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940 Ez Form

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940 Ez Form

940 ez form Index A Accelerated Cost Recovery System (ACRS), MACRS Depreciation (see also Modified Accelerated Cost Recovery System (MACRS)) Effective date, Depreciation Methods Accounting methods Accrual method, Accrual method. 940 ez form Cash method, Cash method. 940 ez form Change of method, Changing your accounting method. 940 ez form Constructive receipt of income, Cash method. 940 ez form , More information. 940 ez form Accrual method taxpayers, Accrual method. 940 ez form ACRS (Accelerated Cost Recovery System) Effective date, Depreciation Methods Active participation, Active participation. 940 ez form Activities not for profit, Duplex. 940 ez form Additions to property, Additions or improvements to property. 940 ez form (see also Improvements) Basis, Increases to basis. 940 ez form , Additions or improvements. 940 ez form MACRS recovery period, Additions or improvements to property. 940 ez form Adjusted basis MACRS depreciation, Adjusted Basis Adjusted gross income (AGI) Modified (see Modified adjusted gross income (MAGI)) Advance rent, Advance rent. 940 ez form Security deposits, Security deposits. 940 ez form Advertising, Types of Expenses Allocation of expenses Change of property to rental use, Payments added to capital account. 940 ez form How to divide expenses, Dividing Expenses Part of property rented, Renting Part of Property, How to divide expenses. 940 ez form Personal use of rental property, Personal use of rental property. 940 ez form , Personal Use of Dwelling Unit (Including Vacation Home) Alternative Depreciation System (ADS) Election of, Electing ADS MACRS, MACRS Depreciation, Table 2-2d. 940 ez form Alternative minimum tax (AMT) Accelerated depreciation methods, Alternative minimum tax (AMT). 940 ez form Amended returns, Filing an amended return. 940 ez form Apartments Basement apartments, Examples. 940 ez form Dwelling units, Dwelling unit. 940 ez form Appraisal fees, Settlement fees and other costs. 940 ez form Assessments for maintenance, Assessments for local improvements. 940 ez form Assessments, local (see Local assessments) Assistance (see Tax help) Assumption of mortgage, Assumption of a mortgage. 940 ez form Attorneys' fees, Settlement fees and other costs. 940 ez form , Increases to basis. 940 ez form Automobiles MACRS recovery periods, Property Classes Under GDS B Basis Adjusted basis, Adjusted Basis Assessments for local improvements, Assessments for local improvements. 940 ez form Basis other than cost, Basis Other Than Cost Cost basis, Cost Basis Decreases to, Decreases to basis. 940 ez form Deductions Capitalization of costs vs. 940 ez form , Deducting vs. 940 ez form capitalizing costs. 940 ez form Not greater than basis, Cost or Other Basis Fully Recovered Fair market value, Fair market value. 940 ez form Increases to, Increases to basis. 940 ez form MACRS depreciable basis, Basis of Depreciable Property Property changed to rental use, Basis of Property Changed to Rental Use C Capital expenditures Deductions vs. 940 ez form effect on basis, Deducting vs. 940 ez form capitalizing costs. 940 ez form Local benefit taxes, Local benefit taxes. 940 ez form Mortgages, payments to obtain, Expenses paid to obtain a mortgage. 940 ez form Cars MACRS recovery periods, Property Classes Under GDS Cash method taxpayers, Cash method. 940 ez form Casualty losses, Exception for Rental Real Estate With Active Participation Change of accounting method, Changing your accounting method. 940 ez form Charitable contributions Use of property, Donation of use of the property. 940 ez form Cleaning and maintenance, Types of Expenses Closing costs, Settlement fees and other costs. 940 ez form Commissions, Types of Expenses Computers MACRS recovery periods, Property Classes Under GDS Condominiums, Condominiums, Dwelling unit. 940 ez form Constructive receipt of income, Cash method. 940 ez form , More information. 940 ez form Cooperative housing, Cooperative apartments. 940 ez form , Cooperatives, Dwelling unit. 940 ez form Cost basis, Cost Basis Credit reports, Settlement fees and other costs. 940 ez form Credits Residential energy credits, Decreases to basis. 940 ez form D Days of personal use, What is a day of personal use? Days used for repairs and maintenance, Days used for repairs and maintenance. 940 ez form Deductions Capitalizing costs vs. 940 ez form effect on basis, Deducting vs. 940 ez form capitalizing costs. 