line 4 using Schedule G (Form 1041). 2011 income tax 8       9 Tax on exempt income. 2011 income tax Subtract line 8 from line 7. 2011 income tax 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. 2011 income tax If the decedent was not required to file tax returns for the eligible tax years, enter -0-. 2011 income tax 10       11 Add lines 9 and 10. 2011 income tax 11   12 Additional payment allowed. 2011 income tax If line 11 is $10,000 or more, enter -0- and stop here. 2011 income tax No additional amount is allowed as a tax payment. 2011 income tax Otherwise, subtract line 11 from line 1 and enter the result. 2011 income tax 12   Note. 2011 income tax The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). 2011 income tax Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. 2011 income tax If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. 2011 income tax Write "Sec. 2011 income tax 692(d)(2) Payment" and the amount to the right of the entry space. 2011 income tax Also indicate whether a Form 1041 is being filed for the decedent's estate. 2011 income tax If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). 2011 income tax Write “Sec. 2011 income tax 692(d)(2) Payment” on the dotted line to the left of the entry space. 2011 income tax Worksheet C. 2011 income tax Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. 2011 income tax Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. 2011 income tax 1 Minimum relief amount. 2011 income tax Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. 2011 income tax 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . 2011 income tax 3       4 Add lines 2 and 3. 2011 income tax 4       5 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 5       6 Add lines 4 and 5. 2011 income tax 6       7 Figure the tax on line 6 using Schedule G (Form 1041). 2011 income tax 7       8 Figure the tax on line 4 using Schedule G (Form 1041). 2011 income tax 8       9 Tax on exempt income. 2011 income tax Subtract line 8 from line 7. 2011 income tax 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. 2011 income tax If the decedent was not required to file tax returns for the eligible tax years, enter -0-. 2011 income tax 10       11 Add lines 9 and 10. 2011 income tax 11   12 Additional payment allowed. 2011 income tax If line 11 is $10,000 or more, enter -0- and stop here. 2011 income tax No additional amount is allowed as a tax payment. 2011 income tax Otherwise, subtract line 11 from line 1 and enter the result. 2011 income tax 12   Note. 2011 income tax The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). 2011 income tax Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. 2011 income tax If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. 2011 income tax Write "Sec. 2011 income tax 692(d)(2) Payment" and the amount to the right of the entry space. 2011 income tax Also indicate whether a Form 1041 is being filed for the decedent's estate. 2011 income tax If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). 2011 income tax Write “Sec. 2011 income tax 692(d)(2) Payment” on the dotted line to the left of the entry space. 2011 income tax Worksheet D. 2011 income tax Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). 2011 income tax 4   5 Figure the tax on line 1 using Schedule G (Form 1041). 2011 income tax 5   6 Estate's tax on exempt income. 2011 income tax Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. 2011 income tax Figure the total tax that would have been payable by all beneficiaries. 2011 income tax Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. 2011 income tax Add the amounts by which each beneficiary's income tax is increased. 2011 income tax 7   8 Add lines 6 and 7. 2011 income tax Enter this amount on line 9 of Worksheet C. 2011 income tax 8   Worksheet D. 2011 income tax Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). 2011 income tax 4   5 Figure the tax on line 1 using Schedule G (Form 1041). 2011 income tax 5   6 Estate's tax on exempt income. 2011 income tax Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. 2011 income tax Figure the total tax that would have been payable by all beneficiaries. 2011 income tax Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. 2011 income tax Add the amounts by which each beneficiary's income tax is increased. 2011 income tax 7   8 Add lines 6 and 7. 2011 income tax Enter this amount on line 9 of Worksheet C. 2011 income tax 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. 2011 income tax Income tax liabilities that have been paid. 2011 income tax Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. 2011 income tax See Minimum Amount of Relief, earlier. 2011 income tax Example 1. 2011 income tax A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. 2011 income tax The total, $14,000, is eligible for tax forgiveness. 2011 income tax However, he paid only $13,000 of that amount. 2011 income tax The IRS will refund the $13,000 paid. 2011 income tax Example 2. 2011 income tax A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. 2011 income tax The child qualifies for the minimum relief of $10,000. 2011 income tax The $10,000 is treated as a tax payment for 2001 and will be refunded. 2011 income tax Period for filing a claim for credit or refund. 2011 income tax   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. 2011 income tax For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. 2011 income tax To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. 2011 income tax Extension of time for victims of Oklahoma City attack. 2011 income tax   The period described above has been extended for victims of the Oklahoma City attack. 2011 income tax Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. 2011 income tax How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. 2011 income tax Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. 2011 income tax Return required but not yet filed. 