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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Free Filing State Taxes

Free Online Tax Filing State And Federal1040ez 2010 Form PrintableTaxact 20131040ez State Tax FormFile 2008 Taxes Online FreeAmended ReturnsH&r OnlineH&r Block 2011Taxslayer ComHow Much Does It Cost To EfileAmended Tax FormsAmend Tax FormFree TaxTurbotax 2012Irs 2012 Tax Forms 1040ezEz Tax Form 2013Amended 1040File 2010 Tax Return TurbotaxFile 2006 TaxesWww Irs Gov Form1040x1040x Online FreeE File 1040ez2011 Tax ReturnI Need To File A 2011 Tax ReturnH&r Block Military Free FileTax Software 2012File 2010 Tax Return FreeHow To Amend My TaxesTax Return Preparation State Income Taxes1040ez IrsHow To File An Amended Tax Return For 2012Amend Taxes Online FreePrintable 1040ez Tax Form1040ez WorksheetFree Taxact2012 Tax Forms 1040State Income Tax Form 500ezFiling 2009 Taxes Late Online For Free2013 Federal Tax Forms 1040ezHow To Refile Taxes

Free Filing State Taxes

Free filing state taxes Publication 947 - Main Content Table of Contents Practice Before the IRSWhat Is Practice Before the IRS? Who Can Practice Before the IRS? Who Cannot Practice Before the IRS? How Does an Individual Become Enrolled? What Are the Rules of Practice? Authorizing a RepresentativeWhat Is a Power of Attorney? When Is a Power of Attorney Required? When Is a Power of Attorney Not Required? How Do I Fill Out Form 2848? What Happens to the Power of Attorney When Filed? How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Free filing state taxes Practice Before the IRS The Office of Professional Responsibility and the Return Preparer Office generally are responsible for administering and enforcing the regulations governing practice before the IRS. Free filing state taxes The Office of Professional Responsibility generally has responsibility for matters related to practitioner conduct and exclusive responsibility for discipline, including disciplinary proceedings and sanctions. Free filing state taxes The Return Preparer Office is responsible for matters related to the authority to practice, including acting on applications for enrollment and administering competency testing and continuing education. Free filing state taxes What Is Practice Before the IRS? Practice before the IRS covers all matters relating to any of the following. Free filing state taxes Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS. Free filing state taxes Representing a taxpayer at conferences, hearings, or meetings with the IRS. Free filing state taxes Preparing and filing documents, including tax returns, with the IRS for a taxpayer. Free filing state taxes Providing a client with written advice which has a potential for tax avoidance or evasion. Free filing state taxes Furnishing information at the request of the IRS or appearing as a witness for the taxpayer is not practice before the IRS. Free filing state taxes Who Can Practice Before the IRS? The following individuals can practice before the IRS. Free filing state taxes However, any individual who is recognized to practice (a recognized representative) must be designated as the taxpayer's representative and file a written declaration with the IRS stating that he or she is authorized and qualified to represent a particular taxpayer. Free filing state taxes Form 2848 can be used for this purpose. Free filing state taxes Attorneys. Free filing state taxes   Any attorney who is not currently under suspension or disbarment from practice before the IRS and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Free filing state taxes Certified public accountants (CPAs). Free filing state taxes   Any CPA who is not currently under suspension or disbarment from practice before the IRS and who is duly qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS. Free filing state taxes Enrolled agents. Free filing state taxes   Any enrolled agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Free filing state taxes Enrolled retirement plan agents. Free filing state taxes   Any enrolled retirement plan agent in active status who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Free filing state taxes The practice of enrolled retirement plan agents is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Free filing state taxes Enrolled actuaries. Free filing state taxes   Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. Free filing state taxes The practice of enrolled actuaries is limited to certain Internal Revenue Code sections that relate to their area of expertise, principally those sections governing employee retirement plans. Free filing state taxes Student. Free filing state taxes    Under certain circumstances, a student who is supervised by a practitioner may request permission to represent another person before the IRS. Free filing state taxes For more information, see Authorization for special appearances, later. Free filing state taxes Registered tax return preparers and unenrolled return preparers. Free filing state taxes   A registered tax return preparer is an individual who has passed an IRS competency test and is authorized to prepare and sign tax returns as the preparer. Free filing state taxes An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary who prepares and signs a taxpayer's return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return. Free filing state taxes   Registered tax return preparers and unenrolled return preparers may only represent taxpayers before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service (including the Taxpayer Advocate Service) during an examination of the taxable year or period covered by the tax return they prepared and signed. Free filing state taxes Registered tax return preparers and unenrolled return preparers cannot represent taxpayers, regardless of the circumstances requiring representation, before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury. Free filing state taxes Registered tax return preparers and unenrolled return preparers cannot execute closing agreements, extend the statutory period for tax assessments or collection of tax, execute waivers, execute claims for refund, or sign any document on behalf of a taxpayer. Free filing state taxes   If the unenrolled return preparer does not meet the requirements for limited representation, you may file Form 8821 to allow the preparer to inspect your tax information and receive copies of notices sent to you by the IRS. Free filing state taxes See Form 8821. Free filing state taxes Practice denied. Free filing state taxes   Any individual engaged in limited practice before the IRS who is involved in disreputable conduct is subject to disciplinary action. Free filing state taxes Disreputable conduct includes, but is not limited to, the list of items under Incompetence and Disreputable Conduct shown later under What Are the Rules of Practice. Free filing state taxes Other individuals who may serve as representatives. Free filing state taxes   Because of their special relationship with a taxpayer, the following individuals can represent the specified taxpayers before the IRS, provided they present satisfactory identification and, except in the case of an individual described in (1) below, proof of authority to represent the taxpayer. Free filing state taxes An individual. Free filing state taxes An individual can represent himself or herself before the IRS and does not have to file a written declaration of qualification and authority. Free filing state taxes A family member. Free filing state taxes An individual can represent members of his or her immediate family. Free filing state taxes Immediate family includes a spouse, child, parent, brother, or sister of the individual. Free filing state taxes An officer. Free filing state taxes A bona fide officer of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group can represent the corporation, association, or organized group. Free filing state taxes An officer of a governmental unit, agency, or authority, in the course of his or her official duties, can represent the organization before the IRS. Free filing state taxes A partner. Free filing state taxes A general partner may represent the partnership before the IRS. Free filing state taxes An employee. Free filing state taxes A regular full-time employee can represent his or her employer. Free filing state taxes An employer can be, but is not limited to, an individual, partnership, corporation (including a parent, subsidiary, or other affiliated corporation), association, trust, receivership, guardianship, estate, organized group, governmental unit, agency, or authority. Free filing state taxes A fiduciary. Free filing state taxes A fiduciary (trustee, executor, personal representative, administrator, receiver, or guardian) stands in the position of a taxpayer and acts as the taxpayer, not as a representative. Free filing state taxes See Fiduciary under When Is a Power of Attorney Not Required, later. Free filing state taxes Representation Outside the United States Any individual may represent an individual or entity, who is outside the United States, before personnel of the IRS when such representation occurs outside the United States. Free filing state taxes See section 10. Free filing state taxes 7(c)(1)(vii) of Circular 230. Free filing state taxes Authorization for Special Appearances The Commissioner of Internal Revenue, or delegate, can authorize an individual who is not otherwise eligible to practice before the IRS to represent another person for a particular matter. Free filing state taxes The prospective representative must request this authorization in writing from the Office of Professional Responsibility. Free filing state taxes However, it is granted only when extremely compelling circumstances exist. Free filing state taxes If granted, the Commissioner, or delegate, will issue a letter that details the conditions related to the appearance and the particular tax matter for which the authorization is granted. Free filing state taxes The authorization letter should not be confused with a letter from an IRS center advising an individual that he or she has been assigned a Centralized Authorization File (CAF) number. Free filing state taxes The issuance of a CAF number does not indicate that an individual is either recognized or authorized to practice before the IRS. Free filing state taxes It merely confirms that a centralized file for authorizations has been established for the individual under that number. Free filing state taxes Students in LITCs and the STCP. Free filing state taxes   A student who works in a Low Income Taxpayer Clinic (LITC) or Student Tax Clinic Program (STCP) who is supervised by a practitioner may request permission to represent another person before the IRS. Free filing state taxes Authorization requests must be made to the Office of Professional Responsibility. Free filing state taxes If granted, a letter authorizing the student's special appearance and detailing any conditions related to the appearance will be issued. Free filing state taxes Students receiving an authorization letter generally can represent taxpayers before any IRS function or office subject to any conditions in the authorization letter. Free filing state taxes If you intend to have a student represent you, review the authorization letter and ask your student, your student's supervisor, or the Office of Professional Responsibility if you have questions about the terms of the authorization. Free filing state taxes Who Cannot Practice Before the IRS? In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. Free filing state taxes If an individual loses eligibility to practice, the IRS will not recognize a power of attorney that names the individual as a representative. Free filing state taxes Corporations, associations, partnerships, and other persons that are not individuals. Free filing state taxes   These organizations (or persons) are not eligible to practice before the IRS. Free filing state taxes Loss of Eligibility Generally, individuals lose their eligibility to practice before the IRS in the following ways. Free filing state taxes Not meeting the requirements for renewal of enrollment (such as continuing professional education). Free filing state taxes Requesting to be placed in inactive retirement status. Free filing state taxes Being suspended or disbarred by the Office of Professional Responsibility for violating the regulations governing practice before the IRS. Free filing state taxes Failure to meet requirements. Free filing state taxes   Individuals who fail to comply with the requirements for eligibility for renewal of enrollment will be notified by the IRS. Free filing state taxes The notice will explain the reason for noncompliance and provide the individual with an opportunity to furnish information for reconsideration. Free filing state taxes The individual has 60 days from the date of the notice to respond. Free filing state taxes Inactive roster. Free filing state taxes   An individual will be placed on the roster of inactive individuals for a period of three years, if he or she: Fails to respond timely to the notice of noncompliance with the renewal requirements, Fails to file timely the application for renewal, or Does not satisfy the requirements of eligibility for renewal. Free filing state taxes The individual must file an application for renewal and satisfy all requirements for renewal after being placed in inactive status. Free filing state taxes Otherwise, at the conclusion of the next renewal cycle, he or she will be removed from the roster and the enrollment or registration terminated. Free filing state taxes Inactive retirement status. Free filing state taxes   Individuals who request to be placed in an inactive retirement status will be ineligible to practice before the IRS. Free filing state taxes They must continue to adhere to all renewal requirements. Free filing state taxes They can be reinstated to an active enrollment status by filing an application for renewal and providing evidence that they have completed the required continuing professional education hours for the enrollment cycle or registration year. Free filing state taxes Suspension and disbarment. Free filing state taxes   Individuals authorized to practice before the IRS are subject to disciplinary proceedings and may be suspended or disbarred for violating any regulation governing practice before the IRS. Free filing state taxes This includes engaging in acts of disreputable conduct. Free filing state taxes For more information, see Incompetence and Disreputable Conduct under What are the Rules of Practice, later. Free filing state taxes   Practitioners who are suspended in a disciplinary proceeding are not allowed to practice before the IRS during the period of suspension. Free filing state taxes See What Is Practice Before the IRS, earlier. Free filing state taxes   Practitioners who are disbarred in a disciplinary proceeding are not allowed to practice before the IRS. Free filing state taxes However, a practitioner can seek reinstatement from the Office of Professional Responsibility five years after disbarment. Free filing state taxes   If the practitioner seeks reinstatement, he or she may not practice before the IRS until the Office of Professional Responsibility authorizes reinstatement. Free filing state taxes The Office of Professional Responsibility may reinstate the practitioner if it is determined that: The practitioner's future conduct is not likely to be in violation of the regulations, and Granting the reinstatement would not be contrary to the public interest. Free filing state taxes How Does an Individual Become Enrolled? The Return Preparer Office can grant enrollment to practice before the IRS to an applicant who demonstrates special competence in tax matters by passing a written examination administered by the IRS. Free filing state taxes Enrollment also can be granted to an applicant who qualifies because of past service and technical experience in the IRS. Free filing state taxes In either case, certain application forms, discussed next, must be filed. Free filing state taxes Additionally, an applicant must not have engaged in any conduct that would justify suspension or disbarment from practice before the IRS. Free filing state taxes See Incompetence and Disreputable Conduct, later. Free filing state taxes Form 2587. Free filing state taxes   Applicants can apply to take the special enrollment examination by filing Form 2587, Application for Special Enrollment Examination. Free filing state taxes Form 2587 can be filed online, by mail, or by fax. Free filing state taxes For more information, see instructions and fees listed on the form. Free filing state taxes To get Form 2587, see How To Get Tax Help, later. Free filing state