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Free Filing State Income Tax

Free filing state income tax 19. Free filing state income tax   Ajustes Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: Deducción por Intereses sobre Préstamos de EstudiosDefinición de los Intereses sobre Préstamos de Estudios ¿Puede Reclamar la Deducción? ¿Cuánto Puede Deducir? ¿Cómo Calcular la Deducción? Deducción por Matrícula y Cuotas Escolares¿Puede Reclamar la Deducción? Gastos que Califican Estudiante que Reúne los Requisitos Quién Puede Reclamar los Gastos de un Dependiente Cuánto se Puede Deducir Gastos del Educador Introduction Este capítulo trata de ajustes relacionados con la educación que puede deducir al calcular el ingreso bruto ajustado. Free filing state income tax Este capítulo incluye información sobre la deducción por intereses sobre préstamos de estudios, la deducción de matrículas y cuotas escolares y la deducción por gastos del educador. Free filing state income tax Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Deducción por Intereses sobre Préstamos de Estudios Por lo general, los intereses personales que pague, salvo ciertos intereses hipotecarios, no son deducibles en la declaración de impuestos. Free filing state income tax No obstante, si su ingreso bruto ajustado modificado (MAGI, por sus siglas en inglés) es menos de $75,000 ($155,000 si presenta una declaración conjunta), se permite una deducción especial por los intereses pagados sobre préstamos de estudios (también conocidos como préstamos educativos) utilizados para enseñanza superior. Free filing state income tax Para la mayoría de los contribuyentes, el MAGI es el ingreso bruto ajustado en la declaración de impuestos federales sobre el ingreso antes de restar deducción alguna por intereses sobre préstamos de estudios. Free filing state income tax Esta deducción puede reducir la cantidad de su ingreso sujeto a impuestos hasta un máximo de $2,500 en el año 2013. Free filing state income tax La Tabla 19-1 resume características de la deducción por intereses sobre préstamos de estudios. Free filing state income tax Tabla 19-1. Free filing state income tax Resumen de la Deducción por Intereses sobre Préstamos de Estudios No se base únicamente en esta tabla. Free filing state income tax Consulte el texto para más detalles. Free filing state income tax Característica Descripción Beneficio máximo Puede reducir su ingreso tributable hasta un máximo de $2,500. Free filing state income tax Requisitos para obtener un préstamo Su préstamo de estudios: •  tiene que haber sido obtenido sólo para pagar gastos de estudios calificados y   • no puede ser de un pariente ni puede haberse hecho conforme a un plan calificado provisto por su empleador. Free filing state income tax Requisitos para estudiantes El estudiante tiene que: • ser usted, su cónyuge o su dependiente y   • estar matriculado por lo menos a tiempo parcial en un programa que lleve a obtener un título, certificación o cualquier otra credencial educacional en una institución educativa que reúne los requisitos. Free filing state income tax Plazo de la deducción Puede deducir intereses pagados durante el período que quede del préstamo de estudios. Free filing state income tax Eliminación gradual por fases La cantidad a deducir depende del nivel de ingresos. Free filing state income tax Definición de los Intereses sobre Préstamos de Estudios Los “intereses sobre préstamos de estudios” son intereses que usted pagó durante el año sobre un préstamo de estudios calificado. Free filing state income tax Incluyen tanto pagos de intereses obligatorios como pagos de intereses voluntarios. Free filing state income tax Préstamo de estudios calificado Éste es un préstamo que se obtuvo únicamente para pagar gastos de estudios calificados (definidos más adelante) que fueran: Para usted, su cónyuge o una persona que fue dependiente de usted (según se define en el capítulo 3) cuando obtuvo el préstamo; Pagados o incurridos dentro de un plazo razonable antes o después de que obtuviera el préstamo y Para estudios provistos durante un período académico cuando un estudiante reúne los requisitos. Free filing state income tax Los préstamos de las siguientes fuentes no son préstamos de estudios calificados: Un pariente. Free filing state income tax Un plan calificado proporcionado por un empleador. Free filing state income tax Excepciones. Free filing state income tax   Para propósitos de la deducción de intereses sobre un préstamo de estudios, las siguientes excepciones corresponden a las reglas generales para dependientes: Una persona puede ser su dependiente aunque usted mismo sea el dependiente de otro contribuyente. Free filing state income tax Una persona puede ser su dependiente aunque dicha persona presente una declaración conjunta con un cónyuge. Free filing state income tax Una persona puede ser su dependiente aunque dicha persona tuviera un ingreso bruto ese año que fuera igual o superior a la cantidad de exención para el año ($3,900 para el año 2013). Free filing state income tax Plazo razonable. Free filing state income tax   Los gastos de estudios calificados se consideran pagados u ocasionados dentro de un plazo razonable, antes o después de obtener el préstamo, si se pagan con fondos de préstamos de estudios que son parte de un programa federal de préstamos de estudios postsecundarios. Free filing state income tax   Aun si no se pagan con fondos de dicho tipo de préstamo, los gastos se consideran pagados u ocasionados dentro de un plazo razonable si se reúnen los dos siguientes requisitos: Los gastos se relacionan con un período académico específico. Free filing state income tax Los fondos del préstamo se desembolsan dentro de un período que comience 90 días antes del período académico y termine 90 días después del fin de dicho período. Free filing state income tax   Si ninguna de las situaciones indicadas anteriormente le corresponde, el plazo razonable se determina basándose en todos los hechos y circunstancias pertinentes. Free filing state income tax Período académico. Free filing state income tax   Un período académico incluye un semestre, trimestre, un cuatrimestre del año escolar u otro período de estudios (tal como un curso escolar de verano) según lo determine de manera razonable una institución de enseñanza superior. Free filing state income tax En el caso de una institución de enseñanza superior que no tenga períodos académicos, sino horas de crédito u horas de reloj, cada período de pago se puede considerar un período académico. Free filing state income tax Estudiante que reúne los requisitos. Free filing state income tax   Es un estudiante que estaba matriculado por lo menos a medio tiempo en un programa para obtener una licenciatura, un certificado u otro título educativo reconocido. Free filing state income tax Matriculado por lo menos a medio tiempo. Free filing state income tax   Un estudiante se considera que estaba matriculado por lo menos a medio tiempo si estaba tomando al menos la mitad de los cursos normales a tiempo completo de su programa de estudios. Free filing state income tax   Cada institución de enseñanza superior que reúna los requisitos establece lo que se considera la mitad de la carga académica habitual para ser estudiante a tiempo completo. Free filing state income tax No obstante, este estándar establecido no puede ser inferior a cualquiera que haya establecido el Departamento de Educación de los Estados Unidos conforme a la Higher Education Act (Ley de Enseñanza Superior) de 1965. Free filing state income tax Pariente. Free filing state income tax   No puede deducir intereses sobre un préstamo que obtenga de un pariente. Free filing state income tax Los parientes incluyen: Su cónyuge; Sus hermanos y hermanas; Sus medios hermanos y medias hermanas; Sus antecesores (padres, abuelos, etc. Free filing state income tax ); Sus descendientes en línea directa (hijos, nietos, etc. Free filing state income tax ) y Ciertas sociedades anónimas, sociedades colectivas, fideicomisos y organizaciones exentas de impuestos. Free filing state income tax Plan calificado proporcionado por un empleador. Free filing state income tax   No puede deducir intereses sobre un préstamo conforme a un plan calificado proporcionado por un empleador o bajo un contrato comprado conforme a tal plan. Free filing state income tax Gastos de Estudios Calificados Para propósitos de la deducción por intereses sobre préstamos de estudios, estos gastos son el total del costo de asistir a una institución de enseñanza superior que reúna los requisitos, incluyendo instituciones para estudios de posgrado. Free filing state income tax Incluyen cantidades pagadas por los siguientes conceptos: Matrícula y cuotas escolares. Free filing state income tax Alojamiento y comida. Free filing state income tax Libros, materiales y equipo. Free filing state income tax Otros gastos necesarios (tales como los de transporte). Free filing state income tax Los gastos de alojamiento y comida reúnen los requisitos sólo en la medida en que no sobrepasen las siguientes cantidades: La asignación para alojamiento y comida, según lo determine la institución de enseñanza superior correspondiente, que se incluyó en los gastos de asistencia a dicha institución (para propósitos de ayuda financiera federal) durante un período académico específico y alojamiento del estudiante, o Si es mayor, la cantidad exacta cobrada si el estudiante vive en alojamiento que sea propiedad de la institución de enseñanza superior que reúna los requisitos o sea operado por la misma. Free filing state income tax Institución de enseñanza superior que reúne los requisitos. Free filing state income tax   Una institución de enseñanza superior que reúne los requisitos es todo colegio universitario, universidad, escuelas de enseñanza técnica u otra institución de enseñanza superior todas con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Free filing state income tax Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Free filing state income tax   Determinadas instituciones de enseñanza superior ubicadas fuera de los Estados Unidos participan también en los programas de asistencia financiera al estudiante (Federal Student Aid (FSA, por sus siglas en inglés)) del Departamento de Educación de los Estados Unidos. Free filing state income tax   Para propósitos de la deducción por intereses sobre préstamos de estudios, una institución de enseñanza superior que reúne los requisitos incluye también una institución que administre un programa de estudiantes practicantes o de residencia para recibir un título universitario o un certificado de una institución de enseñanza superior, un hospital o un centro de atención médica que ofrezca capacitación de posgrado. Free filing state income tax   Una institución de enseñanza superior tiene que reunir los criterios establecidos en el párrafo anterior solamente durante el (los) período(s) académico(s) para el (los) cual(es) se incurrió el préstamo de estudios. Free filing state income tax La posibilidad de deducir los intereses sobre el préstamo no se ve afectada si la institución deja de reunir los requisitos más tarde. Free filing state income tax    La institución de enseñanza superior debe poder indicarle si la misma reúne los requisitos. Free filing state income tax Ajustes tributarios a gastos de estudios calificados. Free filing state income tax   Tiene que reducir sus gastos de estudios calificados por ciertos artículos exentos de impuestos (tales como la parte exenta de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional)). Free filing state income tax Vea el capítulo 4 de la Publicación 970, en inglés, para más detalles. Free filing state income tax Incluya estas Partidas como Intereses Además de los intereses simples sobre el préstamo, ciertos costos originarios del préstamo, intereses capitalizados, intereses sobre líneas de crédito rotativas e intereses sobre préstamos de estudios refinanciados pueden ser intereses sobre préstamos de estudios si se reúnen todos los demás requisitos. Free filing state income tax Costo originario del préstamo. Free filing state income tax   Normalmente, esto es un cargo que el prestamista cobra solamente una vez, al hacer un préstamo. Free filing state income tax Para ser deducible como intereses, dicho cargo tiene que ser por el uso de dinero en vez de bienes o servicios (como cargos por compromisos o costos de tramitación) proporcionados por el prestamista. Free filing state income tax Un costo originario del préstamo tratado como intereses se acumula a lo largo del plazo del préstamo. Free filing state income tax Intereses capitalizados. Free filing state income tax    Son intereses por pagar sobre un préstamo de estudios que el prestamista añade al saldo pendiente del capital del préstamo. Free filing state income tax Intereses sobre líneas de crédito rotativas. Free filing state income tax   Estos intereses, los cuales incluyen interés sobre deudas de tarjetas de crédito, es interés sobre préstamos de estudios si el prestatario usa la línea de crédito (tarjeta de crédito) sólo para pagar gastos de estudios calificados. Free filing state income tax Vea Gastos de Estudios Calificados , anteriormente. Free filing state income tax Intereses sobre préstamos de estudios refinanciados. Free filing state income tax   Incluyen intereses sobre lo siguiente: Préstamos consolidados —préstamos que se usan para refinanciar más de un préstamo de estudios del mismo prestatario y Préstamos conjuntos —dos o más préstamos del mismo prestatario que son tratados como un solo préstamo tanto por el prestamista como por el prestatario. Free filing state income tax Si refinancia un préstamo de estudios calificado por más del préstamo original y usa la cantidad adicional para algún propósito que no sea gastos de estudios calificados, no puede deducir los intereses pagados sobre el préstamo refinanciado. Free filing state income tax Pagos de intereses voluntarios. Free filing state income tax   Son pagos hechos sobre un préstamo de estudios calificado durante un período en el que los pagos de intereses no son obligatorios, por ejemplo, si al prestatario se le ha concedido un aplazamiento o si todavía no han empezado los reintegros del préstamo. Free filing state income tax No Incluya estas