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Free Federal And State Tax Return

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Free Federal And State Tax Return

Free federal and state tax return 5. Free federal and state tax return   Manufacturers Taxes Table of Contents Importer. Free federal and state tax return Use considered sale. Free federal and state tax return Lease considered sale. Free federal and state tax return Bonus goods. Free federal and state tax return Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. Free federal and state tax return Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. Free federal and state tax return CoalExported. Free federal and state tax return Taxable TiresQualifying intercity or local bus. Free federal and state tax return Qualifying school bus. Free federal and state tax return Gas Guzzler TaxVehicles not subject to tax. Free federal and state tax return Imported automobiles. Free federal and state tax return VaccinesConditions to allowance. Free federal and state tax return Taxable Medical Devices The following discussion of manufacturers taxes applies to the tax on: Sport fishing equipment; Fishing rods and fishing poles; Electric outboard motors; Fishing tackle boxes; Bows, quivers, broadheads, and points; Arrow shafts; Coal; Taxable tires; Gas guzzler automobiles; and Vaccines. Free federal and state tax return Manufacturer. Free federal and state tax return   The term “manufacturer” includes a producer or importer. Free federal and state tax return A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. Free federal and state tax return If you furnish the materials and keep title to those materials and to the finished article, you are considered the manufacturer even though another person actually manufactures the taxable article. Free federal and state tax return   A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. Free federal and state tax return The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use. Free federal and state tax return Importer. Free federal and state tax return   An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States. Free federal and state tax return Sale. Free federal and state tax return   A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things. Free federal and state tax return Use considered sale. Free federal and state tax return   A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold. Free federal and state tax return Lease considered sale. Free federal and state tax return   The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. Free federal and state tax return However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale. Free federal and state tax return Manufacturers taxes based on sale price. Free federal and state tax return   The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. Free federal and state tax return The taxes imposed on coal are based either on the sale price or the weight. Free federal and state tax return   The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. Free federal and state tax return However, you include certain charges made when a taxable article is sold and you exclude others. Free federal and state tax return To figure the price on which you base the tax, use the following rules. Free federal and state tax return Include both the following charges in the price. Free federal and state tax return Any charge for coverings or containers (regardless of their nature). Free federal and state tax return Any charge incident to placing the article in a condition packed ready for shipment. Free federal and state tax return Exclude all the following amounts from the price. Free federal and state tax return The manufacturers excise tax, whether or not it is stated as a separate charge. Free federal and state tax return The transportation charges pursuant to the sale. Free federal and state tax return The cost of transportation of goods to a warehouse before their bona fide sale is not excludable. Free federal and state tax return Delivery, insurance, installation, retail dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale. Free federal and state tax return Discounts, rebates, and similar allowances actually granted to the purchaser. Free federal and state tax return Local advertising charges. Free federal and state tax return A charge made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price. Free federal and state tax return Charges for warranty paid at the purchaser's option. Free federal and state tax return However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured. Free federal and state tax return Bonus goods. Free federal and state tax return   Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. Free federal and state tax return Figure the tax only on the sale price attributable to the taxable articles. Free federal and state tax return Example. Free federal and state tax return A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. Free federal and state tax return The sale price of the shipment is $1,500. Free federal and state tax return The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. Free federal and state tax return Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). Free federal and state tax return The remaining $375 is allocated to the nontaxable articles. Free federal and state tax return Taxable Event Tax attaches when the title to the article sold passes from the manufacturer to the buyer. Free federal and state tax return When the title passes depends on the intention of the parties as gathered from the contract of sale. Free federal and state tax return In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes. Free federal and state tax return If the taxable article is used by the manufacturer, the tax attaches at the time use begins. Free federal and state tax return The manufacturer is liable for the tax. Free federal and state tax return Partial payments. Free federal and state tax return   The tax applies to each partial payment received when taxable articles are: Leased, Sold conditionally, Sold on installment with chattel mortgage, or Sold on installment with title to pass in the future. Free federal and state tax return To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment. Free federal and state tax return Exemptions The following sales by the manufacturer are exempt from the manufacturers tax. Free federal and state tax return Sale of an article to a state or local government for the exclusive use of the state or local government. Free federal and state tax return This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Free federal and state tax return State is