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Aarp Org Taxaide

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Aarp Org Taxaide

Aarp org taxaide Publication 515 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Aarp org taxaide Tax questions. Aarp org taxaide Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 515, such as legislation enacted after it was published, go to www. Aarp org taxaide irs. Aarp org taxaide gov/pub515. Aarp org taxaide What's New Deposit interest paid to certain nonresident alien individuals. Aarp org taxaide  New rules apply to reporting of deposit interest paid to certain nonresident alien individuals on or after January 1, 2013. Aarp org taxaide Deposit interest of $10 or more paid to certain nonresident alien individuals must be reported on Form 1042–S. Aarp org taxaide See Deposit interest paid to certain nonresident alien individuals in 2013. Aarp org taxaide Portfolio interest. Aarp org taxaide . Aarp org taxaide  The rules determining whether interest is considered portfolio interest changed for obligations issued after March 18, 2012. Aarp org taxaide Generally, interest paid on nonregistered (bearer) bonds will not be treated as portfolio interest. Aarp org taxaide See Portfolio interest. Aarp org taxaide U. Aarp org taxaide S. Aarp org taxaide real property interest. Aarp org taxaide  Generally, the treatment of a regulated investment company (RIC) as a qualified investment entity (QIE) was scheduled to expire at the end of 2011. Aarp org taxaide The provision has been extended through 2013. Aarp org taxaide The special rules that apply to distributions from a QIE attributable to the gain from the sale or exchange of a U. Aarp org taxaide S. Aarp org taxaide real property interest will continue to apply to any distribution from a RIC. Aarp org taxaide See Qualified investment entities under U. Aarp org taxaide S. Aarp org taxaide Real Property Interest. Aarp org taxaide Interest-related dividends and short-term capital gain dividends received from mutual funds. Aarp org taxaide  The exemption from withholding on certain interest-related dividends and short-term capital gain dividends paid by a mutual fund or other regulated investment company was scheduled to expire at the end of 2011. Aarp org taxaide These provisions have been extended through 2013. Aarp org taxaide Partnership withholding rate on effectively connected income. Aarp org taxaide  For 2013, the rate for withholding on noncorporate partners has increased to 39. Aarp org taxaide 6%. Aarp org taxaide The rate for corporate partners remains 35%. Aarp org taxaide Reminders Exemption from requirement to withhold for certain payments to qualified securities lenders. Aarp org taxaide  If you made U. Aarp org taxaide S. Aarp org taxaide -source substitute dividend payments to qualified securities lenders, and these payments are part of a chain of substitute dividend payments, you may be exempt from withholding tax on the payments. Aarp org taxaide See Amounts paid to qualified securities lenders . Aarp org taxaide Electronic deposits. Aarp org taxaide  You must make all deposits of taxes electronically. Aarp org taxaide Substitute forms. Aarp org taxaide  Any substitute forms you use must comply with the requirements in Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns. Aarp org taxaide If they do not, the forms may be rejected as incorrect and the IRS may impose penalties. Aarp org taxaide See Penalties. Aarp org taxaide Filing electronically. Aarp org taxaide  If you file Form 1042-S electronically, you will use the Filing Information Returns Electronically (FIRE) system. Aarp org taxaide You get to the system through the Internet at fire. Aarp org taxaide irs. Aarp org taxaide gov. Aarp org taxaide For files submitted on the FIRE system, it is the responsibility of the filer to verify the results of the transmission within 5 business days. Aarp org taxaide The IRS will not mail error reports for files that are bad. Aarp org taxaide Qualified intermediaries. Aarp org taxaide  A branch of a financial institution may not act as a qualified intermediary in a country that does not have approved know-your-customer rules. Aarp org taxaide See Qualified intermediary under Foreign Intermediaries. Aarp org taxaide Requests for extensions on Form 8809 must be filed electronically. Aarp org taxaide  Requests on Form 8809 for an extension of time to file Form 1042–S must be made electronically if the request is for more than one payer. Aarp org taxaide See Extension to file Form 1042-S with the IRS. Aarp org taxaide Photographs of missing children. Aarp org taxaide  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Aarp org taxaide Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Aarp org taxaide You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Aarp org taxaide Introduction This publication is for withholding agents who pay income to foreign persons, including nonresident aliens, foreign corporations, foreign partnerships, foreign trusts, foreign estates, foreign governments, and international organizations. Aarp org taxaide Specifically, it describes the persons responsible for withholding (withholding agents), the types of income subject to withholding, and the information return and tax return filing obligations of withholding agents. Aarp org taxaide In addition to discussing the rules that apply generally to payments of U. Aarp org taxaide S. Aarp org taxaide source income to foreign persons, it also contains sections on the withholding that applies to the disposition of U. Aarp org taxaide S. Aarp org taxaide real property interests and the withholding by partnerships on income effectively connected with the