Partidas como Intereses No puede reclamar una deducción de intereses sobre préstamos de estudios por: Intereses que pagó sobre un préstamo si, según las condiciones del mismo, usted no está obligado legalmente a hacer pagos de intereses. Free filing state income tax Costos originarios del préstamo pagados por propiedad o servicios proporcionados por el prestamista, tales como cargos por compromiso o costos de tramitación. Free filing state income tax Intereses que pagó sobre un préstamo en la medida en que los pagos hayan sido hechos a través de su participación en el National Health Service Corps Loan Repayment Program (Programa para Reintegros de Préstamos del Cuerpo Nacional de Servicios de Salud), conocido también como el “ NHSC Loan Repayment Program ” (Programa para Reintegros de Préstamos del NHSC) o a través de otros programas de asistencia para el reintegro de préstamos. Free filing state income tax Para más información, vea Student Loan Repayment Assistance (Asistencia para el reintegro de préstamos de estudios) en el capítulo 5 de la Publicación 970, en inglés. Free filing state income tax ¿Puede Reclamar la Deducción? Normalmente, puede reclamar la deducción si se cumplen todos los requisitos siguientes: Su estado civil para efectos de la declaración es cualquier estado civil excepto casado que presenta su declaración por separado. Free filing state income tax Nadie más reclama una exención por usted en su declaración de impuestos. Free filing state income tax Está obligado por ley a pagar intereses sobre un préstamo de estudios calificado. Free filing state income tax Usted pagó intereses sobre un préstamo de estudios calificado. Free filing state income tax Intereses pagados por otros. Free filing state income tax   Si usted es la persona legalmente obligada a pagar intereses y otra persona los paga por usted, a usted se le trata como si hubiese recibido el pago de la otra persona y, a su vez, hubiese pagado los intereses. Free filing state income tax Vea el capítulo 4 de la Publicación 970, en inglés, para más información. Free filing state income tax No se Permite Beneficio Doble No puede deducir como intereses sobre un préstamo de estudios una cantidad que sea deducible conforme a alguna otra disposición de la ley tributaria (por ejemplo, intereses hipotecarios). Free filing state income tax ¿Cuánto Puede Deducir? Su deducción por intereses sobre préstamos de estudios para el año 2013 es normalmente la cantidad que sea menor entre: $2,500 o Los intereses que usted pagó en el año 2013. Free filing state income tax Sin embargo, la cantidad determinada anteriormente se reduce paulatinamente si su MAGI está entre $60,000 y $75,000 ($125,000 y $155,000 si presenta una declaración conjunta). Free filing state income tax No puede tomar una deducción por intereses sobre préstamos de estudios si su MAGI es $75,000 o más ($155,000 o más si presenta una declaración conjunta). Free filing state income tax Para más detalles sobre cómo calcular su MAGI, vea el capítulo 4 de la Publicación 970, en inglés. Free filing state income tax ¿Cómo Calcular la Deducción? Para calcular la deducción, se suele usar la Student Loan Interest Deduction Worksheet (Hoja de trabajo de la deducción de intereses sobre préstamos de estudios), de las instrucciones del Formulario 1040 o del Formulario 1040A. Free filing state income tax No obstante, si presenta el Formulario 2555, 2555-EZ o 4563, o si excluye ingresos de fuentes dentro de Puerto Rico, tiene que llenar la Hoja de Trabajo 4-1 del capítulo 4 de la Publicación 970, en inglés. Free filing state income tax Para ayudarle a calcular la deducción por intereses sobre préstamos de estudios, debe recibir el Formulario 1098-E, Student Loan Interest Statement (Declaración de intereses sobre préstamos de estudios), en inglés. Free filing state income tax Generalmente, una institución (como un banco o una agencia gubernamental) que recibió pagos de intereses de $600 o más durante el año 2013 sobre uno o más préstamos de estudios calificados tiene que enviarle el Formulario 1098-E (o documento sustitutivo aceptable) a cada prestatario a más tardar el 31 de enero del año 2014. Free filing state income tax Para los préstamos de estudios calificados que se obtuvieron antes del 1 de septiembre de 2004, la institución está obligada a anotar en el Formulario 1098-E solamente los pagos de intereses establecidos. Free filing state income tax Puede ser que otros pagos de intereses, tales como ciertos costos originarios del préstamo e intereses capitalizados, no aparezcan en el formulario que usted reciba. Free filing state income tax No obstante, si paga intereses calificados que no se incluyen en el Formulario 1098-E, también puede deducir esas cantidades. Free filing state income tax Para información sobre cómo dividir pagos de intereses y pagos de capital, vea el capítulo 4 de la Publicación 970, en inglés. Free filing state income tax Para reclamar la deducción, anote la cantidad permisible en la línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A. Free filing state income tax Deducción por Matrícula y Cuotas Escolares Quizás pueda deducir los gastos de estudios calificados que haya pagado durante el año para usted, su cónyuge o dependiente(s). Free filing state income tax No puede reclamar esta deducción si su estado civil para efectos de la declaración es casado que presenta la declaración por separado o si otra persona puede reclamar una exención por usted como dependiente en la declaración de impuestos de él o ella. Free filing state income tax Los gastos calificados tienen que ser por educación superior, tal como se explica más adelante en Gastos que Califican . Free filing state income tax La deducción por matrícula y cuotas escolares puede reducir la cantidad de sus ingresos sujetos a impuesto por hasta $4,000. Free filing state income tax La Tabla 19-2 resume las características de la deducción por matrícula y cuotas escolares. Free filing state income tax Quizás pueda tomar un crédito por sus gastos de estudios en lugar de una deducción. Free filing state income tax Puede escoger la opción que le proporcione una cantidad de impuesto menor. Free filing state income tax Vea el capítulo 35, Créditos Tributarios por Estudios , para saber detalles sobre los créditos. Free filing state income tax ¿Puede Reclamar la Deducción? Las siguientes reglas le pueden ayudar a determinar si puede reclamar la deducción por matrícula y cuotas escolares. Free filing state income tax Quién Puede Reclamar la Deducción La deducción por matrícula y gastos de estudios normalmente se puede reclamar si usted cumple los tres siguientes requisitos: Pagó gastos de educación superior calificados en 2013 para los períodos académicos que comienzan en 2013 y los que comienzan en los primeros tres meses de 2014. Free filing state income tax Pagó los gastos de estudios de un estudiante que reúne los requisitos. Free filing state income tax El estudiante que cumple los requisitos es usted mismo, su cónyuge o dependiente por el cual reclama una exención (que se define en el capítulo 3) en su declaración de impuestos. Free filing state income tax Los gastos de estudios calificados se definen bajo Gastos que Califican . Free filing state income tax La definición de “estudiantes que reúnen los requisitos” se puede ver más adelante bajo Estudiante que Reúne los Requisitos . Free filing state income tax Quién No Puede Reclamar la Deducción No puede reclamar la deducción por matrícula y cuotas escolares si le corresponde cualquiera de las siguientes situaciones: Su estado civil para efectos de la declaración de impuestos es casado que presenta por separado. Free filing state income tax Otra persona puede reclamar una exención por usted en la declaración de impuestos de él o ella. Free filing state income tax Usted no puede tomar la deducción aun si la otra persona de hecho no reclama la exención. Free filing state income tax Su MAGI es mayor que $80,000 ($160,000 si presenta una declaración conjunta). Free filing state income tax Usted (o su cónyuge) era un extranjero no residente en cualquier momento durante el año 2013 y dicho extranjero no residente no optó por ser tratado como extranjero residente para propósitos tributarios. Free filing state income tax Puede leer más información sobre extranjeros no residentes en la Publicación 519, U. Free filing state income tax S. Free filing state income tax Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés. Free filing state income tax Usted o cualquier otra persona puede reclamar un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje en el año 2013 en lo que concierne a los gastos del estudiante por el cual se pagaron gastos de estudios calificados. Free filing state income tax No obstante, el recibir un crédito por parte de su estado no lo descalifica de reclamar una deducción por matrícula y cuotas. Free filing state income tax Tabla 19-2. Free filing state income tax Resumen de las Características de la Deducción por Matrícula y Cuotas Escolares No se base únicamente en lo que aparece en esta tabla. Free filing state income tax Consulte el texto de este capítulo para más detalles. Free filing state income tax Pregunta Respuesta ¿Cuál es la cantidad máxima del beneficio? Usted puede reducir la cantidad de sus ingresos sujetos a impuestos por hasta $4,000. Free filing state income tax ¿Dónde se toma la deducción? Se toma como ajuste a los ingresos en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A. Free filing state income tax ¿Para quién tienen que ser pagados los gastos? Un estudiante que está matriculado en una institución de enseñanza superior que reúne los requisitos quien es: usted, su cónyuge o su dependiente por el cual reclama una exención. Free filing state income tax ¿Qué matrícula y cuotas escolares son deducibles? La matrícula y cuotas escolares requeridas para matricularse o para asistir a una institución de enseñanza superior que reúne los requisitos, pero que no incluyen gastos personales, de manutención ni gastos de familia, tales como alojamiento y comida. Free filing state income tax Gastos que Califican La deducción por matrícula y cuotas escolares se basa en los gastos de estudios calificados que paga por usted mismo, su cónyuge o por un dependiente por el cual usted reclama una exención en su declaración de impuestos. Free filing state income tax La deducción normalmente se permite por gastos de estudios calificados que fueron pagados en el año 2013 relacionados con la matriculación en una institución de educación superior durante el año 2013 o por un período académico (que se definió anteriormente bajo Deducción por Intereses sobre Préstamos de Estudios ) comenzando en 2013 o en los primeros 3 meses de 2014. Free filing state income tax Pagos hechos con fondos de un préstamo. Free filing state income tax   Puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que pagó con los fondos de un préstamo. Free filing state income tax Utilice los gastos para calcular la deducción para el año en que se pagaron los gastos, no para el año en que se liquidó el préstamo. Free filing state income tax Trate los pagos del préstamo que fueron enviados directamente a la institución de educación como si hubieran sido pagados en la fecha en que dicha institución abona la cuenta del estudiante. Free filing state income tax Estudiante que se da de baja de su(s) clase(s). Free filing state income tax   Usted puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que no se reembolsan cuando un estudiante se da de baja (retira) de su(s) clase(s). Free filing state income tax Gastos de Estudios Calificados Para propósitos de la deducción por matrícula y cuotas escolares, los gastos de estudios calificados son la matrícula y ciertos gastos relacionados que son requisitos para la matriculación o asistencia en una institución de educación superior que reúne los requisitos. Free filing state income tax Institución de educación que reúne los requisitos. Free filing state income tax   Una “institución de educación superior que reúne los requisitos” es cualquier colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Free filing state income tax Incluye prácticamente a casi todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Free filing state income tax La institución de educación superior deberá poder indicarle si la misma reúne los requisitos. Free filing state income tax   Ciertas instituciones de educación ubicadas fuera de los Estados Unidos participan también en los programas de FSA del Departamento de Educación de los Estados Unidos. Free filing state income tax Período académico. Free filing state income tax   Un período académico abarca un semestre, trimestre, un cuatrimestre o cualquier otro período de estudios según lo determine de manera razonable una institución de educación que reúne los requisitos. Free filing state income tax Si una institución de educación que reúne los requisitos no tiene períodos académicos sino horas de crédito, cada período de pago se puede considerar como un período académico. Free filing state income tax Gastos relacionados. Free filing state income tax   Las cuotas correspondientes a las actividades escolares y los gastos incurridos por los textos, útiles y equipo escolares se incluyen en los gastos de estudios calificados únicamente si las cuotas y gastos tienen que ser pagados a la institución como requisito de la matriculación o asistencia en dicha institución. Free filing state income tax Gastos pagados por adelantado. Free filing state income tax   Gastos de estudios calificados pagados en el año 2013 para un período académico que comienza en los primeros tres meses de 2014, sólo se pueden utilizar para calcular la deducción por matrícula y cuotas escolares de 2013. Free filing state income tax Vea Período académico, anteriormente. Free filing state income tax Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo de la deducción por matrícula y cuotas escolares sólo para 2013, únicamente si reúne todos los otros requisitos. Free filing state income tax No puede utilizar cantidad alguna que pagó en 2012 ó 2014 para calcular los gastos de estudios calificados que utiliza para el cálculo de su deducción por matrícula y cuotas escolares de 2013. Free filing state income tax No Se Permite Beneficio Doble No se le