defined in Definitions in chapter 1. Free federal and state tax return Sale of an article to a nonprofit educational organization for its exclusive use. Free federal and state tax return This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Free federal and state tax return Nonprofit educational organization is defined under Communications Tax in chapter 4. Free federal and state tax return Sale of an article to a qualified blood collector organization. Free federal and state tax return This exemption does not apply to gas guzzlers, recreational equipment, and vaccines. Free federal and state tax return Qualified blood collector organizations are defined under Communications Tax in chapter 4. Free federal and state tax return Sale of an article for use by the purchaser as supplies for vessels. Free federal and state tax return This exemption does not apply to the taxes on coal and vaccines. Free federal and state tax return Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade. Free federal and state tax return Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. Free federal and state tax return This exemption does not apply to the tax on coal and tires. Free federal and state tax return Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. Free federal and state tax return If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and sold them. Free federal and state tax return Sale of an article for export or for resale by the purchaser to a second purchaser for export. Free federal and state tax return The article may be exported to a foreign country or to a possession of the United States. Free federal and state tax return A vaccine shipped to a possession of the United States is not considered to be exported. Free federal and state tax return If an article is sold tax free for export and the manufacturer does not receive proof of export, described later, the manufacturer is liable for the tax. Free federal and state tax return Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U. Free federal and state tax return S. Free federal and state tax return jurisdiction in Alaska. Free federal and state tax return For tire exemptions, see section 4221(e)(2). Free federal and state tax return Requirements for Exempt Sales The following requirements must be met for a sale to be exempt from the manufacturers tax. Free federal and state tax return Registration requirements. Free federal and state tax return   The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. Free federal and state tax return See the Form 637 instructions for more information. Free federal and state tax return Exceptions to registration requirements. Free federal and state tax return   Registration is not required for: State or local governments, Foreign purchasers of articles sold or resold for export, The United States, or Parties to a sale of supplies for vessels and aircraft. Free federal and state tax return Certification requirement. Free federal and state tax return   If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. Free federal and state tax return The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale. Free federal and state tax return   For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. Free federal and state tax return See Regulations section 48. Free federal and state tax return 4221-5(c) for the certificate requirements. Free federal and state tax return   For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. Free federal and state tax return See Regulations section 48. Free federal and state tax return 4221-4(d) for the certificate requirements. Free federal and state tax return Proof of export requirement. Free federal and state tax return   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. Free federal and state tax return See Regulations section 48. Free federal and state tax return 4221-3(d) for evidence that qualifies as proof of exportation. Free federal and state tax return Proof of resale for further manufacture requirement. Free federal and state tax return   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. Free federal and state tax return See Regulations section 48. Free federal and state tax return 4221-2(c) for evidence that qualifies as proof of resale. Free federal and state tax return Information to be furnished to purchaser. Free federal and state tax return   The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate. Free federal and state tax return Credits or Refunds The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. Free federal and state tax return The claim must set forth in detail the facts upon which the claim is based. Free federal and state tax return Uses, sales, and exports. Free federal and state tax return   A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person: Exported, Used or sold for use as supplies for vessels (except for coal and vaccines), Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines), or Used for further manufacture of another article subject to the manufacturers taxes (except for coal). Free federal and state tax return Export. Free federal and state tax return   If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. Free federal and state tax return In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund. Free federal and state tax return Price readjustments. Free federal and state tax return   In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price. Free federal and state tax return Conditions to allowance. Free federal and state tax return   To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. Free federal and state tax return The claimant sold the article at a tax-excluded price. Free federal and state tax return The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article. Free federal and state tax return The person has obtained the written consent of the ultimate vendor to make the claim. Free federal and state tax return The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax. Free federal and state tax return Claim for further manufacture. Free federal and state tax return   To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following. Free federal and state tax return The name and address of the manufacturer and the date of payment. Free federal and state tax return An identification of the article for which the credit or refund is claimed. Free federal and state tax return The amount of tax paid on the article and the date on which it was paid. Free federal and state tax return Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of a second article manufactured or produced by the manufacturer. Free federal and state tax return An identification of the second article. Free