active conduct of a U. Aarp org taxaide S. Aarp org taxaide trade or business. Aarp org taxaide Beginning in 2014, additional withholding rules become effective under Chapter 4 of the Internal Revenue Code as added by the Foreign Account Tax Compliance Act (FATCA). Aarp org taxaide U. Aarp org taxaide S. Aarp org taxaide withholding agents will be required to withhold on certain types of payments made to foreign financial institutions that do not enter into an agreement with the IRS. Aarp org taxaide For information on these provisions, go to www. Aarp org taxaide irs. Aarp org taxaide gov/fatca. Aarp org taxaide Comments and suggestions. Aarp org taxaide   We welcome your comments about this publication and your suggestions for future editions. Aarp org taxaide   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Aarp org taxaide NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Aarp org taxaide Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Aarp org taxaide   You can email us at taxforms@irs. Aarp org taxaide gov. Aarp org taxaide Please put “Publications Comment” on the subject line. Aarp org taxaide You can also send us comments from www. Aarp org taxaide irs. Aarp org taxaide gov/formspubs/. Aarp org taxaide Select “Comment on Tax Forms and Publications” under “Information About. Aarp org taxaide ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Aarp org taxaide Ordering forms and publications. Aarp org taxaide   Visit www. Aarp org taxaide irs. Aarp org taxaide gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Aarp org taxaide Internal Revenue Service 1201 N. Aarp org taxaide Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Aarp org taxaide   If you have a tax question, check the information available on IRS. Aarp org taxaide gov or call 1-800-829-1040. Aarp org taxaide We cannot answer tax questions sent to either of the above addresses. Aarp org taxaide Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 51 (Circular A), Agricultural Employer's Tax Guide 519 U. Aarp org taxaide S. Aarp org taxaide Tax Guide for Aliens 901 U. Aarp org taxaide S. Aarp org taxaide Tax Treaties Form (and Instructions) SS-4 Application for Employer Identification Number W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-7 Application for IRS Individual Taxpayer Identification Number W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-8EXP Certificate of Foreign Government or Other Foreign Organization for United States Tax Withholding W-8IMY Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U. Aarp org taxaide S. Aarp org taxaide Branches for United States Tax Withholding 941 Employer's QUARTERLY Federal Tax Return 1042 Annual Withholding Tax Return for U. Aarp org taxaide S. Aarp org taxaide Source Income of Foreign Persons 1042-S Foreign Person's U. Aarp org taxaide S. Aarp org taxaide Source Income Subject to Withholding 1042-T Annual Summary and Transmittal of Forms 1042-S See How To Get Tax Help at the end of this publication, for information about getting publications and forms. Aarp org taxaide Prev  Up  Next   Home   More Online Publications
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The Aarp Org Taxaide

Aarp org taxaide 37. Aarp org taxaide   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. Aarp org taxaide  The maximum adoption credit is $12,970 for 2013. Aarp org taxaide See Adoption Credit . Aarp org taxaide Plug-in electric vehicle credit. Aarp org taxaide  This credit has expired. Aarp org taxaide Credit for prior year minimum tax. Aarp org taxaide  The refundable portion of the credit for prior year minimum tax has expired. Aarp org taxaide Excess withholding of social security and railroad retirement tax. Aarp org taxaide  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. Aarp org taxaide 2% of wages up to $113,700. Aarp org taxaide If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. Aarp org taxaide See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . Aarp org taxaide Introduction This chapter discusses the following nonrefundable credits. Aarp org taxaide Adoption credit. Aarp org taxaide Alternative motor vehicle credit. Aarp org taxaide Alternative fuel vehicle refueling property credit. Aarp org taxaide Credit to holders of tax credit bonds. Aarp org taxaide Foreign tax credit. Aarp org taxaide Mortgage interest credit. Aarp org taxaide Nonrefundable credit for prior year minimum tax. Aarp org taxaide Plug-in electric drive motor vehicle credit. Aarp org taxaide Residential energy credits. Aarp org taxaide Retirement savings contributions credit. Aarp org taxaide This chapter also discusses the following refundable credits. Aarp org taxaide Credit for tax on undistributed capital gain. Aarp org taxaide Health coverage tax credit. Aarp org taxaide Credit for excess social security tax or railroad retirement tax withheld. Aarp org taxaide Several other credits are discussed in other chapters in this publication. Aarp org taxaide Child and dependent care credit (chapter 32). Aarp org taxaide Credit for the elderly or the disabled (chapter 33). Aarp org taxaide Child tax credit (chapter 34). Aarp org taxaide Education credits (chapter 35). Aarp org taxaide Earned income credit (chapter 36). Aarp org taxaide Nonrefundable credits. Aarp org taxaide   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. Aarp org taxaide These credits may reduce your tax to zero. Aarp org taxaide If these credits are more than your tax, the excess is not refunded to you. Aarp org taxaide Refundable credits. Aarp org taxaide   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. Aarp org taxaide These credits are added to the federal income tax withheld and any estimated tax payments you