File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Free File State Return Only

1040 FormFill Out 1040ezTurbotax MilitaryFile Extension 2012 Taxes2009 Form 1040 EzIrs Form 1040xE File Amended 1040x2011 Ez Tax FormWhere Can I Get My State Taxes Done For Free10 40 Ez FormH&r Block Free StateH&r Block File OnlineIrs 2011 Tax FormHow Do I File A Tax Extension OnlineH And R Block Free TaxH And R Block Free File OnlineIrs Tax TablesForma 1040Form 1040 Federal Tax FormTax Form 1040nrFree State Tax Returns2011 Tax Forms Federal2011 Irs Form 1040Help Filling Out 1040x Form2010 1040 EzTaxs 2012How Do You Amend TaxesFiling Income Tax ReturnIrs E File 2012Filing Previous Years TaxesFree Tax Filing For 2012Www Freetaxhelp Com1040ez 2012 InstructionsTax Forms For 2011 Tax Year2012 Turbo Tax ReturnIrs Tax Form 1040 EzIrs Filing ExtensionFull Time StudentWhere To File A 1040xFile 2011 Taxes Online Turbotax

Free File State Return Only

Free file state return only 4. Free file state return only   Tax Withholding and Estimated Tax Table of Contents What's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 What's New for 2014 Tax law changes for 2014. Free file state return only  When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2014. Free file state return only For more information, see Publication 505. Free file state return only Reminders Estimated tax safe harbor for higher income taxpayers. Free file state return only  If your 2013 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2014 or 110% of the tax shown on your 2013 return to avoid an estimated tax penalty. Free file state return only Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Free file state return only In general, the federal income tax is a pay-as-you-go tax. Free file state return only There are two ways to pay as you go. Free file state return only Withholding. Free file state return only If you are an employee, your employer probably withholds income tax from your pay. Free file state return only Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Free file state return only The amount withheld is paid to the IRS in your name. Free file state return only Estimated tax. Free file state return only If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. Free file state return only People who are in business for themselves generally will have to pay their tax this way. Free file state return only Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Free file state return only Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Free file state return only This chapter explains these methods. Free file state return only In addition, it also explains the following. Free file state return only Credit for withholding and estimated tax. Free file state return only When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Free file state return only , and for the estimated tax you paid for 2013. Free file state return only Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Free file state return only Underpayment penalty. Free file state return only If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. Free file state return only In most cases, the IRS can figure this penalty for you. Free file state return only See Underpayment Penalty for 2013 at the end of this chapter. Free file state return only Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request 1040-ES Estimated Tax for Individuals 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen Tax Withholding for 2014 This section discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Free file state return only This section explains the rules for withholding tax from each of these types of income. Free file state return only This section also covers backup withholding on interest, dividends, and other payments. Free file state return only Salaries and Wages Income tax is withheld from the pay of most employees. Free file state return only Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Free file state return only It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Free file state return only See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Free file state return only If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Free file state return only This is explained under Exemption From Withholding , later. Free file state return only You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Free file state return only If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Free file state return only Military retirees. Free file state return only   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Free file state return only Household workers. Free file state return only   If you are a household worker, you can ask your employer to withhold income tax from your pay. Free file state return only A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Free file state return only   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Free file state return only If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Free file state return only Farmworkers. Free file state return only   Generally, income tax is withheld from your cash wages for work on a farm unless your employer does both of these: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Free file state return only Differential wage payments. Free file state return only    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Free file state return only Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. Free file state return only The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Free file state return only   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. Free file state return only Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. Free file state return only The amount you earn in each payroll period. Free file state return only The information you give your employer on Form W-4. Free file state return only Form W-4 includes four types of information that your employer will use to figure your withholding. Free file state return only Whether to withhold at the single rate or at the lower married rate. Free file state return only How many withholding allowances you claim (each allowance reduces the amount withheld). Free file state return only Whether you want an additional amount withheld. Free file state return only Whether you are claiming an exemption from withholding in 2014. Free file state return only See Exemption From Withholding , later. Free file state return only Note. Free file state return only You must specify a filing status and a number of withholding allowances on Form W-4. Free file state return only You cannot specify only a dollar amount of withholding. Free file state return only New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Free file state return only Your employer should have copies of the form. Free file state return only If you need to change the information later, you must fill out a new form. Free file state return only If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. Free file state return only You may be able to avoid overwithholding if your employer agrees to use the part-year method. Free file state return only See Part-Year Method in chapter 1 of Publication 505 for more information. Free file state return only Employee also receiving pension income. Free file state return only   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Free file state return only However, you can choose to split your withholding allowances between your pension and job in any manner. Free file state return only Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. Free file state return only When this happens, you may need to give your employer a new Form W-4 to change your withholding status or your number of allowances. Free file state return only If the changes reduce the number of allowances you are claiming or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Free file state return only Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. Free file state return only Changing your withholding for 2015. Free file state return only   If events in 2014 will decrease the number of your withholding allowances for 2015, you must give your employer a new Form W-4 by December 1, 2014. Free file state return only If the event occurs in December 2014, submit a new Form W-4 within 10 days. Free file state return only Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too little or too much. Free file state return only If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Free file state return only You should try to have your withholding match your actual tax liability. Free file state return only If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. Free file state return only If too much tax is withheld, you will lose the use of that money until you get your refund. Free file state return only Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. Free file state return only Note. Free file state return only You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. Free file state return only Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Free file state return only The worksheets are for your own records. Free file state return only Do not give them to your employer. Free file state return only Multiple jobs. Free file state return only   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Free file state return only Then split your allowances between the Forms W-4 for each job. Free file state return only You cannot claim the same allowances with more than one employer at the same time. Free file state return only You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Free file state return only Married individuals. Free file state return only   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. Free file state return only Use only one set of worksheets. Free file state return only You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Free file state return only   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. Free file state return only Alternative method of figuring withholding allowances. Free file state return only   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. Free file state return only For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Free file state return only Personal Allowances Worksheet. Free file state return only   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Free file state return only Deduction and Adjustments Worksheet. Free file state return only   Use the Deduction and Adjustments Worksheet on Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Free file state return only Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Free file state return only Two-Earners/Multiple Jobs Worksheet. Free file state return only   You may need to complete the Two-Earners/Multiple Jobs Worksheet on Form W-4 if you have more than one job, a working spouse, or are also receiving a pension. Free file state return only Also, on this worksheet you can add any additional withholding necessary to cover any amount you expect to owe other than income tax, such as self-employment tax. Free file state return only Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. Free file state return only You accurately complete all the Form W-4 worksheets that apply to you. Free file state return only You give your employer a new Form W-4 when changes occur. Free file state return only But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Free file state return only This is most likely to happen in the following situations. Free file state return only You are married and both you and your spouse work. Free file state return only You have more than one job at a time. Free file state return only You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Free file state return only You will owe additional amounts with your return, such as self-employment tax. Free file state return only Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Free file state return only Your earnings are more than the amount shown under Check your withholding in the instructions at the top of page 1 of Form W-4. Free file state return only You work only part of the year. Free file state return only You change the number of your withholding allowances during the year. Free file state return only Cumulative wage method. Free file state return only   If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. Free file state return only You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. Free file state return only You must ask your employer in writing to use this method. Free file state return only   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Free file state return only ) since the beginning of the year. Free file state return only Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Free file state return only It will help you compare the total tax to be withheld during the year with the tax you can expect to figure on your return. Free file state return only It also will help you determine how much, if any, additional withholding is needed each payday to avoid owing tax when you file your return. Free file state return only If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Free file state return only You can use the IRS Withholding Calculator at www. Free file state return only irs. Free file state return only gov/Individuals, instead of Publication 505 or the worksheets included with Form W-4, to determine whether you need to have your withholding increased or decreased. Free file state return only Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Free file state return only These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Free file