permite deducir lo siguiente: Los gastos de estudios calificados que usted deduce conforme a cualquier otra disposición de la ley, como, por ejemplo, un gasto de negocios. Free filing state income tax Los gastos de estudios calificados de un estudiante en su declaración de impuestos si usted o cualquier otra persona reclama un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje por el mismo estudiante en el mismo año. Free filing state income tax Los gastos de estudios calificados que se utilizaron para calcular la parte libre de impuestos de una distribución proveniente de una cuenta Coverdell de ahorros para la educación (ESA, por sus siglas en inglés) o de un programa de matrículas calificado (QTP, por sus siglas en inglés). Free filing state income tax En el caso de un QTP, esto corresponde sólo a la cantidad de ganancias exentas de impuesto que fueron distribuidas, no a la recuperación de las contribuciones hechas al programa. Free filing state income tax Vea los temas titulados Figuring the Taxable Portion of a Distribution (Cálculo de la parte sujeta a impuesto de una distribución) del capítulo 7 (Coverdell Education Savings Account (ESA) (Cuenta Coverdell de ahorros para la educación (ESA)) y del capítulo 8 (Qualified Tuition Progam (QTP)) (Programa de matrícula calificado (QTP)), de la Publicación 970, en inglés. Free filing state income tax Los gastos de estudios calificados que han sido pagados con intereses exentos de impuestos provenientes de un bono de ahorros de los Estados Unidos (Formulario 8815, en inglés). Free filing state income tax Vea Figuring the Tax-Free Amount (Cálculo de la cantidad libre de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Free filing state income tax Los gastos de estudios calificados que han sido pagados con ayuda económica para los estudios que estén exentos de impuestos, tales como becas de estudios, subvenciones o ayuda económica para los estudios provista por el empleador. Free filing state income tax Vea a continuación el tema titulado Ajustes a los gastos de estudios calificados. Free filing state income tax Ajustes a los gastos de estudios calificados. Free filing state income tax   Para cada estudiante, se tienen que reducir los gastos de estudios calificados pagados por o en nombre de dicho estudiante bajo las siguientes reglas. Free filing state income tax El resultado es el ajuste a los gastos de estudios calificados por cada estudiante. Free filing state income tax Ayuda económica para los estudios exenta de impuestos. Free filing state income tax   Por la ayuda económica para los estudios exenta de impuestos que recibió en 2013, tiene que reducir los gastos de estudios calificados para cada período académico por la cantidad de la ayuda económica para los estudios exenta de impuestos de dicho período. Free filing state income tax Vea Período académico, anteriormente. Free filing state income tax   Dicha asistencia incluye: La parte libre de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional), incluidas las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970); La parte libre de impuestos de toda ayuda económica para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970); Ayuda económica para estudios ofrecida a veteranos (vea el capítulo 1 de la Publicación 970) y Todo otro pago exento de impuestos (que no sean regalos o herencias) que se recibe en concepto de ayuda para estudios. Free filing state income tax   Por lo general, todas las becas de estudios o becas de investigación (becas de desarrollo profesional) son tratadas como una ayuda económica para los estudios exenta de impuestos. Free filing state income tax Sin embargo, una beca de estudios o beca de investigación (becas de desarrollo profesional) no será tratada como asistencia exenta de impuestos al punto de que es incluida como ingreso bruto (si tiene que presentar una declaración de impuestos) para el año que reciba la beca de estudios o para investigación (becas de desarrollo profesional) si uno de estos dos puntos aplica: La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de educación calificados), de la Publicación 970, en inglés. Free filing state income tax La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Free filing state income tax    Podría aumentar el valor combinado de la deducción por matrícula y cuotas escolares y cierta ayuda económica para los estudios si incluye alguna parte o toda la ayuda económica para los estudios en sus ingresos en el año en que recibió dicha ayuda. Free filing state income tax Para detalles, vea Adjustments to Qualified Education Expenses (Ajustes a los gastos de estudios calificados), en el capítulo 6 de la Publicación 970, en inglés. Free filing state income tax   Cierta ayuda económica para los estudios exenta de impuestos recibida después de 2013 podría ser considerada como un reembolso de gastos de estudios calificados que se pagó en 2013. Free filing state income tax La ayuda económica para los estudios exenta de impuestos incluye toda ayuda económica para los estudios exenta de impuestos que usted o cualquier otra persona ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matriculación en una institución educativa calificada durante 2013). Free filing state income tax   Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Free filing state income tax Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 y después de que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos, más adelante. Free filing state income tax Reembolsos. Free filing state income tax   Un reembolso de gastos de estudios calificados puede reducir los ajustes a los gastos de estudios calificados por el año tributable o puede requerir que reintegre parte o el total del reembolso en su ingreso bruto para el año en que recibe el reembolso. Free filing state income tax Vea el capítulo 6 de la Publicación 970 para obtener más información. Free filing state income tax Alguna ayuda económica para los estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Free filing state income tax Vea Ayuda económica para los estudios exenta de impuestos, anteriormente. Free filing state income tax Reembolsos recibidos en 2013. Free filing state income tax   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y restando todos los reembolsos de esos gastos recibidos de la institución educativa que reúne los requisitos durante 2013. Free filing state income tax Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Free filing state income tax   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido antes de presentar su declaración de impuestos sobre los ingresos de 2013, reduzca la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Free filing state income tax Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Free filing state income tax   Si recibe un reembolso después de 2013 por gastos de estudios calificados pagados en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, puede ser que tenga que incluir parte o todo el reembolso en su ingreso bruto del año en que recibió el reembolso. Free filing state income tax Vea el capítulo 6 de la Publicación 970, en inglés, para más información. Free filing state income tax Coordinación con cuentas Coverdell de ahorros para la educación y programas calificados de matrícula. Free filing state income tax   Debe reducir sus gastos de estudios calificados por los gastos de estudios calificados utilizados para calcular la exclusión del ingreso bruto de (a) los intereses recibidos bajo un programa de bonos de ahorro educativos o (b) cualquier distribución desde una cuenta Coverdell de ahorros para la educación o programa calificado de matrícula (QTP, por sus siglas en inglés). Free filing state income tax Para un programa QTP, esto se aplica solamente a la cantidad exenta de impuestos que fueron distribuidos, no a la recuperación de contribuciones al programa. Free filing state income tax Cantidades que no reducen los gastos de estudios calificados. Free filing state income tax   No reduzca los gastos de estudios calificados por las cantidades pagadas con fondos que el estudiante ha recibido por concepto de: Pagos por prestar servicios, como salarios, Un préstamo, Un regalo, Una herencia o Un retiro de fondos de una cuenta de ahorros personal del estudiante. Free filing state income tax   No reduzca los gastos de estudios calificados por cantidades de becas de estudios o becas de investigación (becas de desarrollo profesional) que se declaran como ingresos en la declaración de impuestos del estudiante en las siguientes circunstancias: El uso de dinero se restringe, por los términos de la beca de estudios o beca de investigación (becas de desarrollo profesional), a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados. Free filing state income tax El uso de dinero no se restringe. Free filing state income tax Gastos que no Califican Los gastos de estudios calificados no incluyen cantidades pagadas en concepto de: Seguros; Gastos médicos (incluidas las cuotas del seguro médico escolar ofrecido por la institución); Alojamiento y comida; Transporte o Gastos personales, de manutención o relacionados a la familia que sean semejantes. Free filing state income tax Esto corresponde aun si se tienen que pagar dichas cantidades a la institución como requisito de matriculación o asistencia. Free filing state income tax Deportes, juegos, pasatiempos y cursos que no ofrecen créditos académicos. Free filing state income tax   Normalmente, los gastos de estudios calificados no incluyen gastos que corresponden a un curso de enseñanza u otro curso educativo en que se desempeñen deportes, juegos, pasatiempos o un curso que no ofrece créditos académicos. Free filing state income tax No obstante, si el curso de enseñanza u otro curso educativo es parte del programa de estudios del estudiante para obtener una licenciatura u otro título educativo reconocido, los gastos entonces sí pueden calificar. Free filing state income tax Cuotas íntegras o en conjunto. Free filing state income tax   Algunas instituciones de educación superior que reúnen los requisitos combinan o consolidan todas sus cuotas para un período académico en una sola cantidad. Free filing state income tax Si no recibe, o no tiene acceso a un estado de cuentas o asignación que muestra cuánto pagó usted en concepto de gastos de estudios calificados y cuánto pagó en concepto de gastos personales, como los que se mencionaron anteriormente, comuníquese con la institución. Free filing state income tax La institución tiene la obligación de redactar ese estado de cuentas o asignación y de proveerle a usted información sobre la cantidad que usted pagó (o que se le facturó) por los gastos de estudios calificados en el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Free filing state income tax Vea el tema Cómo se Calcula la Deducción , más adelante, para mayor información sobre el Formulario 1098-T. Free filing state income tax Estudiante que Reúne los Requisitos Para propósitos de la deducción por matrícula y cuotas escolares, un “estudiante que reúne los requisitos” es aquél que está matriculado en uno o más cursos en una institución de educación superior que reúne los requisitos (que se definió anteriormente). Free filing state income tax Quién Puede Reclamar los Gastos de un Dependiente Para poder reclamar la deducción por matrícula y cuotas escolares de un dependiente, usted tiene, normalmente, que: Haber pagado los gastos y Reclamar una exención de dependiente por el estudiante. Free filing state income tax La Tabla 19-3 resume quién puede reclamar la deducción. Free filing state income tax Cuánto se Puede Deducir La cantidad máxima por concepto de matrícula y cuotas escolares para 2013 es $4,000, $2,000 o $0, dependiendo de la cantidad de su MAGI. Free filing state income tax Para detalles sobre el cálculo de su MAGI, vea el capítulo 6 de la Publicación 970. Free filing state income tax Cómo se Calcula la Deducción Calcule la deducción utilizando el Formulario 8917, Tuition and Fees Deduction (Deducción por matrícula y cuotas), en inglés. Free filing state income tax Para ayudarle a calcular su deducción por matrícula y cuotas escolares, debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Free filing state income tax Por lo general, una institución de educación superior que reúne los requisitos (como un colegio universitario o universidad) tiene que enviarle el Formulario 1098-T (o una declaración sustitutiva similar y aceptable) a cada estudiante matriculado para el 31 de enero de 2014. Free filing state income tax Para reclamar la deducción, anote la cantidad permitida en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A, y adjunte el Formulario 8917 que ha completado debidamente. Free filing state income tax Tabla 19-3. Free filing state income tax Quién Puede Reclamar los Gastos de un Dependiente No se base únicamente en lo que aparece en esta tabla. Free filing state income tax Consulte Who can claim a Dependent's Expenses (Quién puede reclamar los gastos de un dependiente), en el capítulo 6 de la Publicación 970, en inglés. Free filing state income tax SI su dependiente es un estudiante que reúne los requisitos y usted . Free filing state income tax . Free filing state income tax . Free filing state income tax Y. Free filing state income tax . Free filing state income tax . Free filing state income tax ENTONCES. Free filing state income tax . Free filing state income tax . Free filing state income tax reclama una exención por su dependiente usted paga todos los gastos de estudios calificados de su dependiente sólo usted puede deducir los gastos de estudios calificados que usted pagó. Free filing state income tax Su dependiente no puede tomar la deducción. Free filing state income tax reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free filing state income tax no reclama una exención por su dependiente usted pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free filing state income tax no reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free filing state income tax Gastos del Educador Si usted fue un educador que reúne los requisitos en el año 2013, puede deducir en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A, hasta $250 por concepto de gastos calificados que usted pagó en 2013. Free filing state income tax Si usted y su cónyuge están