federal and state tax return   For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. Free federal and state tax return The statement must include the amount of tax paid, the date of payment, and the office to which it was paid. Free federal and state tax return Claim for price readjustment. Free federal and state tax return   To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following. Free federal and state tax return A description of the circumstances that gave rise to the price readjustment. Free federal and state tax return An identification of the article whose price was readjusted. Free federal and state tax return The price at which the article was sold. Free federal and state tax return The amount of tax paid on the article and the date on which it was paid. Free federal and state tax return The name and address of the purchaser. Free federal and state tax return The amount repaid to the purchaser or credited to the purchaser's account. Free federal and state tax return Sport Fishing Equipment A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. Free federal and state tax return This includes any parts or accessories sold on or in connection with the sale of those articles. Free federal and state tax return Pay this tax with Form 720. Free federal and state tax return No tax deposits are required. Free federal and state tax return Sport fishing equipment includes all the following items. Free federal and state tax return Fishing rods and poles (and component parts), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips. Free federal and state tax return Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)). Free federal and state tax return The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies. Free federal and state tax return Fishing tip-ups and tilts. Free federal and state tax return Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers. Free federal and state tax return See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment. Free federal and state tax return Fishing rods and fishing poles. Free federal and state tax return   The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. Free federal and state tax return The tax is paid by the manufacturer, producer, or importer. Free federal and state tax return Fishing tackle boxes. Free federal and state tax return   The tax on fishing tackle boxes is 3% of the sales price. Free federal and state tax return The tax is paid by the manufacturer, producer, or importer. Free federal and state tax return Electric outboard boat motors. Free federal and state tax return   A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. Free federal and state tax return This includes any parts or accessories sold on or in connection with the sale of those articles. Free federal and state tax return Certain equipment resale. Free federal and state tax return   The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. Free federal and state tax return If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. Free federal and state tax return If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. Free federal and state tax return The second tax, however, is not imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. Free federal and state tax return   If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. Free federal and state tax return The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax. Free federal and state tax return Related person. Free federal and state tax return   For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C). Free federal and state tax return Bows, Quivers, Broadheads, and Points The tax on bows is 11% (. Free federal and state tax return 11) of the sales price. Free federal and state tax return The tax is paid by the manufacturer, producer, or importer. Free federal and state tax return It applies to bows having a peak draw weight of 30 pounds or more. Free federal and state tax return The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below. Free federal and state tax return Pay this tax with Form 720. Free federal and state tax return No tax deposits are required. Free federal and state tax return Arrow Shafts The tax on arrow shafts is listed on Form 720. Free federal and state tax return The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions. Free federal and state tax return It measures 18 inches or more in overall length. Free federal and state tax return It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier. Free federal and state tax return Exemption for certain wooden arrows. Free federal and state tax return   After October 3, 2008, the tax does not apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions. Free federal and state tax return It measures 5/16 of an inch or less in diameter. Free federal and state tax return It is not suitable for use with a taxable bow, described earlier. Free federal and state tax return Pay this tax with Form 720. Free federal and state tax return No tax deposits are required. Free federal and state tax return Coal A tax is imposed on the first sale of coal mined in the United States. Free federal and state tax return The producer of the coal is liable for the tax. Free federal and state tax return The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. Free federal and state tax return Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. Free federal and state tax return A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal). Free federal and state tax return The tax is not imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously. Free federal and state tax return Tax rates. Free federal and state tax return   The tax on underground-mined coal is the lower of: $1. Free federal and state tax return 10 a ton, or 4. Free federal and state tax return 4% of the sale price. Free federal and state tax return   The tax on surface-mined coal is the lower of: 55 cents a ton, or 4. Free federal and state tax return 4% of the sale price. Free federal and state tax return   Coal will be taxed at the 4. Free federal and state tax return 4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12. Free federal and state tax return 50 a ton for surface-mined coal. Free federal and state tax return Apply the tax proportionately if a sale or use includes a portion of a ton. Free federal and state tax return Example. Free federal and state tax return If you sell 21,000 pounds (10. Free federal and state tax return 5 tons) of coal from an underground mine for $525, the price per ton is $50. Free federal and state tax return The tax is $1. Free federal and state tax return 10 × 10. Free federal and state tax return 5 tons ($11. Free