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2012 Pdf Tax Forms 1040

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2012 Pdf Tax Forms 1040

2012 pdf tax forms 1040 3. 2012 pdf tax forms 1040   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. 2012 pdf tax forms 1040 Taxpayer identification numbers for aliens. 2012 pdf tax forms 1040 Taxpayer identification numbers for adoptees. 2012 pdf tax forms 1040 What's New Exemption amount. 2012 pdf tax forms 1040  The amount you can deduct for each exemption has increased. 2012 pdf tax forms 1040 It was $3,800 for 2012. 2012 pdf tax forms 1040 It is $3,900 for 2013. 2012 pdf tax forms 1040 Exemption phaseout. 2012 pdf tax forms 1040  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. 2012 pdf tax forms 1040 For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). 2012 pdf tax forms 1040 See Phaseout of Exemptions , later. 2012 pdf tax forms 1040 Introduction This chapter discusses the following topics. 2012 pdf tax forms 1040 Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. 2012 pdf tax forms 1040 Exemptions for dependents — You generally can take an exemption for each of your dependents. 2012 pdf tax forms 1040 A dependent is your qualifying child or qualifying relative. 2012 pdf tax forms 1040 If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. 2012 pdf tax forms 1040 Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. 2012 pdf tax forms 1040 Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. 2012 pdf tax forms 1040 Deduction. 2012 pdf tax forms 1040   Exemptions reduce your taxable income. 2012 pdf tax forms 1040 You can deduct $3,900 for each exemption you claim in 2013. 2012 pdf tax forms 1040 But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. 2012 pdf tax forms 1040 See Phaseout of Exemptions , later. 2012 pdf tax forms 1040 How to claim exemptions. 2012 pdf tax forms 1040    How you claim an exemption on your tax return depends on which form you file. 2012 pdf tax forms 1040    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. 2012 pdf tax forms 1040    If you file Form 1040A, complete lines 6a through 6d. 2012 pdf tax forms 1040 The total number of exemptions you can claim is the total in the box on line 6d. 2012 pdf tax forms 1040 Also complete line 26. 2012 pdf tax forms 1040   If you file Form 1040, complete lines 6a through 6d. 2012 pdf tax forms 1040 The total number of exemptions you can claim is the total in the box on line 6d. 2012 pdf tax forms 1040 Also complete line 42. 2012 pdf tax forms 1040 Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). 2012 pdf tax forms 1040 While each is worth the same amount ($3,900 for 2013), different rules apply to each type. 2012 pdf tax forms 1040 Personal Exemptions You are generally allowed one exemption for yourself. 2012 pdf tax forms 1040 If you are married, you may be allowed one exemption for your spouse. 2012 pdf tax forms 1040 These are called personal exemptions. 2012 pdf tax forms 1040 Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. 2012 pdf tax forms 1040 If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. 2012 pdf tax forms 1040 Your Spouse's Exemption Your spouse is never considered your dependent. 2012 pdf tax forms 1040 Joint return. 2012 pdf tax forms 1040   On a joint return you can claim one exemption for yourself and one for your spouse. 2012 pdf tax forms 1040 Separate return. 2012 pdf tax forms 1040   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. 2012 pdf tax forms 1040 This is true even if the other taxpayer does not actually claim your spouse as a dependent. 2012 pdf tax forms 1040 You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. 2012 pdf tax forms 1040 Death of spouse. 2012 pdf tax forms 1040   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . 2012 pdf tax forms 1040 If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . 2012 pdf tax forms 1040   If you remarried during the year, you cannot take an exemption for your deceased spouse. 2012 pdf tax forms 1040   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. 2012 pdf tax forms 1040 If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. 2012 pdf tax forms 1040 Divorced or separated spouse. 2012 pdf tax forms 1040   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. 2012 pdf tax forms 1040 This rule applies even if you provided all of your former spouse's support. 2012 pdf tax forms 1040 Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. 2012 pdf tax forms 1040 You can claim an exemption for a dependent even if your dependent files a return. 2012 pdf tax forms 1040 The term “dependent” means: A qualifying child, or A qualifying relative. 2012 pdf tax forms 1040 The terms “ qualifying child ” and “ qualifying relative ” are defined later. 2012 pdf tax forms 1040 You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. 2012 pdf tax forms 1040 Dependent taxpayer test. 2012 pdf tax forms 1040 Joint return test. 2012 pdf tax forms 1040 Citizen or resident test. 2012 pdf tax forms 1040 These three tests are explained in detail later. 2012 pdf tax forms 1040 All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. 2012 pdf tax forms 1040 Table 3-1. 2012 pdf tax forms 1040 Overview of the Rules for Claiming an Exemption for a Dependent Caution. 2012 pdf tax forms 1040 This table is only an overview of the rules. 2012 pdf tax forms 1040 For details, see the rest of this chapter. 2012 pdf tax forms 1040 You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. 2012 pdf tax forms 1040   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. 2012 pdf tax forms 1040   You cannot claim a person as a dependent unless that person is a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 resident alien, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national, or a resident of Canada or Mexico. 2012 pdf tax forms 1040 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. 2012 pdf tax forms 1040   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. 2012 pdf tax forms 1040   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. 2012 pdf tax forms 1040   The child must have lived with you for more than half of the year. 2012 pdf tax forms 1040 2  The child must not have provided more than half of his or her own support for the year. 2012 pdf tax forms 1040   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). 2012 pdf tax forms 1040  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. 2012 pdf tax forms 1040 See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. 2012 pdf tax forms 1040   The person cannot be your qualifying child or the qualifying child of any other taxpayer. 2012 pdf tax forms 1040   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). 2012 pdf tax forms 1040   The person's gross income for the year must be less than $3,900. 2012 pdf tax forms 1040 3  You must provide more than half of the person's total support for the year. 2012 pdf tax forms 1040 4  1There is an exception for certain adopted children. 2012 pdf tax forms 1040 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2012 pdf tax forms 1040 3There is an exception if the person is disabled and has income from a sheltered workshop. 2012 pdf tax forms 1040 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2012 pdf tax forms 1040 Dependent not allowed a personal exemption. 2012 pdf tax forms 1040 If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. 2012 pdf tax forms 1040 This is true even if you do not claim the dependent's exemption on your return. 2012 pdf tax forms 1040 It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. 2012 pdf tax forms 1040 Housekeepers, maids, or servants. 2012 pdf tax forms 1040   If these people work for you, you cannot claim exemptions for them. 2012 pdf tax forms 1040 Child tax credit. 2012 pdf tax forms 1040   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. 2012 pdf tax forms 1040 For more information, see chapter 34. 2012 pdf tax forms 1040 Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. 2012 pdf tax forms 1040 Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. 2012 pdf tax forms 1040 If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. 2012 pdf tax forms 1040 Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. 2012 pdf tax forms 1040 Exception. 2012 pdf tax forms 1040   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. 2012 pdf tax forms 1040 Example 1—child files joint return. 2012 pdf tax forms 1040 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 2012 pdf tax forms 1040 He earned $25,000 for the year. 2012 pdf tax forms 1040 The couple files a joint return. 2012 pdf tax forms 1040 You cannot take an exemption for your daughter. 2012 pdf tax forms 1040 Example 2—child files joint return only as claim for refund of withheld tax. 2012 pdf tax forms 1040 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 2012 pdf tax forms 1040 Neither is required to file a tax return. 2012 pdf tax forms 1040 They do not have a child. 2012 pdf tax forms 1040 Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 2012 pdf tax forms 1040 The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. 2012 pdf tax forms 1040 You can claim exemptions for each of them if all the other tests to do so are met. 2012 pdf tax forms 1040 Example 3—child files joint return to claim American opportunity credit. 2012 pdf tax forms 1040 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 2012 pdf tax forms 1040 He and his wife are not required to file a tax return. 2012 pdf tax forms 1040 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 2012 pdf tax forms 1040 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 2012 pdf tax forms 1040 The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. 2012 pdf tax forms 1040 Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 resident alien, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national, or a resident of Canada or Mexico. 2012 pdf tax forms 1040 However, there is an exception for certain adopted children, as explained next. 2012 pdf tax forms 1040 Exception for adopted child. 2012 pdf tax forms 1040   If you are a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen or U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national who has legally adopted a child who is not a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 resident alien, or U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national, this test is met if the child lived with you as a member of your household all year. 2012 pdf tax forms 1040 This exception also applies if the child was lawfully placed with you for legal adoption. 2012 pdf tax forms 1040 Child's place of residence. 2012 pdf tax forms 1040   Children usually are citizens or residents of the country of their parents. 2012 pdf tax forms 1040   If you were a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen when your child was born, the child may be a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. 2012 pdf tax forms 1040 Foreign students' place of residence. 2012 pdf tax forms 1040   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 residents and do not meet this test. 2012 pdf tax forms 1040 You cannot claim an exemption for them. 2012 pdf tax forms 1040 However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. 2012 pdf tax forms 1040 See Expenses Paid for Student Living With You in chapter 24. 2012 pdf tax forms 1040 U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national. 2012 pdf tax forms 1040   A U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national is an individual who, although not a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, owes his or her allegiance to the United States. 2012 pdf tax forms 1040 U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 nationals include American Samoans and Northern Mariana Islanders who chose to become U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 nationals instead of U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizens. 