2011 income tax   File Form 1040 if the decedent was a U. 2011 income tax S. 2011 income tax citizen or resident. 2011 income tax File Form 1040NR if the decedent was a nonresident alien. 2011 income tax A nonresident alien is someone who is not a U. 2011 income tax S. 2011 income tax citizen or resident. 2011 income tax Return required and already filed. 2011 income tax   File a separate Form 1040X for each year you are claiming tax relief. 2011 income tax Return not required and not filed. 2011 income tax   File Form 1040 only for the year of death if the decedent was a U. 2011 income tax S. 2011 income tax citizen or resident. 2011 income tax File Form 1040NR if the decedent was a nonresident alien. 2011 income tax Return not required but already filed. 2011 income tax   File Form 1040X only for the year of death. 2011 income tax How to complete the returns. 2011 income tax   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. 2011 income tax Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. 2011 income tax If filing Form 1040 or Form 1040NR, also attach any Forms W–2. 2011 income tax If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. 2011 income tax Also, please write one of the following across the top of page 1 of each return. 2011 income tax KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. 2011 income tax ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. 2011 income tax If you need a copy, use Form 4506. 2011 income tax The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. 2011 income tax Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. 2011 income tax Send Form 4506 to the address shown in the form instructions. 2011 income tax Taxpayer identification number. 2011 income tax   A taxpayer identification number must be furnished on the decedent's returns. 2011 income tax This is usually the decedent's social security number (SSN). 2011 income tax However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). 2011 income tax If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. 2011 income tax S. 2011 income tax income tax return for any tax year, do not apply for an ITIN. 2011 income tax You may claim a refund by filing Form 1040NR without an SSN or ITIN. 2011 income tax Necessary Documents Please attach the following documents to the return or amended return. 2011 income tax Proof of death. 2011 income tax   Attach a copy of the death certificate. 2011 income tax If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. 2011 income tax Form 1310. 2011 income tax   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. 2011 income tax You are a surviving spouse filing an original or amended joint return with the decedent. 2011 income tax You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. 2011 income tax A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. 2011 income tax A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. 2011 income tax      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. 2011 income tax Include a statement saying an amended return will be filed as soon as the necessary tax information is available. 2011 income tax Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. 2011 income tax Use one of the addresses shown below. 2011 income tax Where you file the returns or claims depends on whether you use the U. 2011 income tax S. 2011 income tax Postal Service or a private delivery service. 2011 income tax Please do not send these returns or claims to any of the addresses shown in the tax form instructions. 2011 income tax U. 2011 income tax S. 2011 income tax Postal Service. 2011 income tax   If you use the U. 2011 income tax S. 2011 income tax Postal Service, file these returns and claims at the following address. 2011 income tax Internal Revenue Service P. 2011 income tax O. 2011 income tax Box 4053 Woburn, MA 01888 Private delivery service. 2011 income tax   Private delivery services cannot deliver items to P. 2011 income tax O. 2011 income tax boxes. 2011 income tax If you use a private delivery service, file these returns and claims at the following address. 2011 income tax Internal Revenue Service Stop 661 310 Lowell St. 2011 income tax Andover, MA 01810 Designated private delivery services. 2011 income tax   You can use the following private delivery services to file these returns and claims. 2011 income tax Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. 2011 income tax DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. 2011 income tax Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. 2011 income tax United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. 2011 income tax M. 2011 income tax , UPS Worldwide Express Plus, and UPS Worldwide Express. 2011 income tax The private delivery service can tell you how to get written proof of the mailing date. 2011 income tax Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. 2011 income tax September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. 2011 income tax Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. 2011 income tax These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). 2011 income tax No withholding applies to these payments. 2011 income tax Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. 2011 income tax Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. 2011 income tax Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. 2011 income tax (A personal residence can be a rented residence or one you own. 2011 income tax ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. 2011 income tax Qualified disaster relief payments also include the following. 2011 income tax Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. 2011 income tax Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. 2011 income tax Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. 2011 income tax Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. 2011 income tax Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. 