federal and state tax return 55). Free federal and state tax return Coal production. Free federal and state tax return   Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. Free federal and state tax return Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine. Free federal and state tax return   Treat coal as produced from an underground mine when the coal is not produced from a surface mine. Free federal and state tax return In some cases, a single mine may yield coal from both surface mining and underground mining. Free federal and state tax return Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis. Free federal and state tax return Determining tonnage or selling price. Free federal and state tax return   The producer pays the tax on coal at the time of sale or use. Free federal and state tax return In figuring the selling price for applying the tax, the point of sale is f. Free federal and state tax return o. Free federal and state tax return b. Free federal and state tax return (free on board) mine or f. Free federal and state tax return o. Free federal and state tax return b. Free federal and state tax return cleaning plant if you clean the coal before selling it. Free federal and state tax return This applies even if you sell the coal for a delivered price. Free federal and state tax return The f. Free federal and state tax return o. Free federal and state tax return b. Free federal and state tax return mine or f. Free federal and state tax return o. Free federal and state tax return b. Free federal and state tax return cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4. Free federal and state tax return 4% rate. Free federal and state tax return   The tax applies to the full amount of coal sold. Free federal and state tax return However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. Free federal and state tax return Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax. Free federal and state tax return   Do not include in the sales price the excise tax imposed on coal. Free federal and state tax return Coal used by the producer. Free federal and state tax return   The tax on coal applies if the coal is used by the producer in other than a mining process. Free federal and state tax return A mining process means the same for this purpose as for percentage depletion. Free federal and state tax return For example, the tax does not apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. Free federal and state tax return In this case, the tax applies only when you sell the coal. Free federal and state tax return The tax does not apply to coal used as fuel in the coal drying process since it is considered to be used in a mining process. Free federal and state tax return However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal is not used in a mining process. Free federal and state tax return   You must use a constructive sale price to figure the tax under the 4. Free federal and state tax return 4% rate if you use the coal in other than a mining process. Free federal and state tax return Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f. Free federal and state tax return o. Free federal and state tax return b. Free federal and state tax return mine or cleaning plant. Free federal and state tax return Normally, you use the same constructive price used to figure your percentage depletion deduction. Free federal and state tax return Blending. Free federal and state tax return   If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. Free federal and state tax return Figure the tax separately for each type of coal in the blend. Free federal and state tax return Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. Free federal and state tax return Base the tax on the ratio of each type originally put into the cleaning process if you cannot determine the proportion of each type of coal in the blend. Free federal and state tax return However, the tax is limited to 4. Free federal and state tax return 4% of the sale price per ton of the blended coal. Free federal and state tax return Exemption from tax. Free federal and state tax return   The tax does not apply to sales of lignite and imported coal. Free federal and state tax return The only other exemption from the tax on the sale of coal is for coal exported as discussed next. Free federal and state tax return Exported. Free federal and state tax return   The tax does not apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported. Free federal and state tax return   Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. Free federal and state tax return For example, coal is in the stream of export when: The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country. Free federal and state tax return   Proof of export includes any of the following items. Free federal and state tax return A copy of the export bill of lading issued by the delivering carrier. Free federal and state tax return A certificate signed by the export carrier's agent or representative showing actual exportation of the coal. Free federal and state tax return A certificate of landing signed by a customs officer of the foreign country to which the coal is exported. Free federal and state tax return If the foreign country does not have a customs administrator, a statement of the foreign consignee showing receipt of the coal. Free federal and state tax return Taxable Tires Taxable tires are divided into three categories for reporting and figuring the tax as described below. Free federal and state tax return A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $. Free federal and state tax return 0945 ($. Free federal and state tax return 04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Free federal and state tax return The three categories for reporting the tax and the tax rate are listed below. Free federal and state tax return Taxable tires other than biasply or super single tires at $. Free federal and state tax return 0945. Free federal and state tax return Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $. Free federal and state tax return 04725. Free federal and state tax return Taxable tires, super single tires designed for steering at $. Free federal and state tax return 0945. Free federal and state tax return A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. Free federal and state tax return A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. Free federal and state tax return A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Free federal and state tax return Special rule, manufacturer's retail stores. Free federal and state tax return   The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale. Free