state return only New Form W-4. Free file state return only   When you start a new job, your employer should have you complete a Form W-4. Free file state return only Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Free file state return only   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Free file state return only The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. Free file state return only No Form W-4. Free file state return only   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. Free file state return only Repaying withheld tax. Free file state return only   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. Free file state return only Your employer cannot repay any of the tax previously withheld. Free file state return only Instead, claim the full amount withheld when you file your tax return. Free file state return only   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. Free file state return only Your employer can repay the amount that was withheld incorrectly. Free file state return only If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. Free file state return only Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Free file state return only The exemption applies only to income tax, not to social security or Medicare tax. Free file state return only You can claim exemption from withholding for 2014 only if both of the following situations apply. Free file state return only For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Free file state return only For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Free file state return only Students. Free file state return only   If you are a student, you are not automatically exempt. Free file state return only See chapter 1 to find out if you must file a return. Free file state return only If you work only part time or only during the summer, you may qualify for exemption from withholding. Free file state return only Age 65 or older or blind. Free file state return only   If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. Free file state return only Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Free file state return only Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Free file state return only Claiming exemption from withholding. Free file state return only   To claim exemption, you must give your employer a Form W-4. Free file state return only Do not complete lines 5 and 6. Free file state return only Enter “Exempt” on line 7. Free file state return only   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. Free file state return only If you claim exemption in 2014, but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. Free file state return only   Your claim of exempt status may be reviewed by the IRS. Free file state return only An exemption is good for only 1 year. Free file state return only   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Free file state return only Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Free file state return only The payer can figure withholding on supplemental wages using the same method used for your regular wages. Free file state return only However, if these payments are identified separately from your regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Free file state return only Expense allowances. Free file state return only   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Free file state return only   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. Free file state return only   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Free file state return only Penalties You may have to pay a penalty of $500 if both of the following apply. Free file state return only You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Free file state return only You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Free file state return only There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. Free file state return only The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Free file state return only These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. Free file state return only A simple error or an honest mistake will not result in one of these penalties. Free file state return only For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a W-4 penalty. Free file state return only Tips The tips you receive while working on your job are considered part of your pay. Free file state return only You must include your tips on your tax return on the same line as your regular pay. Free file state return only However, tax is not withheld directly from tip income, as it is from your regular pay. Free file state return only Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Free file state return only See chapter 6 for information on reporting your tips to your employer. Free file state return only For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Free file state return only How employer figures amount to withhold. Free file state return only   The tips you report to your employer are counted as part of your income for the month you report them. Free file state return only Your employer can figure your withholding in either of two ways. Free file state return only By withholding at the regular rate on the sum of your pay plus your reported tips. Free file state return only By withholding at the regular rate on your pay plus a percentage of your reported tips. Free file state return only Not enough pay to cover taxes. Free file state return only   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. Free file state return only See Giving your employer money for taxes in chapter 6. Free file state return only Allocated tips. Free file state return only   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Free file state return only Withholding is based only on your pay plus your reported tips. Free file state return only Your employer should refund to you any incorrectly withheld tax. Free file state return only See Allocated Tips in chapter 6 for more information. Free file state return only Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Free file state return only Your employer generally must withhold income tax on these benefits from your regular pay. Free file state return only For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Free file state return only Although the value of your personal use of an employer-provided car, truck, or other highway motor vehicle is taxable, your employer can choose not to withhold income tax on that amount. Free file state return only Your employer must notify you if this choice is made. Free file state return only For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Free file state return only Sick Pay Sick pay is a payment to you to replace your regular wages while you are temporarily absent from work due to sickness or personal injury. Free file state return only To qualify as sick pay, it must be paid under a plan to which your employer is a party. Free file state return only If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Free file state return only An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Free file state return only However, if you receive sick pay from a third party who is not acting as an agent of your employer, income tax will be withheld only if you choose to have it withheld. Free file state return only See Form W-4S , later. Free file state return only If you receive payments under a plan in which your employer does not participate (such as an accident or health plan where you paid all the premiums), the payments are not sick pay and usually are not taxable. Free file state return only Union agreements. Free file state return only   If you receive sick pay under a collective bargaining agreement between your union and your employer, the agreement may determine the amount of income tax withholding. Free file state return only See your union representative or your employer for more information. Free file state return only Form W-4S. Free file state return only   If you choose to have income tax withheld from sick pay paid by a third party, such as an insurance company, you must fill out Form W-4S. Free file state return only Its instructions contain a worksheet you can use to figure the amount you want withheld. Free file state return only They also explain restrictions that may apply. Free file state return only   Give the completed form to the payer of your sick pay. Free file state return only The payer must withhold according to your directions on the form. Free file state return only Estimated tax. Free file state return only   If you do not request withholding on Form W-4S, or if you do not have enough tax withheld, you may have to make estimated tax payments. Free file state return only If you do not pay enough tax, either through estimated tax or withholding, or a combination of both, you may have to pay a penalty. Free file state return only See Underpayment Penalty for 2013 at the end of this chapter. Free file state return only Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Free file state return only This rule applies to distributions from: A traditional individual retirement arrangement (IRA); A life insurance company under an endowment, annuity, or life insurance contract; A pension, annuity, or profit-sharing plan; A stock bonus plan; and Any other plan that defers the time you receive compensation. Free file state return only The amount withheld depends on whether you receive payments spread out over more than 1 year (periodic payments), within 1 year (nonperiodic payments), or as an eligible rollover distribution (ERD). Free file state return only Income tax withholding from an ERD is mandatory. Free file state return only More information. Free file state return only   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Free file state return only For information on IRAs, see chapter 17. Free file state return only For more information on withholding on pensions and annuities, including a discussion of Form W-4P, see Pensions and Annuities in chapter 1 of Publication 505. Free file state return only Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Free file state return only Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Free file state return only Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Free file state return only Any other wager, if the proceeds are at least 300 times the amount of the bet. Free file state return only It does not matter whether your winnings are paid in cash, in property, or as an annuity. Free file state return only Winnings not paid in cash are taken into account at their fair market value. Free file state return only Exception. Free file state return only   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Free file state return only However, you may need to provide the payer with a social security number to avoid withholding. Free file state return only See Backup withholding on gambling winnings in chapter 1 of Publication 505. Free file state return only If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Free file state return only See Estimated Tax for 2014 , later. Free file state return only If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Free file state return only See Underpayment Penalty for 2013 at the end of this chapter. Free file state return only Form W-2G. Free file state return only   If a payer withholds income tax from your gambling winnings, you should receive a Form W-2G, Certain Gambling Winnings, showing the amount you won and the amount withheld. Free file state return only Report the tax withheld on line 62 of Form 1040. Free file state return only Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Free file state return only To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Free file state return only All unemployment compensation is taxable. Free file state return only So, if you do not have income tax withheld, you may have to pay estimated tax. Free file state return only See Estimated Tax for 2014 , later. Free file state return only If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Free file state return only For information, see Underpayment Penalty for 2013 at the end of this chapter. Free file state return only Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Free file state return only These payments are: Social security benefits, Tier 1 railroad retirement benefits, Commodity credit corporation loans you choose to include in your gross income, Payments under the Agricultural Act of 1949 (7 U. Free file state return only S. Free file state return only C. Free file state return only 1421 et. Free file state return only seq. Free file state return only ), as amended, or title II of the Disaster Assistance Act of 1988, that are treated as insurance proceeds and that you receive because: Your crops were destroyed or damaged by drought, flood, or any other natural disaster, or You were unable to plant crops because of a natural disaster described in (a), and Any other payment under Federal law as determined by the Secretary. Free file state return only To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Free file state return only If you do not choose to have income tax withheld, you may have to pay estimated tax. Free file state return only See Estimated Tax for 2014 , later. Free file state return only If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Free file state return only For information, see Underpayment Penalty for 2013 at the end of this chapter. Free file state return only More information. Free file state return only   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Free file state