940 ez form Depreciation (see Depreciation) Limitations on, Form 4562. 940 ez form Passive activity losses (see Passive activity) Depreciation, Depreciation of Rental Property, Changing your accounting method. 940 ez form Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS)) Basis (see Basis) Change of accounting method, Changing your accounting method. 940 ez form Change of property to rental use, Property Changed to Rental Use Claiming correct amount of, Claiming the Correct Amount of Depreciation Declining balance method, Depreciation Methods Duration of property expected to last more than one year, What Rental Property Can Be Depreciated? Eligible property, What Rental Property Can Be Depreciated? First-year expensing, Section 179 deduction. 940 ez form MACRS (see Modified Accelerated Cost Recovery System (MACRS)) Methods, Depreciation Methods, Figuring Your Depreciation Deduction Ownership of property, What Rental Property Can Be Depreciated?, Property you own. 940 ez form Rental expense, Depreciation. 940 ez form Rented property, Rented property. 940 ez form Section 179 deduction, Section 179 deduction. 940 ez form Special depreciation allowances, Claiming the Special Depreciation Allowance Straight line method, Depreciation Methods Useful life, What Rental Property Can Be Depreciated?, Property having a determinable useful life. 940 ez form Vacant rental property, Vacant rental property. 940 ez form Discount, bonds and notes issued at (see Original issue discount (OID)) Dividing of expenses (see Allocation of expenses) Dwelling units Definition, Dwelling unit. 940 ez form Fair rental price, Fair rental price. 940 ez form Personal use of, Personal Use of Dwelling Unit (Including Vacation Home), What is a day of personal use? E Easements, Decreases to basis. 940 ez form Equipment rental expense, Rental of equipment. 940 ez form F Fair market value (FMV), Fair market value. 940 ez form Fair rental price, Dividing Expenses, Fair rental price. 940 ez form Fees Loan origination fees, Points, Settlement fees and other costs. 940 ez form Points (see Points) Settlement fees and other costs, Settlement fees and other costs. 940 ez form Tax return preparation fees, Legal and other professional fees. 940 ez form First-year expensing, Section 179 deduction. 940 ez form Form 1040 Not rented for profit income, Where to report. 940 ez form Part of property rented, Renting Part of Property Rental income and expenses, Reporting Rental Income, Expenses, and Losses Schedule E, Schedule E (Form 1040) Form 1098 Mortgage interest, Form 1098, Mortgage Interest Statement. 940 ez form Form 4684 Casualties and thefts, How to report. 940 ez form Form 4797 Sales of business property, How to report. 940 ez form Form 8582 Passive activity losses, Form 8582. 940 ez form , Form 8582 not required. 940 ez form Free tax services, Free help with your tax return. 940 ez form G Gains and losses At-risk rules, At-Risk Rules Casualty and theft losses, Exception for Rental Real Estate With Active Participation Limits on rental losses, Form 4562. 940 ez form Passive activity losses, Passive Activity Limits Rental real estate activities, Exception for Rental Real Estate With Active Participation Sale of rental property, Sale or exchange of rental property. 940 ez form , How to report. 940 ez form General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS)) H Help (see Tax help) Home Main home, Main home. 940 ez form Use as rental property (see Use of home) I Improvements, Table 1-1. 940 ez form Examples of Improvements (see also Repairs) Assessments for local improvements, Assessments for local improvements. 940 ez form Basis, Increases to basis. 940 ez form , Additions or improvements. 940 ez form Depreciation of rented property, Rented property. 940 ez form MACRS recovery period, Additions or improvements to property. 940 ez form Insurance, Types of Expenses Casualty or theft loss payments, Decreases to basis. 940 ez form Change of property to rental use, Property Changed to Rental Use Fire insurance premiums, cost basis, Settlement fees and other costs. 940 ez form Part of property rented, Renting Part of Property Premiums paid in advance, Insurance premiums paid in advance. 940 ez form Title insurance, cost basis, Settlement fees and other costs. 940 ez form Interest payments, Interest expense. 940 ez form (see also Mortgages) Loan origination fees, Points Rental expenses, Types of Expenses L Land Cost basis, Separating cost of land and buildings. 940 ez form Depreciation, Land. 940 ez form Leases Cancellation payments, Canceling a lease. 