federal and state tax return Tires on imported articles. Free federal and state tax return   The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires). Free federal and state tax return Tires exempt from tax. Free federal and state tax return   The tax on taxable tires does not apply to the following items. Free federal and state tax return Domestically recapped or retreaded tires if the tires have been sold previously in the United States and were taxable tires at the time of sale. Free federal and state tax return Tire carcasses not suitable for commercial use. Free federal and state tax return Tires for use on qualifying intercity, local, and school buses. Free federal and state tax return For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales apply. Free federal and state tax return Tires sold for the exclusive use of the Department of Defense or the Coast Guard. Free federal and state tax return Tires of a type used exclusively on mobile machinery. Free federal and state tax return A taxable tire used on mobile machinery is not exempt from tax. Free federal and state tax return Qualifying intercity or local bus. Free federal and state tax return   This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver). Free federal and state tax return Qualifying school bus. Free federal and state tax return   This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools. Free federal and state tax return Credit or refund. Free federal and state tax return   A credit or refund (without interest) is allowable on tax-paid tires if the tires have been: Exported; Sold to a state or local government for its exclusive use; Sold to a nonprofit educational organization for its exclusive use (as defined under Communications Tax in chapter 4); Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood; Used or sold for use as supplies for vessels; or Sold in connection with qualified intercity, local, or school buses. Free federal and state tax return   Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above. Free federal and state tax return   The person who paid the tax is eligible to make the claim. Free federal and state tax return Gas Guzzler Tax Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22. Free federal and state tax return 5 miles per gallon. Free federal and state tax return If you import an automobile for personal use, you may be liable for this tax. Free federal and state tax return Figure the tax on Form 6197, as discussed later. Free federal and state tax return The tax rate is based on fuel economy rating. Free federal and state tax return The tax rates for the gas guzzler tax are shown on Form 6197. Free federal and state tax return A person that lengthens an existing automobile is the manufacturer of an automobile. Free federal and state tax return Automobiles. Free federal and state tax return   An automobile (including limousines) means any four-wheeled vehicle that is: Rated at an unloaded gross vehicle weight of 6,000 pounds or less, Propelled by an engine powered by gasoline or diesel fuel, and Intended for use mainly on public streets, roads, and highways. Free federal and state tax return Vehicles not subject to tax. Free federal and state tax return   For the gas guzzler tax, the following vehicles are not considered automobiles. Free federal and state tax return Limousines with a gross unloaded vehicle weight of more than 6,000 pounds. Free federal and state tax return Vehicles operated exclusively on a rail or rails. Free federal and state tax return Vehicles sold for use and used primarily: As ambulances or combination ambulance-hearses, For police or other law enforcement purposes by federal, state, or local governments, or For firefighting purposes. Free federal and state tax return Vehicles treated under 49 U. Free federal and state tax return S. Free federal and state tax return C. Free federal and state tax return 32901 (1978) as non-passenger automobiles. Free federal and state tax return This includes limousines manufactured primarily to transport more than 10 persons. Free federal and state tax return   The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered. Free federal and state tax return   Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function. Free federal and state tax return Model type. Free federal and state tax return   Model type is a particular class of automobile as determined by EPA regulations. Free federal and state tax return Fuel economy. Free federal and state tax return   Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0. Free federal and state tax return 1 mile as figured by the EPA. Free federal and state tax return Imported automobiles. Free federal and state tax return   The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. Free federal and state tax return An automobile imported into the United States without a certificate of conformity to United States emission standards and that has no assigned fuel economy rating must be either: Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or Modified by installation of emission control components and individually tested to demonstrate emission compliance. Free federal and state tax return   An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile. Free federal and state tax return   A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. Free federal and state tax return A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category). Free federal and state tax return   For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1. Free federal and state tax return Exemptions. Free federal and state tax return   No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. Free federal and state tax return However, see Vehicles not subject to tax, earlier. Free federal and state tax return Form 6197. Free federal and state tax return   Use Form 6197 to figure your tax liability for each quarter. Free federal and state tax return Attach Form 6197 to your Form 720 for the quarter. Free federal and state tax return See the Form 6197 instructions for more information and the one-time filing rules. Free federal and state tax return Credit or refund. Free federal and state tax return   If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. Free federal and state tax return For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Free federal and state tax return Vaccines Tax is imposed on certain vaccines sold by the manufacturer in the United States. Free federal and state tax return A taxable vaccine means any of the following vaccines. Free federal and state tax return Any vaccine containing diphtheria toxoid. Free federal and state tax return Any vaccine containing tetanus