return only Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Free file state return only Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Free file state return only The information return shows how much you were paid during the year. Free file state return only It also includes your name and taxpayer identification number (TIN). Free file state return only TINs are explained in chapter 1 under Social Security Number (SSN) . Free file state return only These payments generally are not subject to withholding. Free file state return only However, “backup” withholding is required in certain situations. Free file state return only Backup withholding can apply to most kinds of payments that are reported on Form 1099. Free file state return only The payer must withhold at a flat 28% rate in the following situations. Free file state return only You do not give the payer your TIN in the required manner. Free file state return only The IRS notifies the payer that the TIN you gave is incorrect. Free file state return only You are required, but fail, to certify that you are not subject to backup withholding. Free file state return only The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. Free file state return only The IRS will do this only after it has mailed you four notices over at least a 210-day period. Free file state return only See Backup Withholding in chapter 1 of Publication 505 for more information. Free file state return only Penalties. Free file state return only   There are civil and criminal penalties for giving false information to avoid backup withholding. Free file state return only The civil penalty is $500. Free file state return only The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Free file state return only Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Free file state return only This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Free file state return only You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. Free file state return only Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. Free file state return only If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Free file state return only If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. Free file state return only For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Free file state return only Who Does Not Have To Pay Estimated Tax If you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. Free file state return only To do this, give a new Form W-4 to your employer. Free file state return only See chapter 1 of Publication 505. Free file state return only Estimated tax not required. Free file state return only   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Free file state return only You had no tax liability for 2013. Free file state return only You were a U. Free file state return only S. Free file state return only citizen or resident alien for the whole year. Free file state return only Your 2013 tax year covered a 12-month period. Free file state return only   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. Free file state return only For the definition of “total tax” for 2013, see Publication 505, chapter 2. Free file state return only Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Free file state return only You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments. Free file state return only General rule. Free file state return only   In most cases, you must pay estimated tax for 2014 if both of the following apply. Free file state return only You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Free file state return only You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers, later). Free file state return only Your 2013 tax return must cover all 12 months. Free file state return only    If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet in Publication 505 for a more accurate calculation. Free file state return only Special rules for farmers, fishermen, and higher income taxpayers. Free file state return only   If at least two-thirds of your gross income for tax year 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under the General rule, earlier. Free file state return only If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General rule , earlier. Free file state return only See Figure 4-A and Publication 505, chapter 2 for more information. Free file state return only Figure 4-A. Free file state return only Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Free file state return only Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Free file state return only   Resident and nonresident aliens also may have to pay estimated tax. Free file state return only Resident aliens should follow the rules in this chapter unless noted otherwise. Free file state return only Nonresident aliens should get Form 1040-ES (NR), U. Free file state return only S. Free file state return only Estimated Tax for Nonresident Alien Individuals. Free file state return only   You are an alien if you are not a citizen or national of the United States. Free file state return only You are a resident alien if you either have a green card or meet the substantial presence test. Free file state return only For more information about the substantial presence test, see Publication 519, U. Free file state return only S. Free file state return only Tax Guide for Aliens. Free file state return only Married taxpayers. Free file state return only   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Free file state return only   You and your spouse can make joint estimated tax payments even if you are not living together. Free file state return only   However, you and your spouse cannot make joint estimated tax payments if:  You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, or Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes (see chapter 1 of Publication 519)). Free file state return only   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Free file state return only Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Free file state return only 2013 separate returns and 2014 joint return. Free file state return only   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. Free file state return only You filed a separate return if you filed as single, head of household, or married filing separately. Free file state return only 2013 joint return and 2014 separate returns. Free file state return only   If you plan to file a separate return for 2014 but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. Free file state return only You file a separate return if you file as single, head of household, or married filing separately. Free file state return only   To figure your share of the tax on the joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status as for 2014. Free file state return only Then multiply the tax on the joint return by the following fraction. Free file state return only     The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. Free file state return only Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Free file state return only Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Free file state return only For 2014, they plan to file married filing separately. Free file state return only Joe figures his share of the tax on the 2013 joint return as follows. Free file state return only   Tax on $40,100 based on a separate return $5,960     Tax on $8,400 based on a separate return 843     Total $6,803     Joe's percentage of total ($5,960 ÷ $6,803) 87. Free file state return only 6%     Joe's share of tax on joint return  ($6,386 × 87. Free file state return only 6%) $5,594   How To Figure Estimated Tax To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. Free file state return only When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Free file state return only Use your 2013 federal tax return as a guide. Free file state return only You can use Form 1040-ES and Publication 505 to figure your estimated tax. Free file state return only Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Free file state return only You must make adjustments both for changes in your own situation and for recent changes in the tax law. Free file state return only For a discussion of these changes, visit IRS. Free file state return only gov. Free file state return only For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Free file state return only When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Free file state return only Each period has a specific payment due date. Free file state return only If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return. Free file state return only The payment periods and due dates for estimated tax payments are shown next. Free file state return only   For the period: Due date:*     Jan. Free file state return only 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Free file state return only 15     Sept. Free file state return only 1– Dec. Free file state return only 31 Jan. Free file state return only 15, next year     *See Saturday, Sunday, holiday rule and January payment . Free file state return only Saturday, Sunday, holiday rule. Free file state return only   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday. Free file state return only January payment. Free file state return only   If you file your 2014 Form 1040 or Form 1040A by January 31, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. Free file state return only Fiscal year taxpayers. Free file state return only   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Free file state return only When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Free file state return only If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. Free file state return only You can pay all your estimated tax at that time, or you can pay it in installments. Free file state return only If you choose to pay in installments, make your first payment by the due date for the first payment period. Free file state return only Make your remaining installment payments by the due dates for the later periods. Free file state return only No income subject to estimated tax during first period. Free file state return only    If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. Free file state return only You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. Free file state return only The following chart shows when to make installment payments. Free file state return only If you first have income on which you must pay estimated tax: Make a payment  by:* Make later installments by:* Before April 1 April 15 June 16 Sept. Free file state return only 15 Jan. Free file state return only 15 next year April 1–May 31 June 16 Sept. Free file state return only 15 Jan. Free file state return only 15 next year June 1–Aug. Free file state return only 31 Sept. Free file state return only 15 Jan. Free file state return only 15 next year After Aug. Free file state return only 31 Jan. Free file state return only 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Free file state return only How much to pay to avoid a penalty. Free file state return only   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Free file state return only How To Figure Each Payment You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. Free file state return only You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Free file state return only These methods are described in chapter 2 of Publication 505. Free file state return only If you do not pay enough during each payment period, you may be charged a penalty even if you are due a refund when you file your tax return. Free file state return only If the earlier discussion of No income subject to estimated tax during first period or the later discussion of Change in estimated tax applies to you, you may benefit from reading Annualized Income Installment Method in chapter 2 of Publication 505 for information on how to avoid a penalty. Free file state return only Underpayment penalty. Free file state return only   Under the regular installment method, if your estimated tax payment for any period is less than one-fourth of your estimated tax, you may be charged a penalty for underpayment of estimated tax for that period when you file your tax return. Free file state return only Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Free file state return only See chapter 4 of Publication 505 for more information. Free file state return only Change in estimated tax. Free file state return only   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. Free file state return only Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. Free file state return only Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. Free file state return only You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you owe with your return under $1,000. Free file state return only How To Pay Estimated Tax There are several ways to pay estimated tax. Free file state return only Credit an overpayment on your 2013 return to your 2014 estimated tax. Free file state return only Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Free file state return only Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Free file state return only Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. Free file state return only On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Free file state return only Take the amount you have credited into account when figuring your estimated tax payments. Free file state return only You cannot have any of the amount you credited to your estimated tax refunded to you until you file your tax return for the following year. Free