2011 income tax Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. 2011 income tax However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. 2011 income tax If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. 2011 income tax For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. 2011 income tax If that period has expired, you are granted an extension. 2011 income tax You have until January 22, 2003, to file Form 1040X to exclude the death benefits. 2011 income tax On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. 2011 income tax 102(b)(2). 2011 income tax ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. 2011 income tax The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. 2011 income tax Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. 2011 income tax Bureau of Justice Assistance payments. 2011 income tax   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. 2011 income tax Government plan annuity. 2011 income tax   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. 2011 income tax This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. 2011 income tax For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. 2011 income tax More information. 2011 income tax   For more information, see Publication 559. 2011 income tax Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. 2011 income tax The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. 2011 income tax If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). 2011 income tax Affected taxpayers. 2011 income tax   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. 2011 income tax Any individual whose main home is located in a covered area (defined later). 2011 income tax Any business entity or sole proprietor whose principal place of business is located in a covered area. 2011 income tax Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. 2011 income tax The main home or principal place of business does not have to be located in the covered area. 2011 income tax Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. 2011 income tax Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. 2011 income tax The spouse on a joint return with a taxpayer who is eligible for postponements. 2011 income tax Any other person determined by the IRS to be affected by a terrorist attack. 2011 income tax Covered area. 2011 income tax   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. 2011 income tax Abatement of interest. 2011 income tax   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. 2011 income tax Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. 2011 income tax You must make this choice to deduct your loss on your 2000 return by the later of the following dates. 2011 income tax The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). 2011 income tax The due date (with extensions) for the 2000 return. 2011 income tax For more information about disaster area losses, see Publication 547. 2011 income tax Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. 2011 income tax The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. 2011 income tax The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. 2011 income tax These credits may reduce or eliminate the estate tax due. 2011 income tax A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. 2011 income tax Recovery from the September 11th Victim Compensation Fund. 2011 income tax   The value of claims for a decedent's pain and suffering is normally included in the gross estate. 2011 income tax However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. 2011 income tax Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. 2011 income tax Which estates must file a return. 2011 income tax   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. 2011 income tax S. 2011 income tax citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. 2011 income tax Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. 2011 income tax Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. 2011 income tax S. 2011 income tax Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. 2011 income tax Where to file. 2011 income tax   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. 2011 income tax Internal Revenue Service E & G Department/Stop 824T 201 W. 2011 income tax Rivercenter Blvd. 2011 income tax Covington, KY 41011 More information. 2011 income tax   For more information on the federal estate tax, see the instructions for Form 706. 2011 income tax Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. 2011 income tax The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. 2011 income tax However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. 2011 income tax For information about these requirements, see Internal Revenue Code section 5891. 2011 income tax Worksheet B Illustrated. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. 2011 income tax 1 2000 2001   2 Enter the decedent's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 2 $17,259 $14,295   3 Enter the decedent's total tax. 2011 income tax See the instructions. 2011 income tax 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. 2011 income tax See the instructions. 2011 income tax 4 3,532 3,109   5 Subtract line 4 from line 3. 2011 income tax 5 2,591 2,141   6 Enter the surviving spouse's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions for line 2. 2011 income tax 6 29,025 29,850   7 Enter the surviving spouse's total tax. 2011 income tax See the instructions. 2011 income tax 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. 2011 income tax 8 0 0   9 Subtract line 8 from line 7. 2011 income tax 9 5,277 5,391   10 Add lines 5 and 9. 2011 income tax 10 7,868 7,532   11 Enter the total tax from the joint return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 11 10,789 9,728   12 Add lines 4 and 8. 2011 income tax 12 3,532 3,109   13 Subtract line 12 from line 11. 2011 income tax 13 7,257 6,619   14 Divide line 5 by line 10. 