toxoid. Free federal and state tax return Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. Free federal and state tax return Any vaccine containing polio virus. Free federal and state tax return Any vaccine against measles. Free federal and state tax return Any vaccine against mumps. Free federal and state tax return Any vaccine against rubella. Free federal and state tax return Any vaccine against hepatitis A. Free federal and state tax return Any vaccine against hepatitis B. Free federal and state tax return Any vaccine against chicken pox. Free federal and state tax return Any vaccine against rotavirus gastroenteritis. Free federal and state tax return Any HIB vaccine. Free federal and state tax return Any conjugate vaccine against streptococcus pneumoniae. Free federal and state tax return Any trivalent vaccine against influenza or any other vaccine against influenza. Free federal and state tax return Any meningococcal vaccine. Free federal and state tax return Any vaccine against the human papillomavirus. Free federal and state tax return The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund. Free federal and state tax return The tax is $. Free federal and state tax return 75 per dose of each taxable vaccine. Free federal and state tax return The tax per dose on a vaccine that contains more than one taxable vaccine is $. Free federal and state tax return 75 times the number of taxable vaccines. Free federal and state tax return Taxable use. Free federal and state tax return   Any manufacturer (including a governmental entity) that uses a taxable vaccine before it is sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer. Free federal and state tax return Credit or refund. Free federal and state tax return   A credit or refund (without interest) is available if the vaccine is: Returned to the person who paid the tax (other than for resale), or Destroyed. Free federal and state tax return The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed. Free federal and state tax return Conditions to allowance. Free federal and state tax return   To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund. Free federal and state tax return Taxable Medical Devices Taxable medical devices. Free federal and state tax return   The tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device is 2. Free federal and state tax return 3% (. Free federal and state tax return 023) of the sales price. Free federal and state tax return A taxable medical device is a device that is listed as a device with the Food and Drug Administration (FDA) under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, pursuant to FDA requirements. Free federal and state tax return There are specific exemptions for eyeglasses, contact lenses, and hearing aids. Free federal and state tax return There is also an exemption for devices that are determined by the Secretary to be of a type that are generally purchased by the general public at retail for individual use (this exemption is known as the retail exemption). Free federal and state tax return See T. Free federal and state tax return D. Free federal and state tax return 9604 for information on how to determine whether a device falls within the retail exemption, and examples of how a taxpayer might evaluate a given device. Free federal and state tax return More information. Free federal and state tax return   For more information on the medical device tax, see section 4191, T. Free federal and state tax return D. Free federal and state tax return 9604, and Notice 2012-77. Free federal and state tax return You can find T. Free federal and state tax return D. Free federal and state tax return 9604 and Notice 2012-77 on pages 730 and 781, respectively, of I. Free federal and state tax return R. Free federal and state tax return B. Free federal and state tax return 2012-52 at www. Free federal and state tax return irs. Free federal and state tax return gov/pub/irs-irbs/irb12-52. Free federal and state tax return pdf. Free federal and state tax return Prev  Up  Next   Home   More Online Publications
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The Free Federal And State Tax Return

Free federal and state tax return 5. Free federal and state tax return   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. Free federal and state tax return Making the election. Free federal and state tax return Form 3115. Free federal and state tax return Income TaxesAccrual of contested income taxes. Free federal and state tax return Employment Taxes Other TaxesAdditional Medicare Tax. Free federal and state tax return What's New Additional Medicare Tax. Free federal and state tax return  Beginning in 2013, you must withhold a 0. Free federal and state tax return 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Free federal and state tax return Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. Free federal and state tax return See Employment Taxes , and Self-employment tax , later. Free federal and state tax return Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. Free federal and state tax return You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. Free federal and state tax return Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. Free federal and state tax return When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. Free federal and state tax return This applies whether you use the cash method or an accrual method of accounting. Free federal and state tax return Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. Free federal and state tax return You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . Free federal and state tax return Limit on accrual of taxes. Free federal and state tax return   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. Free federal and state tax return However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. Free federal and state tax return Example. Free federal and state tax return Your state imposes a tax on personal property used in a trade or business conducted in the state. Free federal and state tax return This tax is assessed and becomes a lien as of July 1 (accrual date). Free federal and state tax return In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. Free federal and state tax return Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. Free federal and state tax return You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. Free federal and state tax return Uniform capitalization rules. Free federal and state tax return   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. Free federal and state tax return They also apply to certain taxpayers who acquire property for resale. Free