file state return only You also cannot use that overpayment in any other way. Free file state return only Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Free file state return only You can pay using either of the following electronic payment methods. Free file state return only Direct transfer from your bank account. Free file state return only Credit or debit card. Free file state return only To pay your taxes online or for more information, go to www. Free file state return only irs. Free file state return only gov/e-pay. Free file state return only Pay by Phone Paying by phone is another safe and secure method of paying electronically. Free file state return only Use one of the following methods. Free file state return only Direct transfer from your bank account. Free file state return only Credit or debit card. Free file state return only To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Free file state return only People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD can call 1-800-733-4829. Free file state return only To pay using a credit or debit card, you can call one of the following service providers. Free file state return only There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Free file state return only WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Free file state return only payUSAtax. Free file state return only com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Free file state return only officialpayments. Free file state return only com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Free file state return only PAY1040. Free file state return only com For the latest details on how to pay by phone, go to www. Free file state return only irs. Free file state return only gov/e-pay. Free file state return only Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. Free file state return only During 2013, if you: made at least one estimated tax payment but not by electronic means, did not use software or a paid preparer to prepare or file your return,  then you should receive a copy of the 2014 Form 1040-ES/V. Free file state return only The enclosed payment vouchers will be preprinted with your name, address, and social security number. Free file state return only Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Free file state return only Use the window envelopes that came with your Form 1040-ES package. Free file state return only If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. Free file state return only Note. Free file state return only These criteria can change without notice. Free file state return only If you do not receive a Form 1040-ES/V package and you are required to make an estimated tax payment, you should go to www. Free file state return only irs. Free file state return only gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Free file state return only Complete one of these and make your payment timely to avoid penalties for paying late. Free file state return only Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Free file state return only If you did not pay estimated tax last year, you can order Form 1040-ES from the IRS (see inside back cover of this publication) or download it from IRS. Free file state return only gov. Free file state return only Follow the instructions to make sure you use the vouchers correctly. Free file state return only Joint estimated tax payments. Free file state return only   If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. Free file state return only Change of address. Free file state return only   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Free file state return only Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Free file state return only Credit for Withholding and Estimated Tax for 2013 When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Free file state return only Also take credit for the estimated tax you paid for 2013. Free file state return only These credits are subtracted from your total tax. Free file state return only Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Free file state return only Two or more employers. Free file state return only   If you had two or more employers in 2013 and were paid wages of more than $113,700, too much social security or tier 1 railroad retirement tax may have been withheld from your pay. Free file state return only You may be able to claim the excess as a credit against your income tax when you file your return. Free file state return only See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Free file state return only Withholding If you had income tax withheld during 2013, you should be sent a statement by January 31, 2014, showing your income and the tax withheld. Free file state return only Depending on the source of your income, you should receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Free file state return only Forms W-2 and W-2G. Free file state return only   If you file a paper return, always file Form W-2 with your income tax return. Free file state return only File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Free file state return only   You should get at least two copies of each form. Free file state return only If you file a paper return, attach one copy to the front of your federal income tax return. Free file state return only Keep one copy for your records. Free file state return only You also should receive copies to file with your state and local returns. Free file state return only Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Free file state return only You should receive a separate Form W-2 from each employer you worked for. Free file state return only If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Free file state return only However, your employer must provide or send it to you by January 31, 2014. Free file state return only If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Free file state return only If you have not received your Form W-2 by January 31, you should ask your employer for it. Free file state return only If you do not receive it by February 15, call the IRS. Free file state return only Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Free file state return only Include the federal income tax withheld (as shown in box 2 of Form W-2) on: Line 62 if you file Form 1040, Line 36 if you file Form 1040A, or Line 7 if you file Form 1040EZ. Free file state return only In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Free file state return only Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Free file state return only If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Free file state return only Report the amounts you won on line 21 of Form 1040. Free file state return only Take credit for the tax withheld on line 62 of Form 1040. Free file state return only If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Free file state return only The 1099 Series Most forms in the 1099 series are not filed with your return. Free file state return only These forms should be furnished to you by January 31, 2014 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2014). Free file state return only Unless instructed to file any of these forms with your return, keep them for your records. Free file state return only There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received from Cooperatives; Form 1099-Q, Payments From Qualified Education Programs; Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free file state return only ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Free file state return only If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Free file state return only See the instructions to these forms for details. Free file state return only Form 1099-R. Free file state return only   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Free file state return only Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Free file state return only You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Free file state return only Backup withholding. Free file state return only   If you were subject to backup withholding on income you received during 2013, include the amount withheld, as shown on your Form 1099, in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Free file state return only Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Free file state return only Call the telephone number or write to the address given for the payer on the form. Free file state return only The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Free file state return only A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Free file state return only In certain situations, you will receive two forms in place of the original incorrect form. Free file state return only This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Free file state return only One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Free file state return only This form will have an “X” in the “CORRECTED” box at the top of the form. Free file state return only The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Free file state return only Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, you should report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Free file state return only S. Free file state return only Individual Income Tax Return. Free file state return only Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Free file state return only Do not include any amount withheld from your spouse's income. Free file state return only However, different rules may apply if you live in a community property state. Free file state return only Community property states are listed in chapter 2. Free file state return only For more information on these rules, and some exceptions, see Publication 555, Community Property. Free file state return only Fiscal Years If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules to determine your credit for federal income tax withholding. Free file state return only For a discussion of how to take credit for withholding on a fiscal year return, see Fiscal Years (FY) in chapter 3 of Publication 505. Free file state return only Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Free file state return only Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Free file state return only You must use Form 1040 or Form 1040A if you paid estimated tax. Free file state return only You cannot use Form 1040EZ. Free file state return only Name changed. Free file state return only   If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and Your social security number. Free file state return only The statement should cover payments you made jointly with your spouse as well as any you made separately. Free file state return only   Be sure to report the change to the Social Security Administration. Free file state return only This prevents delays in processing your return and issuing any refunds. Free file state return only Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Free file state return only If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Free file state return only One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Free file state return only If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free file state return only Divorced Taxpayers If you made joint estimated tax payments for 2013, and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Free file state return only If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free file state return only If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided on the front of Form 1040 or Form 1040A. Free file state return only If you divorced and remarried in 2013, enter your present spouse's SSN in that space and write your former spouse's SSN, followed by “DIV,” to the left of Form 1040, line 63, or Form 1040A, line 37. Free file state return only Underpayment Penalty for 2013 If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. Free file state return only Generally, you will not have to pay a penalty for 2013 if any of the following apply. Free file state return only The total of your withholding and estimated tax payments was at least as much as your 2012 tax (or 110% of your 2012 tax if your AGI was more than $150,000, $75,000 if your 2013 filing status is married filing separately) and you paid all required estimated tax payments on time. Free file state return only The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Free file state return only Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Free file state return only You did not have a tax liability for 2012 and your 2012 tax year was 12 months, or You did not have any withholding taxes and your current year tax less any household employment taxes is less than $1,000. Free file state return only See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Free file state return only Farmers and fishermen. Free file state return only   Special rules apply if you are a farmer or fisherman. Free file state return only See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Free file state return only IRS can figure the penalty for you. Free file state return only   If you think you owe the penalty but you do not want to figure it yourself when you file your tax return, you may not have to. Free file state return only Generally, the IRS will figure the penalty for you and send you a bill. Free file state return only However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-F and attach it to your paper return. Free file state return only See chapter 4 of Publication 505. Free file state return only Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Contact My Local Office in Vermont