2012 pdf tax forms 1040 Qualifying Child Five tests must be met for a child to be your qualifying child. 2012 pdf tax forms 1040 The five tests are: Relationship, Age, Residency, Support, and Joint return. 2012 pdf tax forms 1040 These tests are explained next. 2012 pdf tax forms 1040 If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. 2012 pdf tax forms 1040 See Special Rule for Qualifying Child of More Than One Person, later. 2012 pdf tax forms 1040 Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. 2012 pdf tax forms 1040 Adopted child. 2012 pdf tax forms 1040   An adopted child is always treated as your own child. 2012 pdf tax forms 1040 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 2012 pdf tax forms 1040 Foster child. 2012 pdf tax forms 1040   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 2012 pdf tax forms 1040 Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 Your son turned 19 on December 10. 2012 pdf tax forms 1040 Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. 2012 pdf tax forms 1040 Child must be younger than you or spouse. 2012 pdf tax forms 1040   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. 2012 pdf tax forms 1040 However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. 2012 pdf tax forms 1040 Example 1—child not younger than you or spouse. 2012 pdf tax forms 1040 Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. 2012 pdf tax forms 1040 He is not disabled. 2012 pdf tax forms 1040 Both you and your spouse are 21 years old, and you file a joint return. 2012 pdf tax forms 1040 Your brother is not your qualifying child because he is not younger than you or your spouse. 2012 pdf tax forms 1040 Example 2—child younger than your spouse but not younger than you. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except your spouse is 25 years old. 2012 pdf tax forms 1040 Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. 2012 pdf tax forms 1040 Student defined. 2012 pdf tax forms 1040   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. 2012 pdf tax forms 1040 The 5 calendar months do not have to be consecutive. 2012 pdf tax forms 1040 Full-time student. 2012 pdf tax forms 1040   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. 2012 pdf tax forms 1040 School defined. 2012 pdf tax forms 1040   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. 2012 pdf tax forms 1040 However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. 2012 pdf tax forms 1040 Vocational high school students. 2012 pdf tax forms 1040   Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. 2012 pdf tax forms 1040 Permanently and totally disabled. 2012 pdf tax forms 1040   Your child is permanently and totally disabled if both of the following apply. 2012 pdf tax forms 1040 He or she cannot engage in any substantial gainful activity because of a physical or mental condition. 2012 pdf tax forms 1040 A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. 2012 pdf tax forms 1040 Residency Test To meet this test, your child must have lived with you for more than half the year. 2012 pdf tax forms 1040 There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. 2012 pdf tax forms 1040 Temporary absences. 2012 pdf tax forms 1040   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 2012 pdf tax forms 1040 Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. 2012 pdf tax forms 1040 Death or birth of child. 2012 pdf tax forms 1040   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. 2012 pdf tax forms 1040 Child born alive. 2012 pdf tax forms 1040   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. 2012 pdf tax forms 1040 State or local law must treat the child as having been born alive. 2012 pdf tax forms 1040 There must be proof of a live birth shown by an official document, such as a birth certificate. 2012 pdf tax forms 1040 The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. 2012 pdf tax forms 1040 Stillborn child. 2012 pdf tax forms 1040   You cannot claim an exemption for a stillborn child. 2012 pdf tax forms 1040 Kidnapped child. 2012 pdf tax forms 1040   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. 2012 pdf tax forms 1040 See Publication 501 for details. 2012 pdf tax forms 1040 Children of divorced or separated parents (or parents who live apart). 2012 pdf tax forms 1040   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. 2012 pdf tax forms 1040 However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. 2012 pdf tax forms 1040 The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. 2012 pdf tax forms 1040 The child received over half of his or her support for the year from the parents. 2012 pdf tax forms 1040 The child is in the custody of one or both parents for more than half of the year. 2012 pdf tax forms 1040 Either of the following statements is true. 2012 pdf tax forms 1040 The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. 2012 pdf tax forms 1040 (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. 2012 pdf tax forms 1040 If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. 2012 pdf tax forms 1040 ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. 2012 pdf tax forms 1040 Custodial parent and noncustodial parent. 2012 pdf tax forms 1040   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. 2012 pdf tax forms 1040 The other parent is the noncustodial parent. 2012 pdf tax forms 1040   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. 2012 pdf tax forms 1040   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). 2012 pdf tax forms 1040 Equal number of nights. 2012 pdf tax forms 1040   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). 2012 pdf tax forms 1040 December 31. 2012 pdf tax forms 1040   The night of December 31 is treated as part of the year in which it begins. 2012 pdf tax forms 1040 For example, December 31, 2013, is treated as part of 2013. 2012 pdf tax forms 1040 Emancipated child. 2012 pdf tax forms 1040   If a child is emancipated under state law, the child is treated as not living with either parent. 2012 pdf tax forms 1040 See Examples 5 and 6. 2012 pdf tax forms 1040 Absences. 2012 pdf tax forms 1040   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. 2012 pdf tax forms 1040 But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. 2012 pdf tax forms 1040 Parent works at night. 2012 pdf tax forms 1040   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. 2012 pdf tax forms 1040 On a school day, the child is treated as living at the primary residence registered with the school. 2012 pdf tax forms 1040 Example 1—child lived with one parent for a greater number of nights. 2012 pdf tax forms 1040 You and your child’s other parent are divorced. 2012 pdf tax forms 1040 In 2013, your child lived with you 210 nights and with the other parent 155 nights. 2012 pdf tax forms 1040 You are the custodial parent. 2012 pdf tax forms 1040 Example 2—child is away at camp. 2012 pdf tax forms 1040 In 2013, your daughter lives with each parent for alternate weeks. 2012 pdf tax forms 1040 In the summer, she spends 6 weeks at summer camp. 2012 pdf tax forms 1040 During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. 2012 pdf tax forms 1040 Example 3—child lived same number of nights with each parent. 2012 pdf tax forms 1040 Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. 2012 pdf tax forms 1040 Your AGI is $40,000. 2012 pdf tax forms 1040 Your ex-spouse's AGI is $25,000. 2012 pdf tax forms 1040 You are treated as your son's custodial parent because you have the higher AGI. 2012 pdf tax forms 1040 Example 4—child is at parent’s home but with other parent. 2012 pdf tax forms 1040 Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. 2012 pdf tax forms 1040 You become ill and are hospitalized. 2012 pdf tax forms 1040 The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. 2012 pdf tax forms 1040 Your son is treated as living with you during this 10-day period because he was living in your home. 2012 pdf tax forms 1040 Example 5—child emancipated in May. 2012 pdf tax forms 1040 When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. 2012 pdf tax forms 1040 As a result, he is not considered in the custody of his parents for more than half of the year. 2012 pdf tax forms 1040 The special rule for children of divorced or separated parents does not apply. 2012 pdf tax forms 1040 Example 6—child emancipated in August. 2012 pdf tax forms 1040 Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. 2012 pdf tax forms 1040 She turns 18 and is emancipated under state law on August 1, 2013. 2012 pdf tax forms 1040 Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. 2012 pdf tax forms 1040 You are the custodial parent. 2012 pdf tax forms 1040 Written declaration. 2012 pdf tax forms 1040    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. 2012 pdf tax forms 1040 The noncustodial parent must attach a copy of the form or statement to his or her tax return. 2012 pdf tax forms 1040   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. 2012 pdf tax forms 1040 Post-1984 and pre-2009 divorce decree or separation agreement. 2012 pdf tax forms 1040   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. 2012 pdf tax forms 1040 The decree or agreement must state all three of the following. 2012 pdf tax forms 1040 The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. 2012 pdf tax forms 1040 The custodial parent will not claim the child as a dependent for the year. 2012 pdf tax forms 1040 The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. 2012 pdf tax forms 1040   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. 2012 pdf tax forms 1040 The cover page (write the other parent's social security number on this page). 2012 pdf tax forms 1040 The pages that include all of the information identified in items (1) through (3) above. 2012 pdf tax forms 1040 The signature page with the other parent's signature and the date of the agreement. 2012 pdf tax forms 1040 Post-2008 divorce decree or separation agreement. 2012 pdf tax forms 1040   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. 2012 pdf tax forms 1040 The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. 2012 pdf tax forms 1040 The form or statement must release the custodial parent's claim to the child without any conditions. 2012 pdf tax forms 1040 For example, the release must not depend on the noncustodial parent paying support. 2012 pdf tax forms 1040    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. 2012 pdf tax forms 1040 Revocation of release of claim to an exemption. 2012 pdf tax forms 1040   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). 2012 pdf tax forms 1040 For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. 2012 pdf tax forms 1040 The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. 2012 pdf tax forms 1040 Remarried parent. 2012 pdf tax forms 1040   If you remarry, the support provided by your new spouse is treated as provided by you. 2012 pdf tax forms 1040 Parents who never married. 2012 pdf tax forms 1040   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. 2012 pdf tax forms 1040 Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. 2012 pdf tax forms 1040 This test is different from the support test to be a qualifying relative, which is described later. 2012 pdf tax forms 1040 However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. 2012 pdf tax forms 1040 If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. 2012 pdf tax forms 1040 Worksheet 3-1. 2012 pdf tax forms 1040 Worksheet for Determining Support Funds Belonging to the Person You Supported       1. 2012 pdf tax forms 1040 Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. 2012 pdf tax forms 1040 Do not include funds provided by the state; include those amounts on line 23 instead 1. 2012 pdf tax forms 1040     2. 2012 pdf tax forms 1040 Enter the amount on line 1 that was used for the person's support 2. 2012 pdf tax forms 1040     3. 2012 pdf tax forms 1040 Enter the amount on line 1 that was used for other purposes 3. 