presentando una declaración de impuestos conjunta y si ambos de ustedes son educadores que reúnen los requisitos, la cantidad máxima que pueden deducir es $500. Free filing state income tax No obstante eso, ningún cónyuge puede deducir más de $250 en gastos calificados que él o ella ha pagado en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A. Free filing state income tax Usted quizás pueda deducir gastos que son mayores del límite de $250 (o $500) en la línea 21 del Anexo A (Formulario 1040). Free filing state income tax Educador que reúne los requisitos. Free filing state income tax   Un “educador que reúne los requisitos” es un maestro de primaria, instructor, consejero, director o ayudante, de kínder (jardín de infancia) hasta doceavo grado, que ha trabajado por lo menos 900 horas durante el año escolar. Free filing state income tax Gastos calificados. Free filing state income tax   En los gastos calificados se incluyen los gastos ordinarios (normales) y necesarios que se han pagado por libros, útiles, equipo (incluyendo equipo, programas y servicios para la computadora) y otros suministros y materiales que se utilizan en el aula. Free filing state income tax Un “gasto ordinario” es aquél que es común y aceptado en el campo educativo. Free filing state income tax Un “gasto necesario” es uno que es útil y apropiado en el desempeño de su profesión de educador. Free filing state income tax Un gasto no tiene que ser obligatorio para considerarse necesario. Free filing state income tax   Los gastos calificados no incluyen los gastos por enseñanza impartida en el hogar ni por artículos para cursos de salud o de educación física que no se usan en el desempeño del deporte. Free filing state income tax   Usted tiene que restar de sus gastos calificados las siguientes cantidades: Intereses de bonos de ahorros de los Estados Unidos de la serie EE y de la serie I que pueden excluirse de los ingresos y que provienen del Formulario 8815, Exclusion of Interest From Series EE and I U. Free filing state income tax S. Free filing state income tax Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de bonos de ahorros estadounidenses de las series EE e I emitidos después de 1989), en inglés. Free filing state income tax Vea el tema titulado Figuring the Tax-Free Amount (Cálculo de la cantidad exenta de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Free filing state income tax Distribuciones o ganancias provenientes de un programa de matrícula calificado que no están sujetas a impuestos. Free filing state income tax Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 8 de la Publicación 970. Free filing state income tax Una distribución de ganancias no sujeta a impuestos proveniente de una cuenta Coverdell de ahorros para la educación. Free filing state income tax Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 7 de la Publicación 970. Free filing state income tax Todo reembolso de dichos gastos que haya recibido y del cual no se le haya informado en el recuadro 1 del Formulario W-2. Free filing state income tax Prev  Up  Next   Home   More Online Publications
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The Free Filing State Income Tax

Free filing state income tax 11. Free filing state income tax   Casualties, Thefts, and Condemnations Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Casualties and TheftsDeductible losses. Free filing state income tax Nondeductible losses. Free filing state income tax Family pet. Free filing state income tax Progressive deterioration. Free filing state income tax Decline in market value of stock. Free filing state income tax Mislaid or lost property. Free filing state income tax Farming Losses How To Figure a Loss Deduction Limits on Losses of Personal-Use Property When Loss Is Deductible Proof of Loss Figuring a Gain Other Involuntary ConversionsCondemnation Irrigation Project Livestock Losses Tree Seedlings Postponing GainException. Free filing state income tax Related persons. Free filing state income tax Replacement Property Replacement Period How To Postpone Gain Disaster Area LossesWho is eligible. Free filing state income tax Covered disaster area. Free filing state income tax Reporting Gains and Losses Introduction This chapter explains the tax treatment of casualties, thefts, and condemnations. Free filing state income tax A casualty occurs when property is damaged, destroyed, or lost due to a sudden, unexpected, or unusual event. Free filing state income tax A theft occurs when property is stolen. Free filing state income tax A condemnation occurs when private property is legally taken for public use without the owner's consent. Free filing state income tax A casualty, theft, or condemnation may result in a deductible loss or taxable gain on your federal income tax return. Free filing state income tax You may have a deductible loss or a taxable gain even if only a portion of your property was affected by a casualty, theft, or condemnation. Free filing state income tax An involuntary conversion occurs when you receive money or other property as reimbursement for a casualty, theft, condemnation, disposition of property under threat of condemnation, or certain other events discussed in this chapter. Free filing state income tax If an involuntary conversion results in a gain and you buy qualified replacement property within the specified replacement period, you can postpone reporting the gain on your income tax return. Free filing state income tax For more information, see Postponing Gain , later. Free filing state income tax Topics - This chapter discusses: Casualties and thefts How to figure a loss or gain Other involuntary conversions Postponing gain Disaster area losses Reporting gains and losses Drought involving property connected with a trade or business or a transaction entered into for profit Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and Theft Loss Workbook Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch D (Form 1040) Capital Gains and Losses Sch F (Form 1040) Profit or Loss From Farming 4684 Casualties and Thefts 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Free filing state income tax Casualties and Thefts If your property is destroyed, damaged, or stolen, you may have a deductible loss. Free filing state income tax If the insurance or other reimbursement is more than the adjusted basis of the destroyed, damaged, or stolen property, you may have a taxable gain. Free filing state income tax Casualty. Free filing state income tax   A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Free filing state income tax A sudden event is one that is swift, not gradual or progressive. Free filing state income tax An unexpected event is one that is ordinarily unanticipated and unintended. Free filing state income tax 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 filing state income tax Deductible losses. Free filing state income tax   Deductible casualty losses can result from a number of different causes, including the following. Free filing state income tax Airplane crashes. Free filing state income tax Car, truck, or farm equipment accidents not resulting from your willful act or willful negligence. Free filing state income tax Earthquakes. Free filing state income tax Fires (but see Nondeductible losses next for exceptions). Free filing state income tax Floods. Free filing state income tax Freezing. Free filing state income tax 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 filing state income tax Lightning. Free filing state income tax Storms, including hurricanes and tornadoes. Free filing state income tax Terrorist attacks. Free filing state income tax Vandalism. Free filing state income tax Volcanic eruptions. Free filing state income tax Nondeductible losses. Free filing state income tax   A casualty loss is not deductible if the damage or destruction is caused by the following. Free filing state income tax Accidentally breaking articles such as glassware or china under normal conditions. Free filing state income tax A family pet (explained below). Free filing state income tax A fire if you willfully set it, or pay someone else to set it. Free filing state income tax A car, truck, or farm equipment accident if your willful negligence or willful act caused it. Free filing state income tax The same is true if the willful act or willful negligence of someone acting for you caused the accident. Free filing state income tax Progressive deterioration (explained below). Free filing state income tax Family pet. Free filing state income tax   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed above under Casualty are met. Free filing state income tax Example. Free filing state income tax You keep your horse in your yard. Free filing state income tax The ornamental fruit trees in your yard were damaged when your horse stripped the bark from them. Free filing state income tax Some of the trees were completely girdled and died. Free filing state income tax Because the damage was not unexpected or unusual, the loss is not deductible. Free filing state income tax Progressive deterioration. Free filing state income tax   Loss of property due to progressive deterioration is not deductible as a casualty loss. Free filing state income tax This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Free filing state income tax Examples of damage due to progressive deterioration include damage from rust, corrosion, or termites. Free filing state income tax However, weather-related conditions or disease may cause another type of involuntary conversion. Free filing state income tax See Other Involuntary Conversions , later. Free filing state income tax Theft. Free filing state income tax   A theft is the taking and removing of money or property with the intent to deprive the owner of it. Free filing state income tax The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. Free filing state income tax You do not need to show a conviction for theft. Free filing state income tax   Theft includes the taking of money or property by the following means: Blackmail, Burglary, Embezzlement, Extortion, Kidnapping for ransom, Larceny, Robbery, or Threats. Free filing state income tax The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Free filing state income tax Decline in market value of stock. Free filing state income tax   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 filing state income tax 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 filing state income tax You report a capital loss on Schedule D (Form 1040). Free filing state income tax For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Free filing state income tax Mislaid or lost property. Free filing state income tax   The simple disappearance of money or property is not a theft. Free filing state income tax 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 filing state income tax Example. Free filing state income tax A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Free filing state income tax The diamond falls from the ring and is never found. Free filing state income tax The loss of the diamond is a casualty. Free filing state income tax Farming Losses You can deduct certain casualty or theft losses that occur in the business of farming. Free filing state income tax The following is a discussion of some losses you can deduct and some you cannot deduct. Free filing state income tax Livestock or produce bought for resale. Free filing state income tax   Casualty or theft losses of livestock or produce bought for resale are deductible if you report your income on the cash method. Free filing state income tax If you report your income on an accrual method, take casualty and theft losses on property bought for resale by omitting the item from the closing inventory for the year of the loss. Free filing state income tax You cannot take a separate deduction. Free filing state income tax Livestock, plants, produce, and crops raised for sale. Free filing state income tax   Losses of livestock, plants, produce, and crops raised for sale are generally not deductible if you report your income on the cash method. Free filing state income tax You have already deducted the cost of raising these items as farm expenses, so their basis is equal to zero. Free filing state income tax   For plants with a preproductive period of more than 2 years, you may have a deductible loss if you have a tax basis in the plants. Free filing state income tax You usually have a tax basis if you capitalized the expenses associated with these plants under the uniform capitalization rules. Free filing state income tax The uniform capitalization rules are discussed in chapter 6. Free filing state income tax   If you report your income on an accrual method, casualty or theft losses are deductible only if you included the items in your inventory at the beginning of your tax year. Free filing state income tax You get the deduction by omitting the item from your inventory at the close of your tax year. Free filing state income tax You cannot take a separate casualty or theft deduction. Free filing state income tax Income loss. Free filing state income tax   A loss of future income is not deductible. Free filing state income tax Example. Free filing state income tax A severe flood destroyed your crops. Free filing state income tax Because you are a cash method taxpayer and already deducted the cost of raising the crops as farm expenses, this loss is not deductible, as explained above under Livestock, plants, produce, and crops raised for sale . Free filing state income tax You estimate that the crop loss will reduce your farm income by $25,000. Free filing state income tax This loss of future income is also not deductible. Free filing state income tax Loss of timber. Free filing state income tax   If you sell timber downed as a result of a casualty, treat the proceeds from the sale as a reimbursement. Free filing state income tax If you use the proceeds to buy qualified replacement property, you can postpone reporting the gain. Free filing state income tax See Postponing Gain , later. Free filing state income tax Property used in farming. Free filing state income tax   Casualty and theft losses of property used in your farm business usually result in deductible losses. Free filing state