Face-to-face Tax Help

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

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

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

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

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

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

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

City  Street Address  Days/Hours of Service  Telephone* 
Brattleboro  1222 Putney Rd.
Brattleboro, VT 05301 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

**This office will close at 3:00 p.m. on 4/3**

 

Services Provided

(802) 257-4825 
Burlington  128 Lakeside Ave., Innovation Center, 2nd Floor
Burlington, VT 05401 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)


Services Provided

(802) 859-9308 
Montpelier  87 State St.
Montpelier, VT 05602 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m.-2:00 p.m.)

 

**This office will close on Mondays at 3:00 p.m. from 1/6 through 3/31**

 

Services Provided

(802) 223-7871 
Rutland  1085 U.S. Route 4 East
Rutland, VT 05701 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m.-2:00 p.m.)

 

**This office will be closed 3/26**

 

**This office will be closed 4/18**

 

Services Provided

(802) 773-6982 

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

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

The Taxpayer Advocate Service: Call (802) 859-1052 in Burlington or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

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

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

Internal Revenue Service SPEC
128 Lakeside Avenue, Suite 204
Burlington,VT 05401

 

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

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

Page Last Reviewed or Updated: 28-Mar-2014

The Free File State Return Only

Free file state return only 25. Free file state return only   Nonbusiness Casualty and Theft Losses Table of Contents What's New Introduction Useful Items - You may want to see: CasualtyFamily pet. Free file state return only Progressive deterioration. Free file state return only Damage from corrosive drywall. Free file state return only Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses What's New New Section C of Form 4684 for Ponzi-type investment schemes. Free file state return only  Section C of Form 4684 is new for 2013. Free file state return only You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Free file state return only Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Free file state return only You do not need to complete Appendix A. Free file state return only For details, see Losses from Ponzi-type investment schemes , in this chapter. Free file state return only Introduction This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits. Free file state return only The chapter also explains the following  topics. Free file state return only How to figure the amount of your loss. Free file state return only How to treat insurance and other reimbursements you receive. Free file state return only The deduction limits. Free file state return only When and how to report a casualty or theft. Free file state return only Forms to file. Free file state return only    When you have a casualty or theft, you have to file Form 4684. Free file state return only You will also have to file one or more of the following forms. Free file state return only Schedule A (Form 1040), Itemized Deductions Schedule D (Form 1040), Capital Gains and Losses Condemnations. Free file state return only   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets. Free file state return only Workbook for casualties and thefts. Free file state return only    Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. Free file state return only It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Free file state return only Business or investment-related losses. Free file state return only   For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts. Free file state return only Useful Items - You may want to see: Publication 544 Sales and Other Dispositions  of Assets 547 Casualties, Disasters, and   Thefts 584 Casualty, Disaster, and Theft   Loss Workbook (Personal-Use  Property) Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Free file state return only A sudden event is one that is swift, not gradual or progressive. Free file state return only An unexpected event is one that is ordinarily unanticipated and unintended. Free file state return only An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. Free file state return only Deductible losses. Free file state return only   Deductible casualty losses can result from a number of different causes, including the following. Free file state return only Car accidents (but see Nondeductible losses , next, for exceptions). Free file state return only Earthquakes. Free file state return only Fires (but see Nondeductible losses , next, for exceptions). Free file state return only Floods. Free file state return only Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Publication 547. Free file state return only Mine cave-ins. Free file state return only Shipwrecks. Free file state return only Sonic booms. Free file state return only Storms, including hurricanes and tornadoes. Free file state return only Terrorist attacks. Free file state return only Vandalism. Free file state return only Volcanic eruptions. Free file state return only Nondeductible losses. Free file state return only   A casualty loss is not deductible if the damage or destruction is caused by the following. Free file state return only Accidentally breaking articles such as glassware or china under normal conditions. Free file state return only A family pet (explained below). Free file state return only A fire if you willfully set it or pay someone else to set it. Free file state return only A car accident if your willful negligence or willful act caused it. Free file state return only The same is true if the willful act or willful negligence of someone acting for you caused the accident. Free file state return only Progressive deterioration (explained later). Free file state return only Family pet. Free file state return only   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met. Free file state return only Example. Free file state return only Your antique oriental rug was damaged by your new puppy before it was housebroken. Free file state return only Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. Free file state return only Progressive deterioration. Free file state return only    Loss of property due to progressive deterioration is not deductible as a casualty loss. Free file state return only This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Free file state return only The following are examples of damage due to progressive deterioration. Free file state return only The steady weakening of a building due to normal wind and weather conditions. Free file state return only The deterioration and damage to a water heater that bursts. Free file state return only However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. Free file state return only Most losses of property caused by droughts. Free file state return only To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. Free file state return only Termite or moth damage. Free file state return only The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. Free file state return only However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. Free file state return only Damage from corrosive drywall. Free file state return only   Under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. Free file state return only For details, see Publication 547. Free file state return only Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. Free file state return only The taking of property must be illegal under the laws of the state where it occurred and it must have been done with criminal intent. Free file state return only You do not need to show a conviction for theft. Free file state return only Theft includes the taking of money or property by the following means. Free file state return only Blackmail. Free file state return only Burglary. Free file state return only Embezzlement. Free file state return only Extortion. Free file state return only Kidnapping for ransom. Free file state return only Larceny. Free file state return only Robbery. Free file state return only The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Free file state return only Decline in market value of stock. Free file state return only   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. Free file state return only However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. Free file state return only You report a capital loss on Schedule D (Form 1040). Free file state return only For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Free file state return only Mislaid or lost property. Free file state return only   The simple disappearance of money or property is not a theft. Free file state return only However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Free file state return only Sudden, unexpected, and unusual events are defined earlier. Free file state return only Example. Free file state return only A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Free file state return only The diamond falls from the ring and is never found. Free file state return only The loss of the diamond is a casualty. Free file state return only Losses from Ponzi-type investment schemes. Free file state return only   If you had a loss from a Ponzi-type investment scheme, see: Revenue Ruling 2009-9, 2009-14 I. Free file state return only R. Free file state return only B. Free file state return only 735 (available at www. Free file state return only irs. Free file state return only gov/irb/2009-14_IRB/ar07. Free file state return only html). Free file state return only Revenue Procedure 2009-20, 2009-14 I. Free file state return only R. Free file state return only B. Free file state return only 749 (available at www. Free file state return only irs. Free file state return only gov/irb/2009-14_IRB/ar11. Free file state return only html). Free file state return only Revenue Procedure 2011-58, 2011-50 I. Free file state return only R. Free file state return only B. Free file state return only 849 (available at www. Free file state return only irs. Free file state return only gov/irb/2011-50_IRB/ar11. Free file state return only html). Free file state return only If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. Free file state return only Skip lines 19 to 27. Free file state return only Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Free file state return only You do not need to complete Appendix A. Free file state return only For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. Free file state return only   If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. Free file state return only Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Free file state return only If you incurred this type of loss, you can choose one of the following ways to deduct the loss. Free file state return only As a casualty loss. Free file state return only As an ordinary loss. Free file state return only As a nonbusiness bad debt. Free file state return only Casualty loss or ordinary loss. Free file state return only   You can choose to deduct a loss on deposits as a casualty loss or as an ordinary loss for any year in which you can reasonably estimate how much of your deposits you have lost in an insolvent or bankrupt financial institution. Free file state return only The choice is generally made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. Free file state return only If you treat the loss as a casualty or ordinary loss, you cannot treat the same amount of the loss as a nonbusiness bad debt when it actually becomes worthless. Free file state return only However, you can take a nonbusiness bad debt deduction for any amount of loss that is more than the estimated amount you deducted as a casualty or ordinary loss. Free file state return only Once you make this choice, you cannot change it without permission from the Internal Revenue Service. Free file state return only   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Free file state return only The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. Free file state return only Your loss is subject to the 2%-of-adjusted-gross-income limit. Free file state return only You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. Free file state return only Nonbusiness bad debt. Free file state return only   If you do not choose to deduct the loss as a casualty loss or as an ordinary loss, you must wait until the year the actual loss is determined and deduct the loss as a nonbusiness bad debt in that year. Free file state return only How to report. Free file state return only   The kind of deduction you choose for your loss on deposits determines how you report your loss. Free