2012 pdf tax forms 1040     4. 2012 pdf tax forms 1040 Enter the total amount in the person's savings and other accounts at the end of the year 4. 2012 pdf tax forms 1040     5. 2012 pdf tax forms 1040 Add lines 2 through 4. 2012 pdf tax forms 1040 (This amount should equal line 1. 2012 pdf tax forms 1040 ) 5. 2012 pdf tax forms 1040     Expenses for Entire Household (where the person you supported lived)       6. 2012 pdf tax forms 1040 Lodging (complete line 6a or 6b):         a. 2012 pdf tax forms 1040 Enter the total rent paid 6a. 2012 pdf tax forms 1040       b. 2012 pdf tax forms 1040 Enter the fair rental value of the home. 2012 pdf tax forms 1040 If the person you supported owned the home,  also include this amount in line 21 6b. 2012 pdf tax forms 1040     7. 2012 pdf tax forms 1040 Enter the total food expenses 7. 2012 pdf tax forms 1040     8. 2012 pdf tax forms 1040 Enter the total amount of utilities (heat, light, water, etc. 2012 pdf tax forms 1040 not included in line 6a or 6b) 8. 2012 pdf tax forms 1040     9. 2012 pdf tax forms 1040 Enter the total amount of repairs (not included in line 6a or 6b) 9. 2012 pdf tax forms 1040     10. 2012 pdf tax forms 1040 Enter the total of other expenses. 2012 pdf tax forms 1040 Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. 2012 pdf tax forms 1040     11. 2012 pdf tax forms 1040 Add lines 6a through 10. 2012 pdf tax forms 1040 These are the total household expenses 11. 2012 pdf tax forms 1040     12. 2012 pdf tax forms 1040 Enter total number of persons who lived in the household 12. 2012 pdf tax forms 1040     Expenses for the Person You Supported       13. 2012 pdf tax forms 1040 Divide line 11 by line 12. 2012 pdf tax forms 1040 This is the person's share of the household expenses 13. 2012 pdf tax forms 1040     14. 2012 pdf tax forms 1040 Enter the person's total clothing expenses 14. 2012 pdf tax forms 1040     15. 2012 pdf tax forms 1040 Enter the person's total education expenses 15. 2012 pdf tax forms 1040     16. 2012 pdf tax forms 1040 Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. 2012 pdf tax forms 1040     17. 2012 pdf tax forms 1040 Enter the person's total travel and recreation expenses 17. 2012 pdf tax forms 1040     18. 2012 pdf tax forms 1040 Enter the total of the person's other expenses 18. 2012 pdf tax forms 1040     19. 2012 pdf tax forms 1040 Add lines 13 through 18. 2012 pdf tax forms 1040 This is the total cost of the person's support for the year 19. 2012 pdf tax forms 1040     Did the Person Provide More Than Half of His or Her Own Support?       20. 2012 pdf tax forms 1040 Multiply line 19 by 50% (. 2012 pdf tax forms 1040 50) 20. 2012 pdf tax forms 1040     21. 2012 pdf tax forms 1040 Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. 2012 pdf tax forms 1040 This is the amount the person provided for his or her own support 21. 2012 pdf tax forms 1040     22. 2012 pdf tax forms 1040 Is line 21 more than line 20?   No. 2012 pdf tax forms 1040 You meet the support test for this person to be your qualifying child. 2012 pdf tax forms 1040 If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. 2012 pdf tax forms 1040 Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. 2012 pdf tax forms 1040    Yes. 2012 pdf tax forms 1040 You do not meet the support test for this person to be either your qualifying child or your qualifying relative. 2012 pdf tax forms 1040 Stop here. 2012 pdf tax forms 1040        Did You Provide More Than Half?       23. 2012 pdf tax forms 1040 Enter the amount others provided for the person's support. 2012 pdf tax forms 1040 Include amounts provided by state, local, and other welfare societies or agencies. 2012 pdf tax forms 1040 Do not include any amounts included on line 1 23. 2012 pdf tax forms 1040     24. 2012 pdf tax forms 1040 Add lines 21 and 23 24. 2012 pdf tax forms 1040     25. 2012 pdf tax forms 1040 Subtract line 24 from line 19. 2012 pdf tax forms 1040 This is the amount you provided for the person's support 25. 2012 pdf tax forms 1040     26. 2012 pdf tax forms 1040 Is line 25 more than line 20?   Yes. 2012 pdf tax forms 1040 You meet the support test for this person to be your qualifying relative. 2012 pdf tax forms 1040    No. 2012 pdf tax forms 1040 You do not meet the support test for this person to be your qualifying relative. 2012 pdf tax forms 1040 You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. 2012 pdf tax forms 1040 See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. 2012 pdf tax forms 1040   Example. 2012 pdf tax forms 1040 You provided $4,000 toward your 16-year-old son's support for the year. 2012 pdf tax forms 1040 He has a part-time job and provided $6,000 to his own support. 2012 pdf tax forms 1040 He provided more than half of his own support for the year. 2012 pdf tax forms 1040 He is not your qualifying child. 2012 pdf tax forms 1040 Foster care payments and expenses. 2012 pdf tax forms 1040   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. 2012 pdf tax forms 1040 Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. 2012 pdf tax forms 1040   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. 2012 pdf tax forms 1040 For more information about the deduction for charitable contributions, see chapter 24. 2012 pdf tax forms 1040 If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. 2012 pdf tax forms 1040   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. 2012 pdf tax forms 1040 Example 1. 2012 pdf tax forms 1040 Lauren, a foster child, lived with Mr. 2012 pdf tax forms 1040 and Mrs. 2012 pdf tax forms 1040 Smith for the last 3 months of the year. 2012 pdf tax forms 1040 The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). 2012 pdf tax forms 1040 They did not care for her as a trade or business or to benefit the agency that placed her in their home. 2012 pdf tax forms 1040 The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. 2012 pdf tax forms 1040 Example 2. 2012 pdf tax forms 1040 You provided $3,000 toward your 10-year-old foster child's support for the year. 2012 pdf tax forms 1040 The state government provided $4,000, which is considered support provided by the state, not by the child. 2012 pdf tax forms 1040 See Support provided by the state (welfare, food stamps, housing, etc. 2012 pdf tax forms 1040 ) , later. 2012 pdf tax forms 1040 Your foster child did not provide more than half of her own support for the year. 2012 pdf tax forms 1040 Scholarships. 2012 pdf tax forms 1040   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. 2012 pdf tax forms 1040 Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. 2012 pdf tax forms 1040 Exception. 2012 pdf tax forms 1040   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. 2012 pdf tax forms 1040 Example 1—child files joint return. 2012 pdf tax forms 1040 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 2012 pdf tax forms 1040 He earned $25,000 for the year. 2012 pdf tax forms 1040 The couple files a joint return. 2012 pdf tax forms 1040 Because your daughter and her husband file a joint return, she is not your qualifying child. 2012 pdf tax forms 1040 Example 2—child files joint return only as a claim for refund of withheld tax. 2012 pdf tax forms 1040 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 2012 pdf tax forms 1040 Neither is required to file a tax return. 2012 pdf tax forms 1040 They do not have a child. 2012 pdf tax forms 1040 Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 2012 pdf tax forms 1040 The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. 2012 pdf tax forms 1040 Example 3—child files joint return to claim American opportunity credit. 2012 pdf tax forms 1040 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 2012 pdf tax forms 1040 He and his wife were not required to file a tax return. 2012 pdf tax forms 1040 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 2012 pdf tax forms 1040 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 2012 pdf tax forms 1040 The exception to the joint return test does not apply, so your son is not your qualifying child. 2012 pdf tax forms 1040 Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. 2012 pdf tax forms 1040 This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. 2012 pdf tax forms 1040 If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. 2012 pdf tax forms 1040 Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. 2012 pdf tax forms 1040 Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). 2012 pdf tax forms 1040 The exemption for the child. 2012 pdf tax forms 1040 The child tax credit. 2012 pdf tax forms 1040 Head of household filing status. 2012 pdf tax forms 1040 The credit for child and dependent care expenses. 2012 pdf tax forms 1040 The exclusion from income for dependent care benefits. 2012 pdf tax forms 1040 The earned income credit. 2012 pdf tax forms 1040 The other person cannot take any of these benefits based on this qualifying child. 2012 pdf tax forms 1040 In other words, you and the other person cannot agree to divide these benefits between you. 2012 pdf tax forms 1040 The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. 2012 pdf tax forms 1040 Tiebreaker rules. 2012 pdf tax forms 1040   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. 2012 pdf tax forms 1040 If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. 2012 pdf tax forms 1040 If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. 2012 pdf tax forms 1040 If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. 2012 pdf tax forms 1040 If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. 2012 pdf tax forms 1040 If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. 2012 pdf tax forms 1040 If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. 2012 pdf tax forms 1040 If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. 2012 pdf tax forms 1040 See Example 6 . 2012 pdf tax forms 1040   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. 2012 pdf tax forms 1040 Example 1—child lived with parent and grandparent. 2012 pdf tax forms 1040 You and your 3-year-old daughter Jane lived with your mother all year. 2012 pdf tax forms 1040 You are 25 years old, unmarried, and your AGI is $9,000. 2012 pdf tax forms 1040 Your mother's AGI is $15,000. 2012 pdf tax forms 1040 Jane's father did not live with you or your daughter. 2012 pdf tax forms 1040 You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. 2012 pdf tax forms 1040 Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 2012 pdf tax forms 1040 However, only one of you can claim her. 2012 pdf tax forms 1040 Jane is not a qualifying child of anyone else, including her father. 2012 pdf tax forms 1040 You agree to let your mother claim Jane. 2012 pdf tax forms 1040 This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). 2012 pdf tax forms 1040 Example 2—parent has higher AGI than grandparent. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except your AGI is $18,000. 2012 pdf tax forms 1040 Because your mother's AGI is not higher than yours, she cannot claim Jane. 2012 pdf tax forms 1040 Only you can claim Jane. 2012 pdf tax forms 1040 Example 3—two persons claim same child. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. 2012 pdf tax forms 1040 In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. 2012 pdf tax forms 1040 The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. 2012 pdf tax forms 1040 Example 4—qualifying children split between two persons. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. 2012 pdf tax forms 1040 Only one of you can claim each child. 2012 pdf tax forms 1040 However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. 2012 pdf tax forms 1040 For example, if you claim one child, your mother can claim the other two. 2012 pdf tax forms 1040 Example 5—taxpayer who is a qualifying child. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. 2012 pdf tax forms 1040 This means you are your mother's qualifying child. 