income tax If a fire or storm destroyed your barn, or you lose by casualty or theft an animal you bought for draft, breeding, dairy, or sport, you may have a deductible loss. Free filing state income tax See How To Figure a Loss , later. Free filing state income tax Raised draft, breeding, dairy, or sporting animals. Free filing state income tax   Generally, losses of raised draft, breeding, dairy, or sporting animals do not result in deductible casualty or theft losses because you have no basis in the animals. Free filing state income tax However, you may have a basis in the animal and therefore may be able to claim a deduction if either of the following situations applies to you. Free filing state income tax You use inventories to determine your income and you included the animals in your inventory. Free filing state income tax You capitalized the expenses associated with the animals under the uniform capitalization rules and therefore have a tax basis in the animals subject to a casualty or theft. Free filing state income tax When you include livestock in inventory, its last inventory value is its basis. Free filing state income tax When you lose an inventoried animal held for draft, breeding, dairy, or sport by casualty or theft during the year, decrease ending inventory by the amount you included in inventory for the animal. Free filing state income tax You cannot take a separate deduction. Free filing state income tax How To Figure a Loss How you figure a deductible casualty or theft loss depends on whether the loss was to farm or personal-use property and whether the property was stolen or partly or completely destroyed. Free filing state income tax Farm property. Free filing state income tax   Farm property is the property you use in your farming business. Free filing state income tax If your farm property was completely destroyed or stolen, your loss is figured as follows:      Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive      You can use the schedules in Publication 584-B to list your stolen, damaged, or destroyed business property and to figure your loss. Free filing state income tax   If your farm property was partially damaged, use the steps shown under Personal-use property next to figure your casualty loss. Free filing state income tax However, the deduction limits, discussed later, do not apply to farm property. Free filing state income tax Personal-use property. Free filing state income tax   Personal-use property is property used by you or your family members for personal purposes and not used in your farm business or for income-producing purposes. Free filing state income tax The following items are examples of personal-use property: Your main home. Free filing state income tax Furniture and electronics used in your main home and not used in a home office or for business purposes. Free filing state income tax Clothing and jewelry. Free filing state income tax An automobile used for nonbusiness purposes. Free filing state income tax You figure the casualty or theft loss on this property by taking the following steps. Free filing state income tax Determine your adjusted basis in the property before the casualty or theft. Free filing state income tax Determine the decrease in fair market value of the property as a result of the casualty or theft. Free filing state income tax From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you receive or expect to receive. Free filing state income tax You must apply the deduction limits, discussed later, to determine your deductible loss. Free filing state income tax    You can use Publication 584 to list your stolen or damaged personal-use property and figure your loss. Free filing state income tax It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Free filing state income tax Adjusted basis. Free filing state income tax   Adjusted basis is your basis (usually cost) increased or decreased by various events, such as improvements and casualty losses. Free filing state income tax For more information about adjusted basis, see chapter 6. Free filing state income tax Decrease in fair market value (FMV). Free filing state income tax   The decrease in FMV is the difference between the property's value immediately before the casualty or theft and its value immediately afterward. Free filing state income tax FMV is defined in chapter 10 under Payments Received or Considered Received . Free filing state income tax Appraisal. Free filing state income tax   To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. Free filing state income tax But other measures, such as the cost of cleaning up or making repairs (discussed next) can be used to establish decreases in FMV. Free filing state income tax   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 filing state income tax The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Free filing state income tax This information is needed to limit any deduction to the actual loss resulting from damage to the property. Free filing state income tax Cost of cleaning up or making repairs. Free filing state income tax   The cost of cleaning up after a casualty is not part of a casualty loss. Free filing state income tax Neither is the cost of repairing damaged property after a casualty. Free filing state income tax 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 filing state income tax The repairs are actually made. Free filing state income tax The repairs are necessary to bring the property back to its condition before the casualty. Free filing state income tax The amount spent for repairs is not excessive. Free filing state income tax The repairs fix the damage only. Free filing state income tax 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 filing state income tax Related expenses. Free filing state income tax   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, temporary housing, or a rental car, are not part of your casualty or theft loss. Free filing state income tax However, they may be deductible as farm business expenses if the damaged or stolen property is farm property. Free filing state income tax Separate computations for more than one item of property. Free filing state income tax   Generally, if a single casualty or theft involves more than one item of property, you must figure your loss separately for each item of property. Free filing state income tax Then combine the losses to determine your total loss. Free filing state income tax    There is an exception to this rule for personal-use real property. Free filing state income tax See Exception for personal-use real property, later. Free filing state income tax Example. Free filing state income tax A fire on your farm damaged a tractor and the barn in which it was stored. Free filing state income tax The tractor had an adjusted basis of $3,300. Free filing state income tax Its FMV was $28,000 just before the fire and $10,000 immediately afterward. Free filing state income tax The barn had an adjusted basis of $28,000. Free filing state income tax Its FMV was $55,000 just before the fire and $25,000 immediately afterward. Free filing state income tax You received insurance reimbursements of $2,100 on the tractor and $26,000 on the barn. Free filing state income tax Figure your deductible casualty loss separately for the two items of property. Free filing state income tax     Tractor Barn 1) Adjusted basis $3,300 $28,000 2) FMV before fire $28,000 $55,000 3) FMV after fire 10,000 25,000 4) Decrease in FMV  (line 2 − line 3) $18,000 $30,000 5) Loss (lesser of line 1 or line 4) $3,300 $28,000 6) Minus: Insurance 2,100 26,000 7) Deductible casualty loss $1,200 $2,000 8) Total deductible casualty loss $3,200 Exception for personal-use real property. Free filing state income tax   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. Free filing state income tax Figure the loss using the smaller of the following. Free filing state income tax The decrease in FMV of the entire property. Free filing state income tax The adjusted basis of the entire property. Free filing state income tax Example. Free filing state income tax You bought a farm in 1990 for $160,000. Free filing state income tax The adjusted basis of the residential part is now $128,000. Free filing state income tax In 2013, a windstorm blew down shade trees and three ornamental trees planted at a cost of $7,500 on the residential part. Free filing state income tax The adjusted basis of the residential part includes the $7,500. Free filing state income tax The fair market value (FMV) of the residential part immediately before the storm was $400,000, and $385,000 immediately after the storm. Free filing state income tax The trees were not covered by insurance. Free filing state income tax 1) Adjusted basis $128,000 2) FMV before the storm $400,000 3) FMV after the storm 385,000 4) Decrease in FMV (line 2 − line 3) $15,000 5) Loss before insurance (lesser of line 1 or line 4) $15,000 6) Minus: Insurance -0- 7) Amount of loss $15,000 Insurance and other reimbursements. Free filing state income tax   If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Free filing state income tax You do not have a casualty or theft loss to the extent you are reimbursed. Free filing state income tax   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 filing state income tax You must reduce your loss even if you do not receive payment until a later tax year. Free filing state income tax    Do not subtract from your loss any insurance payments you receive for living expenses if you lose the use of your main home or are denied access to it because of a casualty. Free filing state income tax You may have to include a portion of these payments in your income. Free filing state income tax See Insurance payments for living expenses in Publication 547 for details. Free filing state income tax Disaster relief. Free filing state income tax   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 filing state income tax Excludable cash gifts you receive also do not reduce your casualty loss if there are no limits on how you can use the money. Free filing state income tax   Generally, disaster relief grants received under the Robert T. Free filing state income tax Stafford Disaster Relief and Emergency Assistance Act are not included in your income. Free filing state income tax See Federal disaster relief grants , later, under Disaster Area Losses . Free filing state income tax   Qualified disaster relief payments for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Free filing state income tax See Qualified disaster relief payments , later, under Disaster Area Losses . Free filing state income tax Reimbursement received after deducting loss. Free filing state income tax   If you figure your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. Free filing state income tax Actual reimbursement less than expected. Free filing state income tax   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 filing state income tax Actual reimbursement more than expected. Free filing state income tax   If you later receive more reimbursement than you expected after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Free filing state income tax However, if any part of your original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. Free filing state income tax Do not refigure your tax for the year you claimed the deduction. Free filing state income tax See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. Free filing state income tax 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 filing state income tax See Figuring a Gain in Publication 547 for information on how to treat a gain from the reimbursement you receive because of a casualty or theft. Free filing state income tax Actual reimbursement same as expected. Free filing state income tax   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 filing state income tax Lump-sum reimbursement. Free filing state income tax   If you have a casualty or theft loss of several assets at the same time without an allocation of reimbursement to specific assets, divide the lump-sum reimbursement among the assets according to the fair market value of each asset at the time of the loss. Free filing state income tax Figure the gain or loss separately for each asset that has a separate basis. Free filing state income tax Adjustments to basis. Free filing state income tax   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 filing state income tax The result is your adjusted basis in the property. Free filing state income tax Amounts you spend on repairs to restore your property to its pre-casualty condition increase your adjusted basis. Free filing state income tax See Adjusted Basis in chapter 6 for more information. Free filing state income tax Example. Free filing state income tax You built a new silo for $25,000. Free filing state income tax This is the basis in your silo because that is the total cost you incurred to build it. Free filing state income tax During the year, a tornado damaged your silo and your allowable casualty loss deduction was $1,000. Free filing state income tax In addition, your insurance company reimbursed you $4,000 for the damage and you spent $6,000 to restore the silo to its pre-casualty condition. Free filing state income tax Your adjusted basis in the silo after the casualty is $26,000 ($25,000 - $1,000 - $4,000 + $6,000). Free filing state income tax Deduction Limits on Losses of Personal-Use Property Casualty and theft losses of property held for personal use may be deductible if you itemize deductions on Schedule A (Form 1040). Free filing state income tax There are two limits on the deduction for casualty or theft loss of personal-use property. Free filing state income tax You figure these limits on Form 4684. Free filing state income tax $100 rule. Free filing state income tax   You must reduce each casualty or theft loss on personal-use property by $100. Free filing state income tax This rule applies after you have subtracted any reimbursement. Free filing state income tax 10% rule. Free filing state income tax   You must further reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. Free filing state income tax Apply this rule after you reduce each loss by $100. Free filing state income tax Adjusted gross