940 ez form Equipment leasing, Rental of equipment. 940 ez form Limits Passive activity losses and credits, Passive Activity Limits Rental losses, Limits on Rental Losses Loans Assumption fees, Settlement fees and other costs. 940 ez form Charges connected with getting or refinancing, cost basis, Settlement fees and other costs. 940 ez form Low or no interest, Loans with low or no interest. 940 ez form Origination fees, Points Local assessments, Assessments for local improvements. 940 ez form Losses (see Gains and losses) M Missing children, photographs of, Reminders Modified Accelerated Cost Recovery System (MACRS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Additions or improvements to property, Additions or improvements to property. 940 ez form Adjusted basis, Adjusted Basis Alternative Depreciation System (ADS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Basis other than cost, Basis Other Than Cost Conventions, Conventions Cost basis, Cost Basis Depreciable basis, Basis of Depreciable Property Effective date, Depreciation Methods Excluded property, Excluded Property General Depreciation System (GDS), MACRS Depreciation, Property Classes Under GDS, Figuring Your Depreciation Deduction Nonresidential rental property, Property Classes Under GDS Property used in rental activities (Table 2-1), Table 2-1. 940 ez form MACRS Recovery Periods for Property Used in Rental Activities Recovery periods, Table 2-1. 940 ez form MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property. 940 ez form Residential rental property, Property Classes Under GDS, Residential rental property. 940 ez form Special depreciation allowances, Claiming the Special Depreciation Allowance Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). 940 ez form Mortgages, Expenses paid to obtain a mortgage. 940 ez form Assumption of, cost basis, Assumption of a mortgage. 940 ez form Change of property to rental use, Property Changed to Rental Use End of, OID, Loan or mortgage ends. 940 ez form Interest, Interest expense. 940 ez form , Property Changed to Rental Use, Renting Part of Property Mortgage insurance premiums, Settlement fees and other costs. 940 ez form Part of property rented, Renting Part of Property N Nonresidential real property, Property Classes Under GDS Not-for-profit activities, Duplex. 940 ez form O Original issue discount (OID), Points, Loan or mortgage ends. 940 ez form P Part interest Expenses, Part interest. 940 ez form Income, Part interest. 940 ez form Passive activity Maximum special allowance, Maximum special allowance. 940 ez form Personal property Rental income from, Property or services. 940 ez form Personal use of rental property, Payments added to capital account. 940 ez form , Personal Use of Dwelling Unit (Including Vacation Home) (see also Property changed to rental use) Placed-in-service date, Placed in Service Points, Types of Expenses, Points, Settlement fees and other costs. 940 ez form Pre-rental expenses, Pre-rental expenses. 940 ez form Principal residence (see Home) Profit, property not rented for, Duplex. 940 ez form Property changed to rental use, Payments added to capital account. 940 ez form Basis, Basis of Property Changed to Rental Use Publications (see Tax help) R Real estate professionals, Real estate professionals. 940 ez form Real estate taxes, Real estate taxes. 940 ez form Real property trades or businesses, Real property trades or businesses. 940 ez form Recordkeeping requirements Travel and transportation expenses, Local transportation expenses. 940 ez form , Travel expenses. 940 ez form Recovery periods, Property Classes Under GDS Rent, Settlement fees and other costs. 940 ez form Advance rent, Advance rent. 940 ez form Fair price, Fair rental price. 940 ez form Rental expenses, Rental Expenses Advertising, Types of Expenses Allocation between rental and personal uses, Dividing Expenses Change of property to rental use, Property Changed to Rental Use Cleaning and maintenance, Types of Expenses Commissions, Types of Expenses Depreciation, Depreciation. 940 ez form Dwelling unit used as home, Dwelling Unit Used as a Home Equipment rental, Rental of equipment. 940 ez form Home, property also used as, Rental of property also used as your home. 940 ez form Improvements, Table 1-1. 940 ez form Examples of Improvements Insurance, Types of Expenses, Insurance premiums paid in advance. 940 ez form Interest payments, Types of Expenses, Interest expense. 940 ez form Local transportation expenses, Types of Expenses, Local transportation expenses. 