2011 income tax Enter the result as a decimal. 2011 income tax 14 . 2011 income tax 329 . 2011 income tax 284   15 Tax to be forgiven. 2011 income tax Multiply line 13 by line 14 and enter the result. 2011 income tax 15 $2,388 $1,880   Note. 2011 income tax If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Worksheet B Illustrated. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. 2011 income tax 1 2000 2001   2 Enter the decedent's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 2 $17,259 $14,295   3 Enter the decedent's total tax. 2011 income tax See the instructions. 2011 income tax 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. 2011 income tax See the instructions. 2011 income tax 4 3,532 3,109   5 Subtract line 4 from line 3. 2011 income tax 5 2,591 2,141   6 Enter the surviving spouse's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions for line 2. 2011 income tax 6 29,025 29,850   7 Enter the surviving spouse's total tax. 2011 income tax See the instructions. 2011 income tax 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. 2011 income tax 8 0 0   9 Subtract line 8 from line 7. 2011 income tax 9 5,277 5,391   10 Add lines 5 and 9. 2011 income tax 10 7,868 7,532   11 Enter the total tax from the joint return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 11 10,789 9,728   12 Add lines 4 and 8. 2011 income tax 12 3,532 3,109   13 Subtract line 12 from line 11. 2011 income tax 13 7,257 6,619   14 Divide line 5 by line 10. 2011 income tax Enter the result as a decimal. 2011 income tax 14 . 2011 income tax 329 . 2011 income tax 284   15 Tax to be forgiven. 2011 income tax Multiply line 13 by line 14 and enter the result. 2011 income tax 15 $2,388 $1,880   Note. 2011 income tax If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. 2011 income tax They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. 2011 income tax The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. 2011 income tax After the husband died, his estate received income of $4,000. 2011 income tax Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. 2011 income tax This net profit is exempt from income tax as explained earlier under Income received after date of death. 2011 income tax The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. 2011 income tax To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. 2011 income tax She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. 2011 income tax To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. 2011 income tax To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. 2011 income tax   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. 2011 income tax Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. 2011 income tax Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. 2011 income tax 1 Minimum relief amount. 2011 income tax Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. 2011 income tax 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . 2011 income tax 3 0     4 Add lines 2 and 3. 2011 income tax 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 5 1,000     6 Add lines 4 and 5. 2011 income tax 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). 2011 income tax 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). 2011 income tax 8 435     9 Tax on exempt income. 2011 income tax Subtract line 8 from line 7. 2011 income tax 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. 2011 income tax If the decedent was not required to file tax returns for the eligible tax years, enter -0-. 2011 income tax 10 4,268     11 Add lines 9 and 10. 2011 income tax 11 $4,543 12 Additional payment allowed. 2011 income tax If line 11 is $10,000 or more, enter -0- and stop here. 2011 income tax No additional amount is allowed as a tax payment. 2011 income tax Otherwise, subtract line 11 from line 1 and enter the result. 2011 income tax 12 $5,457 Note. 2011 income tax The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). 2011 income tax Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. 2011 income tax If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. 2011 income tax Write "Sec. 2011 income tax 692(d)(2) Payment" and the amount to the right of the entry space. 2011 income tax Also indicate whether a Form 1041 is being filed for the decedent's estate. 2011 income tax If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). 2011 income tax Write “Sec. 2011 income tax 692(d)(2) Payment” on the dotted line to the left of the entry space. 2011 income tax Worksheet C Illustrated. 2011 income tax Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. 2011 income tax Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. 2011 income tax 1 Minimum relief amount. 2011 income tax Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. 2011 income tax 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . 2011 income tax 3 0     4 Add lines 2 and 3. 2011 income tax 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 5 1,000     6 Add lines 4 and 5. 2011 income tax 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). 2011 income tax 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). 2011 income tax 8 435     9 Tax on exempt income. 2011 income tax Subtract line 8 from line 7. 2011 income tax 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. 2011 income tax If the decedent was not required to file tax returns for the eligible tax years, enter -0-. 2011 income tax 10 4,268     11 Add lines 9 and 10. 2011 income tax 11 $4,543 12 Additional payment allowed. 2011 income tax If line 11 is $10,000 or more, enter -0- and stop here. 2011 income tax No additional amount is allowed as a tax payment. 2011 income tax Otherwise, subtract line 11 from line 1 and enter the result. 2011 income tax 12 $5,457 Note. 2011 income tax The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). 2011 income tax Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. 2011 income tax If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. 