income is on line 38 of Form 1040. Free filing state income tax Example. Free filing state income tax In June, you discovered that your house had been burglarized. Free filing state income tax Your loss after insurance reimbursement was $2,000. Free filing state income tax Your adjusted gross income for the year you discovered the burglary is $57,000. Free filing state income tax Figure your theft loss deduction as follows: 1. Free filing state income tax Loss after insurance $2,000 2. Free filing state income tax Subtract $100 100 3. Free filing state income tax Loss after $100 rule $1,900 4. Free filing state income tax Subtract 10% (. Free filing state income tax 10) × $57,000 AGI $5,700 5. Free filing state income tax Theft loss deduction -0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($5,700). Free filing state income tax    If you have a casualty or theft gain in addition to a loss, you will have to make a special computation before you figure your 10% limit. Free filing state income tax See 10% Rule in Publication 547. Free filing state income tax When Loss Is Deductible Generally, you can deduct casualty losses that are not reimbursable only in the tax year in which they occur. Free filing state income tax You generally can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Free filing state income tax However, losses in federally declared disaster areas are subject to different rules. Free filing state income tax See Disaster Area Losses , later, for an exception. Free filing state income tax 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 filing state income tax Leased property. Free filing state income tax   If you lease property from someone else, you can deduct a loss on the property in the year your liability for the loss is fixed. Free filing state income tax This is true even if the loss occurred or the liability was paid in a different year. Free filing state income tax You are not entitled to a deduction until your liability under the lease can be determined with reasonable accuracy. Free filing state income tax Your liability can be determined when a claim for recovery is settled, adjudicated, or abandoned. Free filing state income tax Example. Free filing state income tax Robert leased a tractor from First Implement, Inc. Free filing state income tax , for use in his farm business. Free filing state income tax The tractor was destroyed by a tornado in June 2012. Free filing state income tax The loss was not insured. Free filing state income tax First Implement billed Robert for the fair market value of the tractor on the date of the loss. Free filing state income tax Robert disagreed with the bill and refused to pay it. Free filing state income tax First Implement later filed suit in court against Robert. Free filing state income tax In 2013, Robert and First Implement agreed to settle the suit for $20,000, and the court entered a judgment in favor of First Implement. Free filing state income tax Robert paid $20,000 in June 2013. Free filing state income tax He can claim the $20,000 as a loss on his 2013 tax return. Free filing state income tax Net operating loss (NOL). Free filing state income tax   If your deductions, including casualty or theft loss deductions, are more than your income for the year, you may have an NOL. Free filing state income tax An NOL can be carried back or carried forward and deducted from income in other years. Free filing state income tax See Publication 536 for more information on NOLs. Free filing state income tax Proof of Loss To deduct a casualty or theft loss, you must be able to prove that there was a casualty or theft. Free filing state income tax You must have records to support the amount you claim for the loss. Free filing state income tax Casualty loss proof. Free filing state income tax   For a casualty loss, your records should show all the following information. Free filing state income tax The type of casualty (car accident, fire, storm, etc. Free filing state income tax ) and when it occurred. Free filing state income tax That the loss was a direct result of the casualty. Free filing state income tax 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 filing state income tax Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free filing state income tax Theft loss proof. Free filing state income tax   For a theft loss, your records should show all the following information. Free filing state income tax When you discovered your property was missing. Free filing state income tax That your property was stolen. Free filing state income tax That you were the owner of the property. Free filing state income tax Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Free filing state income tax Figuring a Gain A casualty or theft may result in a taxable gain. Free filing state income tax If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. Free filing state income tax You generally report your gain as income in the year you receive the reimbursement. Free filing state income tax However, depending on the type of property you receive, you may not have to report your gain. Free filing state income tax See Postponing Gain , later. Free filing state income tax Your gain is figured as follows: The amount you receive, minus Your adjusted basis in the property at the time of the casualty or theft. Free filing state income tax Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. Free filing state income tax Amount you receive. Free filing state income tax   The amount you receive includes any money plus the value of any property you receive, minus any expenses you have in obtaining reimbursement. Free filing state income tax It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. Free filing state income tax Example. Free filing state income tax A tornado severely damaged your barn. Free filing state income tax The adjusted basis of the barn was $25,000. Free filing state income tax Your insurance company reimbursed you $40,000 for the damaged barn. Free filing state income tax However, you had legal expenses of $2,000 to collect that insurance. Free filing state income tax Your insurance minus your expenses to collect the insurance is more than your adjusted basis in the barn, so you have a gain. Free filing state income tax 1) Insurance reimbursement $40,000 2) Legal expenses 2,000 3) Amount received  (line 1 − line 2) $38,000 4) Adjusted basis 25,000 5) Gain on casualty (line 3 − line 4) $13,000 Other Involuntary Conversions In addition to casualties and thefts, other events cause involuntary conversions of property. Free filing state income tax Some of these are discussed in the following paragraphs. Free filing state income tax Gain or loss from an involuntary conversion of your property is usually recognized for tax purposes. Free filing state income tax You report the gain or deduct the loss on your tax return for the year you realize it. Free filing state income tax However, depending on the type of property you receive, you may not have to report your gain on the involuntary conversion. Free filing state income tax See Postponing Gain , later. Free filing state income tax Condemnation Condemnation is the process by which private property is legally taken for public use without the owner's consent. Free filing state income tax The property may be taken by the federal government, a state government, a political subdivision, or a private organization that has the power to legally take property. Free filing state income tax The owner receives a condemnation award (money or property) in exchange for the property taken. Free filing state income tax A condemnation is a forced sale, the owner being the seller and the condemning authority being the buyer. Free filing state income tax Threat of condemnation. Free filing state income tax   Treat the sale of your property under threat of condemnation as a condemnation, provided you have reasonable grounds to believe that your property will be condemned. Free filing state income tax Main home condemned. Free filing state income tax   If you have a gain because your main home is condemned, you generally can exclude the gain from your income as if you had sold or exchanged your home. Free filing state income tax For information on this exclusion, see Publication 523. Free filing state income tax If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. Free filing state income tax See Postponing Gain , later. Free filing state income tax (You cannot deduct a loss from the condemnation of your main home. Free filing state income tax ) More information. Free filing state income tax   For information on how to figure the gain or loss on condemned property, see chapter 1 in Publication 544. Free filing state income tax Also see Postponing Gain , later, to find out if you can postpone reporting the gain. Free filing state income tax Irrigation Project The sale or other disposition of property located within an irrigation project to conform to the acreage limits of federal reclamation laws is an involuntary conversion. Free filing state income tax Livestock Losses Diseased livestock. Free filing state income tax   If your livestock die from disease, or are destroyed, sold, or exchanged because of disease, even though the disease is not of epidemic proportions, treat these occurrences as involuntary conversions. Free filing state income tax If the livestock were raised or purchased for resale, follow the rules for livestock discussed earlier under Farming Losses . Free filing state income tax Otherwise, figure the gain or loss from these conversions using the rules discussed under Determining Gain or Loss in chapter 8. Free filing state income tax If you replace the livestock, you may be able to postpone reporting the gain. Free filing state income tax See Postponing Gain below. Free filing state income tax Reporting dispositions of diseased livestock. Free filing state income tax   If you choose to postpone reporting gain on the disposition of diseased livestock, you must attach a statement to your return explaining that the livestock were disposed of because of disease. Free filing state income tax You must also include other information on this statement. Free filing state income tax See How To Postpone Gain , later, under Postponing Gain . Free filing state income tax Weather-related sales of livestock. Free filing state income tax   If you sell or exchange livestock (other than poultry) held for draft, breeding, or dairy purposes solely because of drought, flood, or other weather-related conditions, treat the sale or exchange as an involuntary conversion. Free filing state income tax Only livestock sold in excess of the number you normally would sell under usual business practice, in the absence of weather-related conditions, are considered involuntary conversions. Free filing state income tax Figure the gain or loss using the rules discussed under Determining Gain or Loss in chapter 8. Free filing state income tax If you replace the livestock, you may be able to postpone reporting the gain. Free filing state income tax See Postponing Gain below. Free filing state income tax Example. Free filing state income tax It is your usual business practice to sell five of your dairy animals during the year. Free filing state income tax This year you sold 20 dairy animals because of drought. Free filing state income tax The sale of 15 animals is treated as an involuntary conversion. Free filing state income tax    If you do not replace the livestock, you may be able to report the gain in the following year's income. Free filing state income tax This rule also applies to other livestock (including poultry). Free filing state income tax See Sales Caused by Weather-Related Conditions in chapter 3. Free filing state income tax Tree Seedlings If, because of an abnormal drought, the failure of planted tree seedlings is greater than normally anticipated, you may have a deductible loss. Free filing state income tax Treat the loss as a loss from an involuntary conversion. Free filing state income tax The loss equals the previously capitalized reforestation costs you had to duplicate on replanting. Free filing state income tax You deduct the loss on the return for the year the seedlings died. Free filing state income tax Postponing Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed, stolen, or other involuntarily converted property. Free filing state income tax Your basis in the new property is generally the same as your adjusted basis in the property it replaces. Free filing state income tax You must ordinarily report the gain on your stolen, destroyed, or other involuntarily converted property if you receive money or unlike property as reimbursement. Free filing state income tax However, you can choose to postpone reporting the gain if you purchase replacement property similar or related in service or use to your destroyed, stolen, or other involuntarily converted property within a specific replacement period. Free filing state income tax If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. Free filing state income tax To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. Free filing state income tax If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. Free filing state income tax Example 1. Free filing state income tax In 1985, you constructed a barn to store farm equipment at a cost of $20,000. Free filing state income tax In 1987, you added a silo to the barn at a cost of $15,000 to store grain. Free filing state income tax In May of this year, the property was worth $100,000. Free filing state income tax In June the barn and silo were destroyed by a tornado. Free filing state income tax At the time of the tornado, you had an adjusted basis of $0 in the property. Free filing state income tax You received $85,000 from the insurance company. Free filing state income tax You had a gain of $85,000 ($85,000 – $0). Free filing state income tax You spent $80,000 to rebuild the barn and silo. Free filing state income tax Since this is less than the insurance proceeds received, you must include $5,000 ($85,000 – $80,000) in your income. Free filing state income tax Example 2. Free filing state income tax In 1970, you bought a cabin in the mountains for your personal use at a cost of $18,000. Free filing