taxes Form 23 and Form 23-EP. Free filing state taxes   Individuals who have passed the examination or are applying on the basis of past service and technical experience with the IRS can apply for enrollment by filing Form 23, Application for Enrollment to Practice Before the Internal Revenue Service, or Form 23-EP, Application for Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent. Free filing state taxes The application must include a check or money order in the amount of the fee shown on Form 23 or Form 23-EP. Free filing state taxes Alternatively, payment may be made electronically pursuant to instructions on the forms. Free filing state taxes To get Form 23 or Form 23-EP, see How To Get Tax Help, later. Free filing state taxes Form 5434. Free filing state taxes   An individual may apply as an enrolled actuary on the basis of past employment with the IRS and technical experience by filing Form 5434, Application for Enrollment, with the Joint Board for the Enrollment of Actuaries. Free filing state taxes The application must include a check or money order in the amount of the fee shown on Form 5434. Free filing state taxes To get Form 5434, see How To Get Tax Help, later. Free filing state taxes Period of enrollment. Free filing state taxes   An enrollment card will be issued to each individual whose enrollment application is approved. Free filing state taxes The individual is enrolled until the expiration date shown on the enrollment card or certificate. Free filing state taxes To continue practicing beyond the expiration date, the individual must request renewal of the enrollment by filing Form 8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service, or Form 8554-EP, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service as an Enrolled Retirement Plan Agent (ERPA). Free filing state taxes What Are the Rules of Practice? The rules governing practice before the IRS are published in the Code of Federal Regulations at 31 C. Free filing state taxes F. Free filing state taxes R. Free filing state taxes part 10 and reprinted in Treasury Department Circular No. Free filing state taxes 230 (Circular 230). Free filing state taxes An attorney, CPA, enrolled agent, enrolled retirement plan agent, registered tax return preparer, or enrolled actuary authorized to practice before the IRS (referred to hereafter as a practitioner) has the duty to perform certain acts and is restricted from performing other acts. Free filing state taxes In addition, a practitioner cannot engage in disreputable conduct (discussed later). Free filing state taxes Any practitioner who does not comply with the rules of practice or engages in disreputable conduct is subject to disciplinary action. Free filing state taxes Also, unenrolled preparers must comply with the rules of practice and conduct to exercise the privilege of limited practice before the IRS. Free filing state taxes See Publication 470 for a discussion of the special rules for limited practice by unenrolled preparers. Free filing state taxes Duties Practitioners must promptly submit records or information requested by officers or employees of the IRS, except when the practitioner believes on reasonable belief and good faith that the information is privileged. Free filing state taxes Communications with respect to tax advice between a federally authorized tax practitioner and a taxpayer generally are confidential to the same extent that communication would be privileged if it were between a taxpayer and an attorney if the advice relates to: Noncriminal tax matters before the IRS, or Noncriminal tax proceedings brought in federal court by or against the United States. Free filing state taxes Communications regarding corporate tax shelters. Free filing state taxes   This protection of tax advice communications does not apply to any written communications between a federally authorized tax practitioner and any person, including a director, shareholder, officer, employee, agent, or representative of a corporation if the communication involves the promotion of the direct or indirect participation of the corporation in any tax shelter. Free filing state taxes Duty to advise. Free filing state taxes   A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return, document, affidavit, or other required paper, has the responsibility to advise the client promptly of the noncompliance, error, or omission, and the consequences of the noncompliance, error, or omission. Free filing state taxes Due diligence. Free filing state taxes   A practitioner must exercise due diligence when performing the following duties. Free filing state taxes Preparing or assisting in the preparing, approving, and filing of returns, documents, affidavits, and other papers relating to IRS matters. Free filing state taxes Determining the correctness of oral or written representations made by him or her to the Department of the Treasury. Free filing state taxes Determining the correctness of oral or written representations made by him or her to clients with reference to any matter administered by the IRS. Free filing state taxes Restrictions Practitioners are restricted from engaging in certain practices. Free filing state taxes The following paragraphs discuss some of these restricted practices. Free filing state taxes Delays. Free filing state taxes   A practitioner must not unreasonably delay the prompt disposition of any matter before the IRS. Free filing state taxes Assistance from disbarred or suspended persons and former IRS employees. Free filing state taxes   A practitioner must not knowingly, directly or indirectly, do the following. Free filing state taxes Accept assistance from, or assist, any person who is under disbarment or suspension from practice before the IRS if the assistance relates to matters considered practice before the IRS. Free filing state taxes Accept assistance from any former government employee where provisions of Circular 230 or any federal law would be violated. Free filing state taxes Performance as a notary. Free filing state taxes   A practitioner who is a notary public and is employed as counsel, attorney, or agent in a matter before the IRS, or has a material interest in the matter, cannot engage in any notary activities related to that matter. Free filing state taxes Negotiations of taxpayer refund checks. Free filing state taxes   Practitioners must not endorse or otherwise negotiate (cash) any refund check (including directing or accepting payment by any means, electronic or otherwise, in an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to the taxpayer. Free filing state taxes Incompetence and Disreputable Conduct Any practitioner or unenrolled return preparer may be disbarred or suspended from practice before the IRS, or censured, for incompetence or disreputable conduct. Free filing state taxes The following list contains examples of conduct that is considered disreputable. Free filing state taxes Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust. Free filing state taxes Knowingly giving false or misleading information in connection with federal tax matters, or participating in such activity. Free filing state taxes Soliciting employment by prohibited means as discussed in section 10. Free filing state taxes 30 of Circular 230. Free filing state taxes Willfully failing to file a federal tax return, evading or attempting to evade any federal tax or payment, or participating in such actions. Free filing state taxes Misappropriating, or failing to properly and promptly remit, funds received from clients for payment of taxes or other obligations due the United States. Free filing state taxes Directly or indirectly attempting to influence the official action of IRS employees by the use of threats, false accusations, duress, or coercion, or by offering gifts, favors, or any special inducements. Free filing state taxes Being disbarred or suspended from practice as an attorney, CPA, public accountant, or actuary, by the District of Columbia or any state, possession, territory, commonwealth, or any federal court, or any federal agency, body, or board. Free filing state taxes Knowingly aiding and abetting another person to practice before the IRS during a period of suspension, disbarment, or ineligibility of that other person. Free filing state taxes Using abusive language, making false accusations and statements knowing them to be false, circulating or publishing malicious or libelous matter, or engaging in any contemptuous conduct in connection with practice before the IRS. Free filing state taxes Giving a false opinion knowingly, recklessly, or through gross incompetence; or following a pattern of providing incompetent opinions in questions arising under the federal tax laws. Free filing state taxes Censure, Disbarments, and Suspensions The Office of Professional Responsibility may censure or institute proceedings to censure, suspend or disbar any attorney, CPA, or enrolled agent who has violated Circular 230. Free filing state taxes A practitioner will be given the opportunity to demonstrate compliance with the rules before any disciplinary action is taken. Free filing state taxes Authorizing a Representative You may either represent yourself, or you may authorize an individual to represent you before the IRS. Free filing state taxes If you chose to have someone represent you, your representative must be a person eligible to practice before the IRS. Free filing state taxes See Who Can Practice Before the IRS, earlier. Free filing state taxes What Is a Power of Attorney? A power of attorney is your written authorization for an individual to act on your behalf. Free filing state taxes If the authorization is not limited, the individual generally can perform all acts that you can perform. Free filing state taxes The authority granted to a registered tax return preparer or an unenrolled preparer is limited. Free filing state taxes For information on the limits regarding registered tax return preparers, see Circular 230 §10. Free filing state taxes 3(f). Free filing state taxes For information on the limits regarding unenrolled preparers, see Publication 470. Free filing state taxes Acts performed. Free filing state taxes   Any representative, other than a registered tax return preparer or an unenrolled return preparer, can usually perform the following acts. Free filing state taxes Represent you before any office of the IRS. Free filing state taxes Sign an offer or a waiver of restriction on assessment or collection of a tax deficiency, or a waiver of notice of disallowance of claim for credit or refund. Free filing state taxes Sign a consent to extend the statutory time period for assessment or collection of a tax. Free filing state taxes Sign a closing agreement. Free filing state taxes Signing your return. Free filing state taxes   The representative named under a power of attorney is not permitted to sign your income tax return unless: The signature is permitted under the Internal Revenue Code and the related regulations (see Regulations section 1. Free filing state taxes 6012-1(a)(5)). Free filing state taxes You specifically authorize this in your power of attorney. Free filing state taxes For example, the regulation permits a representative to sign your return if you are unable to sign the return due to: Disease or injury. Free filing state taxes Continuous absence from the United States (including Puerto Rico) for a period of at least 60 days prior to the date required by law for filing the return. Free filing state taxes Other good cause if specific permission is requested of and granted by the IRS. Free filing state taxes When a return is signed by a representative, it must be accompanied by a power of attorney (or copy) authorizing the representative to sign the return. Free filing state taxes For more information, see the Form 2848 instructions. Free filing state taxes Limitation on substitution or delegation. Free filing state taxes   A recognized representative can substitute or delegate authority under the power of attorney to another recognized representative only if the act is specifically authorized by you on the power of attorney. Free filing state taxes   After a substitution has been made, only the newly recognized representative will be recognized as the taxpayer's representative. Free filing state taxes If a delegation of power has been made, both the original and the delegated representative will be recognized by the IRS to represent you. Free filing state taxes Disclosure of returns to a third party. Free filing state taxes   Your representative cannot execute consents that will allow the IRS to disclose tax return or return information to a third party unless you specifically delegate this authority to your representative on line 5 of Form 2848. Free filing state taxes Incapacity or incompetency. Free filing state taxes   A power of attorney is generally terminated if you become incapacitated or incompetent. Free filing state taxes   The power of attorney can continue, however, in the case of your incapacity or incompetency if you authorize this on line 5 “Other” of the Form 2848 and if your non-IRS durable power of attorney meets all the requirements for acceptance by the IRS. Free filing state taxes See Non-IRS powers of attorney, later. Free filing state taxes When Is a Power of Attorney Required? Submit a power of attorney when you want to authorize an individual to represent you before the IRS, whether or not the representative performs any of the other acts cited earlier under What Is a Power of Attorney. Free filing state taxes A power of attorney is most often required when you want to authorize another individual to perform at least one of the following acts on your behalf. Free filing state taxes Represent you at a meeting with the IRS. Free filing state taxes Prepare and file a written response to the IRS. Free filing state taxes Form Required Use Form 2848 to appoint a recognized representative to act on your behalf before the IRS. Free filing state taxes Individuals recognized to practice before the IRS are listed under Part II, Declaration of Representative, of Form 2848. Free filing state taxes Your representative must complete that part of the form. Free filing state taxes Non-IRS powers of attorney. Free filing state taxes   The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. Free filing state taxes For more information, see Processing a non-IRS power of attorney, later. Free filing state taxes   If you want to use a power of attorney document other than Form 2848, it must contain the following information. Free filing state taxes Your name and mailing address. Free filing state taxes Your social security number and/or employer identification number. Free filing state taxes Your employee plan number, if applicable. Free filing state taxes The name and mailing address of your representative(s). Free filing state taxes The types of tax involved. Free filing state taxes The federal tax form number. Free filing state taxes The specific year(s) or period(s) involved. Free filing state taxes For estate tax matters, the decedent's date of death. Free filing state taxes A clear expression of your intention concerning the scope of authority granted to your representative(s). Free filing state taxes Your signature and date. Free filing state taxes You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. Free filing state taxes This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. Free filing state taxes The statement should read: I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority, I am aware of the regulations contained in Circular 230, I am authorized to represent the taxpayer(s) identified in the power of attorney, and I am an individual described in 26 CFR 601. Free filing state taxes 502(b). Free filing state taxes Required information missing. Free filing state taxes   The IRS will not accept your non-IRS power of attorney if it does not contain all the information listed above. Free filing state taxes You can sign and submit a completed Form 2848 or a new non-IRS power of attorney that contains all the information. Free filing state taxes If you cannot sign an acceptable replacement document, your attorney-in-fact may be able to perfect (make acceptable to the IRS) your non-IRS power of attorney by using the procedure described next. Free filing state taxes Procedure for perfecting a non-IRS power of attorney. Free filing state taxes   Under the following conditions, the attorney-in-fact named in your non-IRS power of attorney can sign a Form 2848 on your behalf. Free filing state taxes The original non-IRS power of attorney grants authority to handle federal tax matters (for example, general authority to perform any acts). Free filing state taxes The attorney-in-fact attaches a statement (signed under