made. Aarp org taxaide If this total is more than your total tax, the excess will be refunded to you. Aarp org taxaide Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. Aarp org taxaide However, if the total of these credits is more than your tax, the excess is not refunded to you. Aarp org taxaide Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. Aarp org taxaide The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. Aarp org taxaide If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. Aarp org taxaide If your modified AGI is $234,580 or more, you cannot take the credit. Aarp org taxaide Qualified adoption expenses. Aarp org taxaide   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. Aarp org taxaide These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. Aarp org taxaide Nonqualified expenses. Aarp org taxaide   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. Aarp org taxaide Eligible child. Aarp org taxaide   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. Aarp org taxaide Child with special needs. Aarp org taxaide   An eligible child is a child with special needs if all three of the following apply. Aarp org taxaide The child was a citizen or resident of the United States (including U. Aarp org taxaide S. Aarp org taxaide possessions) at the time the adoption process began. Aarp org taxaide A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. Aarp org taxaide The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. Aarp org taxaide Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. Aarp org taxaide When to take the credit. Aarp org taxaide   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. Aarp org taxaide If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. Aarp org taxaide See the Instructions for Form 8839 for more specific information on when to take the credit. Aarp org taxaide Foreign child. Aarp org taxaide   If the child is not a U. Aarp org taxaide S. Aarp org taxaide citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. Aarp org taxaide You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. Aarp org taxaide How to take the credit. Aarp org taxaide   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. Aarp org taxaide Include the credit in your total for Form 1040, line 53. Aarp org taxaide Check box c and enter “8839” on the line next to that box. Aarp org taxaide More information. Aarp org taxaide   For more information, see the Instructions for Form 8839. Aarp org taxaide Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. Aarp org taxaide Amount of credit. Aarp org taxaide   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. Aarp org taxaide In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. Aarp org taxaide   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. Aarp org taxaide How to take the credit. Aarp org taxaide   To take the credit, you must complete Form 8910 and attach it to your Form 1040. Aarp org taxaide Include the credit in your total for Form 1040, line 53. Aarp org taxaide Check box c and enter “8910” on the line next to that box. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit, see the Instructions for Form 8910. Aarp org taxaide Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. Aarp org taxaide Qualified alternative fuel vehicle refueling property. Aarp org taxaide   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. Aarp org taxaide To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. Aarp org taxaide To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. Aarp org taxaide   The following are alternative fuels. Aarp org taxaide Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. Aarp org taxaide Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. Aarp org taxaide Electricity. Aarp org taxaide Amount of the credit. Aarp org taxaide   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. Aarp org taxaide For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. Aarp org taxaide How to take the credit. Aarp org taxaide   To take the credit, you must complete Form 8911 and attach it to your Form 1040. Aarp org taxaide Include the credit in your total for Form 1040, line 53. Aarp org taxaide Check box c and enter “8911” on the line next to that box. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit, see the Form 8911 instructions. Aarp org taxaide Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. Aarp org taxaide You may be able to take a credit if you are a holder of one of the following bonds. Aarp org taxaide Clean renewable energy bonds (issued before 2010). Aarp org taxaide New clean renewable energy bonds. Aarp org taxaide Qualified energy conservation bonds. Aarp org taxaide Qualified school construction bonds. Aarp org taxaide Qualified zone academy bonds. Aarp org taxaide Build America bonds. Aarp org taxaide In some instances, an issuer may elect to receive a credit for interest paid on the bond. Aarp org taxaide If the issuer makes this election, you cannot also claim a credit. Aarp org taxaide Interest income. Aarp org taxaide   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. Aarp org taxaide How to take the credit. Aarp org taxaide   Complete Form 8912 and attach it to your Form 1040. Aarp org taxaide Include the credit in your total for Form 1040, line 53. Aarp org taxaide Check box c and enter “8912” on the line next to that box. Aarp org taxaide More information. Aarp org taxaide   For more information, see the Instructions for Form 8912. Aarp org taxaide Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. Aarp org taxaide S. Aarp org taxaide possession as a credit against your U. Aarp org taxaide S. Aarp org taxaide income tax. Aarp org taxaide Or, you can deduct