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2012 Tax

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2012 Tax

2012 tax Index Symbols (ITIN), Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). 2012 tax 10% tax for early withdrawal from IRA or retirement plan (see Early withdrawal from deferred interest account, subheading: Tax on) 10-year tax option, 10-Year Tax Option 401(k) plans Tax treatment of contributions, Elective deferrals. 2012 tax 403(b) plans Rollovers, Rollovers, Rollover From Employer's Plan Into an IRA, Rollover from a qualified retirement plan into a Roth IRA. 2012 tax 457 plans (see Section 457 deferred compensation plans) 529 plans (see Qualified tuition programs) 59 rule, Age 59½ rule. 2012 tax 60 day rule, Time limit for making a rollover contribution. 2012 tax 70 rule, Age 70½ rule. 2012 tax , Nonresident alien spouse. 2012 tax A Abandonment of home, Abandonment. 2012 tax Abortion Deductibility as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Abroad, citizens traveling or working, Employees of foreign governments or international organizations. 2012 tax , Foreign Employer, Travel Outside the United States, Travel Primarily for Business (see also Citizens outside U. 2012 tax S. 2012 tax ) (see also Foreign employment) Absence, temporary, Temporary absences. 2012 tax , Temporary absences. 2012 tax Accelerated death benefits, Accelerated Death Benefits, Exclusion for terminal illness. 2012 tax Accident insurance, Accident or Health Plan Cafeteria plans, Cafeteria plans. 2012 tax Long-term care, Long-term care coverage. 2012 tax , Long-Term Care Insurance Contracts Accidental death benefits, Accidental death benefits. 2012 tax Accidents, car, Deductible losses. 2012 tax Value determination, Car value. 2012 tax Willful negligence or intentional act as cause, Nondeductible losses. 2012 tax Accountable plans for employee reimbursements, Accountable Plans, Related to employer. 2012 tax Accountants Basis to include fees of, Cost Basis CPA review courses, Bar or CPA Review Course Accounting methods, Accounting Methods Accrual method (see Accrual method taxpayers) Cash method (see Cash method taxpayers) Change of Depreciation, to deduct unclaimed amount, Changing your accounting method to deduct unclaimed depreciation. 2012 tax Accounting periods, Accounting Periods Calendar year, When Do I Have To File?, Accounting Periods, Accounting period. 2012 tax Change in, standard deduction not allowed, Persons not eligible for the standard deduction. 2012 tax Fiscal year, Accounting Periods, Fiscal year taxpayers. 2012 tax , Fiscal Years Fringe benefits, Accounting period. 2012 tax Accrual method taxpayers, Accrual method. 2012 tax Taxes paid during tax year, deduction of, You must pay the tax during your tax year. 2012 tax Accumulation distribution of trusts Tax on, Other taxes. 2012 tax Accuracy-related penalties, Accuracy-related penalty. 2012 tax Acknowledgment, Acknowledgment. 2012 tax Activities not for profit, Activity not for profit. 2012 tax Address, Name and Address Change of, Change of Address Foreign, Foreign address. 2012 tax P. 2012 tax O. 2012 tax box, P. 2012 tax O. 2012 tax box. 2012 tax Address, filing, Where To File Adjusted basis, Adjusted Basis, Postponed gain from sale of home. 2012 tax Decreases to basis, Decreases to Basis Depreciation, Depreciation and section 179 deduction. 2012 tax Easements, Easements. 2012 tax Energy conservation subsidies exclusion, Exclusion of subsidies for energy conservation measures. 2012 tax Gifts, Property Received as a Gift Home sale (see Sale of home) Improvements, Improvements. 2012 tax Increases to basis, Increases to Basis Local assessments, Assessments for local improvements. 2012 tax Sales of property, Adjusted basis. 2012 tax Section 179 deduction, Depreciation and section 179 deduction. 2012 tax Adjusted gross income (AGI) Medical and dental expenses and limit of deduction, How Much of the Expenses Can You Deduct?, What Tax Form Do You Use? Retirement savings contribution credit, Special Rules Adjustments, Adjustments and tax preference items. 2012 tax Administrators, estate (see Executors and administrators) Adopted child, Exception for adopted child. 2012 tax , Adopted child. 2012 tax , Adopted child. 2012 tax , Taxpayer identification numbers for adoptees. 2012 tax Earned income credit, Adopted child. 2012 tax Adoption, Adoption Credit, Child with special needs. 2012 tax ATIN, Adoption taxpayer identification number (ATIN). 2012 tax , Adoption taxpayer identification number (ATIN). 2012 tax Child tax credit, Adopted child. 2012 tax (see also Child tax credit) Credits, Personal Expenses Married filing separately, Special Rules Taking, When to take the credit. 2012 tax Employer assistance, Adoption Assistance Exception for adopted child, Exception for adopted child. 2012 tax Exemption for child, Personal Expenses Expenses not deductible Foster care prior to, no charitable deduction, Foster parents. 2012 tax No charitable deduction for, Personal Expenses Foreign child, Foreign child. 2012 tax Medical and dental expenses of adopted child, Qualifying Child Taxpayer identification number, Adoption taxpayer identification number (ATIN). 2012 tax , Taxpayer identification numbers for aliens. 2012 tax Taxpayer identification numbers (TINs), Adoption taxpayer identification number (ATIN). 2012 tax Age Children's investments (see Children, subheading: Investment income of child under age 18) Form 1040EZ, taxpayer under 65 may use, You can use Form 1040EZ if all of the following apply. 2012 tax Gross income and filing requirements (Table 1-1), Introduction IRAs Contribution cutoff at age 70, Age 70½ rule. 2012 tax Distribution prior to age 59, Age 59½ rule. 2012 tax Distribution required at age 70, IRA owners. 2012 tax , Excess Accumulations (Insufficient Distributions) Pension distributions required at age 70, Age 70½. 2012 tax Retirement plan recipients over age 75, Who must use the General Rule. 2012 tax Roth IRAs, Is there an age limit for contributions?, Must you withdraw or use Roth IRA assets? Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Age test, Age Test (see Qualifying child) Agents, Losses on sales or trades of property. 2012 tax (see also Fiduciaries) Income paid to, Payment to an agent. 2012 tax Signing return, When someone can sign for you. 2012 tax AGI (see Adjusted gross income (AGI)) Agricultural workers (see Farmers) (see Farmworkers) Agriculture (see Farming) Aircraft Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. 2012 tax Airline club dues Not entertainment expenses, Club dues and membership fees. 2012 tax Airplanes, donations of, Cars, boats, and airplanes. 2012 tax Airport transportation Business-related travel expense, Table 26-1. 2012 tax Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. 2012 tax Alaska Standard meal allowance, Standard meal allowance for areas outside the continental United States. 2012 tax Alaska Permanent Fund dividends, Alaska Permanent Fund dividend. 2012 tax Child's dividends, Child's Alaska Permanent Fund dividends. 2012 tax Income from, You can use Form 1040EZ if all of the following apply. 2012 tax , You can use Form 1040A if all of the following apply. 2012 tax , Alaska Permanent Fund dividends. 2012 tax Investment income not to include, Investment income. 2012 tax Alaska Unemployment Compensation Fund, Contributions to state benefit funds. 2012 tax Alcohol rehabilitation centers Deductibility of medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Alcoholic beverages IRA prohibited transactions in, Collectibles. 2012 tax Aliens, Individual taxpayer identification number (ITIN) for aliens. 2012 tax , Not earned income. 2012 tax Dual-status (see Dual-status taxpayers) Filing required, Aliens Nonresident (see Nonresident aliens) Resident (see Resident aliens) Alimony, Alimony, Introduction, Spouse or former spouse. 2012 tax , Payments not alimony. 2012 tax , Payments to a third party. 2012 tax , Life insurance premiums. 2012 tax , Payments for jointly-owned home. 2012 tax , Mortgage payments. 2012 tax , Taxes and insurance. 2012 tax , Other payments to a third party. 2012 tax , Instruments Executed After 1984, Exception for instruments executed before 1985. 2012 tax , Alimony requirements. 2012 tax , Cash payment requirement. 2012 tax , Payments to a third party. 2012 tax , Payments designated as not alimony. 2012 tax , Spouses cannot be members of the same household. 2012 tax , Liability for payments after death of recipient spouse. 2012 tax , Substitute payments. 2012 tax , How To Deduct Alimony Paid, How To Report Alimony Received, Recapture Rule, Including the recapture in income. 2012 tax , Deducting the recapture. 2012 tax Definition of, Introduction Mortgage payments Interest deduction, Divorced or separated individuals. 2012 tax Reporting of income, Alimony. 2012 tax Alternative filing methods Electronic (see E-file ) Alternative minimum tax (AMT), Alternative Minimum Tax (AMT) Child's tax, figuring of, Alternative minimum tax. 2012 tax Exempt-interest dividends, Alternative minimum tax treatment. 2012 tax Filing requirements (Table 1-3), Figuring tax. 2012 tax Incentive stock option, You can use Form 1040A if all of the following apply. 2012 tax Nonrefundable credit for prior year tax, Nonrefundable Credit for Prior Year Minimum Tax Alternative motor vehicle credit, Alternative Motor Vehicle Credit, Amount of credit. 