penalty of perjury) to the Form 2848 stating that the original non-IRS power of attorney is valid under the laws of the governing jurisdiction. Free filing state taxes Example. Free filing state taxes John Elm, a taxpayer, signs a non-IRS durable power of attorney that names his neighbor and CPA, Ed Larch, as his attorney-in-fact. Free filing state taxes The power of attorney grants Ed the authority to perform any and all acts on John's behalf. Free filing state taxes However, it does not list specific tax-related information such as types of tax or tax form numbers. Free filing state taxes Shortly after John signs the power of attorney, he is declared incompetent. Free filing state taxes Later, a federal tax matter arises concerning a prior year return filed by John. Free filing state taxes Ed attempts to represent John before the IRS but is rejected because the durable power of attorney does not contain required information. Free filing state taxes If Ed attaches a statement (signed under the penalty of perjury) that the durable power of attorney is valid under the laws of the governing jurisdiction, he can sign a completed Form 2848 and submit it on John's behalf. Free filing state taxes If Ed can practice before the IRS (see Who Can Practice Before the IRS, earlier), he can name himself as representative on Form 2848. Free filing state taxes Otherwise, he must name another individual who can practice before the IRS. Free filing state taxes Processing a non-IRS power of attorney. Free filing state taxes   The IRS has a centralized computer database system called the CAF system. Free filing state taxes This system contains information on the authority of taxpayer representatives. Free filing state taxes Generally, when you submit a power of attorney document to the IRS, it is processed for inclusion on the CAF system. Free filing state taxes Entry of your power of attorney on the CAF system enables IRS personnel, who do not have a copy of your power of attorney, to verify the authority of your representative by accessing the CAF. Free filing state taxes It also enables the IRS to automatically send copies of notices and other IRS communications to your representative if you specify that your representative should receive those communications. Free filing state taxes   You can have your non-IRS power of attorney entered on the CAF system by attaching it to a completed Form 2848 and submitting it to the IRS. Free filing state taxes Your signature is not required; however, your attorney-in-fact must sign the Declaration of Representative (see Part II of Form 2848). Free filing state taxes Preparation of Form — Helpful Hints The preparation of Form 2848 is illustrated by an example, later under How Do I Fill Out Form 2848. Free filing state taxes However, the following will also assist you in preparing the form. Free filing state taxes Line-by-line hints. Free filing state taxes   The following hints are summaries of some of the line-by-line instructions for Form 2848. Free filing state taxes Line 1—Taxpayer information. Free filing state taxes   If a joint return is involved, the husband and wife each file a separate Form 2848 if they both want to be represented. Free filing state taxes If only one spouse wants to be represented in the matter, that spouse files a Form 2848. Free filing state taxes Line 2—Representative(s). Free filing state taxes   Only individuals may be named as representatives. Free filing state taxes If your representative has not been assigned a CAF number, enter “None” on that line and the IRS will issue one to your representative. Free filing state taxes If the representative's address or phone number has changed since the CAF number was issued, you should check the appropriate box. Free filing state taxes Enter your representative's fax number if available. Free filing state taxes   If you want to name more than three representatives, attach additional Form(s) 2848. Free filing state taxes The IRS can send copies of notices and communications to two of your representatives. Free filing state taxes You must, however, check the boxes on line 2 of the Form 2848 if you want the IRS to routinely send copies of notices and communications to your representatives. Free filing state taxes If you do not check the boxes, your representatives will not routinely receive copies of notices and communications. Free filing state taxes Line 3—Tax matters. Free filing state taxes   You may list any tax years or periods that have already ended as of the date you sign the power of attorney. Free filing state taxes However, you may include on a power of attorney only future tax periods that end no later than 3 years after the date the power of attorney is received by the IRS. Free filing state taxes The 3 future periods are determined starting after December 31 of the year the power of attorney is received by the IRS. Free filing state taxes However, avoid general references such as “all years” or “all taxes. Free filing state taxes ” Any Form 2848 with general references will be returned. Free filing state taxes Line 4—Specific use not recorded on Centralized Authorization File (CAF). Free filing state taxes   Certain matters cannot be recorded on the CAF system. Free filing state taxes Examples of such matters include, but are not limited to, the following. Free filing state taxes Requests for a private letter ruling or technical advice. Free filing state taxes Applications for an employer identification number (EIN). Free filing state taxes Claims filed on Form 843, Claim for Refund and Request for Abatement. Free filing state taxes Corporate dissolutions. Free filing state taxes Requests for change of accounting method. Free filing state taxes Requests for change of accounting period. Free filing state taxes Applications for recognition of exemption under sections 501(c)(3), 501(a), or 521 (Forms 1023, 1034, or 1028). Free filing state taxes Request for a determination of the qualified status of an employee benefit plan (Forms 5300, 5307, or 5310). Free filing state taxes Application for Award for Original Information under section 7623. Free filing state taxes Voluntary submissions under the Employee Plans Compliance Resolution System (EPCRS). Free filing state taxes Freedom of Information Act requests. Free filing state taxes If the tax matter described on line 3 of Form 2848 concerns one of these matters specifically, check the box on line 4. Free filing state taxes If this box is checked, the representative should mail or fax the power of attorney to the IRS office handling the matter. Free filing state taxes Otherwise, the representative should bring a copy of the power of attorney to each meeting with the IRS. Free filing state taxes Where To File a Power of Attorney Generally, you can mail or fax a paper Form 2848 directly to the IRS. Free filing state taxes To determine where you should file Form 2848, see Where To File in the instructions for Form 2848. Free filing state taxes If Form 2848 is for a specific use, mail or fax it to the office handling that matter. Free filing state taxes For more information on specific use, see the Instructions for Form 2848, line 4. Free filing state taxes FAX copies. Free filing state taxes   The IRS will accept a copy of a power of attorney that is submitted by facsimile transmission (fax). Free filing state taxes If you choose to file a power of attorney by fax, be sure the appropriate IRS office is equipped to accept this type of transmission. Free filing state taxes Your representative may be able to file Form 2848 electronically via the IRS website. Free filing state taxes For more information, your representative can go to www. Free filing state taxes irs. Free filing state taxes gov and under the Tax Professionals tab, click on e-services–Online Tools for Tax Professionals. Free filing state taxes If you complete Form 2848 for electronic signature authorization, do not file Form 2848 with the IRS. Free filing state taxes Instead, give it to your representative, who will retain the document. Free filing state taxes Updating a power of attorney. Free filing state taxes   Submit any update or modification to an existing power of attorney in writing. Free filing state taxes Your signature (or the signature of the individual(s) authorized to sign on your behalf) is required. Free filing state taxes Do this by sending the updated Form 2848 or non-IRS power of attorney to the IRS office(s) where you previously sent the original(s), including the center where the related return was, or will be filed. Free filing state taxes   A recognized representative may substitute or delegate authority if you specifically authorize your representative to substitute or delegate representation in the original power of attorney. Free filing state taxes To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed. Free filing state taxes A written notice of substitution or delegation signed by the recognized representative. Free filing state taxes A written declaration of representative made by the new representative. Free filing state taxes A copy of the power of attorney that specifically authorizes the substitution or delegation. Free filing state taxes Retention/Revocation of Prior Power(s) of Attorney A newly filed power of attorney concerning the same matter will revoke a previously filed power of attorney. Free filing state taxes However, the new power of attorney will not revoke the prior power of attorney if it specifically states it does not revoke such prior power of attorney and either of the following are attached to the new power of attorney. Free filing state taxes A copy of the unrevoked prior power of attorney, or A statement signed by the taxpayer listing the name and address of each representative authorized under the prior unrevoked power of attorney. Free filing state taxes Note. Free filing state taxes The filing of Form 2848 will not revoke any  Form 8821 that is in effect. Free filing state taxes Revocation of Power of Attorney/Withdrawal of Representative If you want to revoke an existing power of attorney and do not want to name a new representative, or if a representative wants to withdraw from representation, mail or fax a copy of the previously executed power of attorney to the IRS, or if the power of attorney is for a specific matter, to the IRS office handling the matter. Free filing state taxes If the taxpayer is revoking the power of attorney, the taxpayer must write “REVOKE” across the top of the first page with a current signature and date below this annotation. Free filing state taxes If the representative is withdrawing from the representation, the representative must write “WITHDRAW” across the top of the first page with a current signature and date below this annotation. Free filing state taxes If you do not have a copy of the power of attorney you want to revoke or withdraw, send a statement to the IRS. Free filing state taxes The statement of revocation or withdrawal must indicate that the authority of the power of attorney is revoked or withdrawn, list the matters and periods, and must be signed and dated by the taxpayer or representative as applicable. Free filing state taxes If the taxpayer is revoking, list the name and address of each recognized representative whose authority is revoked. Free filing state taxes When the taxpayer is completely revoking authority, the form should state “remove all years/periods” instead of listing the specific tax matter, years, or periods. Free filing state taxes If the representative is withdrawing, list the name, TIN, and address (if known) of the taxpayer. Free filing state taxes To revoke a specific use power of attorney, send the power of attorney or statement of revocation to the IRS office handling your case, using the above instructions. Free filing state taxes A power of attorney held by a student will be recorded on the CAF system for 130 days from the receipt date. Free filing state taxes If you are authorizing a student to represent you after that time, you will need to submit a current and valid Form 2848. Free filing state taxes When Is a Power of Attorney Not Required? A power of attorney is not required when the third party is not dealing with the IRS as your representative. Free filing state taxes The following situations do not require a power of attorney. Free filing state taxes Providing information to the IRS. Free filing state taxes Authorizing the disclosure of tax return information through Form 8821, Tax Information Authorization, or other written or oral disclosure consent. Free filing state taxes Allowing the IRS to discuss return information with a third party via the checkbox provided on a tax return or other document. Free filing state taxes Allowing a tax matters partner or person (TMP) to perform acts for the partnership. Free filing state taxes Allowing the IRS to discuss return information with a fiduciary. Free filing state taxes How Do I Fill Out Form 2848? The following example illustrates how to complete Form 2848. Free filing state taxes The two completed forms for this example are shown on the next pages. Free filing state taxes Example. Free filing state taxes Stan and Mary Doe have been notified that their joint tax returns (Forms 1040) for 2009, 2010, and 2011 are being examined. Free filing state taxes They have decided to appoint Jim Smith, an enrolled agent, to represent them in this matter and any future matters concerning these returns. Free filing state taxes Jim, who has prepared returns at the same location for years, already has a Centralized Authorization File (CAF) number assigned to him. Free filing state taxes Mary does not want Jim to sign any agreements on her behalf, but Stan is willing to have Jim do so. Free filing state taxes They want copies of all notices and written communications sent to Jim. Free filing state taxes This is the first time Stan and Mary have given power of attorney to anyone. Free filing state taxes They should each complete a Form 2848 as follows. Free filing state taxes Line 1—Taxpayer information. Free filing state taxes   Stan and Mary must each file a separate Form 2848. Free filing state taxes On his separate Form 2848, Stan enters his name, street address, and social security number in the spaces provided. Free filing state taxes Mary does likewise on her separate Form 2848. Free filing state taxes Line 2—Representative(s). Free filing state taxes   On their separate Forms 2848, Stan and Mary each enters the name and current address of their chosen representative, Jim Smith. Free filing state taxes Both Stan and Mary want Jim Smith to receive notices and communications concerning the matters identified in line 3, so on their separate Forms 2848, Stan and Mary each checks the box in the first column of line 2. Free filing state taxes They also enter Mr. Free filing state taxes Smith's CAF number, his telephone number, and his fax number. Free filing state taxes Mr. Free filing state taxes Smith's address, telephone number, and fax number have not changed since the IRS issued his CAF number, so Stan and Mary do not check the boxes in the second column. Free filing state taxes Line 3—Tax Matters. Free filing state taxes   On their separate Forms 2848, Stan and Mary each enters “income” for the type of tax, “1040” for the form number, and “2009, 2010, and 2011” for the tax years. Free filing state taxes Line 4—Specific use not recorded on Centralized Authorization File (CAF). Free filing state taxes   On their separate Forms 2848, Stan and Mary make no entry on this line because they do not want to restrict the use of their powers of attorney to a specific use that is not recorded on the CAF. Free filing state taxes See Preparation of Form — Helpful Hints, earlier. Free filing state taxes Line 5—Acts authorized. Free filing state taxes   Mary wants to sign any agreement that reflects changes to her and Stan's joint 2009, 2010, and 2011 income tax liability, so she writes “Taxpayer must sign any agreement form” on line 5 of her Form 2848. Free filing state taxes Stan does not wish to restrict the authority of Jim Smith in this regard, so he leaves line 5 of his Form 2848 blank. Free filing state taxes If either Mary or Stan had chosen, they could have listed other restrictions on line 5 of their separate Forms 2848. Free filing state taxes Line 6—Retention/revocation of prior power(s) of attorney. Free filing state taxes   Stan and Mary are each filing their first powers of attorney, so they make no entry on this line. Free filing state taxes However, if they had filed prior powers of attorney, the filing of this current power would revoke any earlier ones for the same tax matter(s) unless they checked the box on line 6 and attached a copy of the prior power of attorney that they wanted to remain in effect. Free filing