2012 pdf tax forms 1040 If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. 2012 pdf tax forms 1040 Example 6—child lived with both parents and grandparent. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except you are married to your daughter's father. 2012 pdf tax forms 1040 The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. 2012 pdf tax forms 1040 If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. 2012 pdf tax forms 1040 Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. 2012 pdf tax forms 1040 Example 7—separated parents. 2012 pdf tax forms 1040 You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. 2012 pdf tax forms 1040 In August and September, your son lived with you. 2012 pdf tax forms 1040 For the rest of the year, your son lived with your husband, the boy's father. 2012 pdf tax forms 1040 Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. 2012 pdf tax forms 1040 At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents (or parents who live apart) does not apply. 2012 pdf tax forms 1040 You and your husband will file separate returns. 2012 pdf tax forms 1040 Your husband agrees to let you treat your son as a qualifying child. 2012 pdf tax forms 1040 This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). 2012 pdf tax forms 1040 However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. 2012 pdf tax forms 1040 As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. 2012 pdf tax forms 1040 Example 8—separated parents claim same child. 2012 pdf tax forms 1040 The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. 2012 pdf tax forms 1040 In this case, only your husband will be allowed to treat your son as a qualifying child. 2012 pdf tax forms 1040 This is because, during 2013, the boy lived with him longer than with you. 2012 pdf tax forms 1040 If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 2012 pdf tax forms 1040 If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. 2012 pdf tax forms 1040 In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. 2012 pdf tax forms 1040 As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. 2012 pdf tax forms 1040 Example 9—unmarried parents. 2012 pdf tax forms 1040 You, your 5-year-old son, and your son's father lived together all year. 2012 pdf tax forms 1040 You and your son's father are not married. 2012 pdf tax forms 1040 Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. 2012 pdf tax forms 1040 Your AGI is $12,000 and your son's father's AGI is $14,000. 2012 pdf tax forms 1040 Your son's father agrees to let you claim the child as a qualifying child. 2012 pdf tax forms 1040 This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). 2012 pdf tax forms 1040 Example 10—unmarried parents claim same child. 2012 pdf tax forms 1040 The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. 2012 pdf tax forms 1040 In this case, only your son's father will be allowed to treat your son as a qualifying child. 2012 pdf tax forms 1040 This is because his AGI, $14,000, is more than your AGI, $12,000. 2012 pdf tax forms 1040 If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 2012 pdf tax forms 1040 If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. 2012 pdf tax forms 1040 Example 11—child did not live with a parent. 2012 pdf tax forms 1040 You and your 7-year-old niece, your sister's child, lived with your mother all year. 2012 pdf tax forms 1040 You are 25 years old, and your AGI is $9,300. 2012 pdf tax forms 1040 Your mother's AGI is $15,000. 2012 pdf tax forms 1040 Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. 2012 pdf tax forms 1040 Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 2012 pdf tax forms 1040 However, only your mother can treat her as a qualifying child. 2012 pdf tax forms 1040 This is because your mother's AGI, $15,000, is more than your AGI, $9,300. 2012 pdf tax forms 1040 Applying this special rule to divorced or separated parents (or parents who live apart). 2012 pdf tax forms 1040   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. 2012 pdf tax forms 1040 However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. 2012 pdf tax forms 1040 If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. 2012 pdf tax forms 1040 Example 1. 2012 pdf tax forms 1040 You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. 2012 pdf tax forms 1040 Your AGI is $10,000. 2012 pdf tax forms 1040 Your mother's AGI is $25,000. 2012 pdf tax forms 1040 Your son's father did not live with you or your son. 2012 pdf tax forms 1040 Under the rules explained earlier for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for him. 2012 pdf tax forms 1040 Because of this, you cannot claim an exemption or the child tax credit for your son. 2012 pdf tax forms 1040 However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. 2012 pdf tax forms 1040 You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. 2012 pdf tax forms 1040 But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. 2012 pdf tax forms 1040 (Note: The support test does not apply for the earned income credit. 2012 pdf tax forms 1040 ) However, you agree to let your mother claim your son. 2012 pdf tax forms 1040 This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. 2012 pdf tax forms 1040 (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. 2012 pdf tax forms 1040 ) Example 2. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. 2012 pdf tax forms 1040 Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. 2012 pdf tax forms 1040 Example 3. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. 2012 pdf tax forms 1040 Your mother also claims him as a qualifying child for head of household filing status. 2012 pdf tax forms 1040 You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. 2012 pdf tax forms 1040 The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. 2012 pdf tax forms 1040 Qualifying Relative Four tests must be met for a person to be your qualifying relative. 2012 pdf tax forms 1040 The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. 2012 pdf tax forms 1040 Age. 2012 pdf tax forms 1040   Unlike a qualifying child, a qualifying relative can be any age. 2012 pdf tax forms 1040 There is no age test for a qualifying relative. 2012 pdf tax forms 1040 Kidnapped child. 2012 pdf tax forms 1040   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. 2012 pdf tax forms 1040 See Publication 501 for details. 2012 pdf tax forms 1040 Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. 2012 pdf tax forms 1040 Example 1. 2012 pdf tax forms 1040 Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. 2012 pdf tax forms 1040 She is not your qualifying relative. 2012 pdf tax forms 1040 Example 2. 2012 pdf tax forms 1040 Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. 2012 pdf tax forms 1040 He is not your qualifying relative. 2012 pdf tax forms 1040 Example 3. 2012 pdf tax forms 1040 Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. 2012 pdf tax forms 1040 He may be your qualifying relative if the gross income test and the support test are met. 2012 pdf tax forms 1040 Example 4. 2012 pdf tax forms 1040 Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. 2012 pdf tax forms 1040 He is not your qualifying child because he does not meet the residency test. 2012 pdf tax forms 1040 He may be your qualifying relative if the gross income test and the support test are met. 2012 pdf tax forms 1040 Child of person not required to file a return. 2012 pdf tax forms 1040   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. 2012 pdf tax forms 1040 Example 1—return not required. 2012 pdf tax forms 1040 You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. 2012 pdf tax forms 1040 Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. 2012 pdf tax forms 1040 Both your friend and her child are your qualifying relatives if the support test is met. 2012 pdf tax forms 1040 Example 2—return filed to claim refund. 2012 pdf tax forms 1040 The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. 2012 pdf tax forms 1040 She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. 2012 pdf tax forms 1040 Both your friend and her child are your qualifying relatives if the support test is met. 2012 pdf tax forms 1040 Example 3—earned income credit claimed. 2012 pdf tax forms 1040 The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. 2012 pdf tax forms 1040 Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. 2012 pdf tax forms 1040 Child in Canada or Mexico. 2012 pdf tax forms 1040   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. 2012 pdf tax forms 1040 If the child does not live with you, the child does not meet the residency test to be your qualifying child. 2012 pdf tax forms 1040 However, the child may still be your qualifying relative. 2012 pdf tax forms 1040 If the persons the child does live with are not U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizens and have no U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. 2012 pdf tax forms 1040 If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. 2012 pdf tax forms 1040   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 resident alien, or U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national. 2012 pdf tax forms 1040 There is an exception for certain adopted children who lived with you all year. 2012 pdf tax forms 1040 See Citizen or Resident Test , earlier. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. 2012 pdf tax forms 1040 You are single and live in the United States. 2012 pdf tax forms 1040 Your mother is not a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen and has no U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 income, so she is not a “taxpayer. 2012 pdf tax forms 1040 ” Your children are not your qualifying children because they do not meet the residency test. 2012 pdf tax forms 1040 But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. 2012 pdf tax forms 1040 You may also be able to claim your mother as a dependent if the gross income and support tests are met. 2012 pdf tax forms 1040 Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . 2012 pdf tax forms 1040 If at any time during the year the person was your spouse, that person cannot be your qualifying relative. 2012 pdf tax forms 1040 However, see Personal Exemptions , earlier. 2012 pdf tax forms 1040 Relatives who do not have to live with you. 2012 pdf tax forms 1040   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. 2012 pdf tax forms 1040 Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). 2012 pdf tax forms 1040 (A legally adopted child is considered your child. 2012 pdf tax forms 1040 ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. 2012 pdf tax forms 1040 Your father, mother, grandparent, or other direct ancestor, but not foster parent. 2012 pdf tax forms 1040 Your stepfather or stepmother. 2012 pdf tax forms 1040 A son or daughter of your brother or sister. 2012 pdf tax forms 1040 A son or daughter of your half brother or half sister. 2012 pdf tax forms 1040 A brother or sister of your father or mother. 2012 pdf tax forms 1040 Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 2012 pdf tax forms 1040 Any of these relationships that were established by marriage are not ended by death or divorce. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 You and your wife began supporting your wife's father, a widower, in 2006. 2012 pdf tax forms 1040 Your wife died in 2012. 2012 pdf tax forms 1040 Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. 2012 pdf tax forms 1040 You can claim him as a dependent if all other tests are met, including the gross income test and support test. 2012 pdf tax forms 1040 Foster child. 2012 pdf tax forms 1040   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 2012 pdf tax forms 1040 Joint return. 2012 pdf tax forms 1040   If you file a joint return, the person can be related to either you or your spouse. 2012 pdf tax forms 1040 Also, the person does not need to be related to the spouse who provides support. 