2012 tax Ambulance service personnel Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Amended returns, Amended Returns and Claims for Refund, Form 1040X. 2012 tax , Filing Form 1040X. 2012 tax (see also Form 1040X) Itemized deduction, change to standard deduction, Changing your mind. 2012 tax Standard deduction, change to itemized deductions, Changing your mind. 2012 tax American citizens abroad, U. 2012 tax S. 2012 tax Citizens and Resident Aliens Living Abroad (see also Citizens outside U. 2012 tax S. 2012 tax ) Employment (see Foreign employment) American Indians (see Indians) American opportunity credit Tuition deduction and, Who Cannot Claim the Deduction American Samoa Income from, Individuals With Income From U. 2012 tax S. 2012 tax Possessions Amortization Bond premiums, treatment of, Amortization of bond premium. 2012 tax AMT (see Alternative minimum tax (AMT)) Annuities, Rollovers (see also Rollovers) Cost computation, Cost (Investment in the Contract) Decedent's unrecovered investment in, Form W-2. 2012 tax Early distributions from, Tax on Early Distributions Deferred annuity contracts, 5% rate on certain early distributions from deferred annuity contracts. 2012 tax , Additional exceptions for nonqualified annuity contracts. 2012 tax Estimated tax, Withholding and estimated tax. 2012 tax Exclusion limit, Exclusion limit. 2012 tax General Rule Annuity starting before November 19, 1996, Annuity starting before November 19, 1996. 2012 tax Nonqualified plans and qualified plans for recipients over 75 years, Who must use the General Rule. 2012 tax Purchased annuities, Purchased annuities. 2012 tax Survivor's annuity, Survivors of retirees. 2012 tax Guaranteed payments, Guaranteed payments. 2012 tax IRAs as, Kinds of traditional IRAs. 2012 tax Joint return, Joint return. 2012 tax Loans from plan, Loans. 2012 tax Lump-sum distributions, Lump-Sum Distributions Multiple plan benefits, More than one program. 2012 tax , More than one annuity. 2012 tax Partly taxable payments, Partly taxable payments. 2012 tax Purchased annuities, Purchased annuities. 2012 tax Reporting of, How To Report Retirement annuities, Retirement Plans, Pensions, and Annuities (see also Retirement plans) Rollovers, Rollovers Sale of, Sale of Annuity Gain as ordinary income, Tax-free exchange. 2012 tax Simplified method to calculate tax-free part of annuity payment, Simplified Method Survivor's annuity, Survivors of retirees. 2012 tax Worksheet for computation, How to use the Simplified Method. 2012 tax Survivor annuities, Survivors and Beneficiaries Trade of insurance policies and annuities, Insurance policies and annuities. 2012 tax Unrecovered investment, Unrecovered Investment in Annuity Withholding, Form W-2. 2012 tax , Pensions and Annuities, Withholding and estimated tax. 2012 tax Annulled marriages Filing status, Annulled marriages. 2012 tax Anthrax incidents (see Terrorist attacks) Antiques (see Collectibles) Appliances Deterioration and damage, not casualty loss, Progressive deterioration. 2012 tax Appraisal fees, Appraisal Fees Donated property, Appraisal Fees Not deductible as interest, Amounts charged for services. 2012 tax Real estate transactions, when required by lender, Settlement costs. 2012 tax Appraisals Casualty or theft losses, Appraisal. 2012 tax , Costs of photographs and appraisals. 2012 tax Archer MSAs, Medical savings accounts (MSAs). 2012 tax Contributions, Archer MSA contributions. 2012 tax Medical expenses paid for decedent from, Decedent Not deductible as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Armed forces, Types of Qualified Organizations, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Armed Forces reservists. 2012 tax (see also Reservists) (see also Veterans' organizations) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. 2012 tax Dependency allotments, Armed Forces dependency allotments. 2012 tax Disability pay, Disability. 2012 tax Disability pensions, Military and Government Disability Pensions GI Bill benefits, Tuition payments and allowances under the GI Bill. 2012 tax Military, Military uniforms. 2012 tax Military quarters allotments, Tax-exempt military quarters allowances. 2012 tax Naval officers on permanent duty aboard ship, Members of the Armed Forces. 2012 tax Permanent duty overseas, Members of the Armed Forces. 2012 tax Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. 2012 tax , Ministers' and military housing allowance. 2012 tax Rehabilitative program payments, Veterans' benefits. 2012 tax Reserves, Armed Forces reservists traveling more than 100 miles from home. 2012 tax Retirees' pay Taxable income, Military retirement pay. 2012 tax Uniforms, Military uniforms. 2012 tax Wages, Military Armed Forces Retiree's pay withholding, Military retirees. 2012 tax Art works As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. 2012 tax Capital gains or losses from sale or trade of, Investment interest deducted. 2012 tax Artists, performing (see Performing artists) Assessments, local (see Local assessments) Assistance (see Tax help) Assistance, tax (see Tax help) Assumption of mortgage, Assumption of mortgage. 2012 tax Fees not included in basis, Settlement costs. 2012 tax At-risk rules Rental property, At-Risk Rules Athletic events Charitable contributions, amount deductible, Athletic events. 2012 tax ATIN (Adoption taxpayer identification number), Adoption taxpayer identification number (ATIN). 2012 tax Attachment of wages, Garnisheed wages. 2012 tax Attachments to return, Attachments Attorneys Bar review courses, Bar or CPA Review Course Attorneys' fees, Legal Expenses, Personal Legal Expenses Basis to include, Cost Basis Social security and railroad retirement benefits, deductions for, Legal expenses. 2012 tax Title to property, for preparation, filing, etc. 2012 tax , Settlement costs. 2012 tax Audits Travel expense records, If your return is examined. 2012 tax Auto insurance Medical expenses covered by, not deductible, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Automatic extension of time to file, Automatic Extension, When to file. 2012 tax Form 4868, E-file options. 2012 tax Automatic investment services Holding period, determination of, Automatic investment service. 2012 tax Awards (see Prizes and awards) Away-from-home travel (see Travel and transportation expenses) B Babysitting, Babysitting. 2012 tax Back pay, award for, Back pay awards. 2012 tax Emotional distress damages under title VII of Civil Rights Act of 1964, Court awards and damages. 2012 tax Backup withholding, Backup Withholding, Backup withholding. 2012 tax , Backup withholding. 2012 tax Dividend income, Backup withholding. 2012 tax , Reporting tax withheld. 2012 tax Penalties, Penalties. 2012 tax Bad debts Bank deposit, loss due to bank's insolvency or bankruptcy, Nonbusiness bad debt. 2012 tax Reporting on Schedule D (Form 1040), How to report. 2012 tax Claim for refund, Exceptions for special types of refunds. 2012 tax , Filing a claim for refund. 2012 tax Nonbusiness, Nonbusiness Bad Debts Recovery, Recoveries Reporting of, How to report bad debts. 2012 tax Short-term capital loss, How to report bad debts. 2012 tax When deductible, When deductible. 2012 tax Baggage Business-related travel expense, Table 26-1. 2012 tax Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. 2012 tax Balance due, Refund or balance due. 2012 tax Bankruptcy Canceled debt not deemed to be income, Excluded debt. 2012 tax Financial institution's bankruptcy causing deductible loss, Loss on Deposits Reporting of, Loss on deposits. 2012 tax Banks Automatic investment service, determination of holding period, Automatic investment service. 2012 tax IRAs with, When and How Can a Traditional IRA Be Opened? Losses on deposits, when casualty losses, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. 2012 tax Money market accounts, Money Market Funds Bar associations Charitable contributions to, Contributions to Nonqualified Organizations Bar employees Tips (see Tip income) Bar review courses, Bar or CPA Review Course Bargain sales As charitable contributions, Bargain sales. 2012 tax Basis of purchase, Bargain purchases. 2012 tax Barter income, Bartering Definition of bartering, Bartering Form 1099-B, Form 1099-B from barter exchange. 2012 tax Basis Adjusted basis, Adjusted Basis Allocation between business and personal use, Introduction Bad debts, Basis in bad debt required. 2012 tax Bargain purchases, Bargain purchases. 2012 tax Bonds, Stocks and Bonds, Bond premium. 2012 tax Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. 2012 tax , Partly taxable. 2012 tax Definition of, Introduction Gifts, Property Received as a Gift Home sales (see Sale of home) Improvements to real estate, Improvements. 2012 tax Involuntary conversion, Involuntary Conversions Like-kind exchanges, Basis of property received. 2012 tax Other than cost, Basis Other Than Cost, Tax-exempt obligations. 2012 tax , No gain or loss. 2012 tax Points not to be included, Settlement costs. 2012 tax , Points. 2012 tax Property received for services, Property Received for Services Real estate, Real Property Restricted property, Restricted property. 2012 tax Stock or stock rights, Basis. 2012 tax Tax-exempt obligations Bonds, Tax-exempt obligations. 2012 tax Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Beetles Damage or destruction to trees and plants, when casualty loss, Progressive deterioration. 2012 tax Beneficiaries, Beneficiary of an estate or trust. 2012 tax , Rollover by surviving spouse. 2012 tax , Estate and trust income. 2012 tax , Losses. 2012 tax (see also Estate beneficiaries) (see also Trust beneficiaries) Bequests, Estate and trust income. 2012 tax , Losses. 2012 tax , Gifts and inheritances. 2012 tax , Income from property received as a gift. 2012 tax (see also Estate beneficiaries) (see also Gifts) (see also Inheritance) Bicycle Fringe benefit, Qualified bicycle commuting. 2012 tax Bingo, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Contributions From Which You Benefit Birth control pills, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Birth of child, Death or birth of child. 2012 tax Head of household, qualifying person to file as, Death or birth. 2012 tax , Death or birth. 