state taxes   If Mary later decides that she can handle the examination on her own, she can revoke her power of attorney even though Stan does not revoke his power of attorney. Free filing state taxes (See Revocation of Power of Attorney/Withdrawal of Representative, earlier, for the special rules that apply. Free filing state taxes ) Line 7—Signature of taxpayer. Free filing state taxes   Stan and Mary each signs and dates his or her Form 2848. Free filing state taxes If a taxpayer does not sign, the IRS cannot accept the form. Free filing state taxes Part II—Declaration of Representative. Free filing state taxes   Jim Smith must complete this part of Form 2848. Free filing state taxes If he does not sign this part, the IRS cannot accept the form. Free filing state taxes What Happens to the Power of Attorney When Filed? A power of attorney will be recognized after it is received, reviewed, and determined by the IRS to contain the required information. Free filing state taxes However, until a power of attorney is entered on the CAF system, IRS personnel may be unaware of the authority of the person you have named to represent you. Free filing state taxes Therefore, during this interim period, IRS personnel may request that you or your representative bring a copy to any meeting with the IRS. Free filing state taxes This image is too large to be displayed in the current screen. Free filing state taxes Please click the link to view the image. Free filing state taxes Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Free filing state taxes Please click the link to view the image. Free filing state taxes Filled-in Form 2848 - Page 2 This image is too large to be displayed in the current screen. Free filing state taxes Please click the link to view the image. Free filing state taxes Filled-in Form 2848 - Page 1 This image is too large to be displayed in the current screen. Free filing state taxes Please click the link to view the image. Free filing state taxes Filled-in Form 2848 - Page 2 Processing and Handling How the power of attorney is processed and handled depends on whether it is a complete or incomplete document. Free filing state taxes Incomplete document. Free filing state taxes   If Form 2848 is incomplete, the IRS will attempt to secure the missing information either by writing or telephoning you or your representative. Free filing state taxes For example, if your signature or signature date is missing, the IRS will contact you. Free filing state taxes If information concerning your representative is missing and information sufficient to make a contact (such as an address and/or a telephone number) is on the document, the IRS will try to contact your representative. Free filing state taxes   In either case, the power of attorney is not considered valid until all required information is entered on the document. Free filing state taxes The individual(s) named as representative(s) will not be recognized to practice before the IRS, on your behalf, until the document is complete and accepted by the IRS. Free filing state taxes Complete document. Free filing state taxes   If the power of attorney is complete and valid, the IRS will take action to recognize the representative. Free filing state taxes In most instances, this includes processing the document on the CAF system. Free filing state taxes Recording the data on the CAF system enables the IRS to direct copies of mailings to authorized representatives and to readily recognize the scope of authority granted. Free filing state taxes Documents not processed on CAF. Free filing state taxes   Specific-use powers of attorney are not processed on the CAF system (see Preparation of Form – Helpful Hints, earlier). Free filing state taxes For example, a power of attorney that is a one-time or specific-issue grant of authority is not processed on the CAF system. Free filing state taxes These documents remain with the related case files. Free filing state taxes In this situation, you should check the box on line 4 of Form 2848. Free filing state taxes In these situations, the representative should bring a copy of the power of attorney to each meeting with the IRS. Free filing state taxes Dealing With the Representative After a valid power of attorney is filed, the IRS will recognize your representative. Free filing state taxes However, if it appears the representative is responsible for unreasonably delaying or hindering the prompt disposition of an IRS matter by failing to furnish, after repeated requests, nonprivileged information, the IRS can contact you directly. Free filing state taxes For example, in most instances in which a power of attorney is recognized, the IRS will contact the representative to set up appointments and to provide lists of required items. Free filing state taxes However, if the representative is unavailable, does not respond to repeated requests, and does not provide required items (other than items considered privileged), the IRS can bypass your representative and contact you directly. Free filing state taxes If a representative engages in conduct described above, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action. Free filing state taxes Notices and other correspondence. Free filing state taxes   If you have a recognized representative, you and the representative will routinely receive notices and other correspondence from the IRS (either the original or a copy) if you checked the box in the left column of line 2 of Form 2848. Free filing state taxes If the power of attorney is processed on the CAF system, the IRS will send your representative(s) a duplicate of all computer-generated correspondence that is sent to you. Free filing state taxes This includes notices and letters produced either at the Martinsburg Computing Center, or other IRS centers. Free filing state taxes The IRS employee handling the case is responsible for ensuring that the original and any requested copies of each manually-generated correspondence are sent to you and your representative(s) in accordance with your authorization. Free filing state taxes How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Free filing state taxes By selecting the method that is best for you, you will have quick and easy access to tax help. Free filing state taxes Free help with your return. Free filing state taxes   Free help in preparing your return is available nationwide from IRS-certified volunteers. Free filing state taxes The Volunteer Income Tax Assistance (VITA) program is designed to help low and moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Free filing state taxes Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Free filing state taxes To find the nearest VITA or TCE site, visit IRS. Free filing state taxes gov or call 1-800-906-9887 or 1-800-829-1040. Free filing state taxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free filing state taxes To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Free filing state taxes aarp. Free filing state taxes org/money/taxaide. Free filing state taxes   For more information on these programs, go to IRS. Free filing state taxes gov and enter keyword “VITA” in the upper right-hand corner. Free filing state taxes Internet. Free filing state taxes You can access the IRS website at IRS. Free filing state taxes gov 24 hours a day, 7 days a week to: E-file your return. Free filing state taxes Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Free filing state taxes Check the status of your refund. Free filing state taxes Go to IRS. Free filing state taxes gov and click on Where's My Refund. Free filing state taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Free filing state taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free filing state taxes Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free filing state taxes Download forms, including talking tax forms, instructions, and publications. Free filing state taxes Order IRS products online. Free filing state taxes Research your tax questions online. Free filing state taxes Search publications online by topic or keyword. Free filing state taxes Use the online Internal Revenue Code, regulations, or other official guidance. Free filing state taxes View Internal Revenue Bulletins (IRBs) published in the last few years. Free filing state taxes Figure your withholding allowances using the withholding calculator online at www. Free filing state taxes irs. Free filing state taxes gov/individuals. Free filing state taxes Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at www. Free filing state taxes irs. Free filing state taxes gov/individuals. Free filing state taxes Sign up to receive local and national tax news by email. Free filing state taxes Get information on starting and operating a small business. Free filing state taxes Phone. Free filing state taxes Many services are available by phone. Free filing state taxes   Ordering forms, instructions, and publications. Free filing state taxes Call 1-800-TAX -FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Free filing state taxes You should receive your order within 10 days. Free filing state taxes Asking tax questions. Free filing state taxes Call the IRS with your tax questions at 1-800-829-1040. Free filing state taxes Solving problems. Free filing state taxes You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Free filing state taxes An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Free filing state taxes Call your local Taxpayer Assistance Center for an appointment. Free filing state taxes To find the number, go to www. Free filing state taxes irs. Free filing state taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free filing state taxes TTY/TDD equipment. Free filing state taxes If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Free filing state taxes TeleTax topics. Free filing state taxes Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Free filing state taxes Refund information. Free filing state taxes To check the status of your refund, call 1-800-829-1954 or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Free filing state taxes Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Free filing state taxes If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Free filing state taxes Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Free filing state taxes If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Free filing state taxes Other refund information. Free filing state taxes To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Free filing state taxes Evaluating the quality of our telephone services. Free filing state taxes To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Free filing state taxes One method is for a second IRS representative to listen in on or record random telephone calls. Free filing state taxes Another is to ask some callers to complete a short survey at the end of the call. Free filing state taxes Walk-in. Free filing state taxes Many products and services are available on a walk-in basis. Free filing state taxes   Products. Free filing state taxes You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Free filing state taxes Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Free filing state taxes Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Free filing state taxes Services. Free filing state taxes You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Free filing state taxes An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Free filing state taxes If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Free filing state taxes No appointment is necessary—just walk in. Free filing state taxes If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Free filing state taxes A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Free filing state taxes If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Free filing state taxes All other issues will be handled without an appointment. Free filing state taxes To find the number of your local office, go to  www. Free filing state taxes irs. Free filing state taxes gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Free filing state taxes Mail. Free filing state taxes You can send your order for forms, instructions, and publications to the address below. Free filing state taxes You should receive a response within 10 days after your request is received. Free filing state taxes  Internal Revenue Service 1201 N. Free filing state taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Free filing state taxes   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Free filing state taxes Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Free filing state taxes We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Free filing state taxes Remember, the worst thing you can do is nothing at all. Free filing state taxes   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Free filing state taxes You face (or your business is facing) an immediate threat of adverse action. Free filing state taxes You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Free filing state taxes   If you qualify for our help, we’ll do everything we can to get your problem resolved. Free filing state taxes You will be assigned to one advocate who will be with you at every turn. Free filing state taxes We have offices in every state, the District of Columbia, and Puerto Rico. Free filing state taxes Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Free filing state taxes And our services are always free. Free filing state taxes   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Free filing state taxes Our tax toolkit at www. Free filing state taxes TaxpayerAdvocate. Free filing state taxes irs. Free filing state taxes gov can help you understand these rights. Free filing state taxes   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Free filing state taxes irs. Free filing state taxes gov/advocate. Free filing state taxes You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Free filing state taxes   TAS also handles large-scale or systemic problems that affect many taxpayers. Free filing state taxes If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Free filing state taxes irs. Free filing state taxes gov/advocate. Free filing state taxes Low Income Taxpayer Clinics (LITCs). Free filing state taxes   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Free filing state taxes Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Free filing state taxes These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Free filing state taxes Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Free filing state taxes For more information and to find a clinic near you, see the LITC page on www. Free filing state taxes irs. Free filing state taxes gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Free filing state taxes This publication is also available by calling 1-800-829-3676 or at your local IRS office. Free filing state taxes Free tax services. Free filing state taxes   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Free filing state taxes Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Free filing state taxes The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Free filing state taxes The majority of the information and services listed in this publication are available to you free of charge. Free filing state taxes If there is a fee associated with a resource or service, it is listed in the publication. Free filing state taxes   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Free filing state taxes DVD for tax products. Free filing state taxes You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Free filing state taxes Prior-year forms, instructions, and publications. Free filing state taxes Tax Map: an electronic research tool and finding aid. Free filing state taxes Tax law frequently asked questions. Free filing state taxes Tax Topics from the IRS telephone response system. Free filing state taxes Internal Revenue Code—Title 26 of the U. Free filing state taxes S. Free filing state taxes Code. Free filing state taxes Links to other Internet based Tax Research Materials. Free filing state taxes Fill-in, print, and save features for most tax forms. Free filing state taxes Internal Revenue Bulletins. Free filing state taxes Toll-free and email technical support. Free filing state taxes Two releases during the year. Free filing state taxes  – The first release will ship the beginning of January. Free filing state taxes  – The final release will ship the beginning of March. Free filing state taxes Purchase the DVD from National Technical Information Service (NTIS) at www. Free filing state taxes irs. Free filing state taxes gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Free filing state taxes Prev  Up  Next   Home   More Online Publications
Español