state income tax You made no further improvements or additions to it. Free filing state income tax When a storm destroyed the cabin this January, the cabin was worth $250,000. Free filing state income tax You received $146,000 from the insurance company in March. Free filing state income tax You had a gain of $128,000 ($146,000 − $18,000). Free filing state income tax You spent $144,000 to rebuild the cabin. Free filing state income tax Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. Free filing state income tax Buying replacement property from a related person. Free filing state income tax   You cannot postpone reporting a gain from a casualty, theft, or other involuntary conversion if you buy the replacement property from a related person (discussed later). Free filing state income tax This rule applies to the following taxpayers. Free filing state income tax C corporations. Free filing state income tax Partnerships in which more than 50% of the capital or profits interest is owned by C corporations. Free filing state income tax Individuals, partnerships (other than those in (2) above), and S corporations if the total realized gain for the tax year on all involuntarily converted properties on which there are realized gains is more than $100,000. Free filing state income tax For involuntary conversions described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. Free filing state income tax If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. Free filing state income tax If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. Free filing state income tax Exception. Free filing state income tax   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the involuntarily converted property. Free filing state income tax Related persons. Free filing state income tax   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. Free filing state income tax For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. Free filing state income tax Death of a taxpayer. Free filing state income tax   If a taxpayer dies after having a gain, but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. Free filing state income tax The executor of the estate or the person succeeding to the funds from the involuntary conversion cannot postpone reporting the gain by buying replacement property. Free filing state income tax Replacement Property You must buy replacement property for the specific purpose of replacing your property. Free filing state income tax Your replacement property must be similar or related in service or use to the property it replaces. Free filing state income tax You do not have to use the same funds you receive as reimbursement for your old property to acquire the replacement property. Free filing state income tax If you spend the money you receive for other purposes, and borrow money to buy replacement property, you can still choose to postpone reporting the gain if you meet the other requirements. Free filing state income tax Property you acquire by gift or inheritance does not qualify as replacement property. Free filing state income tax Owner-user. Free filing state income tax   If you are an owner-user, similar or related in service or use means that replacement property must function in the same way as the property it replaces. Free filing state income tax Examples of property that functions in the same way as the property it replaces are a home that replaces another home, a dairy cow that replaces another dairy cow, and farm land that replaces other farm land. Free filing state income tax A grinding mill that replaces a tractor does not qualify. Free filing state income tax Neither does a breeding or draft animal that replaces a dairy cow. Free filing state income tax Soil or other environmental contamination. Free filing state income tax   If, because of soil or other environmental contamination, it is not feasible for you to reinvest your insurance money or other proceeds from destroyed or damaged livestock in property similar or related in service or use to the livestock, you can treat other property (including real property) used for farming purposes, as property similar or related in service or use to the destroyed or damaged livestock. Free filing state income tax Weather-related conditions. Free filing state income tax   If, because of drought, flood, or other weather-related conditions, it is not feasible for you to reinvest the insurance money or other proceeds in property similar or related in service or use to the livestock, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the livestock you disposed of. Free filing state income tax Example. Free filing state income tax Each year you normally sell 25 cows from your beef herd. Free filing state income tax However, this year you had to sell 50 cows. Free filing state income tax This is because a severe drought significantly reduced the amount of hay and pasture yield needed to feed your herd for the rest of the year. Free filing state income tax Because, as a result of the severe drought, it is not feasible for you to use the proceeds from selling the extra cows to buy new cows, you can treat other property (excluding real property) used for farming purposes, as property similar or related in service or use to the cows you sold. Free filing state income tax Standing crop destroyed by casualty. Free filing state income tax   If a storm or other casualty destroyed your standing crop and you use the insurance money to acquire either another standing crop or a harvested crop, this purchase qualifies as replacement property. Free filing state income tax The costs of planting and raising a new crop qualify as replacement costs for the destroyed crop only if you use the crop method of accounting (discussed in chapter 2). Free filing state income tax In that case, the costs of bringing the new crop to the same level of maturity as the destroyed crop qualify as replacement costs to the extent they are incurred during the replacement period. Free filing state income tax Timber loss. Free filing state income tax   Standing timber you bought with the proceeds from the sale of timber downed as a result of a casualty, such as high winds, earthquakes, or volcanic eruptions, qualifies as replacement property. Free filing state income tax If you bought the standing timber within the replacement period, you can postpone reporting the gain. Free filing state income tax Business or income-producing property located in a federally declared disaster area. Free filing state income tax   If your destroyed business or income-producing property was located in a federally declared disaster area, any tangible replacement property you acquire for use in any business is treated as similar or related in service or use to the destroyed property. Free filing state income tax For more information, see Disaster Area Losses in Publication 547. Free filing state income tax Substituting replacement property. Free filing state income tax   Once you have acquired qualified replacement property that you designate as replacement property in a statement attached to your tax return, you cannot substitute other qualified replacement property. Free filing state income tax This is true even if you acquire the other property within the replacement period. Free filing state income tax However, if you discover that the original replacement property was not qualified replacement property, you can, within the replacement period, substitute the new qualified replacement property. Free filing state income tax Basis of replacement property. Free filing state income tax   You must reduce the basis of your replacement property (its cost) by the amount of postponed gain. Free filing state income tax In this way, tax on the gain is postponed until you dispose of the replacement property. Free filing state income tax Replacement Period To postpone reporting your gain, you must buy replacement property within a specified period of time. Free filing state income tax This is the replacement period. Free filing state income tax The replacement period begins on the date your property was damaged, destroyed, stolen, sold, or exchanged. Free filing state income tax The replacement period generally ends 2 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. Free filing state income tax Example. Free filing state income tax You are a calendar year taxpayer. Free filing state income tax While you were on vacation, farm equipment that cost $2,200 was stolen from your farm. Free filing state income tax You discovered the theft when you returned to your farm on November 11, 2012. Free filing state income tax Your insurance company investigated the theft and did not settle your claim until January 5, 2013, when they paid you $3,000. Free filing state income tax You first realized a gain from the reimbursement for the theft during 2013, so you have until December 31, 2015, to replace the property. Free filing state income tax Main home in disaster area. Free filing state income tax   For your main home (or its contents) located in a federally declared disaster area, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the involuntary conversion. Free filing state income tax See Disaster Area Losses , later. Free filing state income tax Property in the Midwestern disaster areas. Free filing state income tax   For property located in the Midwestern disaster areas (defined in Table 4 in the 2008 Publication 547) that was destroyed, damaged, stolen, or condemned, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Free filing state income tax This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Midwestern disaster areas. Free filing state income tax Property in the Kansas disaster area. Free filing state income tax   For property located in the Kansas disaster area that was destroyed, damaged, stolen, or condemned after May 3, 2007, as a result of the Kansas storms and tornadoes, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Free filing state income tax This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Kansas disaster area. Free filing state income tax Property in the Hurricane Katrina disaster area. Free filing state income tax   For property located in the Hurricane Katrina disaster area that was destroyed, damaged, stolen, or condemned after August 24, 2005, as a result of Hurricane Katrina, the replacement period ends 5 years after the close of the first tax year in which any part of your gain is realized. Free filing state income tax This 5-year replacement period applies only if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Free filing state income tax Weather-related sales of livestock in an area eligible for federal assistance. Free filing state income tax   For the sale or exchange of livestock due to drought, flood, or other weather-related conditions in an area eligible for federal assistance, the replacement period ends 4 years after the close of the first tax year in which you realize any part of your gain from the sale or exchange. Free filing state income tax The IRS may extend the replacement period on a regional basis if the weather-related conditions continue for longer than 3 years. Free filing state income tax   For information on extensions of the replacement period because of persistent drought, see Notice 2006-82, 2006-39 I. Free filing state income tax R. Free filing state income tax B. Free filing state income tax 529, available at  www. Free filing state income tax irs. Free filing state income tax gov/irb/2006-39_IRB/ar11. Free filing state income tax html. Free filing state income tax For a list of counties for which exceptional, extreme, or severe drought was reported during the 12 months ending August 31, 2013, see Notice 2013-62, available at IRS. Free filing state income tax gov. Free filing state income tax Condemnation. Free filing state income tax   The replacement period for a condemnation begins on the earlier of the following dates. Free filing state income tax The date on which you disposed of the condemned property. Free filing state income tax The date on which the threat of condemnation began. Free filing state income tax The replacement period generally ends 2 years after the close of the first tax year in which any part of the gain on the condemnation is realized. Free filing state income tax But see Main home in disaster area , Property in the Midwestern disaster areas , Property in the Kansas disaster area , and Property in the Hurricane Katrina disaster area , earlier, for exceptions. Free filing state income tax Business or investment real property. Free filing state income tax   If real property held for use in a trade or business or for investment (not including property held primarily for sale) is condemned, the replacement period ends 3 years after the close of the first tax year in which any part of the gain on the condemnation is realized. Free filing state income tax Extension. Free filing state income tax   You can apply for an extension of the replacement period. Free filing state income tax Send your written application to the Internal Revenue Service Center where you file your tax return. Free filing state income tax See your tax return instructions for the address. Free filing state income tax Include all the details about your need for an extension. Free filing state income tax Make your application before the end of the replacement period. Free filing state income tax However, you can file an application within a reasonable time after the replacement period ends if you can show a good reason for the delay. Free filing state income tax You will get an extension of the replacement period if you can show reasonable cause for not making the replacement within the regular period. Free filing state income tax How To Postpone Gain You postpone reporting your gain by reporting your choice on your tax return for the year you have the gain. Free filing state income tax You have the gain in the year you receive insurance proceeds or other reimbursements that result in a gain. Free filing state income tax Required statement. Free filing state income tax   You should attach a statement to your return for the year you have the gain. Free filing state income tax This statement should include all the following information. Free filing state