them as an itemized deduction (see chapter 22). Aarp org taxaide You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. Aarp org taxaide S. Aarp org taxaide tax under any of the following. Aarp org taxaide Foreign earned income exclusion. Aarp org taxaide Foreign housing exclusion. Aarp org taxaide Income from Puerto Rico exempt from U. Aarp org taxaide S. Aarp org taxaide tax. Aarp org taxaide Possession exclusion. Aarp org taxaide Limit on the credit. Aarp org taxaide   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. Aarp org taxaide S. Aarp org taxaide tax liability (Form 1040, line 44), multiplied by a fraction. Aarp org taxaide The numerator of the fraction is your taxable income from sources outside the United States. Aarp org taxaide The denominator is your total taxable income from U. Aarp org taxaide S. Aarp org taxaide and foreign sources. Aarp org taxaide See Publication 514 for more information. Aarp org taxaide How to take the credit. Aarp org taxaide   Complete Form 1116 and attach it to your Form 1040. Aarp org taxaide Enter the credit on Form 1040, line 47. Aarp org taxaide Exception. Aarp org taxaide   You do not have to complete Form 1116 to take the credit if all of the following apply. Aarp org taxaide All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). Aarp org taxaide If you had dividend income from shares of stock, you held those shares for at least 16 days. Aarp org taxaide You are not filing Form 4563 or excluding income from sources within Puerto Rico. Aarp org taxaide The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). Aarp org taxaide All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit and these requirements, see the Instructions for Form 1116. Aarp org taxaide Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. Aarp org taxaide If you qualify, you can take the credit each year for part of the home mortgage interest you pay. Aarp org taxaide Who qualifies. Aarp org taxaide   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. Aarp org taxaide Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. Aarp org taxaide Amount of credit. Aarp org taxaide   Figure your credit on Form 8396. Aarp org taxaide If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. Aarp org taxaide   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. Aarp org taxaide To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. Aarp org taxaide      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. Aarp org taxaide   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. Aarp org taxaide If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. Aarp org taxaide See Publication 530 for more information. Aarp org taxaide Carryforward. Aarp org taxaide   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. Aarp org taxaide If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. Aarp org taxaide   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). Aarp org taxaide How to take the credit. Aarp org taxaide    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. Aarp org taxaide Be sure to include any credit carryforward from 2010, 2011, and 2012. Aarp org taxaide   Include the credit in your total for Form 1040, line 53. Aarp org taxaide Check box c and enter “8396” on the line next to that box. Aarp org taxaide Reduced home mortgage interest deduction. Aarp org taxaide   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. Aarp org taxaide You must do this even if part of that amount is to be carried forward to 2014. Aarp org taxaide For more information about the home mortgage interest deduction, see chapter 23. Aarp org taxaide Recapture of federal mortgage subsidy. Aarp org taxaide   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. Aarp org taxaide The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. Aarp org taxaide See the Instructions for Form 8828 and chapter 15 for more information. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit, see the Form 8396 instructions. Aarp org taxaide Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. Aarp org taxaide If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. Aarp org taxaide This is called the alternative minimum tax. Aarp org taxaide The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. Aarp org taxaide If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. Aarp org taxaide You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. Aarp org taxaide How to take the credit. Aarp org taxaide    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. Aarp org taxaide Include the credit in your total for Form 1040, line 53, and check box b. Aarp org taxaide You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit, see the Instructions for Form 8801. Aarp org taxaide Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. Aarp org taxaide Qualified plug-in electric drive motor vehicle. Aarp org taxaide   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Aarp org taxaide Qualified two- or three-wheeled plug-in electric vehicle. Aarp org taxaide   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. Aarp org taxaide 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Aarp org taxaide Certification and other requirements. Aarp org taxaide   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. Aarp org taxaide However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. Aarp org taxaide   The following requirements must also be met to qualify for the credit. Aarp org taxaide You are the owner of the vehicle. Aarp org taxaide If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. Aarp org taxaide You placed the vehicle in service during 2013. Aarp org taxaide The vehicle is manufactured primarily for use on public streets, roads, and highways. Aarp org taxaide The original use of the vehicle began with you. Aarp org taxaide You acquired the vehicle for your use or to lease to others, and not for resale. Aarp org taxaide In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. Aarp org taxaide You use the vehicle primarily in the United States. Aarp org taxaide How to take the credit. Aarp org taxaide   To take the credit, you must complete Form 8936 and attach it to your Form 1040. Aarp org taxaide Include the credit in your total for Form 1040, line 53. Aarp org taxaide Check box c and enter “8936” on the line next to that box. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit, see the Form 8936 instructions. Aarp org taxaide Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. Aarp org taxaide Nonbusiness energy property credit. Aarp org taxaide Residential energy efficient property credit. Aarp org taxaide If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. Aarp org taxaide Nonbusiness energy property credit. Aarp org taxaide   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. Aarp org taxaide   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. Aarp org taxaide    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. Aarp org taxaide   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. Aarp org taxaide Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. Aarp org taxaide Exterior window (including skylights). Aarp org taxaide Exterior doors. Aarp org taxaide Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. Aarp org taxaide   Residential energy property is any of the following. Aarp org taxaide Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. Aarp org taxaide Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. Aarp org taxaide Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. Aarp org taxaide Residential energy efficient property credit. Aarp org taxaide   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. Aarp org taxaide The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. Aarp org taxaide Basis reduction. Aarp org taxaide   You must reduce the basis of your home by the amount of any credit allowed. Aarp org taxaide How to take the credit. Aarp org taxaide   Complete Form 5695 and attach it to your Form 1040. Aarp org taxaide Enter the credit on Form 1040, line 52. Aarp org taxaide More information. Aarp org taxaide   For more information on these credits, see the Form 5695 instructions. Aarp org taxaide Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. Aarp org taxaide However, you cannot take the credit if either of the following applies. Aarp org taxaide The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). Aarp org taxaide The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). Aarp org taxaide Student. Aarp org taxaide   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. Aarp org taxaide School. Aarp org taxaide   A school includes a technical, trade, or mechanical school. Aarp org taxaide It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Aarp org taxaide How to take the credit. Aarp org taxaide   Figure the credit on Form 8880. Aarp org taxaide Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit, see the Form 8880 instructions. Aarp org taxaide Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. Aarp org taxaide If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. Aarp org taxaide Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. Aarp org taxaide If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. Aarp org taxaide The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. Aarp org taxaide How to take the credit. Aarp org taxaide   To take the credit, attach Copy B of Form 2439 to your Form 1040. Aarp org taxaide Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. Aarp org taxaide More information. Aarp org taxaide   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. Aarp org taxaide Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. Aarp org taxaide You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. Aarp org taxaide You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. Aarp org taxaide S. Aarp org taxaide Treasury–HCTC. Aarp org taxaide ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. Aarp org taxaide You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). Aarp org taxaide You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. Aarp org taxaide S. Aarp org taxaide military health system (TRICARE). Aarp org taxaide You were not imprisoned under federal, state, or local authority. Aarp org taxaide Your employer did not pay 50% or more of the cost of coverage. Aarp org taxaide You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. Aarp org taxaide But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. Aarp org taxaide If you meet all of these conditions, you may be able to take a credit of up to 72. Aarp org taxaide 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. Aarp org taxaide You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. Aarp org taxaide The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. Aarp org taxaide You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. Aarp org taxaide If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. Aarp org taxaide TAA recipient. Aarp org taxaide   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). Aarp org taxaide Example. Aarp org taxaide You received a trade adjustment allowance for January 2013. Aarp org taxaide You were an eligible TAA recipient on the first day of January and February. Aarp org taxaide Alternative TAA recipient. Aarp org taxaide   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. Aarp org taxaide Example. Aarp org