Linking to USA.gov

Logos and information you can use when linking to USA.gov

USA.gov (www.usa.gov) is the official web portal for the U.S. government. It is a public domain website, which means you may link to USA.gov at no cost.


When you link to USA.gov, please do it in an appropriate context as a service to your customers when they need to find official U.S. government information and services. We encourage you to use our logo, which we've provided below. Placement of the USA.gov logo is to be used only as a marker to the USA.gov home page and not as a form of endorsement or approval from USA.gov, the Office of Citizen Services and Innovative Technologies, the U.S. General Services Administration, or the U.S. government.


We also encourage you to link to GobiernoUSA.gov, the official Spanish language web portal of the U.S. government. We offer the GobiernoUSA.gov logo in various sizes and formats.

Back to Top

Text to Describe USA.gov

Short Version: USA.gov is the U.S. government's official web portal to all federal, state, and local government web resources and services.


Long version: USA.gov is the U.S. government's official web portal to all federal, state, and local government web resources and services. As the catalyst for a growing electronic government, USA.gov helps citizens navigate through government red tape. At USA.gov, you can apply for benefits online, contact a government agency, or use the Internet's most comprehensive search of government websites—all from one easy location.

Back to Top

Place the Source Graphic into Your Web Page

Select one of the images below to use on your website and save it to your images directory. Generally, you can save the image by right-clicking on it and selecting your browser's "Save Image As" or "Save Picture As" command. Please copy the graphic to your website and change the IMG SRC address to use it from your web server. In the examples below, the image was saved in the '/images/' directory.

If you have any questions about linking to USA.gov, the use of the USA.gov logo, or want more information or promotional materials on USA.gov, please contact us.