940 ez form Part of property rented, Renting Part of Property Points, Types of Expenses, Points Pre-rental expenses, Pre-rental expenses. 940 ez form Rental payments, Types of Expenses Repairs, Types of Expenses, Repairs and Improvements Sale of property, Vacant while listed for sale. 940 ez form Tax return preparation fees, Legal and other professional fees. 940 ez form Taxes, Types of Expenses Tenant, paid by, Expenses paid by tenant. 940 ez form Travel expenses, Types of Expenses Utilities, Types of Expenses Vacant rental property, Vacant rental property. 940 ez form Rental income Advance rent, Advance rent. 940 ez form Cancellation of lease payments, Canceling a lease. 940 ez form Dwelling unit used as home, Dwelling Unit Used as a Home Lease with option to buy, Lease with option to buy. 940 ez form Not rented for profit, Not Rented for Profit Part interest, Part interest. 940 ez form Property received from tenant, Property or services. 940 ez form Reporting, Accrual method. 940 ez form , Which Forms To Use Security deposit, Security deposits. 940 ez form Services received from tenant, Property or services. 940 ez form Uncollected rent, Uncollected rent. 940 ez form Used as home, Rental of property also used as your home. 940 ez form Rental losses, Exception for Rental Real Estate With Active Participation (see also Gains and losses) (see also Passive activity) Repairs, Types of Expenses, Repairs and Improvements (see also Improvements) Assessments for maintenance, Assessments for local improvements. 940 ez form Personal use of rental property exception for days used for repairs and maintenance, Days used for repairs and maintenance. 940 ez form S Sale of property Expenses, Vacant while listed for sale. 940 ez form Gain or loss, Sale or exchange of rental property. 940 ez form , How to report. 940 ez form Main home, Sale of main home used as rental property. 940 ez form Section 179 deductions, Section 179 deduction. 940 ez form Security deposits, Security deposits. 940 ez form Settlement fees, Settlement fees and other costs. 940 ez form Shared equity financing agreements, Shared equity financing agreement. 940 ez form Special depreciation allowances, Claiming the Special Depreciation Allowance Spouse Material participation, Participating spouse. 940 ez form Standard mileage rates, Local transportation expenses. 940 ez form Surveys, Settlement fees and other costs. 940 ez form T Tables and figures Improvements, examples of (Table 1-1), Table 1-1. 940 ez form Examples of Improvements MACRS optional tables (Table 2-2d), Table 2-2d. 940 ez form MACRS optional tables (Tables 2-2a, 2-2b, and 2-2c), Tables 2-2a, 2-2b, and 2-2c. 940 ez form MACRS recovery periods for property used in rental activities (Table 2-1), Table 2-1. 940 ez form MACRS Recovery Periods for Property Used in Rental Activities Tax credits Residential energy credits, effect on basis, Decreases to basis. 940 ez form Tax help, How To Get Tax Help Tax return preparation fees, Legal and other professional fees. 940 ez form Taxes Deduction of, Types of Expenses Local benefit taxes, Local benefit taxes. 940 ez form Real estate taxes, Real estate taxes. 940 ez form Transfer taxes, Settlement fees and other costs. 940 ez form Theft losses, Theft. 940 ez form Title insurance, Settlement fees and other costs. 940 ez form Transfer taxes, Settlement fees and other costs. 940 ez form Travel and transportation expenses Local transportation expenses, Types of Expenses, Local transportation expenses. 940 ez form Recordkeeping, Travel expenses. 940 ez form Rental expenses, Types of Expenses Standard mileage rate, Local transportation expenses. 940 ez form U Uncollected rent Income, Uncollected rent. 940 ez form Use of home Before or after renting, Days used as a main home before or after renting. 940 ez form Change to rental use, Property Changed to Rental Use Days of personal use, What is a day of personal use? Fair rental price, Fair rental price. 940 ez form Passive activity rules exception, Exception for Personal Use of Dwelling Unit Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home) Utilities, Types of Expenses, Increases to basis. 940 ez form V Vacant rental property, Vacant rental property. 940 ez form Vacation homes Dwelling unit, Dwelling unit. 940 ez form Fair rental price, Fair rental price. 940 ez form Personal use of, Personal Use of Dwelling Unit (Including Vacation Home) Valuation Fair market value, Fair market value. 940 ez form Prev  Up     Home   More Online Publications
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Contact My Local Office in Montana