2012 pdf tax forms 1040   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. 2012 pdf tax forms 1040 However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. 2012 pdf tax forms 1040 Temporary absences. 2012 pdf tax forms 1040   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 2012 pdf tax forms 1040   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. 2012 pdf tax forms 1040 Death or birth. 2012 pdf tax forms 1040   A person who died during the year, but lived with you as a member of your household until death, will meet this test. 2012 pdf tax forms 1040 The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. 2012 pdf tax forms 1040 The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. 2012 pdf tax forms 1040   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 Your dependent mother died on January 15. 2012 pdf tax forms 1040 She met the tests to be your qualifying relative. 2012 pdf tax forms 1040 The other tests to claim an exemption for a dependent were also met. 2012 pdf tax forms 1040 You can claim an exemption for her on your return. 2012 pdf tax forms 1040 Local law violated. 2012 pdf tax forms 1040   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 Your girlfriend lived with you as a member of your household all year. 2012 pdf tax forms 1040 However, your relationship with her violated the laws of the state where you live, because she was married to someone else. 2012 pdf tax forms 1040 Therefore, she does not meet this test and you cannot claim her as a dependent. 2012 pdf tax forms 1040 Adopted child. 2012 pdf tax forms 1040   An adopted child is always treated as your own child. 2012 pdf tax forms 1040 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 2012 pdf tax forms 1040 Cousin. 2012 pdf tax forms 1040   Your cousin meets this test only if he or she lives with you all year as a member of your household. 2012 pdf tax forms 1040 A cousin is a descendant of a brother or sister of your father or mother. 2012 pdf tax forms 1040 Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. 2012 pdf tax forms 1040 Gross income defined. 2012 pdf tax forms 1040   Gross income is all income in the form of money, property, and services that is not exempt from tax. 2012 pdf tax forms 1040   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. 2012 pdf tax forms 1040   Gross receipts from rental property are gross income. 2012 pdf tax forms 1040 Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. 2012 pdf tax forms 1040   Gross income includes a partner's share of the gross (not a share of the net) partnership income. 2012 pdf tax forms 1040    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. 2012 pdf tax forms 1040 Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. 2012 pdf tax forms 1040 For more information about scholarships, see chapter 12. 2012 pdf tax forms 1040   Tax-exempt income, such as certain social security benefits, is not included in gross income. 2012 pdf tax forms 1040 Disabled dependent working at sheltered workshop. 2012 pdf tax forms 1040   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. 2012 pdf tax forms 1040 The availability of medical care at the workshop must be the main reason for the individual's presence there. 2012 pdf tax forms 1040 Also, the income must come solely from activities at the workshop that are incident to this medical care. 2012 pdf tax forms 1040   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 possession, a political subdivision of a state or possession, the United States, or the District of Columbia. 2012 pdf tax forms 1040 “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. 2012 pdf tax forms 1040 Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. 2012 pdf tax forms 1040 However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. 2012 pdf tax forms 1040 How to determine if support test is met. 2012 pdf tax forms 1040   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. 2012 pdf tax forms 1040 This includes support the person provided from his or her own funds. 2012 pdf tax forms 1040   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. 2012 pdf tax forms 1040 Person's own funds not used for support. 2012 pdf tax forms 1040   A person's own funds are not support unless they are actually spent for support. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 Your mother received $2,400 in social security benefits and $300 in interest. 2012 pdf tax forms 1040 She paid $2,000 for lodging and $400 for recreation. 2012 pdf tax forms 1040 She put $300 in a savings account. 2012 pdf tax forms 1040 Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. 2012 pdf tax forms 1040 If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. 2012 pdf tax forms 1040 Child's wages used for own support. 2012 pdf tax forms 1040   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. 2012 pdf tax forms 1040 Year support is provided. 2012 pdf tax forms 1040   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. 2012 pdf tax forms 1040   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. 2012 pdf tax forms 1040 Armed Forces dependency allotments. 2012 pdf tax forms 1040   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. 2012 pdf tax forms 1040 If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 You are in the Armed Forces. 2012 pdf tax forms 1040 You authorize an allotment for your widowed mother that she uses to support herself and her sister. 2012 pdf tax forms 1040 If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. 2012 pdf tax forms 1040 Tax-exempt military quarters allowances. 2012 pdf tax forms 1040   These allowances are treated the same way as dependency allotments in figuring support. 2012 pdf tax forms 1040 The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. 2012 pdf tax forms 1040 Tax-exempt income. 2012 pdf tax forms 1040   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. 2012 pdf tax forms 1040 Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. 2012 pdf tax forms 1040 Example 1. 2012 pdf tax forms 1040 You provide $4,000 toward your mother's support during the year. 2012 pdf tax forms 1040 She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. 2012 pdf tax forms 1040 She uses all these for her support. 2012 pdf tax forms 1040 You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). 2012 pdf tax forms 1040 Example 2. 2012 pdf tax forms 1040 Your niece takes out a student loan of $2,500 a
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Understanding Your CP30A Notice

We reduced or removed the penalty for underpayment of estimated tax reported on your tax return.


What you need to do

  • Review the account information in your notice.
  • If there are discrepancies between our records and your records, and it appears that we removed or reduced your penalty in error, please return the refund with your explanation.

Answers to Common Questions

Why did you reduce or remove the penalty?
We reduced or eliminated the penalty because, according to our calculation, the penalty reported on your return is greater than the penalty actually due. Our calculation is based on information in our records at the time your return was processed. If your address is within a geographical area that was declared a federal disaster area, the reduction may be the result of an automatic waiver we applied.

What should I do if I disagree with the correction?
Call the toll free number listed in the top right corner of your notice. Explain to the assistor why you disagree with our correction. If we agree with your explanation, the assistor will tell you what to do next.

The notice says that I will receive a refund, but I haven't received it yet. When will I receive the refund?
Before we can issue a refund, we are required to collect (offset) any other taxes you may owe. Additionally, your refund may be offset to pay child support or state taxes you owe, or to pay any other debts you legally owe that we are required to collect. We also might not mail your refund if you have not filed all of the returns you are required to file. To check the status of your refund you may call the toll-free number listed in the top right corner of your notice.

Page Last Reviewed or Updated: 03-Mar-2014

How to get help

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

The 2012 Pdf Tax Forms 1040

2012 pdf tax forms 1040 5. 2012 pdf tax forms 1040   Exemptions, Deductions, and Credits Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Items Related to Excluded Income Exemptions Contributions to Foreign Charitable Organizations Moving ExpensesAllocation of Moving Expenses Forms To File Contributions to Individual Retirement Arrangements Taxes of Foreign Countries and U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 PossessionsCredit for Foreign Income Taxes Deduction for Foreign Income Taxes Deduction for Other Foreign Taxes How To Report Deductions Topics - This chapter discusses: The rules concerning items related to excluded income, Exemptions, Contributions to foreign charitable organizations, Moving expenses, Contributions to individual retirement arrangements (IRAs), Taxes of foreign countries and U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 possessions, and How to report deductions. 2012 pdf tax forms 1040 Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 514 Foreign Tax Credit for Individuals 521 Moving Expenses 523 Selling Your Home 590 Individual Retirement Arrangements (IRAs) 597 Information on the United States—Canada Income Tax Treaty Form (and Instructions) 1116 Foreign Tax Credit 2106 Employee Business Expenses 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 3903 Moving Expenses Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business SS-5 Application for a Social Security Card W-7 Application for IRS Individual Taxpayer Identification Number See chapter 7 for information about getting these publications and forms. 2012 pdf tax forms 1040 Items Related to Excluded Income U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizens and resident aliens living outside the United States generally are allowed the same deductions as citizens and residents living in the United States. 2012 pdf tax forms 1040 If you choose to exclude foreign earned income or housing amounts, you cannot deduct, exclude, or claim a credit for any item that can be allocated to or charged against the excluded amounts. 2012 pdf tax forms 1040 This includes any expenses, losses, and other normally deductible items that are allocable to the excluded income. 2012 pdf tax forms 1040 You can deduct only those expenses connected with earning includible income. 2012 pdf tax forms 1040 These rules apply only to items definitely related to the excluded earned income and they do not apply to other items that are not definitely related to any particular type of gross income. 2012 pdf tax forms 1040 These rules do not apply to items such as: Personal exemptions, Qualified retirement contributions, Alimony payments, Charitable contributions, Medical expenses, Mortgage interest, or Real estate taxes on your personal residence. 2012 pdf tax forms 1040 For purposes of these rules, your housing deduction is not treated as allocable to your excluded income, but the deduction for self- employment tax is. 2012 pdf tax forms 1040 If you receive foreign earned income in a tax year after the year in which you earned it, you may have to file an amended return for the earlier year to properly adjust the amounts of deductions, credits, or exclusions allocable to your foreign earned income and housing exclusions. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 In 2012, you had $90,400 of foreign earned income and $9,500 of deductions allocable to your foreign earned income. 2012 pdf tax forms 1040 You did not have a housing exclusion. 2012 pdf tax forms 1040 Because you excluded all of your foreign earned income, you would not have been able to claim any of the deductions on your 2012 return. 