federal and state tax return Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. Free federal and state tax return For more information, see chapter 1. Free federal and state tax return Carrying charges. Free federal and state tax return   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. Free federal and state tax return You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. Free federal and state tax return For more information, see chapter 7. Free federal and state tax return Refunds of taxes. Free federal and state tax return   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. Free federal and state tax return For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. Free federal and state tax return    You must include in income any interest you receive on tax refunds. Free federal and state tax return Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Free federal and state tax return The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Free federal and state tax return Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Free federal and state tax return See Taxes for local benefits , later. Free federal and state tax return If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. Free federal and state tax return However, you can elect to ratably accrue the taxes during the year. Free federal and state tax return See Electing to ratably accrue , later. Free federal and state tax return Taxes for local benefits. Free federal and state tax return   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. Free federal and state tax return These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. Free federal and state tax return You should increase the basis of your property by the amount of the assessment. Free federal and state tax return   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. Free federal and state tax return If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. Free federal and state tax return Example. Free federal and state tax return To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. Free federal and state tax return The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. Free federal and state tax return The city is paying the principal and interest with the annual payments made by the property owners. Free federal and state tax return The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. Free federal and state tax return The part of the payments used to pay the interest charges on the bonds is deductible as taxes. Free federal and state tax return Charges for services. Free federal and state tax return   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. Free federal and state tax return Purchase or sale of real estate. Free federal and state tax return   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. Free federal and state tax return   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. Free federal and state tax return Treat the seller as paying the taxes up to but not including the date of sale. Free federal and state tax return Treat the buyer as paying the taxes beginning with the date of sale. Free federal and state tax return You can usually find this information on the settlement statement you received at closing. Free federal and state tax return   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. Free federal and state tax return Example. Free federal and state tax return Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. Free federal and state tax return He has not elected to ratably accrue property taxes. Free federal and state tax return November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. Free federal and state tax return He sold the property on June 30, 2013. Free federal and state tax return Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. Free federal and state tax return He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. Free federal and state tax return Electing to ratably accrue. Free federal and state tax return   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. Free federal and state tax return Example. Free federal and state tax return Juan Sanchez is a calendar year taxpayer who uses an accrual method. Free federal and state tax return His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. Free federal and state tax return July 1 is the assessment and lien date. Free federal and state tax return If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. Free federal and state tax return Separate elections. Free federal and state tax return   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. Free federal and state tax return Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. Free federal and state tax return See Form 3115 , later. Free federal and state tax return Making the election. Free federal and state tax return   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. Free federal and state tax return The statement should show all the following items. Free federal and state tax return The trades or businesses to which the election applies and the accounting method or methods used. Free federal and state tax return The period to which the taxes relate. Free federal and state tax return The computation of the real estate tax deduction for that first year. Free federal and state tax return   Generally, you must file your return by the due date (including extensions). Free federal and state tax return However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Free federal and state tax return Attach the statement to the amended return and write “Filed pursuant to section 301. Free federal and state tax return 9100-2” on the statement. Free federal and state tax return File the amended return at the same address where you filed the original return. Free federal and state tax return Form 3115. Free federal and state tax return    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. Free federal and state tax return For more information, including applicable time frames for filing, see the Instructions for Form 3115. Free federal and state tax return Note. Free federal and state tax return If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. Free federal and state tax return R. Free federal and state tax return B. Free federal and state tax return 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. Free federal and state tax return R. Free federal and state tax return B. Free federal and state tax return 689, and Revenue Procedure 2012-20, 2012-14 I. Free federal and state tax return R. Free federal and state tax return B. Free federal and state tax return 700, or any successor. Free federal and state tax return Revenue Procedure 