2012 tax Social security number to be obtained, Born and died in 2013. 2012 tax Birth of dependent, Death or birth. 2012 tax Blackmail Losses due to, Theft Blind persons Exemption from withholding, Age 65 or older or blind. 2012 tax Guide dogs, deductible as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Impairment-related work expenses, deduction for, Impairment-Related Work Expenses Standard deduction for, Introduction, Higher Standard Deduction for Blindness Blood banks No charitable deduction for blood donations to, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Value of Time or Services Blue books to determine fair market value, Cars, boats, and airplanes. 2012 tax Boats Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. 2012 tax Donations of, Cars, boats, and airplanes. 2012 tax Body scan, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Bona fide business purpose Travel expenses, Bona fide business purpose. 2012 tax Work-related education, Qualifying Work-Related Education Bonds Adjusted basis for, Stocks and Bonds Amortization of premium, Amortization of bond premium. 2012 tax , Amortizable Premium on Taxable Bonds As capital assets, Capital Assets and Noncapital Assets, Stocks, stock rights, and bonds. 2012 tax Convertible bonds, Convertible stocks and bonds. 2012 tax Discounted Capital gain or loss, Discounted Debt Instruments Issued at discount, Original Issue Discount (OID) Market discount bonds, Market discount bonds. 2012 tax Original issue discount, Original Issue Discount (OID) Redemption of, Redemption or retirement of bonds. 2012 tax Retirement of, Retirement bonds. 2012 tax , Redemption or retirement of bonds. 2012 tax Sale of, Bonds Sold Between Interest Dates Savings, U. 2012 tax S. 2012 tax Savings Bonds, Series HH bonds. 2012 tax , Series EE and series I bonds. 2012 tax Sold at premium, computation of adjusted basis, Bond premium. 2012 tax State or local government, tax-exempt, Tax-exempt state and local government bonds. 2012 tax Tax-exempt, State or Local Government Obligations Bonuses, Supplemental Wages, Bonuses and awards. 2012 tax , Employee awards or bonuses. 2012 tax Bookkeeping (see Recordkeeping requirements) Books to determine fair market value, Car value. 2012 tax Borrowed funds, Loans. 2012 tax , Items You Cannot Deduct (see also Loans) Used for charitable contributions, deduction for, Borrowed funds. 2012 tax Bottled water, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Boy Scouts Charitable contributions to, Examples. 2012 tax , Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check Braille books, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Breach of contract Damages as income, Court awards and damages. 2012 tax employment, Damages for Breach of Employment Contract Breast pump and supplies, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Bribes, Bribes. 2012 tax , List of Nondeductible Expenses Brokers Form 1099-B, Sales and Trades IRAs with, When and How Can a Traditional IRA Be Opened? Commissions, Brokers' commissions. 2012 tax , Brokers' commissions. 2012 tax Receiving dividends, reporting on Form 1099-MISC, Form 1099-MISC. 2012 tax Burglary Losses due to, Theft Burial expenses, List of Nondeductible Expenses (see Funerals) Business associates, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. 2012 tax Business expenses, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Job search expenses, Job interview expenses. 2012 tax Meal expenses (see Meal and lodging expenses) Reimbursements, Expense allowances. 2012 tax , Allowances and reimbursements. 2012 tax Returning excess for business expenses, Returning Excess Reimbursements Returning excess business expenses, Expense allowances. 2012 tax Travel (see Travel and transportation expenses) Work-related education, What Expenses Can Be Deducted Business organizations Charitable contributions to, Contributions to Nonqualified Organizations Business property As gift, adjusted basis for, Business property. 2012 tax Basis for depreciation, Basis for depreciation. 2012 tax Property use changed to, adjusted basis for, Property Changed From Personal to Business or Rental Use Sales or exchanges Like-kind exchanges, Like-kind exchanges. 2012 tax Business tax credits Claim for refund, Exceptions for special types of refunds. 2012 tax Business use of home, Home Office C Cafeteria plans, Cafeteria plans. 2012 tax Calendar year taxpayers Accounting periods, When Do I Have To File?, Accounting Periods, Accounting period. 2012 tax Filing due date, When Do I Have To File? California Nonoccupational Disability Benefit Fund, Contributions to state benefit funds. 2012 tax Campaign contributions, Campaign contributions. 2012 tax , Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Presidential Election Campaign Fund, Presidential Election Campaign Fund Campaign expenses, Campaign Expenses Canada Resident of, Citizen or Resident Test, Child in Canada or Mexico. 2012 tax Cancellation of debt, Canceled Debts Exceptions to treatment as income, Exceptions Candidates for public office Contributions to, no charitable deduction for, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Capital assets Coal and iron ore, Coal and iron ore. 2012 tax Definition of, Capital Assets and Noncapital Assets Capital expenses, Capital expenses. 2012 tax Capital gains or losses, Capital Gains and Losses, How to report and postpone gain. 2012 tax , Reporting Gains and Losses Bad debts as short-term capital loss, How to report bad debts. 2012 tax Carryover of, Long-term gains and losses. 2012 tax , Capital loss carryover. 2012 tax Worksheet, Figuring your carryover. 2012 tax Character of gain, Capital Gains and Losses Character of loss, Capital Gains and Losses Child's distributions and dividends, reporting of, Child's capital gain distributions. 2012 tax , Capital gain distributions and qualified dividends. 2012 tax Collectibles, Investment interest deducted. 2012 tax Deductions, Capital Losses Limit on, Limit on deduction. 2012 tax Distributions, Money Market Funds Form 1040 or 1040A to be used, You can use Form 1040A if all of the following apply. 2012 tax , How To Report Dividend Income Form 8949, Reporting Gains and Losses Hobbies, sales from collections, Hobby losses. 2012 tax Holding period, determination of, Holding Period How to report, Reporting Capital Gains and Losses Installment sales and, Installment sales. 2012 tax Lump-sum distributions from pensions and annuities, Capital Gain Treatment Mutual funds paying, Capital Gain Distributions Net capital gain, Capital Gains and Losses, Long-term gains and losses. 2012 tax , Capital Gain Tax Rates Included as investment income, Choosing to include net capital gain. 2012 tax Net long-term capital loss, Long-term gains and losses. 2012 tax Sale of personal items, Sale of personal items. 2012 tax Sale or trade of property held more than 1 year, Long-term or short-term. 2012 tax , Long-term gains and losses. 2012 tax Schedule D, Reporting Gains and Losses , Reporting Capital Gains and Losses Section 1250 gains from sale of real property, Capital Gains and Losses, Unrecaptured section 1250 gain. 2012 tax State or local government bonds, tax-exempt, Tax-exempt state and local government bonds. 2012 tax Tax rates, Capital Gain Tax Rates Total net gain, Total net gain or loss. 2012 tax Total net loss, Total net gain or loss. 2012 tax Undistributed gains, Long-term gains and losses. 2012 tax Credit for tax on, Undistributed capital gains of mutual funds and REITs. 2012 tax , Credit for Tax on Undistributed Capital Gain Car expenses, Car expenses. 2012 tax Car pools, Car pools. 2012 tax , Car pools. 2012 tax Carrybacks Business tax credit carrybacks, Exceptions for special types of refunds. 2012 tax Carryovers Capital loss, Long-term gains and losses. 2012 tax , Capital loss carryover. 2012 tax Worksheet, Figuring your carryover. 2012 tax Investment interest, Limit on Deduction Cars, Transportation, Transporting school children. 2012 tax , Car Expenses and Other Employee Business Expenses, Car Expenses (see also Standard mileage rates) (see also Travel and transportation) Accidents resulting in casualty loss, Deductible losses. 2012 tax Value determination, Car value. 2012 tax Willful negligence or intentional act as cause, Nondeductible losses. 2012 tax Actual expenses, Car Expenses, Actual Car Expenses Advertising displays on, Advertising display on car. 2012 tax Allowances from employers, Per Diem and Car Allowances As capital assets, Capital Assets and Noncapital Assets Blue book to determine fair market value, Cars, boats, and airplanes. 2012 tax Books to determine fair market value, Car value. 2012 tax Business and personal use, allocation between, Business and personal use. 2012 tax , Separating expenses. 2012 tax Business-related travel expenses, Table 26-1. 2012 tax Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. 2012 tax Car pools, Car pools. 2012 tax Charitable gift of, deduction for fair market value, Cars, boats, and airplanes. 2012 tax Charitable organization service, use for, Car expenses. 2012 tax Depreciation, Depreciation and section 179 deductions. 2012 tax Donations of, Cars, boats, and airplanes. 2012 tax Fixed and variable rate (FAVR), Fixed and variable rate (FAVR). 2012 tax Form 2106 or 2106-EZ, how to fill out, Car expenses. 2012 tax Hauling tools or instruments, Hauling tools or instruments. 2012 tax Interest on loans, not deductible, Personal Interest Leased vehicles, Leasing a car. 2012 tax Medical transportation, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax , Transportation, Car expenses. 2012 tax Parking (see Parking fees) Personal property taxes on, deduction of, Personal Property Taxes Reporting of, How To Report Table 26-3 showing forms to be used, Per diem allowance more than federal rate. 2012 tax Sale, trade-in, or other disposition, Sale, Trade-In, or Other Disposition Section 179 deductions, Depreciation and section 179 deductions. 