Back to Top

The Free Filing State Taxes

Free filing state taxes 12. Free filing state taxes   Other Income Table of Contents Introduction Useful Items - You may want to see: Bartering Canceled DebtsInterest included in canceled debt. Free filing state taxes Exceptions Host or Hostess Life Insurance ProceedsSurviving spouse. Free filing state taxes Endowment Contract Proceeds Accelerated Death Benefits Public Safety Officer Killed in the Line of Duty Partnership Income S Corporation Income RecoveriesItemized Deduction Recoveries Rents from Personal Property RepaymentsMethod 1. Free filing state taxes Method 2. Free filing state taxes RoyaltiesDepletion. Free filing state taxes Coal and iron ore. Free filing state taxes Sale of property interest. Free filing state taxes Part of future production sold. Free filing state taxes Unemployment BenefitsTypes of unemployment compensation. Free filing state taxes Governmental program. Free filing state taxes Repayment of unemployment compensation. Free filing state taxes Tax withholding. Free filing state taxes Repayment of benefits. Free filing state taxes Welfare and Other Public Assistance Benefits Other IncomeEmotional distress. Free filing state taxes Deduction for costs involved in unlawful discrimination suits. Free filing state taxes Energy conservation measure. Free filing state taxes Dwelling unit. Free filing state taxes Current income required to be distributed. Free filing state taxes Current income not required to be distributed. Free filing state taxes How to report. Free filing state taxes Losses. Free filing state taxes Grantor trust. Free filing state taxes Nonemployee compensation. Free filing state taxes Corporate director. Free filing state taxes Personal representatives. Free filing state taxes Manager of trade or business for bankruptcy estate. Free filing state taxes Notary public. Free filing state taxes Election precinct official. Free filing state taxes Difficulty-of-care payments. Free filing state taxes Maintaining space in home. Free filing state taxes Reporting taxable payments. Free filing state taxes Lotteries and raffles. Free filing state taxes Form W-2G. Free filing state taxes Reporting winnings and recordkeeping. Free filing state taxes Inherited pension or IRA. Free filing state taxes Employee awards or bonuses. Free filing state taxes Pulitzer, Nobel, and similar prizes. Free filing state taxes Payment for services. Free filing state taxes VA payments. Free filing state taxes Prizes. Free filing state taxes Strike and lockout benefits. Free filing state taxes Introduction You must include on your return all items of income you receive in the form of money, property, and services unless the tax law states that you do not include them. Free filing state taxes Some items, however, are only partly excluded from income. Free filing state taxes This chapter discusses many kinds of income and explains whether they are taxable or nontaxable. Free filing state taxes Income that is taxable must be reported on your tax return and is subject to tax. Free filing state taxes Income that is nontaxable may have to be shown on your tax return but is not taxable. Free filing state taxes This chapter begins with discussions of the following income items. Free filing state taxes Bartering. Free filing state taxes Canceled debts. Free filing state taxes Sales parties at which you are the host or hostess. Free filing state taxes Life insurance proceeds. Free filing state taxes Partnership income. Free filing state taxes S Corporation income. Free filing state taxes Recoveries (including state income tax refunds). Free filing state taxes Rents from personal property. Free filing state taxes Repayments. Free filing state taxes Royalties. Free filing state taxes Unemployment benefits. Free filing state taxes Welfare and other public assistance benefits. Free filing state taxes These discussions are followed by brief discussions of other income items. Free filing state taxes Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 544 Sales and Other Dispositions of Assets 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Bartering Bartering is an exchange of property or services. Free filing state taxes You must include in your income, at the time received, the fair market value of property or services you receive in bartering. Free filing state taxes If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise. Free filing state taxes Generally, you report this income on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Free filing state taxes However, if the barter involves an exchange of something other than services, such as in Example 3 below, you may have to use another form or schedule instead. Free filing state taxes Example 1. Free filing state taxes You are a self-employed attorney who performs legal services for a client, a small corporation. Free filing state taxes The corporation gives you shares of its stock as payment for your services. Free filing state taxes You must include the fair market value of the shares in your income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) in the year you receive them. Free filing state taxes Example 2. Free filing state taxes You are self-employed and a member of a barter club. Free filing state taxes The club uses “credit units” as a means of exchange. Free filing state taxes It adds credit units to your account for goods or services you provide to members, which you can use to purchase goods or services offered by other members of the barter club. Free filing state taxes The club subtracts credit units from your account when you receive goods or services from other members. Free filing state taxes You must include in your income the value of the credit units that are added to your account, even though you may not actually receive goods or services from other members until a later tax year. Free filing state taxes Example 3. Free filing state taxes You own a small apartment building. Free filing state taxes In return for 6 months rent-free use of an apartment, an artist gives you a work of art she created. Free filing state taxes You must report as rental income on Schedule E (Form 1040), Supplemental Income and Loss, the fair market value of the artwork, and the artist must report as income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) the fair rental value of the apartment. Free filing state taxes Form 1099-B from barter exchange. Free filing state taxes   If you exchanged property or services through a barter exchange, Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, or a similar statement from the barter exchange should be sent to you by February 18, 2014. Free filing state taxes It should show the value of cash, property, services, credits, or scrip you received from exchanges during 2013. Free filing state taxes The IRS also will receive a copy of Form 1099-B. Free filing state taxes Canceled Debts In most cases, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. Free filing state taxes You have no income from the canceled debt if it is intended as a gift to you. Free filing state taxes A debt includes any indebtedness for which you are liable or which attaches to property you hold. Free filing state taxes If the debt is a nonbusiness debt, report the canceled amount on Form 1040, line 21. Free filing state taxes If it is a business debt, report the amount on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) (or on Schedule F (Form 1040), Profit or Loss From Farming, if the debt is farm debt and you are a farmer). Free filing state taxes Form 1099-C. Free filing state taxes   If a Federal Government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. Free filing state taxes The amount of the canceled debt is shown in box 2. Free filing state taxes Interest included in canceled debt. Free filing state taxes   If any interest is forgiven and included in the amount of canceled debt in box 2, the amount of interest also will be shown in box 3. Free filing state taxes Whether or not you must include the interest portion of the canceled debt in your income depends on whether the interest would be deductible when you paid it. Free filing state taxes See Deductible debt under Exceptions, later. Free filing state taxes   If the interest would not be deductible (such as interest on a personal loan), include in your income the amount from Form 1099-C, box 2. Free filing state taxes If the interest would be deductible (such as on a business loan), include in your income the net amount of the canceled debt (the amount shown in box 2 less the interest amount shown in box 3). Free filing state taxes Discounted mortgage loan. Free filing state taxes   If your financial institution offers a discount for the early payment of your mortgage loan, the amount of the discount is canceled debt. Free filing state taxes You must include the canceled amount in your income. Free filing state taxes Mortgage relief upon sale or other disposition. Free filing state taxes   If you are personally liable for a mortgage (recourse debt), and you are relieved of the mortgage when you dispose of the property, you may realize gain or loss up to the fair market value of the property. Free filing state taxes To the extent the mortgage discharge exceeds the fair market value of the property, it is income from discharge of indebtedness unless it qualifies for exclusion under Excluded debt , later. Free filing state taxes Report any income from discharge of indebtedness on nonbusiness debt that does not qualify for exclusion as other income on Form 1040, line 21. Free filing state taxes    You may be able to exclude part of the mortgage relief on your principal residence. Free filing state taxes See Excluded debt, later. Free filing state taxes   If you are not personally liable for a mortgage (nonrecourse debt), and you are relieved of the mortgage when you dispose of the property (such as through foreclosure), that relief is included in the amount you realize. Free filing state taxes You may have a taxable gain if the amount you realize exceeds your adjusted basis in the property. Free filing state taxes Report any gain on nonbusiness property as a capital gain. Free filing state taxes   See Publication 4681 for more information. Free filing state taxes Stockholder debt. Free filing state taxes   If you are a stockholder in a corporation and the corporation cancels or forgives your debt to it, the canceled debt is a constructive distribution that is generally dividend income to you. Free filing state taxes For more information, see Publication 542, Corporations. Free filing state taxes   If you are a stockholder in a corporation and you cancel a debt owed to you by the corporation, you generally do not realize income. Free filing state taxes This is because the canceled debt is considered as a contribution to the capital of the corporation equal to the amount of debt principal that you canceled. Free filing state taxes Repayment of canceled debt. Free filing state taxes   If you included a canceled amount in your income and later pay the debt, you may be able to file a claim for refund for the year the amount was included in income. Free filing state taxes You can file a claim on Form 1040X if the statute of limitations for filing a claim is still open. Free filing state taxes The statute of limitations generally does not end until 3 years after the due date of your original return. Free filing state taxes Exceptions There are several exceptions to the inclusion of canceled debt in income. Free filing state taxes These are explained next. Free filing state taxes Student loans. Free filing state taxes   Certain student loans contain a provision that all or part of the debt incurred to attend the qualified educational institution will be canceled if you work for a certain period of time in certain professions for any of a broad class of employers. Free filing state taxes   You do not have income if your student loan is canceled after you agreed to this provision and then performed the services required. Free filing state taxes To qualify, the loan must have been made by: The Federal Government, a state or local government, or an instrumentality, agency, or subdivision thereof, A tax-exempt public benefit corporation that has assumed control of a state, county, or municipal hospital, and whose employees are considered public employees under state law, or An educational institution: Under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan, or As part of a program of the institution designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or a tax-exempt organization described in section 501(c)(3). Free filing state taxes   A loan to refinance a qualified student loan also will qualify if it was made by an educational institution or a qualified tax-exempt organization under its program designed as described in (3)(b) above. Free filing state taxes Education loan repayment assistance. Free filing state taxes   Education loan repayments made to you by the National Health Service Corps Loan Repayment Program (NHSC Loan Repayment Program), a state education loan repayment program eligible for funds under the Public Health Service Act, or any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas are not taxable. Free filing state taxes    The provision relating to the “other state loan repayment or loan forgiveness program” was added to this exclusion for amounts received in tax years beginning after December 31, 2008. Free filing state taxes If you included these amounts in income in 2010, 2011, or 2012, you should file an amended tax return to exclude this income. Free filing state taxes See Form 1040X and its instructions for details on filing. Free filing state taxes Deductible debt. Free filing state taxes   You do not have income from the cancellation of a debt if your payment of the debt would be deductible. Free filing state taxes This exception applies only if you use the cash method of accounting. Free filing state taxes For more information, see chapter 5 of