2011-14 is available at  www. Free federal and state tax return irs. Free federal and state tax return gov/irb/2011-04IRB/ar08. Free federal and state tax return html. Free federal and state tax return Income Taxes This section discusses federal, state, local, and foreign income taxes. Free federal and state tax return Federal income taxes. Free federal and state tax return   You cannot deduct federal income taxes. Free federal and state tax return State and local income taxes. Free federal and state tax return   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. Free federal and state tax return An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). Free federal and state tax return   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. Free federal and state tax return Accrual of contested income taxes. Free federal and state tax return   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. Free federal and state tax return   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. Free federal and state tax return You cannot deduct them in the year in which the liability is finally determined. Free federal and state tax return    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. Free federal and state tax return Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. Free federal and state tax return   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. Free federal and state tax return You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. Free federal and state tax return For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. Free federal and state tax return Foreign income taxes. Free federal and state tax return   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Free federal and state tax return S. Free federal and state tax return possession. Free federal and state tax return However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Free federal and state tax return S. Free federal and state tax return tax under the foreign earned income exclusion or the foreign housing exclusion. Free federal and state tax return For information on these exclusions, see Publication 54, Tax Guide for U. Free federal and state tax return S. Free federal and state tax return Citizens and Resident Aliens Abroad. Free federal and state tax return For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. Free federal and state tax return Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. Free federal and state tax return Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. Free federal and state tax return You may also need to pay certain employment taxes from your own funds. Free federal and state tax return These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. Free federal and state tax return Note. Free federal and state tax return Additional Medicare Tax is only imposed on the employee. Free federal and state tax return There is no employer share of Additional Medicare Tax. Free federal and state tax return Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. Free federal and state tax return You can deduct the employment taxes you must pay from your own funds as taxes. Free federal and state tax return Example. Free federal and state tax return You pay your employee $18,000 a year. Free federal and state tax return However, after you withhold various taxes, your employee receives $14,500. Free federal and state tax return You also pay an additional $1,500 in employment taxes. Free federal and state tax return You should deduct the full $18,000 as wages. Free federal and state tax return You can deduct the $1,500 you pay from your own funds as taxes. Free federal and state tax return For more information on employment taxes, see Publication 15 (Circular E). Free federal and state tax return Unemployment fund taxes. Free federal and state tax return   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. Free federal and state tax return Deduct these payments as taxes. Free federal and state tax return Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. Free federal and state tax return Excise taxes. Free federal and state tax return   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. Free federal and state tax return However, see Fuel taxes , later. Free federal and state tax return   For more information on excise taxes, see Publication 510. Free federal and state tax return Franchise taxes. Free federal and state tax return   You can deduct corporate franchise taxes as a business expense. Free federal and state tax return Fuel taxes. Free federal and state tax return   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. Free federal and state tax return Do not deduct these taxes as a separate item. Free federal and state tax return   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Free federal and state tax return For more information, see Publication 510. Free federal and state tax return Occupational taxes. Free federal and state tax return   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Free federal and state tax return Personal property tax. Free federal and state tax return   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. Free federal and state tax return Sales tax. Free federal and state tax return   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Free federal and state tax return If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Free federal and state tax return If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Free federal and state tax return If the property is depreciable, add the sales tax to the basis for depreciation. Free federal and state tax return For more information on basis, see Publication 551. Free federal and state tax return    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Free federal and state tax return Also, do not include these taxes in gross receipts or sales. Free federal and state tax return Self-employment tax. Free federal and state tax return   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. Free federal and state tax return This deduction only affects your income tax. Free federal and state tax return It does not affect your net earnings from self-employment or your self-employment tax. Free federal and state tax return   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). Free federal and state tax return   For more information on self-employment tax, see Publication 334. Free federal and state tax return Additional Medicare Tax. Free federal and state tax return   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. Free federal and state tax return See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. 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