file state return only If you choose: Casualty loss — report it on Form 4684 first and then on Schedule A (Form 1040). Free file state return only Ordinary loss — report it on Schedule A (Form 1040) as a miscellaneous itemized deduction. Free file state return only Nonbusiness bad debt — report it on Form 8949 first and then on Schedule D (Form 1040). Free file state return only More information. Free file state return only   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684 or Deposit in Insolvent or Bankrupt Financial Institution in Publication 550. Free file state return only Proof of Loss To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. Free file state return only You also must be able to support the amount you take as a deduction. Free file state return only Casualty loss proof. Free file state return only   For a casualty loss, your records should show all the following. Free file state return only The type of casualty (car accident, fire, storm, etc. Free file state return only ) and when it occurred. Free file state return only That the loss was a direct result of the casualty. Free file state return only That you were the owner of the property or, if you leased the property from someone else, that you were contractually liable to the owner for the damage. Free file state return only Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free file state return only Theft loss proof. Free file state return only   For a theft loss, your records should show all the following. Free file state return only When you discovered that your property was missing. Free file state return only That your property was stolen. Free file state return only That you were the owner of the property. Free file state return only Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free file state return only It is important that you have records that will prove your deduction. Free file state return only If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. Free file state return only Figuring a Loss Figure the amount of your loss using the following steps. Free file state return only Determine your adjusted basis in the property before the casualty or theft. Free file state return only Determine the decrease in fair market value of the property as a result of the casualty or theft. Free file state return only From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. Free file state return only For personal-use property and property used in performing services as an employee, apply the deduction limits, discussed later, to determine the amount of your deductible loss. Free file state return only Gain from reimbursement. Free file state return only   If your reimbursement is more than your adjusted basis in the property, you have a gain. Free file state return only This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. Free file state return only If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. Free file state return only See Publication 547 for more information on how to treat a gain from a reimbursement for a casualty or theft. Free file state return only Leased property. Free file state return only   If you are liable for casualty damage to property you lease, your loss is the amount you must pay to repair the property minus any insurance or other reimbursement you receive or expect to receive. Free file state return only Decrease in Fair Market Value Fair market value (FMV) is the price for which you could sell your property to a willing buyer when neither of you has to sell or buy and both of you know all the relevant facts. Free file state return only The decrease in FMV used to figure the amount of a casualty or theft loss is the difference between the property's fair market value immediately before and immediately after the casualty or theft. Free file state return only FMV of stolen property. Free file state return only   The FMV of property immediately after a theft is considered to be zero, since you no longer have the property. Free file state return only Example. Free file state return only Several years ago, you purchased silver dollars at face value for $150. Free file state return only This is your adjusted basis in the property. Free file state return only Your silver dollars were stolen this year. Free file state return only The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. Free file state return only Your theft loss is $150. Free file state return only Recovered stolen property. Free file state return only   Recovered stolen property is your property that was stolen and later returned to you. Free file state return only If you recovered property after you had already taken a theft loss deduction, you must refigure your loss using the smaller of the property's adjusted basis (explained later) or the decrease in FMV from the time just before it was stolen until the time it was recovered. Free file state return only Use this amount to refigure your total loss for the year in which the loss was deducted. Free file state return only   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. Free file state return only But report the difference only up to the amount of the loss that reduced your tax. Free file state return only For more information on the amount to report, see Recoveries in chapter 12. Free file state return only Figuring Decrease in FMV— Items To Consider To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. Free file state return only However, other measures can also be used to establish certain decreases. Free file state return only Appraisal. Free file state return only   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Free file state return only The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Free file state return only This information is needed to limit any deduction to the actual loss resulting from damage to the property. Free file state return only   Several factors are important in evaluating the accuracy of an appraisal, including the following. Free file state return only The appraiser's familiarity with your property before and after the casualty or theft. Free file state return only The appraiser's knowledge of sales of comparable property in the area. Free file state return only The appraiser's knowledge of conditions in the area of the casualty. Free file state return only The appraiser's method of appraisal. Free file state return only    You may be able to use an appraisal that you used to get a federal loan (or a federal loan guarantee) as the result of a federally declared disaster to establish the amount of your disaster loss. Free file state return only For more information on disasters, see Disaster Area Losses, in Pub. Free file state return only 547. Free file state return only Cost of cleaning up or making repairs. Free file state return only   The cost of repairing damaged property is not part of a casualty loss. Free file state return only Neither is the cost of cleaning up after a casualty. Free file state return only But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Free file state return only The repairs are actually made. Free file state return only The repairs are necessary to bring the property back to its condition before the casualty. Free file state return only The amount spent for repairs is not excessive. Free file state return only The repairs take care of the damage only. Free file state return only The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Free file state return only Landscaping. Free file state return only   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. Free file state return only You may be able to measure your loss by what you spend on the following. Free file state return only Removing destroyed or damaged trees and shrubs minus any salvage you receive. Free file state return only Pruning and other measures taken to preserve damaged trees and shrubs. Free file state return only Replanting necessary to restore the property to its approximate value before the casualty. Free file state return only Car value. Free file state return only    Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. Free file state return only You can use the book's retail values and modify them by such factors as mileage and the condition of your car to figure its value. Free file state return only The prices are not official, but they may be useful in determining value and suggesting relative prices for comparison with current sales and offerings in your area. Free file state return only If your car is not listed in the books, determine its value from other sources. Free file state return only A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. Free file state return only Figuring Decrease in FMV— Items Not To Consider You generally should not consider the following items when attempting to establish the decrease in FMV of your property. Free file state return only Cost of protection. Free file state return only   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. Free file state return only The amount you spend on insurance or to board up your house against a storm is not part of your loss. Free file state return only   If you make permanent improvements to your property to protect it against a casualty or theft, add the cost of these improvements to your basis in the property. Free file state return only An example would be the cost of a dike to prevent flooding. Free file state return only Exception. Free file state return only   You cannot increase your basis in the property by, or deduct as a business expense, any expenditures you made with respect to qualified disaster mitigation payments. Free file state return only See Disaster Area Losses in Publication 547. Free file state return only Incidental expenses. Free file state return only   Any incidental expenses you have due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. Free file state return only Replacement cost. Free file state return only   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. Free file state return only Sentimental value. Free file state return only   Do not consider sentimental value when determining your loss. Free file state return only If a family portrait, heirloom, or keepsake is damaged, destroyed, or stolen, you must base your loss on its FMV, as limited by your adjusted basis in the property. Free file state return only Decline in market value of property in or near casualty area. Free file state return only   A decrease in the value of your property because it is in or near an area that suffered a casualty, or that might again suffer a casualty, is not to be taken into consideration. Free file state return only You have a loss only for actual casualty damage to your property. Free file state return only However, if your home is in a federally declared disaster area, see Disaster Area Losses in Publication 547. Free file state return only Costs of photographs and appraisals. Free file state return only    Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. Free file state return only Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. Free file state return only    Appraisals are used to figure the decrease in FMV because of a casualty or theft. Free file state return only See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. Free file state return only   The costs of photographs and appraisals used as evidence of the value and condition of property damaged as a result of a casualty are not a part of the loss. Free file state return only You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). Free file state return only For information about miscellaneous deductions, see chapter 28. Free file state return only Adjusted Basis Adjusted basis is your basis in the property (usually cost) increased or decreased by various events, such as improvements and casualty losses. Free file state return only For more information, see chapter 13. Free file state return only Insurance and Other Reimbursements If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Free file state return only You do not have a casualty or theft loss to the extent you are reimbursed. Free file state return only If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Free file state return only You must reduce your loss even if you do not receive payment until a later tax year. Free file state return only See Reimbursement Received After Deducting Loss , later. Free file state return only Failure to file a claim for reimbursement. Free file state return only   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. Free file state return only Otherwise, you cannot deduct this loss as a casualty or theft loss. Free file state return only However, this rule does not apply to the portion of the loss not covered by insurance (for example, a deductible). Free file state return only Example. Free file state return only You have a car insurance policy with a $1,000 deductible. Free file state return only Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the deduction limits discussed later). Free file state return only This is true