income tax The date and details of the casualty, theft, or other involuntary conversion. Free filing state income tax The insurance or other reimbursement you received. Free filing state income tax How you figured the gain. Free filing state income tax Replacement property acquired before return filed. Free filing state income tax   If you acquire replacement property before you file your return for the year you have the gain, your statement should also include detailed information about all the following items. Free filing state income tax The replacement property. Free filing state income tax The postponed gain. Free filing state income tax The basis adjustment that reflects the postponed gain. Free filing state income tax Any gain you are reporting as income. Free filing state income tax Replacement property acquired after return filed. Free filing state income tax   If you intend to buy replacement property after you file your return for the year you realize gain, your statement should also say that you are choosing to replace the property within the required replacement period. Free filing state income tax   You should then attach another statement to your return for the year in which you buy the replacement property. Free filing state income tax This statement should contain detailed information on the replacement property. Free filing state income tax If you acquire part of your replacement property in one year and part in another year, you must attach a statement to each year's return. Free filing state income tax Include in the statement detailed information on the replacement property bought in that year. Free filing state income tax Reporting weather-related sales of livestock. Free filing state income tax   If you choose to postpone reporting the gain on weather-related sales or exchanges of livestock, show all the following information on a statement attached to your return for the tax year in which you first realize any of the gain. Free filing state income tax Evidence of the weather-related conditions that forced the sale or exchange of the livestock. Free filing state income tax The gain realized on the sale or exchange. Free filing state income tax The number and kind of livestock sold or exchanged. Free filing state income tax The number of livestock of each kind you would have sold or exchanged under your usual business practice. Free filing state income tax   Show all the following information and the preceding information on the return for the year in which you replace the livestock. Free filing state income tax The dates you bought the replacement property. Free filing state income tax The cost of the replacement property. Free filing state income tax Description of the replacement property (for example, the number and kind of the replacement livestock). Free filing state income tax Amended return. Free filing state income tax   You must file an amended return (Form 1040X) for the tax year of the gain in either of the following situations. Free filing state income tax You do not acquire replacement property within the replacement period, plus extensions. Free filing state income tax On this amended return, you must report the gain and pay any additional tax due. Free filing state income tax You acquire replacement property within the required replacement period, plus extensions, but at a cost less than the amount you receive from the casualty, theft, or other involuntary conversion. Free filing state income tax On this amended return, you must report the part of the gain that cannot be postponed and pay any additional tax due. Free filing state income tax Disaster Area Losses Special rules apply to federally declared disaster area losses. Free filing state income tax A federally declared disaster is a disaster that occurred in an area declared by the President to be eligible for federal assistance under the Robert T. Free filing state income tax Stafford Disaster Relief and Emergency Assistance Act. Free filing state income tax It includes a major disaster or emergency declaration under the act. Free filing state income tax A list of the areas warranting public or individual assistance (or both) under the Act is available at the Federal Emergency Management Agency (FEMA) web site at www. Free filing state income tax fema. Free filing state income tax gov. Free filing state income tax This part discusses the special rules for when to deduct a disaster area loss and what tax deadlines may be postponed. Free filing state income tax For other special rules, see Disaster Area Losses in Publication 547. Free filing state income tax When to deduct the loss. Free filing state income tax   You generally must deduct a casualty loss in the year it occurred. Free filing state income tax However, if you have a deductible loss from a disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct that loss on your return or amended return for the tax year immediately preceding the tax year in which the disaster happened. Free filing state income tax If you make this choice, the loss is treated as having occurred in the preceding year. Free filing state income tax    Claiming a qualifying disaster loss on the previous year's return may result in a lower tax for that year, often producing or increasing a cash refund. Free filing state income tax   You must make the choice to take your casualty loss for the disaster in the preceding year by the later of the following dates. Free filing state income tax The due date (without extensions) for filing your tax return for the tax year in which the disaster actually occurred. Free filing state income tax The due date (with extensions) for the return for the preceding tax year. Free filing state income tax Federal disaster relief grants. Free filing state income tax   Do not include post-disaster relief grants received under the Robert T. Free filing state income tax Stafford Disaster Relief and Emergency Assistance Act in your income if the grant payments are made to help you meet necessary expenses or serious needs for medical, dental, housing, personal property, transportation, or funeral expenses. Free filing state income tax Do not deduct casualty losses or medical expenses to the extent they are specifically reimbursed by these disaster relief grants. Free filing state income tax If the casualty loss was specifically reimbursed by the grant and you received the grant after the year in which you deducted the casualty loss, see Reimbursement received after deducting loss , earlier. Free filing state income tax Unemployment assistance payments under the Act are taxable unemployment compensation. Free filing state income tax Qualified disaster relief payments. Free filing state income tax   Qualified disaster relief payments are not included in the income of individuals to the extent any expenses compensated by these payments are not otherwise compensated for by insurance or other reimbursement. Free filing state income tax These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free filing state income tax No withholding applies to these payments. Free filing state income tax   Qualified disaster relief payments include payments you receive (regardless of the source) for the following expenses. Free filing state income tax Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a federally declared disaster. Free filing state income tax Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a federally declared disaster. Free filing state income tax (A personal residence can be a rented residence or one you own. Free filing state income tax ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a federally declared disaster. Free filing state income tax   Qualified disaster relief payments include amounts paid by a federal, state, or local government in connection with a federally declared disaster to individuals affected by the disaster. Free filing state income tax    Qualified disaster relief payments do not include: Payments for expenses otherwise paid for by insurance or other reimbursements, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Free filing state income tax Qualified disaster mitigation payments. Free filing state income tax   Qualified disaster mitigation payments made under the Robert T. Free filing state income tax Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not included in income. Free filing state income tax These are payments you, as a property owner, receive to reduce the risk of future damage to your property. Free filing state income tax You cannot increase your basis in property, or take a deduction or credit, for expenditures made with respect to those payments. Free filing state income tax Sale of property under hazard mitigation program. Free filing state income tax   Generally, if you sell or otherwise transfer property, you must recognize any gain or loss for tax purposes unless the property is your main home. Free filing state income tax You report the gain or deduct the loss on your tax return for the year you realize it. Free filing state income tax (You cannot deduct a loss on personal-use property unless the loss resulted from a casualty, as discussed earlier. Free filing state income tax ) However, if you sell or otherwise transfer property to the Federal Government, a state or local government, or an Indian tribal government under a hazard mitigation program, you can choose to postpone reporting the gain if you buy qualifying replacement property within a certain period of time. Free filing state income tax See Postponing Gain , earlier, for the rules that apply. Free filing state income tax Other federal assistance programs. Free filing state income tax    For more information about other federal assistance programs, see Crop Insurance and Crop Disaster Payments and Feed Assistance and Payments in chapter 3 earlier. Free filing state income tax Postponed tax deadlines. Free filing state income tax   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Free filing state income tax The tax deadlines the IRS may postpone include those for filing income, excise, and employment tax returns, paying income, excise, and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free filing state income tax   If any tax deadline is postponed, the IRS will publicize the postponement in your area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free filing state income tax Go to http://www. Free filing state income tax irs. Free filing state income tax gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Free filing state income tax Who is eligible. Free filing state income tax   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free filing state income tax Any individual whose main home is located in a covered disaster area (defined next). Free filing state income tax Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Free filing state income tax Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area. Free filing state income tax 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 filing state income tax The main home or principal place of business does not have to be located in the covered disaster area. Free filing state income tax 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 filing state income tax The spouse on a joint return with a taxpayer who is eligible for postponements. Free filing state income tax Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose necessary records to meet a postponed tax deadline are located in the covered disaster area. Free filing state income tax Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Free filing state income tax Any other person determined by the IRS to be affected by a federally declared disaster. Free filing state income tax Covered disaster area. Free filing state income tax   This is an area of a federally declared disaster area in which the IRS has decided to postpone tax deadlines for up to 1 year. Free filing state income tax Abatement of interest and penalties. Free filing state income tax   The IRS may abate the interest and penalties on the underpaid income tax for the length of any postponement of tax deadlines. Free filing state income tax Reporting Gains and Losses You will have to file one or more of the following forms to report your gains or losses from involuntary conversions. Free filing state income tax Form 4684. Free filing state income tax   Use this form to report your gains and losses from casualties and thefts. Free filing state income tax Form 4797. Free filing state income tax   Use this form to report involuntary conversions (other than from casualty or theft) of property used in your trade or business and capital assets held in connection with a trade or business or a transaction entered into for profit. Free filing state income tax Also use this form if you have a gain from a casualty or theft on trade, business or income-producing property held for more than 1 year and you have to recapture some or all of your gain as ordinary income. Free filing state income tax Form 8949. Free filing state income tax   Use this form to report gain from an involuntary conversion (other than from casualty or theft) of personal-use property. Free filing state income tax Schedule A (Form 1040). Free filing state income tax   Use this form to deduct your losses from casualties and thefts of personal-use property and income-producing property, that you reported on Form 4684. Free filing state income tax Schedule D (Form 1040). Free filing state income tax   Use this form to carry over the following gains. Free filing state income tax Net gain shown on Form 4797 from an involuntary conversion of business property held for more than 1 year. Free filing state income tax Net gain shown on Form 4684 from the casualty or theft of personal-use property. Free filing state income tax    Also use this form to figure the overall gain or loss from transactions reported on Form 8949. Free filing state income tax Schedule F (Form 1040). Free filing state income tax   Use this form to deduct your losses from casualty or theft of livestock or produce bought for sale under Other expenses in Part II, line 32, if you use the cash method of accounting and have not otherwise deducted these losses. Free filing state income tax Prev  Up  Next   Home   More Online Publications