2012 tax Work-related education, transportation for, Using your car. 2012 tax Cash Dividends paid as, Introduction Rebates, Cash rebates. 2012 tax Sales of property for, Payment of cash. 2012 tax Cash contributions, records to keep, Cash Contributions Cash method taxpayers, Cash method. 2012 tax Bad debts, Basis in bad debt required. 2012 tax Points, deduction of, Deduction Allowed in Year Paid Real estate transactions, tax allocation, Division of real estate taxes between buyers and sellers. 2012 tax Taxes paid during tax year, deduction of, You must pay the tax during your tax year. 2012 tax Worthless securities and negotiable promissory notes, Worthless securities. 2012 tax Cash rebates, Cash rebates. 2012 tax Casualties, Home destroyed or condemned. 2012 tax Casualty insurance Premiums not in property basis, Settlement costs. 2012 tax Reimbursements from, Casualty insurance and other reimbursements. 2012 tax Casualty losses, Nonbusiness Casualty and Theft Losses, Net operating loss (NOL). 2012 tax , Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Adjusted basis in property, Casualty and theft losses. 2012 tax , Involuntary Conversions, Adjusted Basis, Adjustments to basis. 2012 tax Amount of loss, Figuring a Loss Appraisals, Appraisal. 2012 tax , Costs of photographs and appraisals. 2012 tax Bank deposit, loss due to bank's insolvency or bankruptcy, Casualty loss or ordinary loss. 2012 tax Costs Cleaning up or making repairs, Cost of cleaning up or making repairs. 2012 tax Photographs and appraisals, Costs of photographs and appraisals. 2012 tax Deductible losses, Deductible losses. 2012 tax $100 rule, $100 Rule When to take (Table 25-2), Gains more than losses. 2012 tax Deduction limits, Deduction Limits For personal property (Table 25-1), Actual reimbursement same as expected. 2012 tax Definition of casualty, Casualty Disasters, Employer's emergency disaster fund. 2012 tax , Disaster relief. 2012 tax (see also Disaster relief) Employer's emergency disaster fund, Employer's emergency disaster fund. 2012 tax Fair market value of property, Decrease in Fair Market Value Form 4684 to be filed, Forms to file. 2012 tax Insurance proceeds, treatment of, Insurance and Other Reimbursements Net operating losses, Net operating loss (NOL). 2012 tax Nondeductible losses, Deductible losses. 2012 tax Proof of loss, Casualty loss proof. 2012 tax Property used partly for business and partly for personal purposes, Property used partly for business and partly for personal purposes. 2012 tax Reimbursement, Insurance and Other Reimbursements Reporting of gain or loss, When To Report Gains and Losses, Losses. 2012 tax , How To Report Gains and Losses Single casualty on multiple properties, Single Casualty on Multiple Properties Cemeteries Charitable contributions to, Types of Qualified Organizations Certificate, mortgage credit, Who qualifies. 2012 tax Certificates of deposit (CDs), Certificates of deposit (CDs). 2012 tax , Individual Retirement Arrangements (IRAs) (see also Individual retirement arrangements (IRAs)) Chambers of commerce Charitable contributions to, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations Entertainment expenses for attending meetings, Trade association meetings. 2012 tax Change of address, Change of Address Change of name, Name change. 2012 tax , Name changed. 2012 tax Chaplains Life insurance proceeds when death in line of duty, Public Safety Officer Killed in the Line of Duty Charitable contributions, Contributions, Introduction, Organizations That Qualify To Receive Deductible Contributions, Types of Qualified Organizations, Contributions You Can Deduct, Contributions From Which You Benefit, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Token items. 2012 tax , Written statement. 2012 tax , Contributions You Cannot Deduct, Contributions to Individuals, Contributions to Nonqualified Organizations, Contributions From Which You Benefit, Contributions of Property, Determining Fair Market Value, Large quantities. 2012 tax , Giving Property That Has Decreased in Value, Giving Property That Has Increased in Value, Ordinary income property. 2012 tax , Capital gain property. 2012 tax , Amount of deduction — general rule. 2012 tax , Bargain sales. 2012 tax , When To Deduct, Time of making contribution. 2012 tax , Noncash Contributions, Additional records. 2012 tax , How To Report Gifts to reduce public debt, Gift To Reduce Debt Held by the Public Charitable distributions, qualified, Qualified charitable distributions (QCD). 2012 tax Charity benefit events Deduction amount for charitable contributions, Charity benefit events. 2012 tax Check-writing fees, Check-Writing Fees on Personal Account Checklists Medical and dental expense deductions (Table 21-1), Medicare A. 2012 tax Checks As charitable contributions, Checks. 2012 tax Canceled checks as evidence of travel expenses, Canceled check. 2012 tax Constructive receipt of, Check received or available. 2012 tax Child Foster child, Rule 10. 2012 tax You Cannot Be a Qualifying Child of Another Taxpayer, Rule 13. 2012 tax You Cannot Be a Qualifying Child of Another Taxpayer Married child, Married child. 2012 tax Child and dependent care credit, You can use Form 1040A if all of the following apply. 2012 tax Due diligence, Getting the information. 2012 tax Earned income, Earned income. 2012 tax Full-time student, Rule for student-spouse or spouse not able to care for self. 2012 tax Married filing separately, Special Rules Payments to relatives, Payments to Relatives or Dependents Child born alive, Child born alive. 2012 tax Child care, You can use Form 1040A if all of the following apply. 2012 tax Babysitting, Babysitting. 2012 tax Care providers, Childcare providers. 2012 tax Expenses, Child care expenses. 2012 tax Nursing care for healthy baby, not deductible as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Child custody, Custodial parent and noncustodial parent. 2012 tax Child support, Child support payments. 2012 tax Alimony, difference from, Payments not alimony. 2012 tax , Alimony requirements. 2012 tax , Child support. 2012 tax Child tax credit, Who Should File, You can use Form 1040A if all of the following apply. 2012 tax , Child tax credit. 2012 tax , Child Tax Credit Additional credit, Additional Child Tax Credit Amount of credit, Amount of Credit Claiming, procedure for, Claiming the Credit Limits, Special Rules, Limits on the Credit Modified adjusted gross income, Modified AGI. 2012 tax Married filing separately, Special Rules Qualifying child, Qualifying Child Child, qualifying, Qualifying Child Childcare Credit, Child and Dependent Care Credit Provider Taxpayer identification number, Provider Identification Test Children, Adoption Assistance, Personal Expenses (see also Adoption) Additional credit on child tax credit, Additional Child Tax Credit Adoption (see Adopted child) Babysitters, Babysitting. 2012 tax Birth of child Head of household, qualifying person to file as, Death or birth. 2012 tax , Death or birth. 2012 tax Social security number to be obtained, Born and died in 2013. 2012 tax Care providers, Childcare providers. 2012 tax (see also Child care) Child's tax, figuring of, Step 3. 2012 tax Figuring the Child's Tax (Form 8615, Part III) Alternative minimum tax, Alternative minimum tax. 2012 tax Credit for, Who Should File, You can use Form 1040A if all of the following apply. 2012 tax (see also Child and dependent care credit) (see also Child tax credit) Custody of, Custodial parent and noncustodial parent. 2012 tax Death of child Head of household, qualifying person to file as, Death or birth. 2012 tax , Death or birth. 2012 tax Deductions, Line 2 (deductions). 2012 tax Dividends of (see this heading: Investment income of child under age 18) Earnings of, Child's earnings. 2012 tax Filing requirements, Child's earnings. 2012 tax As dependents (Table 1-2), Do I Have To File a Return? Gifts to, Income from property given to a child. 2012 tax , Income from property received as a gift. 2012 tax Inclusion of child's income on parent's return (Figure 31-A), Penalty for underpayment of estimated tax. 2012 tax Income, calculation of, Figuring Child's Income Capital gains distributions, Capital gain distributions and qualified dividends. 2012 tax Investment income of, Tax on unearned income of certain children. 2012 tax Investment income of child under age 18 Dependent filing requirements (Table 1-2), Do I Have To File a Return? Interest and dividends, Certain Children Under Age 19 or Full-Time Students Parents' election to report on Form 1040, Certain Children Under Age 19 or Full-Time Students, Investment income of child reported on parent's return. 2012 tax Kidnapped, Kidnapped child. 2012 tax , Kidnapped child. 2012 tax Net unearned income, figuring of, Step 1. 2012 tax Figuring the Child's Net Unearned Income (Form 8615, Part I) Nontaxable income, Nontaxable income. 2012 tax Property received as gift, income from, Income from property received as a gift. 2012 tax Signing return, parent for child, Spouse unable to sign. 2012 tax Standard deduction for, Introduction, Standard Deduction for Dependents Stillborn, Stillborn child. 2012 tax Support of (see Child support) Tax credit (see Child tax credit) Tentative tax figured at parent's tax rate, Step 2. 2012 tax Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Transporting school children, Transporting school children. 2012 tax Unearned income of, Tax on unearned income of certain children. 2012 tax Unearned income of certain children, Introduction Form 8615, use of (Figure 31-B), Parental information, providing of, Providing Parental Information (Form 8615, lines A–C) Parents' election to report on Form 1040, Parent's Election To Report Child's Interest and Dividends Trust income, Trust income. 