2012 pdf tax forms 1040 In 2013, you received a $12,000 bonus for work you did abroad in 2012. 2012 pdf tax forms 1040 You can exclude $4,700 of the bonus because the limit on the foreign earned income exclusion for 2012 was $95,100 and you have already excluded $90,400. 2012 pdf tax forms 1040 Since you must include $7,300 of the bonus ($12,000 − $4,700) for work you did in 2012 in income, you can file an amended return for 2012 to claim $677 of the deductions. 2012 pdf tax forms 1040 This is the deductions allocable to the foreign earned income ($9,500) multiplied by the includible portion of the foreign earned income ($7,300) and divided by the total foreign earned income for 2012 ($102,400). 2012 pdf tax forms 1040 Exemptions You can claim an exemption for your nonresident alien spouse on your separate return, provided your spouse has no gross income for U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax purposes and is not the dependent of another U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 taxpayer. 2012 pdf tax forms 1040 You also can claim exemptions for individuals who qualify as your dependents. 2012 pdf tax forms 1040 To be your dependent, the individual must be a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 resident alien, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins. 2012 pdf tax forms 1040 Children. 2012 pdf tax forms 1040   Children usually are citizens or residents of the same country as their parents. 2012 pdf tax forms 1040 If you were a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen when your child was born, your child generally is a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen. 2012 pdf tax forms 1040 This is true even if the child's other parent is a nonresident alien, the child was born in a foreign country, and the child lives abroad with the other parent. 2012 pdf tax forms 1040   If you have a legally adopted child who is not a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 resident, or U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national, the child meets the citizen requirement if you are a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen or U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 national and the child lived with you as a member of your household all year. 2012 pdf tax forms 1040 Social security number. 2012 pdf tax forms 1040   You must include on your return the social security number (SSN) of each dependent for whom you claim an exemption. 2012 pdf tax forms 1040 To get a social security number for a dependent, apply at a Social Security office or U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 consulate. 2012 pdf tax forms 1040 You must provide original or certified copies of documents to verify the dependent's age, identity, and citizenship, and complete Form SS-5. 2012 pdf tax forms 1040   If you do not have an SSN for a child who was born in 2013 and died in 2013, attach a copy of the child's birth certificate to your tax return. 2012 pdf tax forms 1040 Print “Died” in column (2) of line 6c of your Form 1040 or Form 1040A. 2012 pdf tax forms 1040   If your dependent is a nonresident alien who is not eligible to get a social security number, you must list the dependent's individual taxpayer identification number (ITIN) instead of an SSN. 2012 pdf tax forms 1040 To apply for an ITIN, file Form W-7 with the IRS. 2012 pdf tax forms 1040 It usually takes 6 to 10 weeks to get an ITIN. 2012 pdf tax forms 1040 Enter your dependent's ITIN wherever an SSN is requested on your tax return. 2012 pdf tax forms 1040 More information. 2012 pdf tax forms 1040   For more information about exemptions, see Publication 501. 2012 pdf tax forms 1040 Contributions to Foreign Charitable Organizations If you make contributions directly to a foreign church or other foreign charitable organization, you generally cannot deduct them. 2012 pdf tax forms 1040 Exceptions are explained under Canadian, Mexican, and Israeli charities, later. 2012 pdf tax forms 1040 You can deduct contributions to a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 organization that transfers funds to a charitable foreign organization if the U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 organization controls the use of the funds by the foreign organization or if the foreign organization is just an administrative arm of the U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 organization. 2012 pdf tax forms 1040 Canadian, Mexican, and Israeli charities. 2012 pdf tax forms 1040   Under the income tax treaties with Canada, Mexico and Israel, you may be able to deduct contributions to certain Canadian, Mexican, and Israeli charitable organizations. 2012 pdf tax forms 1040 Generally, you must have income from sources in Canada, Mexico, or Israel, and the organization must meet certain requirements. 2012 pdf tax forms 1040 See Publication 597, Information on the United States-Canada Income Tax Treaty, and Publication 526, Charitable Contributions, for more information. 2012 pdf tax forms 1040 Moving Expenses If you moved to a new home in 2013 because of your job or business, you may be able to deduct the expenses of your move. 2012 pdf tax forms 1040 Generally, to be deductible, the moving expenses must have been paid or incurred in connection with starting work at a new job location. 2012 pdf tax forms 1040 See Publication 521 for a complete discussion of the deduction for moving expenses and information about moves within the United States. 2012 pdf tax forms 1040 Foreign moves. 2012 pdf tax forms 1040   A foreign move is a move in connection with the start of work at a new job location outside the United States and its possessions. 2012 pdf tax forms 1040 A foreign move does not include a move back to the United States or its possessions. 2012 pdf tax forms 1040 Allocation of Moving Expenses When your new place of work is in a foreign country, your moving expenses are directly connected with the income earned in that foreign country. 2012 pdf tax forms 1040 If you exclude all or part of the income that you earn at the new location under the foreign earned income exclusion or the foreign housing exclusion, you cannot deduct the part of your moving expense that is allocable to the excluded income. 2012 pdf tax forms 1040 Also, you cannot deduct the part of the moving expense related to the excluded income for a move from a foreign country to the United States if you receive a reimbursement that you are able to treat as compensation for services performed in the foreign country. 2012 pdf tax forms 1040 Year to which expense is connected. 2012 pdf tax forms 1040   The moving expense is connected with earning the income (including reimbursements, as discussed in chapter 4 under Reimbursement of moving expenses ) either entirely in the year of the move or in 2 years. 2012 pdf tax forms 1040 It is connected with earning the income entirely in the year of the move if you qualify for the foreign earned income exclusion under the bona fide residence test or physical presence test for at least 120 days during that tax year. 2012 pdf tax forms 1040   If you do not qualify under either the bona fide residence test or the physical presence test for at least 120 days during the year of the move, the expense is connected with earning the income in 2 years. 2012 pdf tax forms 1040 The moving expense is connected with the year of the move and the following year if the move is from the United States to a foreign country. 2012 pdf tax forms 1040 The moving expense is connected with the year of the move and the preceding year if the move is from a foreign country to the United States. 2012 pdf tax forms 1040 Amount allocable to excluded income. 2012 pdf tax forms 1040   To figure the amount of your moving expense that is allocable to your excluded foreign earned income (and not deductible), you must multiply your total moving expense deduction by a fraction. 2012 pdf tax forms 1040 The numerator (top number) of the fraction is the total of your excluded foreign earned income and housing amounts for both years and the denominator (bottom number) of the fraction is your total foreign earned income for both years. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 On November 1, 2012, you transfer to Monaco. 2012 pdf tax forms 1040 Your tax home is in Monaco, and you are a bona fide resident of Monaco for the entire tax year 2013. 2012 pdf tax forms 1040 In 2012, you paid $6,000 for allowable moving expenses for your move from the United States to Monaco. 2012 pdf tax forms 1040 You were fully reimbursed (under a nonaccountable plan) for these expenses in the same year. 2012 pdf tax forms 1040 The reimbursement is included in your income. 2012 pdf tax forms 1040 Your only other income consists of $16,000 wages earned in 2012 after the date of your move, and $100,100 wages earned in Monaco for 2013. 2012 pdf tax forms 1040 Because you did not meet the bona fide residence test for at least 120 days during 2012, the year of the move, the moving expenses are for services you performed in both 2012 and the following year, 2013. 2012 pdf tax forms 1040 Your total foreign earned income for both years is $122,100, consisting of $16,000 wages for 2012, $100,100 wages for 2013, and $6,000 moving expense reimbursement for both years. 2012 pdf tax forms 1040 You have no housing exclusion. 2012 pdf tax forms 1040 The total amount you can exclude is $113,190, consisting of the $97,600 full-year exclusion for 2013 and a $15,590 part-year exclusion for 2012 ($95,100 times the fraction of 60 qualifying bona fide residence days over 366 total days in the year). 2012 pdf tax forms 1040 To find the part of your moving expenses that is not deductible, multiply your $6,000 total expenses by the fraction $113,190 over $122,100. 2012 pdf tax forms 1040 The result, $5,562, is your nondeductible amount. 2012 pdf tax forms 1040    You must report the full amount of the moving expense reimbursement in the year in which you received the reimbursement. 2012 pdf tax forms 1040 In the preceding example, this year was 2012. 2012 pdf tax forms 1040 You attribute the reimbursement to both 2012 and 2013 only to figure the amount of foreign earned income eligible for exclusion for each year. 2012 pdf tax forms 1040 Move between foreign countries. 2012 pdf tax forms 1040   If you move between foreign countries, your moving expense is allocable to income earned in the year of the move if you qualified under either the bona fide residence test or the physical presence test for a period that includes at least 120 days in the year of the move. 2012 pdf tax forms 1040 New place of work in U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040   If your new place of work is in the United States, the deductible moving expenses are directly connected with the income earned in the United States. 2012 pdf tax forms 1040 If you treat a reimbursement from your employer as foreign earned income (see the discussion in chapter 4), you must allocate deductible moving expenses to foreign earned income. 2012 pdf tax forms 1040 Storage expenses. 2012 pdf tax forms 1040   These expenses are attributable to work you do during the year in which you incur the storage expenses. 2012 pdf tax forms 1040 You cannot deduct the amount allocable to excluded income. 2012 pdf tax forms 1040 Moving Expense Attributable to Foreign Earnings in 2 Years If your moving expense deduction is attributable to your foreign earnings in 2 years (the year of the move and the following year), you should request an extension of time to file your return for the year of the move until after the end of the second year. 2012 pdf tax forms 1040 By then, you should have all the information needed to properly figure the moving expense deduction. 2012 pdf tax forms 1040 See Extensions under When To File and Pay in chapter 1. 2012 pdf tax forms 1040 If you do not request an extension, you should figure the part of the moving expense that you cannot deduct because it is allocable to the foreign earned income you are excluding. 