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

 City Street Address  Days/Hours of Service  Telephone* 
Billings  2900 4th Ave. N.
Billings, MT 59101 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(406) 247-7446 
Bozeman  1805 S. 22nd Ave.
Bozeman, MT 59718 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)

 

Services Provided

(406) 582-8671 
Great Falls  11 5th St. N.
Great Falls, MT 59401 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)

 

Services Provided

(406) 761-8095 
Helena  10 W. 15th St., Ste. 2300
Helena, MT 59626 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)

 

Services Provided

(406) 441-1039 
Kalispell  275 Corporate Ave.
Kalispell, MT 59901 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:00 a.m. - 12:00 noon)

 

Services Provided

(406) 752-6636 
Missoula  2681 Palmer St.
Missoula, MT 59808 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
 

Services Provided

(406) 728-9127 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call 406-444-8668 in the Helena area or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see Tax Topic 104

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
10 W. 15th, STE 2300
 MS 6610-HLN
Helena, MT 59626

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 940 Ez Form

940 ez form 6. 940 ez form   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. 940 ez form  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). 940 ez form For more information, see the retiree drug subsidy frequently asked questions on IRS. 940 ez form gov. 940 ez form Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. 940 ez form However, you may have to capitalize certain insurance costs under the uniform capitalization rules. 940 ez form For more information, see Capitalized Premiums , later. 940 ez form Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. 940 ez form S. 940 ez form Individual Income Tax Return See chapter 12 for information about getting publications and forms. 940 ez form Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. 940 ez form Insurance that covers fire, storm, theft, accident, or similar losses. 940 ez form Credit insurance that covers losses from business bad debts. 940 ez form Group hospitalization and medical insurance for employees, including long-term care insurance. 940 ez form If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. 940 ez form If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. 940 ez form See Publication 15-B. 940 ez form Liability insurance. 940 ez form Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. 940 ez form Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. 940 ez form If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. 940 ez form If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. 940 ez form Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. 940 ez form Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. 940 ez form Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. 940 ez form If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. 940 ez form If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. 940 ez form Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. 940 ez form Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. 940 ez form Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. 940 ez form The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 940 ez form A child includes your son, daughter, stepchild, adopted child, or foster child. 940 ez form A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 940 ez form One of the following statements must be true. 940 ez form You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. 940 ez form You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 940 ez form , box 14, code A. 940 ez form You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. 940 ez form You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. 940 ez form Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. 940 ez form The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. 940 ez form For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. 940 ez form For partners, a policy can be either in the name of the partnership or in the name of the partner. 940 ez form You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 940 ez form However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. 940 ez form Otherwise, the insurance plan will not be considered to be established under your business. 940 ez form For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. 940 ez form You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. 940 ez form However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. 940 ez form Otherwise, the insurance plan will not be considered to be established under your business. 940 ez form Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. 940 ez form If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. 940 ez form For more information, see Form 1040X, Amended U. 940 ez form S. 940 ez form Individual Income Tax Return. 940 ez form Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. 940 ez form Take the deduction on Form 1040, line 29. 940 ez form Qualified long-term care insurance. 940 ez form   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. 940 ez form But, for each person covered, you can include only the smaller of the following amounts. 940 ez form The amount paid for that person. 940 ez form The amount shown below. 940 ez form Use the person's age at the end of the tax year. 940 ez form Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. 940 ez form   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. 940 ez form The contract must meet all the following requirements. 940 ez form It must be guaranteed renewable. 940 ez form It must provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits. 940 ez form It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. 940 ez form It generally must not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. 940 ez form Qualified long-term care services. 940 ez form   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. 940 ez form The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. 940 ez form Worksheet 6-A. 940 ez form Self-Employed Health Insurance Deduction Worksheet Note. 940 ez form Use a separate worksheet for each trade or business under which an insurance plan is established. 940 ez form 1. 940 ez form Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. 940 ez form Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. 940 ez form But do not include the following. 940 ez form   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 940 ez form Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. 940 ez form Any amounts you included on Form 8885, line 4. 940 ez form Any qualified health insurance premiums you paid to “U. 940 ez form S. 940 ez form Treasury-HCTC. 940 ez form ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. 940 ez form Any payments for qualified long-term care insurance (see line 2) 1. 940 ez form   2. 940 ez form For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. 940 ez form       a) Total payments made for that person during the year. 940 ez form       b) The amount shown below. 940 ez form Use the person's age at the end of the tax year. 940 ez form         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. 940 ez form If more than one person is covered, figure separately the amount to enter for each person. 940 ez form Then enter the total of those amounts 2. 940 ez form   3. 940 ez form Add lines 1 and 2 3. 940 ez form   4. 940 ez form Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. 