2011 income tax Write "Sec. 2011 income tax 692(d)(2) Payment" and the amount to the right of the entry space. 2011 income tax Also indicate whether a Form 1041 is being filed for the decedent's estate. 2011 income tax If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). 2011 income tax Write “Sec. 2011 income tax 692(d)(2) Payment” on the dotted line to the left of the entry space. 2011 income tax Additional Worksheets The following additional worksheets are provided for your convenience. 2011 income tax Worksheet A. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. 2011 income tax 1       2 Enter the total tax from the decedent's income tax return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. 2011 income tax (These taxes are not eligible for forgiveness. 2011 income tax )           a Self-employment tax. 2011 income tax 3a         b Social security and Medicare tax on tip income not reported to employer. 2011 income tax 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). 2011 income tax 3c         d Tax on excess accumulation in qualified retirement plans. 2011 income tax 3d         e Household employment taxes. 2011 income tax 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. 2011 income tax 3f         g Tax on golden parachute payments. 2011 income tax 3g       4 Add lines 3a through 3g. 2011 income tax 4       5 Tax to be forgiven. 2011 income tax Subtract line 4 from line 2. 2011 income tax 5       Note. 2011 income tax If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Worksheet A. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. 2011 income tax 1       2 Enter the total tax from the decedent's income tax return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. 2011 income tax (These taxes are not eligible for forgiveness. 2011 income tax )           a Self-employment tax. 2011 income tax 3a         b Social security and Medicare tax on tip income not reported to employer. 2011 income tax 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). 2011 income tax 3c         d Tax on excess accumulation in qualified retirement plans. 2011 income tax 3d         e Household employment taxes. 2011 income tax 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. 2011 income tax 3f         g Tax on golden parachute payments. 2011 income tax 3g       4 Add lines 3a through 3g. 2011 income tax 4       5 Tax to be forgiven. 2011 income tax Subtract line 4 from line 2. 2011 income tax 5       Note. 2011 income tax If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Worksheet B. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. 2011 income tax 1       2 Enter the decedent's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 2       3 Enter the decedent's total tax. 2011 income tax See the instructions. 2011 income tax 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. 2011 income tax See the instructions. 2011 income tax 4       5 Subtract line 4 from line 3. 2011 income tax 5       6 Enter the surviving spouse's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 6       7 Enter the surviving spouse's total tax. 2011 income tax See the instructions. 2011 income tax 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. 2011 income tax 8       9 Subtract line 8 from line 7. 2011 income tax 9       10 Add lines 5 and 9. 2011 income tax 10       11 Enter the total tax from the joint return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 11       12 Add lines 4 and 8. 2011 income tax 12       13 Subtract line 12 from line 11. 2011 income tax 13       14 Divide line 5 by line 10. 2011 income tax Enter the result as a decimal. 2011 income tax 14       15 Tax to be forgiven. 2011 income tax Multiply line 13 by line 14 and enter the result. 2011 income tax 15       Note. 2011 income tax If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Worksheet B. 2011 income tax Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. 2011 income tax 1       2 Enter the decedent's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 2       3 Enter the decedent's total tax. 2011 income tax See the instructions. 2011 income tax 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. 2011 income tax See the instructions. 2011 income tax 4       5 Subtract line 4 from line 3. 2011 income tax 5       6 Enter the surviving spouse's taxable income. 2011 income tax Figure taxable income as if a separate return had been filed. 2011 income tax See the instructions. 2011 income tax 6       7 Enter the surviving spouse's total tax. 2011 income tax See the instructions. 2011 income tax 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. 2011 income tax 8       9 Subtract line 8 from line 7. 2011 income tax 9       10 Add lines 5 and 9. 2011 income tax 10       11 Enter the total tax from the joint return. 2011 income tax See Table 1 on page 5 for the line number for years before 2002. 2011 income tax 11       12 Add lines 4 and 8. 2011 income tax 12       13 Subtract line 12 from line 11. 2011 income tax 13       14 Divide line 5 by line 10. 2011 income tax Enter the result as a decimal. 2011 income tax 14       15 Tax to be forgiven. 2011 income tax Multiply line 13 by line 14 and enter the result. 2011 income tax 15       Note. 2011 income tax If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. 2011 income tax Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. 2011 income tax If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. 2011 income tax The IRS will determine the amount to be refunded. 2011 income tax Worksheet C. 2011 income tax Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. 2011 income tax Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. 2011 income tax 1 Minimum tax forgiveness. 2011 income tax Note. 2011 income tax Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. 2011 income tax 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . 2011 income tax 3       4 Add lines 2 and 3. 