Publication 334, Tax Guide for Small Business. Free filing state taxes Price reduced after purchase. Free filing state taxes   In most cases, if the seller reduces the amount of debt you owe for property you purchased, you do not have income from the reduction. Free filing state taxes The reduction of the debt is treated as a purchase price adjustment and reduces your basis in the property. Free filing state taxes Excluded debt. Free filing state taxes   Do not include a canceled debt in your gross income in the following situations. Free filing state taxes The debt is canceled in a bankruptcy case under title 11 of the U. Free filing state taxes S. Free filing state taxes Code. Free filing state taxes See Publication 908, Bankruptcy Tax Guide. Free filing state taxes The debt is canceled when you are insolvent. Free filing state taxes However, you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent. Free filing state taxes See Publication 908. Free filing state taxes The debt is qualified farm debt and is canceled by a qualified person. Free filing state taxes See chapter 3 of Publication 225, Farmer's Tax Guide. Free filing state taxes The debt is qualified real property business debt. Free filing state taxes See chapter 5 of Publication 334. Free filing state taxes The cancellation is intended as a gift. Free filing state taxes The debt is qualified principal residence indebtedness. Free filing state taxes See Publication 525 for additional information. Free filing state taxes Host or Hostess If you host a party or event at which sales are made, any gift or gratuity you receive for giving the event is a payment for helping a direct seller make sales. Free filing state taxes You must report this item as income at its fair market value. Free filing state taxes Your out-of-pocket party expenses are subject to the 50% limit for meal and entertainment expenses. Free filing state taxes These expenses are deductible as miscellaneous itemized deductions subject to the 2%-of-AGI limit on Schedule A (Form 1040), but only up to the amount of income you receive for giving the party. Free filing state taxes For more information about the 50% limit for meal and entertainment expenses, see chapter 26. Free filing state taxes Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person are not taxable unless the policy was turned over to you for a price. Free filing state taxes This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. Free filing state taxes However, interest income received as a result of life insurance proceeds may be taxable. Free filing state taxes Proceeds not received in installments. Free filing state taxes   If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. Free filing state taxes If the benefit payable at death is not specified, you include in your income the benefit payments that are more than the present value of the payments at the time of death. Free filing state taxes Proceeds received in installments. Free filing state taxes   If you receive life insurance proceeds in installments, you can exclude part of each installment from your income. Free filing state taxes   To determine the excluded part, divide the amount held by the insurance company (generally the total lump sum payable at the death of the insured person) by the number of installments to be paid. Free filing state taxes Include anything over this excluded part in your income as interest. Free filing state taxes Surviving spouse. Free filing state taxes   If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude up to $1,000 a year of the interest included in the installments. Free filing state taxes If you remarry, you can continue to take the exclusion. Free filing state taxes Surrender of policy for cash. Free filing state taxes   If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Free filing state taxes In most cases, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income. Free filing state taxes    You should receive a Form 1099-R showing the total proceeds and the taxable part. Free filing state taxes Report these amounts on lines 16a and 16b of Form 1040 or lines 12a and 12b of Form 1040A. Free filing state taxes More information. Free filing state taxes   For more information, see Life Insurance Proceeds in Publication 525. Free filing state taxes Endowment Contract Proceeds An endowment contract is a policy under which you are paid a specified amount of money on a certain date unless you die before that date, in which case, the money is paid to your designated beneficiary. Free filing state taxes Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. Free filing state taxes To determine your cost, subtract any amount that you previously received under the contract and excluded from your income from the total premiums (or other consideration) paid for the contract. Free filing state taxes Include the part of the lump sum payment that is more than your cost in your income. Free filing state taxes Accelerated Death Benefits Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are excluded from income if the insured is terminally or chronically ill. Free filing state taxes Viatical settlement. Free filing state taxes   This is the sale or assignment of any part of the death benefit under a life insurance contract to a viatical settlement provider. Free filing state taxes A viatical settlement provider is a person who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill and who meets the requirements of section 101(g)(2)(B) of the Internal Revenue Code. Free filing state taxes Exclusion for terminal illness. Free filing state taxes    Accelerated death benefits are fully excludable if the insured is a terminally ill individual. Free filing state taxes This is a person who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. Free filing state taxes Exclusion for chronic illness. Free filing state taxes    If the insured is a chronically ill individual who is not terminally ill, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Free filing state taxes Accelerated death benefits paid on a per diem or other periodic basis are excludable up to a limit. Free filing state taxes This limit applies to the total of the accelerated death benefits and any periodic payments received from long-term care insurance contracts. Free filing state taxes For information on the limit and the definitions of chronically ill individual, qualified long-term care services, and long-term care insurance contracts, see Long-Term Care Insurance Contracts under Sickness and Injury Benefits in Publication 525. Free filing state taxes Exception. Free filing state taxes   The exclusion does not apply to any amount paid to a person (other than the insured) who has an insurable interest in the life of the insured because the insured: Is a director, officer, or employee of the person, or Has a financial interest in the person's business. Free filing state taxes Form 8853. Free filing state taxes   To claim an exclusion for accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return. Free filing state taxes You do not have to file Form 8853 to exclude accelerated death benefits paid on the basis of actual expenses incurred. Free filing state taxes Public Safety Officer Killed in the Line of Duty If you are a survivor of a public safety officer who was killed in the line of duty, you may be able to exclude from income certain amounts you receive. Free filing state taxes For this purpose, the term public safety officer includes law enforcement officers, firefighters, chaplains, and rescue squad and ambulance crew members. Free filing state taxes For more information, see Publication 559, Survivors, Executors, and Administrators. Free filing state taxes Partnership Income A partnership generally is not a taxable entity. Free filing state taxes The income, gains, losses, deductions, and credits of a partnership are passed through to the partners based on each partner's distributive share of these items. Free filing state taxes Schedule K-1 (Form 1065). Free filing state taxes    Although a partnership generally pays no tax, it must file an information return on Form 1065, U. Free filing state taxes S. Free filing state taxes Return of Partnership Income, and send Schedule K-1 (Form 1065) to each partner. Free filing state taxes In addition, the partnership will send each partner a copy of the Partner's Instructions for Schedule K-1 (Form 1065) to help each partner report his or her share of the partnership's income, deductions, credits, and tax preference items. Free filing state taxes Keep Schedule K-1 (Form 1065) for your records. Free filing state taxes Do not attach it to your Form 1040, unless you are specifically required to do so. Free filing state taxes For more information on partnerships, see Publication 541, Partnerships. Free filing state taxes Qualified joint venture. Free filing state taxes   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. Free filing state taxes To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Free filing state taxes For further information on how to make the election and which schedule(s) to file, see the instructions for your individual tax return. Free filing state taxes S Corporation Income In most cases, an S corporation does not pay tax on its income. Free filing state taxes Instead, the income, losses, deductions, and credits of the corporation are passed through to the shareholders based on each shareholder's pro rata share. Free filing state taxes Schedule K-1 (Form 1120S). Free filing state taxes   An S corporation must file a return on Form 1120S, U. Free filing state taxes S. Free filing state taxes Income Tax Return for an S Corporation, and send Schedule K-1 (Form 1120S) to each shareholder. Free filing state taxes In addition, the S corporation will send each shareholder a copy of the Shareholder's Instructions for Schedule K-1 (Form 1120S) to help each shareholder report his or her share of the S corporation's income, losses, credits, and deductions. Free filing state taxes Keep Schedule K-1 (Form 1120S) for your records. Free filing state taxes Do not attach it to your Form 1040, unless you are specifically required to do so. Free filing state taxes For more information on S corporations and their shareholders, see the Instructions for Form 1120S. Free filing state taxes Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. Free filing state taxes The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). Free filing state taxes You also may have recoveries of non-itemized deductions (such as payments on previously deducted bad debts) and recoveries of items for which you previously claimed a tax credit. Free filing state taxes Tax benefit rule. Free filing state taxes   You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. Free filing state taxes For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year. Free filing state taxes For more information, see Publication 525. Free filing state taxes Federal income tax refund. Free filing state taxes   Refunds of federal income taxes are not included in your income because they are never allowed as a deduction from income. Free filing state taxes State tax refund. Free filing state taxes   If you received a state or local income tax refund (or credit or offset) in 2013, you generally must include it in income if you deducted the tax in an earlier year. Free filing state taxes The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2014. Free filing state taxes The IRS also will receive a copy of the Form 1099-G. Free filing state taxes If you file Form 1040, use the State and Local Income Tax Refund Worksheet in the 2013 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. Free filing state taxes See Publication 525 for when you must use another worksheet. Free filing state taxes   If you could choose to deduct for a tax year either: State and local income taxes, or State and local general sales taxes, then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you did not choose to deduct for that year. Free filing state taxes For examples, see Publication 525. Free filing state taxes Mortgage interest refund. Free filing state taxes    If you received a refund or credit in 2013 of mortgage interest paid in an earlier year, the amount should be shown in box 3 of your Form 1098, Mortgage Interest Statement. Free filing state taxes Do not subtract the refund amount from the interest you paid in 2013. Free filing state taxes You may have to include it in your income under the rules explained in the following discussions. Free filing state taxes Interest on recovery. Free filing state taxes   Interest on any of the amounts you recover must be reported as interest income in the year received. Free filing state taxes For example, report any interest you received on state or local income tax refunds on Form 1040, line 8a. Free filing state taxes Recovery and expense in same year. Free filing state taxes   If the refund or other recovery and the expense occur in the same year, the recovery reduces the deduction or credit and is not reported as income. Free filing state taxes Recovery for 2 or more years. Free filing state taxes   If you receive a refund or other recovery that is for amounts you paid in 2 or more separate years, you must allocate, on a pro rata basis, the recovered amount between the years in which you paid it. Free filing state taxes This allocation is necessary to determine the amount of recovery from any earlier years and to determine the amount, if any, of your allowable deduction for this item for the current year. Free filing state taxes For information on how to compute the allocation, see Recoveries in Publication 525. Free filing state taxes Itemized Deduction Recoveries If you recover any amount that you deducted in an earlier year on Schedule A (Form 1040), you generally must include the full amount of the recovery in your income in the year you receive it. Free filing state taxes Where to report. Free filing state taxes   Enter your state or local income tax refund on Form 