940 ez form Do not include Conservation Reserve Program payments exempt from self-employment tax. 940 ez form If the business is an S corporation, skip to line 11 4. 940 ez form   5. 940 ez form Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. 940 ez form Do not include Conservation Reserve Program payments exempt from self-employment tax. 940 ez form See the Instructions for Schedule SE (Form 1040). 940 ez form Do not include any net losses shown on these schedules. 940 ez form 5. 940 ez form   6. 940 ez form Divide line 4 by line 5 6. 940 ez form   7. 940 ez form Multiply Form 1040, line 27, by the percentage on line 6 7. 940 ez form   8. 940 ez form Subtract line 7 from line 4 8. 940 ez form   9. 940 ez form Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. 940 ez form   10. 940 ez form Subtract line 9 from line 8 10. 940 ez form   11. 940 ez form Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. 940 ez form   12. 940 ez form Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. 940 ez form   13. 940 ez form Subtract line 12 from line 10 or 11, whichever applies 13. 940 ez form   14. 940 ez form Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. 940 ez form Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). 940 ez form 14. 940 ez form   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. 940 ez form Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. 940 ez form * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. 940 ez form However, it does not include capital gain income. 940 ez form Chronically ill individual. 940 ez form   A chronically ill individual is a person who has been certified as one of the following. 940 ez form An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. 940 ez form Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. 940 ez form An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. 940 ez form The certification must have been made by a licensed health care practitioner within the previous 12 months. 940 ez form Benefits received. 940 ez form   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. 940 ez form Other coverage. 940 ez form   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. 940 ez form In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. 940 ez form   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. 940 ez form However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. 940 ez form Effect on itemized deductions. 940 ez form   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. 940 ez form Effect on self-employment tax. 940 ez form   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. 940 ez form For more information, see Schedule SE (Form 1040). 940 ez form How to figure the deduction. 940 ez form   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. 940 ez form However, if any of the following apply, you must use Worksheet 6-A in this chapter. 940 ez form You had more than one source of income subject to self-employment tax. 940 ez form You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. 940 ez form You are using amounts paid for qualified long-term care insurance to figure the deduction. 940 ez form If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. 940 ez form Health coverage tax credit. 940 ez form   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. 940 ez form Use Form 8885 to figure the amount, if any, of this credit. 940 ez form   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. 940 ez form Any amounts you included on Form 8885, line 4. 940 ez form Any qualified health insurance premiums you paid to “U. 940 ez form S. 940 ez form Treasury-HCTC. 940 ez form ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. 940 ez form More than one health plan and business. 940 ez form   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. 940 ez form Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). 940 ez form For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. 940 ez form Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. 940 ez form Self-insurance reserve funds. 940 ez form You cannot deduct amounts credited to a reserve set up for self-insurance. 940 ez form This applies even if you cannot get business insurance coverage for certain business risks. 940 ez form However, your actual losses may be deductible. 940 ez form See Publication 547. 940 ez form Loss of earnings. 940 ez form You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. 940 ez form However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. 940 ez form Certain life insurance and annuities. 940 ez form For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. 940 ez form You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. 940 ez form A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. 940 ez form For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. 940 ez form The disallowance applies without regard to whom the policy covers. 940 ez form Partners. 940 ez form If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. 940 ez form You cannot deduct the insurance premiums. 940 ez form Insurance to secure a loan. 940 ez form If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. 940 ez form Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. 940 ez form In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. 940 ez form Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. 940 ez form Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. 940 ez form You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. 940 ez form Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. 940 ez form Uniform capitalization rules. 940 ez form   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. 940 ez form Produce real property or tangible personal property. 940 ez form For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. 940 ez form Acquire property for resale. 940 ez form However, these rules do not apply to the following property. 940 ez form Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. 940 ez form Property you produce if you meet either of the following conditions. 940 ez form Your indirect costs of producing the property are $200,000 or less. 940 ez form You use the cash method of accounting and do not account for inventories. 940 ez form More information. 940 ez form   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. 940 ez form When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. 940 ez form Cash method. 940 ez form   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. 940 ez form However, see Prepayment , later. 940 ez form Accrual method. 940 ez form   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. 940 ez form In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). 940 ez form For more information about the accrual method of accounting, see chapter 1. 940 ez form For information about the exception for recurring items, see Publication 538. 940 ez form Prepayment. 940 ez form   You cannot deduct expenses in advance, even if you pay them in advance. 940 ez form This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. 940 ez form   Expenses such as insurance are generally allocable to a period of time. 940 ez form You can deduct insurance expenses for the year to which they are allocable. 940 ez form Example. 940 ez form In 2013, you signed a 3-year insurance contract. 940 ez form Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. 940 ez form You can deduct in 2014 and 2015 the premium allocable to those years. 940 ez form Dividends received. 940 ez form   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. 940 ez form For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. 940 ez form Prev  Up  Next   Home   More Online Publications