2012 tax Unearned income defined, Unearned income defined. 2012 tax Chronic illness Accelerated payment of life insurance proceeds (see Accelerated death benefits) Long-term care (see Long-term care insurance contracts) Church employees Filing requirements (Table 1-3), Figuring tax. 2012 tax Churches, temples, etc. 2012 tax Charitable contributions to, Examples. 2012 tax , Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check Convention delegates, deduction of unreimbursed expenses, Conventions. 2012 tax Citizen or resident test, Citizen or Resident Test Citizens outside U. 2012 tax S. 2012 tax Business travel outside U. 2012 tax S. 2012 tax , Travel Outside the United States, Travel Primarily for Business, Travel Primarily for Personal Reasons Self-employed persons, Exception 1 - No substantial control. 2012 tax Standard meal allowance, Standard meal allowance for areas outside the continental United States. 2012 tax Earned income exclusion, Reminders Employment (see Foreign employment) Extension of time to file, Individuals Outside the United States Filing requirements, U. 2012 tax S. 2012 tax Citizens and Resident Aliens Living Abroad Withholding from IRA distributions, IRA distributions delivered outside the United States. 2012 tax Civic associations Charitable contributions to, Contributions to Nonqualified Organizations Contributions to, no charitable deduction for, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check Civil defense organizations Charitable contributions to, Examples. 2012 tax Civil service retirement benefits, Civil service retirement benefits. 2012 tax Civil suits, Court awards and damages. 2012 tax (see also Damages from lawsuits) Civil tax penalties (see Penalties) Clergy, Ministers. 2012 tax Contributions that can be spent as individual wishes, not deductible charitable contribution, Contributions to Individuals Housing, Clergy Real estate taxes when receiving housing allowance, Ministers' and military housing allowances. 2012 tax , Ministers' and military housing allowance. 2012 tax Life insurance proceeds when chaplain died in line of duty, Public Safety Officer Killed in the Line of Duty Pensions, Pension. 2012 tax Special income rules, Clergy Clerical help, deductibility of, Clerical Help and Office Rent Clients, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. 2012 tax Closing costs Real property transactions, Settlement costs. 2012 tax Sale of home, Settlement fees or closing costs. 2012 tax Clothing Military, Military uniforms. 2012 tax Moth damage, not casualty loss, Progressive deterioration. 2012 tax Uniforms Charitable organization requiring, deduction for cost and upkeep of, Uniforms. 2012 tax Used clothing, charitable deduction for fair market value, Used clothing and household items. 2012 tax work, Work Clothes and Uniforms Club dues and membership fees Entertainment expenses, Club dues and membership fees. 2012 tax Co-owners Dwelling unit used as home by co-owner, rental income and expense allocation, Shared equity financing agreement. 2012 tax Coal and iron ore, Coal and iron ore. 2012 tax Coins (see Collectibles) Collectibles As capital assets, Capital Assets and Noncapital Assets, Gold, silver, stamps, coins, gems, etc. 2012 tax Gains or losses from sale or trade of, Investment interest deducted. 2012 tax IRA investment in, Investment in Collectibles, Exception. 2012 tax College professor Research expenses, Research Expenses of a College Professor Colleges and universities Charitable contributions to, Examples. 2012 tax , Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check Athletic events, amount deductible, Athletic events. 2012 tax Education costs, Qualified tuition programs (QTPs). 2012 tax (see also Qualified tuition programs) Employer-provided educational assistance, Qualified Education Expenses (see also Educational assistance) Combat zone Extension to file return, Individuals Serving in Combat Zone Signing return for spouse, Spouse in combat zone. 2012 tax Commission drivers Deduction of expenses, Statutory employees. 2012 tax Commissions, Supplemental Wages Advance, Advance commissions and other earnings. 2012 tax IRAs with brokers, Brokers' commissions. 2012 tax , Brokers' commissions. 2012 tax Property basis to include when buyer pays, Settlement costs. 2012 tax Sharing of (kickbacks), Kickbacks. 2012 tax Unearned, deduction for repayment of, Advance commissions and other earnings. 2012 tax Commodities Derivative financial instruments, Capital Assets and Noncapital Assets Common law marriage, Considered married. 2012 tax Communist organizations Charitable contributions to, Contributions to Nonqualified Organizations Community property, Community income. 2012 tax , Community property. 2012 tax Alimony, difference from, Payments not alimony. 2012 tax IRAs, Community property laws. 2012 tax Married filing separately, Community property states. 2012 tax Medical and dental expenses, Community property states. 2012 tax Commuting expenses, Commuting expenses. 2012 tax , Commuting Expenses Employer-provided commuter vehicle, Commuter highway vehicle. 2012 tax Compensation, Wages, Salaries, and Other Earnings (see also Wages and salaries) Defined for IRA purposes, What is compensation? Defined for Roth IRA purposes, Compensation. 2012 tax Employee, Employee Compensation Miscellaneous compensation, Miscellaneous Compensation Nonemployee, Nonemployee compensation. 2012 tax Unemployment, Unemployment compensation. 2012 tax Computation of tax, Computations Equal amounts, Equal amounts. 2012 tax Negative amounts, Negative amounts. 2012 tax Rounding off dollars, Rounding off dollars. 2012 tax Computer, Depreciation on Computers Condemnation of property, Home destroyed or condemned. 2012 tax , Condemnations. 2012 tax Basis computation, Involuntary Conversions Disaster areas, government-ordered demolition of unsafe home, Deductible losses. 2012 tax Period of ownership and use, Previous home destroyed or condemned. 2012 tax Confidential information Privacy Act and paperwork reduction information, Reminders Travel expenses and, Confidential information. 2012 tax Constructive receipt of income, Constructive receipt. 2012 tax , Payment to an agent. 2012 tax , Constructive receipt. 2012 tax Contributions, Gift To Reduce Debt Held by the Public, Campaign contributions. 2012 tax , Contributions, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Contributions to Nonqualified Organizations, How To Report (see also Campaign contributions) (see also Charitable contributions) Nontaxable combat pay, Nontaxable combat pay. 2012 tax Political, Political Contributions Reservist repayments, Qualified reservist repayments. 2012 tax Retirement (see specific type of plan ) Controlled corporations Nontaxable stock purchase of, Property for stock of a controlled corporation. 2012 tax Related party transactions, Losses on sales or trades of property. 2012 tax Convenience fees, Credit or Debit Card Convenience Fees Conventions Delegates Deduction of unreimbursed expenses, Conventions. 2012 tax Travel expenses, Conventions Travel expenses, Conventions Work-related education, deduction of travel expenses for overseas conventions, Cruises and conventions. 2012 tax Conversion (see specific retirement or IRA plan ) Convertible stocks and bonds, Convertible stocks and bonds. 2012 tax Cooperative housing Dwelling unit used as home, Introduction Mortgage interest statements, Form 1098, Mortgage Interest Statement Real estate taxes, deduction of, Tenant-shareholders in a cooperative housing corporation. 2012 tax Sale or trade of Form 1099-S to report, Form 1099-S transactions. 2012 tax Period of ownership and use, Cooperative apartment. 2012 tax Cooperatives Patronage dividends, Patronage dividends. 2012 tax Copyrights, Capital Assets and Noncapital Assets Infringement damages, Court awards and damages. 2012 tax Royalties, Royalties Corporations, S Corporation Income (see also S corporations) Controlled corporations, Property for stock of a controlled corporation. 2012 tax , Losses on sales or trades of property. 2012 tax Director fees as self-employment income, Corporate director. 2012 tax Reorganizations and nontaxable trade of stock, Corporate reorganizations. 2012 tax Corrections (see Errors) Cosmetic surgery Not deductible as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Cosmetics Not deductible as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Cost basis, Useful Items - You may want to see: IRAs for nondeductible contributions, Cost basis. 2012 tax , Partly taxable. 2012 tax Cost-of-living allowances, Government cost-of-living allowances. 2012 tax Country clubs Charitable contributions to, Contributions to Nonqualified Organizations Dues Charitable deduction not allowed, Table 24-1. 2012 tax Examples of Charitable Contributions—A Quick Check, Membership fees or dues. 2012 tax Entertainment expense deduction not allowed, Club dues and membership fees. 2012 tax Coupon bonds, Coupon bonds. 2012 tax Court awards and damages (see Damages from lawsuits) Cousin, Cousin. 2012 tax Coverdell ESAs Additional tax on, Other taxes. 2012 tax CPAs (see Accountants) Credit cards Annual fees, not deductible, Items You Cannot Deduct Benefits, taxability of insurance, Credit card insurance. 2012 tax Charitable contributions charged to, Credit card. 2012 tax Finance charges, not deductible, Personal Interest Payment of taxes, Reminders Credit for child and dependent care expenses, Credit for child and dependent care expenses. 2012 tax , Credit for child and dependent care expenses. 2012 tax Credit for prior year minimum tax Nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Credit for the elderly or the disabled, Credit for the elderly or the disabled. 