2012 pdf tax forms 1040 You do this by multiplying the moving expense by a fraction, the numerator (top number) of which is your excluded foreign earned income for the year of the move, and the denominator (bottom number) of which is your total foreign earned income for the year of the move. 2012 pdf tax forms 1040 Once you know your foreign earnings and exclusion for the following year, you must either: Adjust the moving expense deduction by filing an amended return for the year of the move, or Recapture any additional unallowable amount as income on your return for the following year. 2012 pdf tax forms 1040 If, after you make the final computation, you have an additional amount of allowable moving expense deduction, you can claim this only on an amended return for the year of the move. 2012 pdf tax forms 1040 You cannot claim it on the return for the second year. 2012 pdf tax forms 1040 Forms To File Report your moving expenses on Form 3903. 2012 pdf tax forms 1040 Report your moving expense deduction on line 26 of Form 1040. 2012 pdf tax forms 1040 If you must reduce your moving expenses by the amount allocable to excluded income (as explained later under How To Report Deductions ), attach a statement to your return showing how you figured this amount. 2012 pdf tax forms 1040 For more information about figuring moving expenses, see Publication 521. 2012 pdf tax forms 1040 Contributions to Individual Retirement Arrangements Contributions to your individual retirement arrangements (IRAs) that are traditional IRAs or Roth IRAs are generally limited to the lesser of $5,500 ($6,500 if 50 or older) or your compensation that is includible in your gross income for the tax year. 2012 pdf tax forms 1040 In determining compensation for this purpose, do not take into account amounts you exclude under either the foreign earned income exclusion or the foreign housing exclusion. 2012 pdf tax forms 1040 Do not reduce your compensation by the foreign housing deduction. 2012 pdf tax forms 1040 If you are covered by an employer retirement plan at work, your deduction for your contributions to your traditional IRAs is generally limited based on your modified adjusted gross income. 2012 pdf tax forms 1040 This is your adjusted gross income figured without taking into account the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. 2012 pdf tax forms 1040 Other modifications are also required. 2012 pdf tax forms 1040 For more information on IRAs, see Publication 590. 2012 pdf tax forms 1040 Taxes of Foreign Countries and U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 Possessions You can take either a credit or a deduction for income taxes paid to a foreign country or a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 possession. 2012 pdf tax forms 1040 Taken as a deduction, foreign income taxes reduce your taxable income. 2012 pdf tax forms 1040 Taken as a credit, foreign income taxes reduce your tax liability. 2012 pdf tax forms 1040 You must treat all foreign income taxes the same way. 2012 pdf tax forms 1040 If you take a credit for any foreign income taxes, you cannot deduct any foreign income taxes. 2012 pdf tax forms 1040 However, you may be able to deduct other foreign taxes. 2012 pdf tax forms 1040 See Deduction for Other Foreign Taxes, later. 2012 pdf tax forms 1040 There is no rule to determine whether it is to your advantage to take a deduction or a credit for foreign income taxes. 2012 pdf tax forms 1040 In most cases, it is to your advantage to take foreign income taxes as a tax credit, which you subtract directly from your U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax liability, rather than as a deduction in figuring taxable income. 2012 pdf tax forms 1040 However, if foreign income taxes were imposed at a high rate and the proportion of foreign income to U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 income is small, a lower final tax may result from deducting the foreign income taxes. 2012 pdf tax forms 1040 In any event, you should figure your tax liability both ways and then use the one that is better for you. 2012 pdf tax forms 1040 You can make or change your choice within 10 years from the due date for filing the tax return on which you are entitled to take either the deduction or the credit. 2012 pdf tax forms 1040 Foreign income taxes. 2012 pdf tax forms 1040   These are generally income taxes you pay to any foreign country or possession of the United States. 2012 pdf tax forms 1040 Foreign income taxes on U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 return. 2012 pdf tax forms 1040   Foreign income taxes can only be taken as a credit on Form 1040, line 47, or as an itemized deduction on Schedule A. 2012 pdf tax forms 1040 These amounts cannot be included as withheld income taxes on Form 1040, line 62. 2012 pdf tax forms 1040 Foreign taxes paid on excluded income. 2012 pdf tax forms 1040   You cannot take a credit or deduction for foreign income taxes paid on earnings you exclude from tax under any of the following. 2012 pdf tax forms 1040 Foreign earned income exclusion. 2012 pdf tax forms 1040 Foreign housing exclusion. 2012 pdf tax forms 1040 Possession exclusion. 2012 pdf tax forms 1040 If your wages are completely excluded, you cannot deduct or take a credit for any of the foreign taxes paid on your wages. 2012 pdf tax forms 1040   If only part of your wages is excluded, you cannot deduct or take a credit for the foreign income taxes allocable to the excluded part. 2012 pdf tax forms 1040 You find the taxes allocable to your excluded wages by applying a fraction to the foreign taxes paid on foreign earned income received during the tax year. 2012 pdf tax forms 1040 The numerator (top number) of the fraction is your excluded foreign earned income received during the tax year minus deductible expenses allocable to that income (not including the foreign housing deduction). 2012 pdf tax forms 1040 The denominator (bottom number) of the fraction is your total foreign earned income received during the tax year minus all deductible expenses allocable to that income (including the foreign housing deduction). 2012 pdf tax forms 1040   If foreign law taxes both earned income and some other type of income and the taxes on the other type cannot be separated, the denominator of the fraction is the total amount of income subject to foreign tax minus deductible expenses allocable to that income. 2012 pdf tax forms 1040    If you take a foreign tax credit for tax on income you could have excluded under your choice to exclude foreign earned income or your choice to exclude foreign housing costs, one or both of the choices may be considered revoked. 2012 pdf tax forms 1040 Credit for Foreign Income Taxes If you take the foreign tax credit, you may have to file Form 1116 with Form 1040. 2012 pdf tax forms 1040 Form 1116 is used to figure the amount of foreign tax paid or accrued that can be claimed as a foreign tax credit. 2012 pdf tax forms 1040 Do not include the amount of foreign tax paid or accrued as withheld federal income taxes on Form 1040, line 62. 2012 pdf tax forms 1040 The foreign income tax for which you can claim a credit is the amount of legal and actual tax liability you pay or accrue during the year. 2012 pdf tax forms 1040 The amount for which you can claim a credit is not necessarily the amount withheld by the foreign country. 2012 pdf tax forms 1040 You cannot take a foreign tax credit for income tax you paid to a foreign country that would be refunded by the foreign country if you made a claim for refund. 2012 pdf tax forms 1040 Subsidies. 2012 pdf tax forms 1040   If a foreign country returns your foreign tax payments to you in the form of a subsidy, you cannot claim a foreign tax credit based on these payments. 2012 pdf tax forms 1040 This rule applies to a subsidy provided by any means that is determined, directly or indirectly, by reference to the amount of tax, or to the base used to figure the tax. 2012 pdf tax forms 1040   Some ways of providing a subsidy are refunds, credits, deductions, payments, or discharges of obligations. 2012 pdf tax forms 1040 A credit is also not allowed if the subsidy is given to a person related to you, or persons who participated in a transaction or a related transaction with you. 2012 pdf tax forms 1040 Limit The foreign tax credit is limited to the part of your total U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax that is in proportion to your taxable income from sources outside the United States compared to your total taxable income. 2012 pdf tax forms 1040 The allowable foreign tax credit cannot be more than your actual foreign tax liability. 2012 pdf tax forms 1040 Exemption from limit. 2012 pdf tax forms 1040   You will not be subject to this limit and will not have to file Form 1116 if you meet all three of the following requirements. 2012 pdf tax forms 1040 Your only foreign source income for the year is passive income (dividends, interest, royalties, etc. 2012 pdf tax forms 1040 ) that is reported to you on a payee statement (such as a Form 1099-DIV or 1099-INT). 2012 pdf tax forms 1040 Your foreign taxes for the year that qualify for the credit are not more than $300 ($600 if you are filing a joint return) and are reported on a payee statement. 2012 pdf tax forms 1040 You elect this procedure. 2012 pdf tax forms 1040 If you make this election, you cannot carry back or carry over any unused foreign tax to or from this year. 2012 pdf tax forms 1040 Separate limit. 2012 pdf tax forms 1040   You must figure the limit on a separate basis with regard to “passive category income” and “general category income” (see the instructions for Form 1116). 2012 pdf tax forms 1040 Figuring the limit. 2012 pdf tax forms 1040   In figuring taxable income in each category, you take into account only the amount that you must include in income on your federal tax return. 2012 pdf tax forms 1040 Do not take any excluded amount into account. 2012 pdf tax forms 1040   To determine your taxable income in each category, deduct expenses and losses that are definitely related to that income. 2012 pdf tax forms 1040   Other expenses (such as itemized deductions or the standard deduction) not definitely related to specific items of income must be apportioned to the foreign income in each category by multiplying them by a fraction. 2012 pdf tax forms 1040 The numerator (top number) of the fraction is your gross foreign income in the separate limit category. 2012 pdf tax forms 1040 The denominator (bottom number) of the fraction is your gross income from all sources. 2012 pdf tax forms 1040 For this purpose, gross income includes income that is excluded under the foreign earned income provisions but does not include any other exempt income. 2012 pdf tax forms 1040 You must use special rules for deducting interest expenses. 2012 pdf tax forms 1040 For more information on allocating and apportioning your deductions, see Publication 514. 2012 pdf tax forms 1040 Exemptions. 2012 pdf tax forms 1040   Do not take the deduction for exemptions for yourself, your spouse, or your dependents in figuring taxable income for purposes of the limit. 2012 pdf tax forms 1040 Recapture of foreign losses. 2012 pdf tax forms 1040   If you have an overall foreign loss and the loss reduces your U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 source income (resulting in a reduction of your U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax liability), you must recapture the loss in later years when you have taxable income from foreign sources. 2012 pdf tax forms 1040 This is done by treating a part of your taxable income from foreign sources in later years as U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 source income. 2012 pdf tax forms 1040 This reduces the numerator of the limiting fraction and the resulting foreign tax credit limit. 2012 pdf tax forms 1040 Recapture of domestic losses. 