taxaide You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. Aarp org taxaide The program was established by the Department of Labor. Aarp org taxaide You were an eligible alternative TAA recipient on the first day of October and November. Aarp org taxaide RTAA recipient. Aarp org taxaide   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. Aarp org taxaide PBGC pension recipient. Aarp org taxaide   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. Aarp org taxaide You were age 55 or older on the first day of the month. Aarp org taxaide You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). Aarp org taxaide If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. Aarp org taxaide How to take the credit. Aarp org taxaide   To take the credit, complete Form 8885 and attach it to your Form 1040. Aarp org taxaide Include your credit in the total for Form 1040, line 71, and check box c. Aarp org taxaide   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. Aarp org taxaide For details, see Publication 502 or Form 8885. Aarp org taxaide More information. Aarp org taxaide   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. Aarp org taxaide Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. Aarp org taxaide If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Aarp org taxaide If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. Aarp org taxaide If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. Aarp org taxaide 2% rate. Aarp org taxaide You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. Aarp org taxaide For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. Aarp org taxaide 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. Aarp org taxaide 45%) or the Additional Medicare Tax rate (. Aarp org taxaide 9%). Aarp org taxaide The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. Aarp org taxaide Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. Aarp org taxaide 40 RRTA tier 2 $84,300 $3,709. Aarp org taxaide 20 All wages are subject to Medicare tax withholding. Aarp org taxaide   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. Aarp org taxaide Be sure to attach a copy of all of your W-2 forms. Aarp org taxaide Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. Aarp org taxaide Employer's error. Aarp org taxaide   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. Aarp org taxaide The employer should adjust the tax for you. Aarp org taxaide If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. Aarp org taxaide Joint return. Aarp org taxaide   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. Aarp org taxaide Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. Aarp org taxaide How to figure the credit if you did not work for a railroad. Aarp org taxaide   If you did not work for a railroad during 2013, figure the credit as follows: 1. Aarp org taxaide Add all social security tax withheld (but not more than $7,049. Aarp org taxaide 40 for each employer). Aarp org taxaide Enter the total here   2. Aarp org taxaide Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Aarp org taxaide Add lines 1 and 2. Aarp org taxaide If $7,049. Aarp org taxaide 40 or less, stop here. Aarp org taxaide You cannot take  the credit   4. Aarp org taxaide Social security tax limit 7,049. Aarp org taxaide 40 5. Aarp org taxaide Credit. Aarp org taxaide Subtract line 4 from line 3. Aarp org taxaide Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. Aarp org taxaide You are married and file a joint return with your spouse who had no gross income in 2013. Aarp org taxaide During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. Aarp org taxaide Social security tax of $3,720 was withheld. Aarp org taxaide You also worked for another employer in 2013 and earned $55,000 in wages. Aarp org taxaide $3,410 of social security tax was withheld from these wages. Aarp org taxaide Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. Aarp org taxaide 60 for the excess social security tax withheld. Aarp org taxaide 1. Aarp org taxaide Add all social security tax withheld (but not more than $7,049. Aarp org taxaide 40 for each employer). Aarp org taxaide Enter the total here $7,130. Aarp org taxaide 00 2. Aarp org taxaide Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. Aarp org taxaide Add lines 1 and 2. Aarp org taxaide If $7,049. Aarp org taxaide 40 or less, stop here. Aarp org taxaide You cannot take the credit 7,130. Aarp org taxaide 00 4. Aarp org taxaide Social security tax limit 7,049. Aarp org taxaide 40 5. Aarp org taxaide Credit. Aarp org taxaide Subtract line 4 from line 3. Aarp org taxaide Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. Aarp org taxaide 60 How to figure the credit if you worked for a railroad. Aarp org taxaide   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. Aarp org taxaide Add all social security and tier 1 RRTA tax withheld at the 6. Aarp org taxaide 2% rate (but not more than $7,049. Aarp org taxaide 40 for each employer). Aarp org taxaide Enter the total here   2. Aarp org taxaide Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Aarp org taxaide Add lines 1 and 2. Aarp org taxaide If $7,049. Aarp org taxaide 40 or less, stop here. Aarp org taxaide You cannot take  the credit   4. Aarp org taxaide Social security and tier 1 RRTA  tax limit 7,049. Aarp org taxaide 40 5. Aarp org taxaide Credit. Aarp org taxaide Subtract line 4 from line 3. Aarp org taxaide Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. Aarp org taxaide   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. Aarp org taxaide More information. Aarp org taxaide   For more information on the credit, see Publication 505. 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