2012 tax , Credit for the elderly or the disabled. 2012 tax Credit or debit cards Payment of taxes, E-file and pay by credit or debit card or by direct transfer from your bank account. 2012 tax Credit reports Costs not included in property basis, Settlement costs. 2012 tax Fees for, not deductible, Items You Cannot Deduct Credit to holders of tax credit bonds, Credit to Holders of Tax Credit Bonds Credits, Credits. 2012 tax , Earned income credit. 2012 tax , Credit for child and dependent care expenses. 2012 tax , Credit for the elderly or the disabled. 2012 tax , Earned income credit. 2012 tax , Credit for child and dependent care expenses. 2012 tax , Credit for the elderly or the disabled. 2012 tax , Earned income credit. 2012 tax Alternative motor vehicle, Alternative Motor Vehicle Credit American opportunity, Special Rules Build America bonds (see Credit to holders of tax credit bonds) Capital gains, undistributed, credit for tax on, Undistributed capital gains of mutual funds and REITs. 2012 tax , Credit for Tax on Undistributed Capital Gain Child and dependent care, Child and Dependent Care Credit (see Child and dependent care credit) Child tax (see Child tax credit) Clean renewable energy bonds (see Credit to holders of tax credit bonds) Earned income, Earned Income Credit (EIC) (see Earned income credit) Elderly or the disabled, Credit for the Elderly or the Disabled Excess withholding, Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Foreign tax, Foreign Tax Credit Health coverage, Health Coverage Tax Credit Lifetime learning (see Lifetime learning credit) Mortgage interest, Mortgage Interest Credit Nonrefundable credits, Nonrefundable Credits Plug-in electric drive motor vehicle, Plug-in Electric Drive Motor Vehicle Credit Prior year minimum tax (AMT), nonrefundable, Nonrefundable Credit for Prior Year Minimum Tax Qualified energy conservation bonds (see Credit to holders of tax credit bonds) Qualified school construction bonds (see Credit to holders of tax credit bonds) Qualified zone academy bonds (see Credit to holders of tax credit bonds) Refundable credits, Refundable Credits Residential energy, Residential Energy Credits Retirement savings contribution, Retirement Savings Contributions Credit (Saver's Credit) Cremation Not deductible as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Criminal prosecutions Travel expenses for federal staff, Exception for federal crime investigations or prosecutions. 2012 tax Cruises Travel expenses when incidental business activities, Trip Primarily for Personal Reasons Work-related education, deduction of expenses, Cruises and conventions. 2012 tax Custodial fees, Investment Fees and Expenses Custody of child, Custodial parent and noncustodial parent. 2012 tax Customers, Meals and Incidental Expenses, Entertainment Expenses (see also Entertainment expenses) Business travel to meet, Transportation Expenses Travel expenses of, paying for, Business associate. 2012 tax D Daily allowance (see Per diem) Damage to property, Nonbusiness Casualty and Theft Losses (see also Casualty losses) Disasters, Employer's emergency disaster fund. 2012 tax , Disaster relief. 2012 tax (see also Disaster relief) Damages, Damages for Breach of Employment Contract Damages from lawsuits, Court awards and damages. 2012 tax Medical expenses as part of settlement, Damages for Personal Injuries Dating your return, Signatures Daycare centers, You can use Form 1040A if all of the following apply. 2012 tax , Childcare providers. 2012 tax , Care outside your home. 2012 tax (see also Child and dependent care credit) (see also Child care) De minimis benefits, De Minimis (Minimal) Benefits Deadlines (see Due dates) Death (see Decedents) Death benefits Accelerated, Accelerated Death Benefits, Exclusion for terminal illness. 2012 tax Life insurance proceeds (see Life insurance) Public safety officers who died or were killed in line of duty, tax exclusion, Public Safety Officer Killed in the Line of Duty Death of child, Death or birth of child. 2012 tax Death of dependent, Death or birth. 2012 tax Debt instruments (see Bonds or Notes) Debts, Exceptions for special types of refunds. 2012 tax , Recoveries (see also Bad debts) Canceled (see Cancellation of debt) Nonrecourse, Mortgage relief upon sale or other disposition. 2012 tax Paid by another, Debts paid for you. 2012 tax Payoff of debt included in sales transaction, Debt paid off. 2012 tax Public, gifts to reduce, Gift To Reduce Debt Held by the Public Recourse, Mortgage relief upon sale or other disposition. 2012 tax Refund offset against, Refunds. 2012 tax , Offset against debts. 2012 tax Deceased taxpayers (see Decedents) Decedents, Surviving Spouses, Executors, Administrators, and Legal Representatives (see also Executors and administrators) Capital loss of, Decedent's capital loss. 2012 tax Deceased spouse, Surviving Spouses, Executors, Administrators, and Legal Representatives Personal exemption, Death of spouse. 2012 tax Due dates, Filing for a decedent. 2012 tax Filing requirements, Surviving Spouses, Executors, Administrators, and Legal Representatives Funeral expenses, Contributions to Individuals Medical and dental expenses, Decedent Savings bonds, Decedents. 2012 tax Spouse's death, Spouse died during the year. 2012 tax , Spouse died. 2012 tax Standard deduction, Decedent's final return. 2012 tax Transfer of property at death, Other property transactions. 2012 tax Declaration of rights of taxpayers IRS request for information, Reminders Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. 2012 tax Deductions, Special Rules, Personal Exemptions and Dependents, Your Own Exemption, Recoveries, Nonbusiness Bad Debts, How to report bad debts. 2012 tax , Capital Losses , Introduction, Standard Deduction, Points, Treatment by buyer. 2012 tax , Meals and Incidental Expenses, Entertainment Expenses (see also Bad debts) (see also Capital losses) (see also Entertainment expenses) (see also Personal exemption) (see also Points) (see also Recovery of amounts previously deducted) (see also Standard deduction) Alimony, deductible by payer, How To Deduct Alimony Paid Casualty losses, Casualty and Theft Losses of Income-Producing Property (see Capital losses) Changing claim after filing, need to amend, Amended Returns and Claims for Refund Charitable contributions, Contributions, How To Report (see also Charitable contributions) Dental expenses (see Medical and dental expenses) Depreciation, Depreciation and section 179 deduction. 2012 tax Educator expenses, Educator Expenses Estate, Excess Deductions of an Estate Fee-basis government officials, Special Rules Impairment-related work expenses, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. 2012 tax Interest (see Interest payments) Investment expenses, Investment expenses. 2012 tax IRA contributions (see Individual retirement arrangements (IRAs)) Itemizing (see Itemized deductions) Long-term care insurance contracts, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Medical expenses (see Medical and dental expenses) Mortgage interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. 2012 tax (see Mortgages) Not itemizing, use of Form 1040A, You can use Form 1040A if all of the following apply. 2012 tax Pass-through entities, Indirect Deductions of Pass-Through Entities Penalties, no deduction permitted, Penalties. 2012 tax Performing artists' expenses, Expenses of certain performing artists. 2012 tax Prepaid insurance premiums, Prepaid insurance premiums. 2012 tax Prescription medicines, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Rental expenses, When to deduct. 2012 tax Repayments, Repayments Section 179 deductions Adjustment to basis for, Depreciation and section 179 deduction. 2012 tax Car expenses, Depreciation and section 179 deductions. 2012 tax Self-employed persons Health insurance premiums, Health Insurance Costs for Self-Employed Persons Social security and railroad retirement benefits, Deductions Related to Your Benefits Standard deduction, Standard Deduction, Married persons who filed separate returns. 2012 tax Stop-smoking programs, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Student loan interest deduction (see Student loans) Theft loss, Casualty and Theft Losses of Income-Producing Property Transportation expenses (see Travel and transportation expenses) Union dues (see Labor unions) Work-related education, What Expenses Can Be Deducted Deeds Preparation costs for, Amounts charged for services. 2012 tax Recording fees, basis to include, Real estate taxes. 2012 tax Deferred annuity contracts (see Annuities) Deferred compensation Limit, Elective deferrals. 2012 tax Nonqualified plans, Nonqualified deferred compensation plans. 2012 tax Deferred compensation plans (see Retirement plans) Delinquent taxes Real estate transactions, tax allocation, Real estate taxes for prior years. 2012 tax Delivery services, Private delivery services. 2012 tax Business-related travel expense, Table 26-1. 2012 tax Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. 2012 tax Demutualization of life insurance companies, Demutualization of life insurance companies. 2012 tax Dental expenses (see Medical and dental expenses) Dentures Deductibility as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Dependent care Benefits, Dependent care benefits. 2012 tax , Dependent Care Benefits Center, Dependent care center. 2012 tax Credit for, Child and Dependent Care Credit Dependent taxpayer test, Dependent Taxpayer Test Dependents, Who Should File, You can use Form 1040A if all of the following apply. 2012 tax , Exception for adopted child. 2012 tax , Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). 2012 tax (see also Child tax credit) Birth of, Death or birth. 2012 tax Born and died within year, Exception. 