2012 pdf tax forms 1040   If you have an overall domestic loss (resulting in no U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax liability), you cannot claim a foreign tax credit for taxes paid during that year. 2012 pdf tax forms 1040 You must recapture the loss in later years when you have U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 source taxable income. 2012 pdf tax forms 1040 This is done by treating a part of your taxable income from U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 sources in later years as foreign source income. 2012 pdf tax forms 1040 This increases the numerator of the limiting fraction and the resulting foreign tax credit limit. 2012 pdf tax forms 1040 Foreign tax credit carryback and carryover. 2012 pdf tax forms 1040   The amount of foreign income tax not allowed as a credit because of the limit can be carried back 1 year and carried forward 10 years. 2012 pdf tax forms 1040   More information on figuring the foreign tax credit can be found in Publication 514. 2012 pdf tax forms 1040 Deduction for Foreign Income Taxes Instead of taking the foreign tax credit, you can deduct foreign income taxes as an itemized deduction on Schedule A (Form 1040). 2012 pdf tax forms 1040 You can deduct only foreign income taxes paid on income that is subject to U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax. 2012 pdf tax forms 1040 You cannot deduct foreign taxes paid on earnings you exclude from tax under any of the following. 2012 pdf tax forms 1040 Foreign earned income exclusion. 2012 pdf tax forms 1040 Foreign housing exclusion. 2012 pdf tax forms 1040 Possession exclusion. 2012 pdf tax forms 1040 Example. 2012 pdf tax forms 1040 You are a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen and qualify to exclude your foreign earned income. 2012 pdf tax forms 1040 Your excluded wages in Country X are $70,000 on which you paid income tax of $10,000. 2012 pdf tax forms 1040 You received dividends from Country X of $2,000 on which you paid income tax of $600. 2012 pdf tax forms 1040 You can deduct the $600 tax payment because the dividends relating to it are subject to U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 tax. 2012 pdf tax forms 1040 Because you exclude your wages, you cannot deduct the income tax of $10,000. 2012 pdf tax forms 1040 If you exclude only a part of your wages, see the earlier discussion under Foreign taxes paid on excluded income. 2012 pdf tax forms 1040 Deduction for Other Foreign Taxes You can deduct real property taxes you pay that are imposed on you by a foreign country. 2012 pdf tax forms 1040 You take this deduction on Schedule A (Form 1040). 2012 pdf tax forms 1040 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. 2012 pdf tax forms 1040 On the other hand, you generally can deduct personal property taxes when you pay them to U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 possessions. 2012 pdf tax forms 1040 But if you claim the possession exclusion, see Publication 570. 2012 pdf tax forms 1040 The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. 2012 pdf tax forms 1040 You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes imposed by a foreign country. 2012 pdf tax forms 1040 How To Report Deductions If you exclude foreign earned income or housing amounts, how you show your deductions on your tax return and how you figure the amount allocable to your excluded income depends on whether the expenses are used in figuring adjusted gross income (Form 1040, line 38) or are itemized deductions. 2012 pdf tax forms 1040 If you have deductions used in figuring adjusted gross income, enter the total amount for each of these items on the appropriate lines and schedules of Form 1040. 2012 pdf tax forms 1040 Generally, you figure the amount of a deduction related to the excluded income by multiplying the deduction by a fraction, the numerator of which is your foreign earned income exclusion and the denominator of which is your foreign earned income. 2012 pdf tax forms 1040 Enter the amount of the deduction(s) related to excluded income on line 44 of Form 2555. 2012 pdf tax forms 1040 If you have itemized deductions related to excluded income, enter on Schedule A (Form 1040) only the part not related to excluded income. 2012 pdf tax forms 1040 You figure that amount by subtracting from the total deduction the amount related to excluded income. 2012 pdf tax forms 1040 Generally, you figure the amount that is related to the excluded income by multiplying the total deduction by a fraction, the numerator of which is your foreign earned income exclusion and the denominator of which is your foreign earned income. 2012 pdf tax forms 1040 Attach a statement to your return showing how you figured the deductible amount. 2012 pdf tax forms 1040 Example 1. 2012 pdf tax forms 1040 You are a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen employed as an accountant. 2012 pdf tax forms 1040 Your tax home is in Germany for the entire tax year. 2012 pdf tax forms 1040 You meet the physical presence test. 2012 pdf tax forms 1040 Your foreign earned income for the year was $122,000 and your investment income was $10,380. 2012 pdf tax forms 1040 After excluding $97,600, your AGI is $34,780. 2012 pdf tax forms 1040 You had unreimbursed business expenses of $2,500 for travel and entertainment in earning your foreign income, of which $500 was for meals and entertainment. 2012 pdf tax forms 1040 These expenses are deductible only as miscellaneous deductions on Schedule A (Form 1040). 2012 pdf tax forms 1040 You also have $500 of miscellaneous expenses that are not related to your foreign income that you enter on line 23 of Schedule A. 2012 pdf tax forms 1040 You must fill out Form 2106. 2012 pdf tax forms 1040 On that form, reduce your deductible meal and entertainment expenses by 50% ($250). 2012 pdf tax forms 1040 You must reduce the remaining $2,250 of travel and entertainment expenses by 80% ($1,800) because you excluded 80% ($97,600/$122,000) of your foreign earned income. 2012 pdf tax forms 1040 You carry the remaining total of $450 to line 21 of Schedule A. 2012 pdf tax forms 1040 Add the $450 to the $500 that you have on line 23 and enter the total ($950) on line 24. 2012 pdf tax forms 1040 On line 26 of Schedule A, enter $696, which is 2% of your adjusted gross income of $34,780 (line 38, Form 1040) and subtract it from the amount on line 24. 2012 pdf tax forms 1040 Enter $254 on line 27 of Schedule A. 2012 pdf tax forms 1040 Example 2. 2012 pdf tax forms 1040 You are a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, have a tax home in Spain, and meet the physical presence test. 2012 pdf tax forms 1040 You are self-employed and personal services produce the business income. 2012 pdf tax forms 1040 Your gross income was $116,931, business expenses $66,895, and net income (profit) $50,036. 2012 pdf tax forms 1040 You choose the foreign earned income exclusion and exclude $97,600 of your gross income. 2012 pdf tax forms 1040 Since your excluded income is 83. 2012 pdf tax forms 1040 47% of your total income, 83. 2012 pdf tax forms 1040 47% of your business expenses are not deductible. 2012 pdf tax forms 1040 Report your total income and expenses on Schedule C (Form 1040). 2012 pdf tax forms 1040 On Form 2555 you will show the following: Line 20a, $116,931, gross income, Lines 42 and 43, $97,600, foreign earned income exclusion, and Line 44, $55,837 (83. 2012 pdf tax forms 1040 47% × $66,895) business expenses attributable to the exclusion. 2012 pdf tax forms 1040 In this situation (Example 2), you cannot use Form 2555-EZ since you had self-employment income and business expenses. 2012 pdf tax forms 1040 Example 3. 2012 pdf tax forms 1040 Assume in Example 2 that both capital and personal services combine to produce the business income. 2012 pdf tax forms 1040 No more than 30% of your net income, or $15,011, assuming that this amount is a reasonable allowance for your services, is considered earned and can be excluded. 2012 pdf tax forms 1040 Your exclusion of $15,011 is 12. 2012 pdf tax forms 1040 84% of your gross income ($15,011 ÷ $116,931). 2012 pdf tax forms 1040 Because you excluded 12. 2012 pdf tax forms 1040 84% of your total income, $8,589 (. 2012 pdf tax forms 1040 1284 x $66,895) of your business expenses is attributable to the excluded income and is not deductible. 2012 pdf tax forms 1040 Example 4. 2012 pdf tax forms 1040 You are a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, have a tax home in Brazil, and meet the physical presence test. 2012 pdf tax forms 1040 You are self-employed and both capital and personal services combine to produce business income. 2012 pdf tax forms 1040 Your gross income was $146,000, business expenses were $172,000, and your net loss was $26,000. 2012 pdf tax forms 1040 A reasonable allowance for the services you performed for the business is $77,000. 2012 pdf tax forms 1040 Because you incurred a net loss, the earned income limit of 30% of your net profit does not apply. 2012 pdf tax forms 1040 The $77,000 is foreign earned income. 2012 pdf tax forms 1040 If you choose to exclude the $77,000, you exclude 52. 2012 pdf tax forms 1040 74% of your gross income ($77,000 ÷ $146,000), and 52. 2012 pdf tax forms 1040 74% of your business expenses ($90,713) is attributable to that income and is not deductible. 2012 pdf tax forms 1040 Show your total income and expenses on Schedule C (Form 1040). 2012 pdf tax forms 1040 On Form 2555, exclude $77,000 and show $90,713 on line 44. 2012 pdf tax forms 1040 Subtract line 44 from line 43, and enter the difference as a negative (in parentheses) on line 45. 2012 pdf tax forms 1040 Because this amount is negative, enter it as a positive (no parentheses) on line 21, Form 1040, and combine it with your other income to arrive at total income on line 22 of Form 1040. 2012 pdf tax forms 1040 In this situation (Example 4), you would probably not want to choose the foreign earned income exclusion if this was the first year you were eligible. 2012 pdf tax forms 1040 If you had chosen the exclusion in an earlier year, you might want to revoke the choice for this year. 2012 pdf tax forms 1040 To do so would mean that you could not claim the exclusion again for the next 5 tax years without IRS approval. 2012 pdf tax forms 1040 See Choosing the Exclusion in chapter 4. 2012 pdf tax forms 1040 Example 5. 2012 pdf tax forms 1040 You are a U. 2012 pdf tax forms 1040 S. 2012 pdf tax forms 1040 citizen, have a tax home in Panama, and meet the bona fide residence test. 2012 pdf tax forms 1040 You have been performing services for clients as a partner in a firm that provides services exclusively in Panama. 2012 pdf tax forms 1040 Capital investment is not material in producing the partnership's income. 2012 pdf tax forms 1040 Under the terms of the partnership agreement, you are to receive 50% of the net profits. 2012 pdf tax forms 1040 The partnership received gross income of $244,000 and incurred operating expenses of $98,250. 2012 pdf tax forms 1040 Of the net profits of $145,750, you received $72,875 as your distributive share. 2012 pdf tax forms 1040 You choose to exclude $97,600 of your share of the gross income. 2012 pdf tax forms 1040 Because you exclude 80% ($97,600 ÷ $122,000) of your share of the gross income, you cannot deduct $39,300, 80% of your share of the operating expenses (. 2012 pdf tax forms 1040 80 × $49,125). 2012 pdf tax forms 1040 Report $72,875, your distributive share of the partnership net profit, on Schedule E (Form 1040), Supplemental Income and Loss. 2012 pdf tax forms 1040 On Form 2555, show $97,600 on line 42 and show $39,300 on line 44. 2012 pdf tax forms 1040 Your exclusion on Form 2555 is $58,300. 2012 pdf tax forms 1040 In this situation (Example 5), you cannot use Form 2555-EZ since you had earned income other than salaries and wages and you had business expenses. 2012 pdf tax forms 1040 Prev  Up  Next   Home   More Online Publications