even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. Free file state return only Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. Free file state return only Other types of reimbursements are discussed next. Free file state return only Also see the Instructions for Form 4684. Free file state return only Employer's emergency disaster fund. Free file state return only   If you receive money from your employer's emergency disaster fund and you must use that money to rehabilitate or replace property on which you are claiming a casualty loss deduction, you must take that money into consideration in computing the casualty loss deduction. Free file state return only Take into consideration only the amount you used to replace your destroyed or damaged property. Free file state return only Example. Free file state return only Your home was extensively damaged by a tornado. Free file state return only Your loss after reimbursement from your insurance company was $10,000. Free file state return only Your employer set up a disaster relief fund for its employees. Free file state return only Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. Free file state return only You received $4,000 from the fund and spent the entire amount on repairs to your home. Free file state return only In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. Free file state return only Your casualty loss before applying the deduction limits discussed later is $6,000. Free file state return only Cash gifts. Free file state return only   If you receive excludable cash gifts as a disaster victim and there are no limits on how you can use the money, you do not reduce your casualty loss by these excludable cash gifts. Free file state return only This applies even if you use the money to pay for repairs to property damaged in the disaster. Free file state return only Example. Free file state return only Your home was damaged by a hurricane. Free file state return only Relatives and neighbors made cash gifts to you that were excludable from your income. Free file state return only You used part of the cash gifts to pay for repairs to your home. Free file state return only There were no limits or restrictions on how you could use the cash gifts. Free file state return only Because it was an excludable gift, the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. Free file state return only Insurance payments for living expenses. Free file state return only   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. Free file state return only You lose the use of your main home because of a casualty. Free file state return only Government authorities do not allow you access to your main home because of a casualty or threat of one. Free file state return only Inclusion in income. Free file state return only   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. Free file state return only Report this amount on Form 1040, line 21. Free file state return only However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. Free file state return only See Qualified disaster relief payments, under Disaster Area Losses in Publication 547. Free file state return only   A temporary increase in your living expenses is the difference between the actual living expenses you and your family incurred during the period you could not use your home and your normal living expenses for that period. Free file state return only Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. Free file state return only Generally, these expenses include the amounts you pay for the following. Free file state return only Rent for suitable housing. Free file state return only Transportation. Free file state return only Food. Free file state return only Utilities. Free file state return only Miscellaneous services. Free file state return only Normal living expenses consist of these same expenses that you would have incurred but did not because of the casualty or the threat of one. Free file state return only Example. Free file state return only As a result of a fire, you vacated your apartment for a month and moved to a motel. Free file state return only You normally pay $525 a month for rent. Free file state return only None was charged for the month the apartment was vacated. Free file state return only Your motel rent for this month was $1,200. Free file state return only You normally pay $200 a month for food. Free file state return only Your food expenses for the month you lived in the motel were $400. Free file state return only You received $1,100 from your insurance company to cover your living expenses. Free file state return only You determine the payment you must include in income as follows. Free file state return only 1) Insurance payment for living expenses $1,100 2) Actual expenses during the month you are unable to use your home because of fire 1,600   3) Normal living expenses 725   4) Temporary increase in living  expenses: Subtract line 3 from line 2 875 5) Amount of payment includible  in income: Subtract line 4  from line 1 $ 225 Tax year of inclusion. Free file state return only   You include the taxable part of the insurance payment in income for the year you regain the use of your main home or, if later, for the year you receive the taxable part of the insurance payment. Free file state return only Example. Free file state return only Your main home was destroyed by a tornado in August 2011. Free file state return only You regained use of your home in November 2012. Free file state return only The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. Free file state return only You include this amount in income on your 2012 Form 1040. Free file state return only If, in 2013, you receive further payments to cover the living expenses you had in 2011 and 2012, you must include those payments in income on your 2013 Form 1040. Free file state return only Disaster relief. Free file state return only   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss unless they are replacements for lost or destroyed property. Free file state return only Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Free file state return only For more information, see Disaster Area Losses in Publication 547. Free file state return only Disaster unemployment assistance payments are unemployment benefits that are taxable. Free file state return only Generally, disaster relief grants and qualified disaster mitigation payments made under the Robert T. Free file state return only Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not includible in your income. Free file state return only See Disaster Area Losses in Publication 547. Free file state return only Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you receive your actual reimbursement. Free file state return only This section explains the adjustment you may have to make. Free file state return only Actual reimbursement less than expected. Free file state return only   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. Free file state return only Example. Free file state return only Your personal car had an FMV of $2,000 when it was destroyed in a collision with another car in 2012. Free file state return only The accident was due to the negligence of the other driver. Free file state return only At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. Free file state return only You did not have a deductible loss in 2012. Free file state return only In January 2013, the court awarded you a judgment of $2,000. Free file state return only However, in July it became apparent that you will be unable to collect any amount from the other driver. Free file state return only You can deduct the loss in 2013 subject to the limits discussed later. Free file state return only Actual reimbursement more than expected. Free file state return only   If you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Free file state return only However, if any part of the original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. Free file state return only You do not refigure your tax for the year you claimed the deduction. Free file state return only For more information, see Recoveries in chapter 12. Free file state return only If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. Free file state return only If you have already taken a deduction for a loss and you receive the reimbursement in a later year, you may have to include the gain in your income for the later year. Free file state return only Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. Free file state return only See Figuring a Gain in Publication 547 for more information on how to treat a gain from the reimbursement of a casualty or theft. Free file state return only Actual reimbursement same as expected. Free file state return only   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. Free file state return only Example. Free file state return only In December 2013, you had a collision while driving your personal car. Free file state return only Repairs to the car cost $950. Free file state return only You had $100 deductible collision insurance. Free file state return only Your insurance company agreed to reimburse you for the rest of the damage. Free file state return only Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. Free file state return only Due to the $100 rule (discussed later under Deduction Limits ), you cannot deduct the $100 you paid as the deductible. Free file state return only When you receive the $850 from the insurance company in 2014, do not report it as income. Free file state return only Single Casualty on Multiple Properties Personal property. Free file state return only   Personal property is any property that is not real property. Free file state return only If your personal property is stolen or is damaged or destroyed by a casualty, you must figure your loss separately for each item of property. Free file state return only Then combine these separate losses to figure the total loss from that casualty or theft. Free file state return only Example. Free file state return only A fire in your home destroyed an upholstered chair, an oriental rug, and an antique table. Free file state return only You did not have fire insurance to cover your loss. Free file state return only (This was the only casualty or theft you had during the year. Free file state return only ) You paid $750 for the chair and you established that it had an FMV of $500 just before the fire. Free file state return only The rug cost $3,000 and had an FMV of $2,500 just before the fire. Free file state return only You bought the table at an auction for $100 before discovering it was an antique. Free file state return only It had been appraised at $900 before the fire. Free file state return only You figure your loss on each of these items as follows:     Chair Rug Table 1) Basis (cost) $750 $3,000 $100 2) FMV before fire $500 $2,500 $900 3) FMV after fire –0– –0– –0– 4) Decrease in FMV $500 $2,500 $900 5) Loss (smaller of (1) or  (4)) $500 $2,500 $100           6) Total loss     $3,100 Real property. Free file state return only   In figuring a casualty loss on personal-use real property, treat the entire property (including any improvements, such as buildings, trees, and shrubs) as one item. Free file state return only Figure the loss using the smaller of the adjusted basis or the decrease in FMV of the entire property. Free file state return only Example. Free file state return only You bought your home a few years ago. Free file state return only You paid $160,000 ($20,000 for the land and $140,000 for the house). Free file state return only You also spent $2,000 for landscaping. Free file state return only This year a fire destroyed your home. Free file state return only The fire also damaged the shrubbery and trees in your yard. Free file state return only The fire was your only casualty or theft loss this year. Free file state return only Competent appraisers valued the property as a whole at $200,000 before the fire, but only $30,000 after the fire. Free file state return only (The loss to your household furnishings is not shown in this example. Free file state return only It would be figured separately on each item, as explained earlier under Personal property . Free file state return only ) Shortly after the fire, the insurance company paid you $155,000 for the loss. Free file state return only You figure your casualty loss as follows: 1) Adjusted basis of the entire property (land, building, and landscaping) $162,000 2) FMV of entire property before fire $200,000 3) FMV of entire property after fire 30,000 4) Decrease in FMV of entire  property $170,000 5) Loss (smaller of (1) or (4)) $162,000 6) Subtract insurance 155,000 7) Amount of loss after reimbursement $7,000 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. Free file state return only If the loss was to property for your personal use or your family's use, there are two limits on the amount you can deduct for your casualty or theft loss. Free file state return only You must reduce each casualty or theft loss by $100 ($100 rule). Free file state return only