2012 tax , Born and died in 2013. 2012 tax Death of, Death or birth. 2012 tax Deceased dependent's medical and dental expenses, What if you pay medical expenses of a deceased spouse or dependent? Disabled dependent care expenses, deduction for, Disabled Dependent Care Expenses Exemption for, Exemptions for Dependents Filing requirements, Child's earnings. 2012 tax Earned income, unearned income, and gross income levels (Table 1-2), Do I Have To File a Return? Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Medical and dental expenses, Dependent Qualifying child, Qualifying Child, Qualifying Child Qualifying relative, Qualifying Relative, Qualifying Child Social security number, Dependent's SSN. 2012 tax Adoption taxpayer identification number, Adoption taxpayer identification number (ATIN). 2012 tax , Taxpayer identification numbers for aliens. 2012 tax Alien dependents, Born and died in 2013. 2012 tax Standard deduction for, Standard Deduction for Dependents Travel expenses for, Travel expenses for another individual. 2012 tax Tuition deduction for, Who Can Claim a Dependent's Expenses Dependents not allowed to claim dependents, Dependent Taxpayer Test Depletion allowance, Depletion. 2012 tax Deposits, Fees and deposits. 2012 tax Loss on, Loss on Deposits Losses on, Deposit in Insolvent or Bankrupt Financial Institution, Loss on Deposits Reporting of, Loss on deposits. 2012 tax Depreciation Adjustment to basis for, Depreciation and section 179 deduction. 2012 tax Cars, Depreciation and section 179 deductions. 2012 tax Change of use of property, Basis for depreciation. 2012 tax Computer, Depreciation on Computers Correcting amount claimed, Claiming the correct amount of depreciation. 2012 tax Form 4562 Rental property depreciation, Depreciation Home computer, Depreciation on Home Computer Property used in trade or business, as noncapital assets, Capital Assets and Noncapital Assets Real property Gain from disposition of property, Depreciation after May 6, 1997. 2012 tax Land, no depreciation of, Land. 2012 tax Rental property, Depreciation. 2012 tax , Depreciation Designated Roth Account Defined. 2012 tax , Designated Roth accounts. 2012 tax Designated Roth account, Designated Roth accounts. 2012 tax , Designated Roth accounts. 2012 tax Destroyed records, Destroyed records. 2012 tax Diaper service, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Differential wage payments, Differential wage payments. 2012 tax Differential wages Wages for reservists Military reserves, Differential wage payments. 2012 tax Direct deposit of refunds, Refunds Directors' fees, Corporate director. 2012 tax Disabilities, persons with, Qualifying Person Test, Physically or mentally not able to care for oneself. 2012 tax , Credit for the Elderly or the Disabled (see also Elderly or the disabled) Accrued leave payment, Accrued leave payment. 2012 tax Armed forces, Disability. 2012 tax Blind (see Blind persons) Cafeteria plans, Cafeteria plans. 2012 tax Credit for (see Elderly or disabled, credit for) Dependent who is disabled, deduction for care expenses, Disabled Dependent Care Expenses Guide dogs, deductible as medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Impairment-related work expenses of, Impairment-Related Work Expenses, Impairment-related work expenses of disabled employees. 2012 tax Work-related education, Impairment-Related Work Expenses Insurance costs, Cost paid by you. 2012 tax Military and government pensions, Military and Government Disability Pensions Public assistance benefits, Persons with disabilities. 2012 tax Reporting of disability pension income, Disability Pensions Retirement, pensions, and profit-sharing plans, Sickness and Injury Benefits, Retirement and profit-sharing plans. 2012 tax Signing of return by court-appointed representative, Court-appointed, conservator, or other fiduciary. 2012 tax Social security and railroad retirement benefits, deductions for, Disability payments. 2012 tax Special school or home for, deductibility of medical expense, Table 21-1. 2012 tax Medical and Dental Expenses Checklist. 2012 tax See Publication 502 for more information about these and other expenses. 2012 tax Terrorist attack as cause of injury, disability payments excluded from taxation, Disability pensions. 2012 tax Workers' compensation, Workers' Compensation Disability Income, Disability income. 2012 tax Disability benefits Earned income credit, Form 4029. 2012 tax Disability insurance payments Earned income credit, Disability insurance payments. 2012 tax Disability, permanent and total disability, Permanent and total disability. 2012 tax Disabled Child, Permanently and totally disabled. 2012 tax Dependent, Disabled dependent working at sheltered workshop. 2012 tax Disaster Assistance Act of 1988 Withholding, Federal Payments Disaster relief, Terrorist attack or military action. 2012 tax , Disaster relief payments. 2012 tax , Disaster relief. 2012 tax (see also Terrorist attacks) Cash gifts to victims, Cash gifts. 2012 tax Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. 2012 tax Unemployment assistance, Types of unemployment compensation. 2012 tax Employer's emergency disaster fund, Employer's emergency disaster fund. 2012 tax Government-ordered demolition or relocation of home that is unsafe due to, Deductible losses. 2012 tax Grants or payments, Disaster relief grants. 2012 tax Replacement of lost or destroyed property, Disaster relief. 2012 tax Discharge of qualified principal residence indebtedness, Discharges of qualified principal residence indebtedness. 2012 tax , Adjusted Basis Disclosure statement, Disclosure statement. 2012 tax Discount, bonds and notes issued at, Original Issue Discount (OID) Discounted debt instruments Capital gain or loss, Discounted Debt Instruments Discounts Employee discounts, effect on basis, Bargain purchases. 2012 tax Distributions, Eligible rollover distributions. 2012 tax (see also Rollovers) Early (see Early withdrawal from deferred interest account) Liquidating distributions, Liquidating Distributions Lump sum (see Lump-sum distributions) Nondividend distributions, Nondividend Distributions Qualified charitable, Qualified charitable distributions (QCD). 2012 tax Qualified reservist, Qualified reservist distributions. 2012 tax Required minimum distributions, Required distributions. 2012 tax , Required distributions. 2012 tax , When Must You Withdraw IRA Assets? (Required Minimum Distributions) (see also Individual retirement arrangements (IRAs)) (see also Pensions) Return of capital, Nondividend Distributions District of Columbia First-time homebuyer credit, Decreases to basis. 2012 tax Dividends, Dividends and Other Distributions, Form 1099-DIV. 2012 tax , More information. 2012 tax (see also Form 1099-DIV) Alaska Permanent Fund (see Alaska Permanent Fund dividends) As stock dividends and stock rights, Distributions of Stock and Stock Rights Backup withholding, Backup withholding. 2012 tax Beneficiary of estate or trust receiving, Beneficiary of an estate or trust. 2012 tax Buying more stock with, Dividends Used to Buy More Stock Defined, Introduction Exempt-interest dividends, Other Distributions Expenses related to, deduction of, Expenses related to dividend income. 2012 tax Fees to collect, Fees to Collect Interest and Dividends Foreign income, Reminder Holding period, determination of, Stock dividends. 2012 tax Insurance dividends, Dividends on insurance policies. 2012 tax Money market funds, Money Market Funds Nominees receiving on behalf of another, Nominees. 2012 tax Nondividend distributions, Nondividend Distributions Ordinary dividends, Ordinary Dividends Patronage dividends, Patronage dividends. 2012 tax Qualified, Qualified Dividends, Qualified dividends. 2012 tax Real estate investment trusts (REITs) paying, Capital Gain Distributions Redemption treated as, Dividend versus sale or trade. 2012 tax Reinvestment plans, Dividends Used to Buy More Stock Reporting of, How To Report Dividend Income As interest, Introduction Scrip dividends, Scrip dividends. 2012 tax Sold stock, Dividends on stock sold. 2012 tax Stockholder debts when canceled as, Stockholder debt. 2012 tax Veterans' insurance, Dividends on veterans' insurance. 2012 tax Divorced parents, Children of divorced or separated parents (or parents who live apart). 2012 tax , Applying this special rule to divorced or separated parents (or parents who live apart). 2012 tax Divorced taxpayers, Alimony. 2012 tax (see also Alimony) Child and dependent care credit, Child of divorced or separated parents or parents living apart. 2012 tax Child custody, Custodial parent and noncustodial parent. 2012 tax Definition of divorce instrument for purposes of alimony, Divorce or separation instrument. 2012 tax Estimated tax payments, Divorced Taxpayers Filing status, Divorced persons. 2012 tax , Divorced persons. 2012 tax IRAs, Kay Bailey Hutchison Spousal IRA. 2012 tax , Transfers Incident to Divorce Medical and dental expenses of children of, Child of divorced or separated parents. 2012 tax Mortgage interest, payment as alimony, Divorced or separated individuals. 2012 tax Personal exemption, Divorced or separated spouse. 2012 tax Real estate taxes, allocation of, Divorced individuals. 2012 tax Transfers between spouses, Property Transferred From a Spouse, Transfers Between Spouses Use of home after divorce, Use of home after divorce. 2012 tax Doctors' bills (see Medical and dental expenses) Documentary evidence Recordkeeping requirements, Documentary evidence. 2012 tax Domestic help Withholding, Household workers. 2012 tax Domestic help, no exemption for, Housekeepers, maids, or servants. 2012 tax
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Many people sell items on the Internet through auctions, classified ads, news groups, and chat rooms.