2011 income tax 4       5 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 5       6 Add lines 4 and 5. 2011 income tax 6       7 Figure the tax on line 6 using Schedule G (Form 1041). 2011 income tax 7       8 Figure the tax on line 4 using Schedule G (Form 1041). 2011 income tax 8       9 Tax on exempt income. 2011 income tax Subtract line 8 from line 7. 2011 income tax 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. 2011 income tax If the decedent was not required to file tax returns for the eligible tax years, enter -0-. 2011 income tax 10       11 Add lines 9 and 10. 2011 income tax 11   12 Additional payment allowed. 2011 income tax If line 11 is $10,000 or more, enter -0- and stop here. 2011 income tax No additional amount is allowed as a tax payment. 2011 income tax Otherwise, subtract line 11 from line 1 and enter the result. 2011 income tax 12   Note. 2011 income tax The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). 2011 income tax Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. 2011 income tax If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. 2011 income tax Write "Sec. 2011 income tax 692(d)(2) Payment" and the amount to the right of the entry space. 2011 income tax Also indicate whether a Form 1041 is being filed for the decedent's estate. 2011 income tax If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). 2011 income tax Write “Sec. 2011 income tax 692(d)(2) Payment” on the dotted line to the left of the entry space. 2011 income tax Worksheet C. 2011 income tax Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. 2011 income tax Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. 2011 income tax 1 Minimum tax forgiveness. 2011 income tax Note. 2011 income tax Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. 2011 income tax 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . 2011 income tax 3       4 Add lines 2 and 3. 2011 income tax 4       5 Enter exempt income received after death minus expenses allocable to exempt income. 2011 income tax (See Income received after date of death on page 5. 2011 income tax ) 5       6 Add lines 4 and 5. 2011 income tax 6       7 Figure the tax on line 6 using Schedule G (Form 1041). 2011 income tax 7       8 Figure the tax on line 4 using Schedule G (Form 1041). 2011 income tax 8       9 Tax on exempt income. 2011 income tax Subtract line 8 from line 7. 2011 income tax 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. 2011 income tax If the decedent was not required to file tax returns for the eligible tax years, enter -0-. 2011 income tax 10       11 Add lines 9 and 10. 2011 income tax 11   12 Additional payment allowed. 2011 income tax If line 11 is $10,000 or more, enter -0- and stop here. 2011 income tax No additional amount is allowed as a tax payment. 2011 income tax Otherwise, subtract line 11 from line 1 and enter the result. 2011 income tax 12   Note. 2011 income tax The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). 2011 income tax Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. 2011 income tax If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. 2011 income tax Write "Sec. 2011 income tax 692(d)(2) Payment" and the amount to the right of the entry space. 2011 income tax Also indicate whether a Form 1041 is being filed for the decedent's estate. 2011 income tax If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). 2011 income tax Write “Sec. 2011 income tax 692(d)(2) Payment” on the dotted line to the left of the entry space. 2011 income tax How To Get Tax Help Special IRS assistance. 2011 income tax   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. 2011 income tax We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. 2011 income tax Call 1–866–562–5227 Monday through Friday In English–7 a. 2011 income tax m. 2011 income tax to 10 p. 2011 income tax m. 2011 income tax local time In Spanish–8 a. 2011 income tax m. 2011 income tax to 9:30 p. 2011 income tax m. 2011 income tax local time   The IRS web site at www. 2011 income tax irs. 2011 income tax gov has notices and other tax relief information. 2011 income tax Check it periodically for any new guidance or to see if Congress has enacted new legislation. 2011 income tax   Business taxpayers affected by the attacks can e-mail their questions to corp. 2011 income tax disaster. 2011 income tax relief@irs. 2011 income tax gov. 2011 income tax   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. 2011 income tax fema. 2011 income tax gov. 2011 income tax Other help from the IRS. 2011 income tax   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. 2011 income tax By selecting the method that is best for you, you will have quick and easy access to tax help. 2011 income tax Contacting your Taxpayer Advocate. 2011 income tax   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. 2011 income tax   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. 2011 income tax While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. 2011 income tax   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. 2011 income tax Call the IRS at 1–800–829–1040. 2011 income tax Call, write, or fax the Taxpayer Advocate office in your area. 2011 income tax Call 1–800–829–4059 if you are a TTY/TDD user. 2011 income tax   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. 2011 income tax Free tax services. 2011 income tax   To find out what services are available, get Publication 910, Guide to Free Tax Services. 2011 income tax It contains a list of free tax publications and an index of tax topics. 2011 income tax It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. 2011 income tax Personal computer. 2011 income tax With your personal computer and modem, you can access the IRS on the Internet at www. 2011 income tax irs. 2011 income tax gov. 2011 income tax While visiting our web site, you can: Find answers to questions you may have. 2011 income tax Download forms and publications or search for forms and pub