You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income (10% rule). Free file state return only You make these reductions on Form 4684. Free file state return only These rules are explained next and Table 25-1 summarizes how to apply the $100 rule and the 10% rule in various situations. Free file state return only For more detailed explanations and examples, see Publication 547. Free file state return only Table 25-1. Free file state return only How To Apply the Deduction Limits for Personal-Use Property   $100 Rule 10% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. Free file state return only Apply this rule after you have figured the amount of your loss. Free file state return only You must reduce your total casualty or theft loss by 10% of your adjusted gross income. Free file state return only Apply this rule after you reduce each loss by $100 (the $100 rule). Free file state return only Single Event Apply this rule only once, even if many pieces of property are affected. Free file state return only Apply this rule only once, even if many pieces of property are affected. Free file state return only More Than One Event Apply to the loss from each event. Free file state return only Apply to the total of all your losses from all events. Free file state return only More Than One Person— With Loss From the Same Event (other than a married couple filing jointly) Apply separately to each person. Free file state return only Apply separately to each person. Free file state return only Married Couple—With Loss From the Same Event Filing Jointly Apply as if you were one person. Free file state return only Apply as if you were one person. Free file state return only Filing Separately Apply separately to each spouse. Free file state return only Apply separately to each spouse. Free file state return only More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. Free file state return only Apply separately to each owner of jointly owned property. Free file state return only Property used partly for business and partly for personal purposes. Free file state return only   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use part and for the business or income-producing part. Free file state return only You must figure each loss separately because the $100 rule and the 10% rule apply only to the loss on the personal-use part of the property. Free file state return only $100 Rule After you have figured your casualty or theft loss on personal-use property, you must reduce that loss by $100. Free file state return only This reduction applies to each total casualty or theft loss. Free file state return only It does not matter how many pieces of property are involved in an event. Free file state return only Only a single $100 reduction applies. Free file state return only Example. Free file state return only A hailstorm damages your home and your car. Free file state return only Determine the amount of loss, as discussed earlier, for each of these items. Free file state return only Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. Free file state return only Single event. Free file state return only   Generally, events closely related in origin cause a single casualty. Free file state return only It is a single casualty when the damage is from two or more closely related causes, such as wind and flood damage caused by the same storm. Free file state return only 10% Rule You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. Free file state return only Apply this rule after you reduce each loss by $100. Free file state return only For more information, see the Form 4684 instructions. Free file state return only If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. Free file state return only Example 1. Free file state return only In June, you discovered that your house had been burglarized. Free file state return only Your loss after insurance reimbursement was $2,000. Free file state return only Your adjusted gross income for the year you discovered the theft is $29,500. Free file state return only You first apply the $100 rule and then the 10% rule. Free file state return only Figure your theft loss deduction as follows. Free file state return only 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You do not have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your adjusted gross income ($2,950). Free file state return only Example 2. Free file state return only In March, you had a car accident that totally destroyed your car. Free file state return only You did not have collision insurance on your car, so you did not receive any insurance reimbursement. Free file state return only Your loss on the car was $1,800. Free file state return only In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items stored there. Free file state return only Your loss on the basement items after reimbursement was $2,100. Free file state return only Your adjusted gross income for the year that the accident and fire occurred is $25,000. Free file state return only You figure your casualty loss deduction as follows. Free file state return only       Base-     Car ment 1) Loss $1,800 $2,100 2) Subtract $100 per incident 100 100 3) Loss after $100 rule $1,700 $2,000 4) Total loss $3,700 5) Subtract 10% × $25,000 AGI 2,500 6) Casualty loss deduction $1,200 Gains and losses. Free file state return only   If you had both gains and losses from casualties or thefts to personal-use property, you must compare your total gains to your total losses. Free file state return only Do this after you have reduced each loss by any reimbursements and by $100, but before you have reduced the losses by 10% of your adjusted gross income. Free file state return only Casualty or theft gains do not include gains you choose to postpone. Free file state return only See Publication 547 for information on the postponement of gain. Free file state return only Losses more than gains. Free file state return only   If your losses are more than your recognized gains, subtract your gains from your losses and reduce the result by 10% of your adjusted gross income. Free file state return only The rest, if any, is your deductible loss from personal-use property. Free file state return only Gains more than losses. Free file state return only   If your recognized gains are more than your losses, subtract your losses from your gains. Free file state return only The difference is treated as capital gain and must be reported on Schedule D (Form 1040). Free file state return only The 10% rule does not apply to your gains. Free file state return only When To Report Gains and Losses Gains. Free file state return only   If you receive an insurance or other reimbursement that is more than your adjusted basis in the destroyed or stolen property, you have a gain from the casualty or theft. Free file state return only You must include this gain in your income in the year you receive the reimbursement, unless you choose to postpone reporting the gain as explained in Publication 547. Free file state return only If you have a loss, see Table 25-2 . Free file state return only Table 25-2. Free file state return only When To Deduct a Loss IF you have a loss. Free file state return only . Free file state return only . Free file state return only THEN deduct it in the year. Free file state return only . Free file state return only . Free file state return only from a casualty, the loss occurred. Free file state return only in a federally declared disaster area, the disaster occurred or the year immediately before the disaster. Free file state return only from a theft, the theft was discovered. Free file state return only on a deposit treated as a:   • casualty or any ordinary loss, a reasonable estimate can be made. Free file state return only • bad debt, deposits are totally worthless. Free file state return only Losses. Free file state return only   Generally, you can deduct a casualty loss that is not reimbursable only in the tax year in which the casualty occurred. Free file state return only This is true even if you do not repair or replace the damaged property until a later year. Free file state return only   You can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Free file state return only   If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Free file state return only Loss on deposits. Free file state return only   If your loss is a loss on deposits in an insolvent or bankrupt financial institution, see Loss on Deposits , earlier. Free file state return only Disaster Area Loss You generally must deduct a casualty loss in the year it occurred. Free file state return only However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct the loss on your tax return or amended return for either of the following years. Free file state return only The year the disaster occurred. Free file state return only The year immediately preceding the year the disaster occurred. Free file state return only Gains. Free file state return only    Special rules apply if you choose to postpone reporting gain on property damaged or destroyed in a federally declared disaster area. Free file state return only For those special rules, see Publication 547. Free file state return only Postponed tax deadlines. Free file state return only   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Free file state return only The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free file state return only   If any tax deadline is postponed, the IRS will publicize the postponement in your area by publishing a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free file state return only Go to www. Free file state return only irs. Free file state return only gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Free file state return only Who is eligible. Free file state return only   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free file state return only Any individual whose main home is located in a covered disaster area (defined next). Free file state return only Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Free file state return only Any individual who is a relief worker affiliated with a recognized government or philanthropic organization who is assisting in a covered disaster area. Free file state return only Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Free file state return only The main home or principal place of business does not have to be located in the covered disaster area. Free file state return only Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Free file state return only The spouse on a joint return with a taxpayer who is eligible for postponements. Free file state return only Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a postponed tax deadline are located in the covered disaster area. Free file state return only Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Free file state return only Any other person determined by the IRS to be affected by a federally declared disaster. Free file state return only Covered disaster area. Free file state return only   This is an area of a federally declared disaster in which the IRS has decided to postpone tax deadlines for up to 1 year. Free file state return only Abatement of interest and penalties. Free file state return only   The IRS may abate the interest and penalties on underpaid income tax for the length of any postponement of tax deadlines. Free file state return only More information. Free file state return only   For more information, see Disaster Area Losses in Publication 547. Free file state return only How To Report Gains and Losses Use Form 4684 to report a gain or a deductible loss from a casualty or theft. Free file state return only If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. Free file state return only Combine the gains and losses on one Form 4684. Free file state return only Follow the form instructions as to which lines to fill out. Free file state return only In addition, you must use the appropriate schedule to report a gain or loss. Free file state return only The schedule you use depends on whether you have a gain or loss. Free file state return only If you have a: Report it on: Gain Schedule D (Form 1040) Loss Schedule A (Form 1040) Adjustments to basis. Free file state return only   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. Free file state return only Amounts you spend to restore your property after a casualty increase your adjusted basis. Free file state return only See Adjusted Basis in chapter 13 for more information. Free file state return only Net operating loss (NOL). Free file state return only    If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. Free file state return only You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. Free file state return only Or, you can use it to lower your tax in a later year. Free file state return only You do not have to be in business to have an NOL from a casualty or theft loss. Free file state return only For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Free file state return only Prev  Up  Next   Home   More Online Publications