Know your seller. If you don't, do some research.

  • Check how the auction works. Can you cancel a bid? Don't assume that the rules used by one auction site apply to another. Some sites offer step-by-step instructions that will take you through the bidding process.
  • Find out what protections you have. Does the site provide free insurance or guarantees for items that are not delivered or not what the seller claimed?
  • Follow the strategies used in any auction. Learn the value of the item you are bidding on. Establish your top price and stick to it.
  • Only bid on an item if you intend to buy. If you're the highest bidder, you have bought it. Auction companies often bar those who back out of a deal from future bidding.
  • If the seller can't accept payment by credit card, use an escrow service. Your money is held by a third-party until you get your purchase and approve release of your payment to the seller. There is a small fee, but the peace of mind is worth it.

Remember: if it seems too good to be true, it probably is

The 2012 Tax

2012 tax Car Expenses Table of Contents Introduction Depreciation of CarSpecial Depreciation Allowance Depreciation Limit Amended Return Election Not To Claim Special Allowance If you purchased a car after September 10, 2001, for use in your business (or as an employee) and figure your deductible expenses using the actual car expense method, new law contains provisions that may affect your depreciation deduction for that car. 2012 tax Publication 463, Travel, Entertainment, Gift, and Car Expenses, contains information on figuring depreciation on your car. 2012 tax However, Publication 463 does not contain the new provisions because it was printed before the law was enacted. 2012 tax The new provisions are in the Supplement to Publication 463, which is reprinted below. 2012 tax Supplement to Publication 463 Travel, Entertainment, Gift, and Car Expenses   Introduction This supplemental publication is for taxpayers who purchased a car for business purposes after September 10, 2001, and figure their deductible expenses, including a deduction for depreciation, using the actual car expense method. 2012 tax After Publication 463 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. 2012 tax Certain provisions of this new law may reduce your taxes for 2001. 2012 tax The new law contains the following provisions. 2012 tax A new depreciation deduction, the special depreciation allowance. 2012 tax An increase in the limit on depreciation for any car for which you claim the new special depreciation allowance. 2012 tax If you have already filed your 2001 return, you may wish to file an amended return to claim any of these benefits. 2012 tax See Amended Return, later. 2012 tax Depreciation of Car If you used the actual car expense method to figure your deduction for a car you own and use in your business (or as an employee), you generally can claim a depreciation deduction. 2012 tax However, there is a limit on the depreciation deduction you can take for your car each year. 2012 tax See Depreciation Limit later. 2012 tax Special Depreciation Allowance The new law allows you to claim a special depreciation allowance. 2012 tax This special allowance is a deduction equal to 30% of the depreciable basis of qualified property. 2012 tax You figure the amount of the special depreciation allowance after any section 179 deduction you choose to claim, but before figuring your regular depreciation deduction under the Modified Accelerated Cost Recovery System (MACRS). 2012 tax See Depreciation Deduction under Actual Car Expenses in chapter 4 of Publication 463 for information about MACRS. 2012 tax You can claim the special depreciation allowance only for the year the qualified property is placed in service. 2012 tax Qualified property. 2012 tax   Qualified property includes a car (any four-wheeled vehicle, including a truck or van not more than 6,000 pounds, that is made primarily for use on public streets, roads, and highways) that meets all of the following requirements. 2012 tax You bought it new. 2012 tax You bought it after September 10, 2001. 2012 tax (But a car is not qualified property if a binding written contract for you to buy the car was in effect before September 11, 2001. 2012 tax ) You began using it for business after September 10, 2001, and used it more than 50% in a qualified business use. 2012 tax Example. 2012 tax Bob bought a new car on October 15, 2001, for $20,000 and placed it in service immediately, using it 75% for business. 2012 tax Bob's car is qualified property. 2012 tax Bob chooses not to take a section 179 deduction for the car. 2012 tax He does claim the new special depreciation allowance. 2012 tax Bob first must figure the car's depreciable basis, which is $15,000 ($20,000 × . 2012 tax 75). 2012 tax He then figures the special depreciation allowance of $4,500 ($15,000 × . 2012 tax 30). 2012 tax The remaining depreciable basis of $10,500 ($15,000 - $4,500) is depreciated using MACRS (200% declining balance method, half-year convention) and results in a deduction of $2,100 ($10,500 × . 2012 tax 20), for a total depreciation deduction for 2001 of $6,600 ($4,500 + $2,100). 2012 tax However, Bob's depreciation deduction is limited to $5,745 ($7,660 × . 2012 tax 75), as discussed next. 2012 tax Depreciation Limit The limit on your depreciation deduction for 2001 is increased to $7,660 for a car that is qualified property (defined above) and for which you claim the special depreciation allowance. 2012 tax The limit is increased to $23,080 if the car is an electric car. 2012 tax The section 179 deduction is treated as depreciation for purposes of this limit. 2012 tax If you use a car less than 100% in your business or work, the limit is $7,660 (or $23,080 for an electric car) multiplied by the percentage of business and investment use during the year. 2012 tax For cars that do not qualify for (or for which you choose not to claim) the special depreciation allowance, the limit remains $3,060 ($9,280 for electric cars). 2012 tax Amended Return If you filed your 2001 calendar year return before June 1, 2002, and did not claim the new special depreciation allowance for a qualified car, you can claim it by filing an amended return on Form 1040X, Amended U. 2012 tax S. 2012 tax Individual Income Tax Return, by April 15, 2003. 2012 tax At the top of the Form 1040X, print “Filed pursuant to Revenue Procedure 2002–33. 2012 tax ” If you are an employee, attach Form 2106, Employee Business Expenses (revised March 2002). 2012 tax If you are self-employed, attach Form 4562, Depreciation and Amortization (revised March 2002). 2012 tax Or, you can claim the special depreciation allowance by filing Form 3115, Application for Change in Accounting Method, with your 2002 return. 2012 tax For details, see Revenue Procedure 2002–33. 2012 tax (But, filing Form 1040X for 2001 enables you to claim the special allowance earlier than attaching Form 3115 to your 2002 return. 2012 tax ) You cannot claim the special depreciation allowance on an amended return (or by using Form 3115) if you made, or are treated as having made, the election not to claim it described later. 2012 tax Example. 2012 tax The facts are the same as in the previous example except that Bob filed his original 2001 income tax return on April 15, 2002, and claimed a $3,000 ($20,000 x . 2012 tax 75 x . 2012 tax 20) depreciation deduction for his new car using MACRS. 2012 tax Bob now wishes to claim the special depreciation allowance for his new car on an amended 2001 return. 2012 tax Bob, who is an employee, files Form 1040X, by April 15, 2003, with an updated Form 2106 (revised March 2002) attached, increasing his total depreciation deduction to $5,745, as figured in the earlier example. 2012 tax Bob's new filled-in Form 2106 is shown later. 2012 tax Election Not To Claim Special Allowance You can elect not to claim the special depreciation allowance for a car by making a statement attached to, or written on, your return indicating that you are electing not to claim the special depreciation allowance for 5-year property. 2012 tax As a general rule, you must make this election by the due date (including extensions) of your return. 2012 tax You can have an automatic extension of 6 months from the due date of your return (excluding extensions) to make the election with an amended return. 2012 tax To get this extension, you must have filed your original return by the due date (including extensions). 2012 tax At the top of the statement, print “Filed pursuant to section 301. 2012 tax 9100–2. 2012 tax ” If you elect not to claim the special depreciation allowance for a car, you cannot claim it for any other 5-year property placed in service during the same year. 2012 tax Unless you elect (or are treated as electing) not to claim the special depreciation allowance, you must reduce the car's adjusted basis by the amount of the allowance, even if the allowance was not claimed. 2012 tax Deemed election for return filed before June 1, 2002. 2012 tax   If you did not make the election not to claim the special depreciation allowance in the time and manner described above, you will still be treated as electing not to claim it if all of the following apply. 2012 tax You filed your 2001 return before June 1, 2002. 2012 tax You claimed depreciation on your return but did not claim the special depreciation allowance. 2012 tax You did not file an amended 2001 return by April 15, 2003, or a Form 3115 with your 2002 return, to claim the special depreciation allowance. 2012 tax Form 2106, Page 1, for Bob Smith Form 2106, Page 2, for Bob Smith Prev  Up  Next   Home   More Online Publications