1040, line 10, and the total of all other recoveries as other income on Form 1040, line 21. Free filing state taxes You cannot use Form 1040A or Form 1040EZ. Free filing state taxes Standard deduction limit. Free filing state taxes   You generally are allowed to claim the standard deduction if you do not itemize your deductions. Free filing state taxes Only your itemized deductions that are more than your standard deduction are subject to the recovery rule (unless you are required to itemize your deductions). Free filing state taxes If your total deductions on the earlier year return were not more than your income for that year, include in your income this year the lesser of: Your recoveries, or The amount by which your itemized deductions exceeded the standard deduction. Free filing state taxes Example. Free filing state taxes For 2012, you filed a joint return. Free filing state taxes Your taxable income was $60,000 and you were not entitled to any tax credits. Free filing state taxes Your standard deduction was $11,900, and you had itemized deductions of $14,000. Free filing state taxes In 2013, you received the following recoveries for amounts deducted on your 2012 return: Medical expenses $200 State and local income tax refund 400 Refund of mortgage interest 325 Total recoveries $925 None of the recoveries were more than the deductions taken for 2012. Free filing state taxes The difference between the state and local income tax you deducted and your local general sales tax was more than $400. Free filing state taxes Your total recoveries are less than the amount by which your itemized deductions exceeded the standard deduction ($14,000 − 11,900 = $2,100), so you must include your total recoveries in your income for 2013. Free filing state taxes Report the state and local income tax refund of $400 on Form 1040, line 10, and the balance of your recoveries, $525, on Form 1040, line 21. Free filing state taxes Standard deduction for earlier years. Free filing state taxes   To determine if amounts recovered in 2013 must be included in your income, you must know the standard deduction for your filing status for the year the deduction was claimed. Free filing state taxes Look in the instructions for your tax return from prior years to locate the standard deduction for the filing status for that prior year. Free filing state taxes Example. Free filing state taxes You filed a joint return on Form 1040 for 2012 with taxable income of $45,000. Free filing state taxes Your itemized deductions were $12,350. Free filing state taxes The standard deduction that you could have claimed was $11,900. Free filing state taxes In 2013, you recovered $2,100 of your 2012 itemized deductions. Free filing state taxes None of the recoveries were more than the actual deductions for 2012. Free filing state taxes Include $450 of the recoveries in your 2013 income. Free filing state taxes This is the smaller of your recoveries ($2,100) or the amount by which your itemized deductions were more than the standard deduction ($12,350 − $11,900 = $450). Free filing state taxes Recovery limited to deduction. Free filing state taxes   You do not include in your income any amount of your recovery that is more than the amount you deducted in the earlier year. Free filing state taxes The amount you include in your income is limited to the smaller of: The amount deducted on Schedule A (Form 1040), or The amount recovered. Free filing state taxes Example. Free filing state taxes During 2012 you paid $1,700 for medical expenses. Free filing state taxes From this amount you subtracted $1,500, which was 7. Free filing state taxes 5% of your adjusted gross income. Free filing state taxes Your actual medical expense deduction was $200. Free filing state taxes In 2013, you received a $500 reimbursement from your medical insurance for your 2012 expenses. Free filing state taxes The only amount of the $500 reimbursement that must be included in your income for 2013 is $200—the amount actually deducted. Free filing state taxes Other recoveries. Free filing state taxes   See Recoveries in Publication 525 if: You have recoveries of items other than itemized deductions, or You received a recovery for an item for which you claimed a tax credit (other than investment credit or foreign tax credit) in a prior year. Free filing state taxes Rents from Personal Property If you rent out personal property, such as equipment or vehicles, how you report your income and expenses is in most cases determined by: Whether or not the rental activity is a business, and Whether or not the rental activity is conducted for profit. Free filing state taxes In most cases, if your primary purpose is income or profit and you are involved in the rental activity with continuity and regularity, your rental activity is a business. Free filing state taxes See Publication 535, Business Expenses, for details on deducting expenses for both business and not-for-profit activities. Free filing state taxes Reporting business income and expenses. Free filing state taxes    If you are in the business of renting personal property, report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Free filing state taxes The form instructions have information on how to complete them. Free filing state taxes Reporting nonbusiness income. Free filing state taxes   If you are not in the business of renting personal property, report your rental income on Form 1040, line 21. Free filing state taxes List the type and amount of the income on the dotted line next to line 21. Free filing state taxes Reporting nonbusiness expenses. Free filing state taxes   If you rent personal property for profit, include your rental expenses in the total amount you enter on Form 1040, line 36. Free filing state taxes Also enter the amount and “PPR” on the dotted line next to line 36. Free filing state taxes   If you do not rent personal property for profit, your deductions are limited and you cannot report a loss to offset other income. Free filing state taxes See Activity not for profit , under Other Income, later. Free filing state taxes Repayments If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Free filing state taxes Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. Free filing state taxes Generally, you can claim a deduction or credit only if the repayment qualifies as an expense or loss incurred in your trade or business or in a for-profit transaction. Free filing state taxes Type of deduction. Free filing state taxes   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. Free filing state taxes You generally deduct the repayment on the same form or schedule on which you previously reported it as income. Free filing state taxes For example, if you reported it as self-employment income, deduct it as a business expense on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). Free filing state taxes If you reported it as a capital gain, deduct it as a capital loss as explained in the Instructions for Schedule D (Form 1040). Free filing state taxes If you reported it as wages, unemployment compensation, or other nonbusiness income, deduct it as a miscellaneous itemized deduction on Schedule A (Form 1040). Free filing state taxes Repaid social security benefits. Free filing state taxes   If you repaid social security benefits or equivalent railroad retirement benefits, see Repayment of benefits in chapter 11. Free filing state taxes Repayment of $3,000 or less. Free filing state taxes   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Free filing state taxes If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 23. Free filing state taxes Repayment over $3,000. Free filing state taxes   If the amount you repaid was more than $3,000, you can deduct the repayment (as explained under Type of deduction , earlier). Free filing state taxes However, you can choose instead to take a tax credit for the year of repayment if you included the income under a claim of right. Free filing state taxes This means that at the time you included the income, it appeared that you had an unrestricted right to it. Free filing state taxes If you qualify for this choice, figure your tax under both methods and compare the results. Free filing state taxes Use the method (deduction or credit) that results in less tax. Free filing state taxes When determining whether the amount you repaid was more or less than $3,000, consider the total amount being repaid on the return. Free filing state taxes Each instance of repayment is not considered separately. Free filing state taxes Method 1. Free filing state taxes   Figure your tax for 2013 claiming a deduction for the repaid amount. Free filing state taxes If you must deduct it as a miscellaneous itemized deduction, enter it on Schedule A (Form 1040), line 28. Free filing state taxes Method 2. Free filing state taxes   Figure your tax for 2013 claiming a credit for the repaid amount. Free filing state taxes Follow these steps. Free filing state taxes Figure your tax for 2013 without deducting the repaid amount. Free filing state taxes Refigure your tax from the earlier year without including in income the amount you repaid in 2013. Free filing state taxes Subtract the tax in (2) from the tax shown on your return for the earlier year. Free filing state taxes This is the credit. Free filing state taxes Subtract the answer in (3) from the tax for 2013 figured without the deduction (Step 1). Free filing state taxes   If method 1 results in less tax, deduct the amount repaid. Free filing state taxes If method 2 results in less tax, claim the credit figured in (3) above on Form 1040, line 71, by adding the amount of the credit to any other credits on this line, and entering “I. Free filing state taxes R. Free filing state taxes C. Free filing state taxes 1341” in the column to the right of line 71. Free filing state taxes   An example of this computation can be found in Publication 525. Free filing state taxes Repaid wages subject to social security and Medicare taxes. Free filing state taxes   If you had to repay an amount that you included in your wages or compensation in an earlier year on which social security, Medicare, or tier 1 RRTA taxes were paid, ask your employer to refund the excess amount to you. Free filing state taxes If the employer refuses to refund the taxes, ask for a statement indicating the amount of the overcollection to support your claim. Free filing state taxes File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Free filing state taxes Repaid wages subject to Additional Medicare Tax. Free filing state taxes   Employers cannot make an adjustment or file a claim for refund for Additional Medicare Tax withholding when there is a repayment of wages received by an employee in a prior year because the employee determines liability for Additional Medicare Tax on the employee's income tax return for the prior year. Free filing state taxes If you had to repay an amount that you included in your wages or compensation in an earlier year, and on which Additional Medicare Tax was paid, you may be able to recover the Additional Medicare Tax paid on the amount. Free filing state taxes To recover Additional Medicare Tax on the repaid wages or compensation, you must file Form 1040X, Amended U. Free filing state taxes S. Free filing state taxes Individual Income Tax Return, for the prior year in which the wages or compensation were originally received. Free filing state taxes See the Instructions for Form 1040X. Free filing state taxes Royalties Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. Free filing state taxes In most cases you report royalties in Part I of Schedule E (Form 1040). Free filing state taxes However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc. Free filing state taxes , report your income and expenses on Schedule C or Schedule C-EZ (Form 1040). Free filing state taxes Copyrights and patents. Free filing state taxes   Royalties from copyrights on literary, musical, or artistic works, and similar property, or from patents on inventions, are amounts paid to you for the right to use your work over a specified period of time. Free filing state taxes Royalties generally are based on the number of units sold, such as the number of books, tickets to a performance, or machines sold. Free filing state taxes Oil, gas, and minerals. Free filing state taxes   Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property. Free filing state taxes The royalties are based on units, such as barrels, tons, etc. Free filing state taxes , and are paid to you by a person or company who leases the property from you. Free filing state taxes Depletion. Free filing state taxes   If you are the owner of an economic interest in mineral deposits or oil and gas wells, you can recover your investment through the depletion allowance. Free filing state taxes For information on this subject, see chapter 9 of Publication 535. Free filing state taxes Coal and iron ore. Free filing state taxes   Under certain circumstances, you can treat amounts you receive from the disposal of coal and iron ore as payments from the sale of a capital asset, rather than as royalty income. Free filing state taxes For information about gain or loss from the sale of coal and iron ore, see Publication 544. Free filing state taxes Sale of property interest. Free filing state taxes   If you sell your complete interest in oil, gas, or mineral rights, the amount you receive is considered payment for the sale of property used in a trade or business under section 1231, not royalty income. Free filing state taxes Under certain circumstances, the sale is subject to capital gain or loss treatment as explained in the Instructions for Schedule D (Form 1040). Free filing state taxes For more information on selling section 1231 property, see chapter 3 of Publication 544. Free filing state taxes   If you retain a royalty, an overriding royalty, or a net profit interest in a mineral property for the life of the property, you have made a lease or a sublease, and any cash you receive for the assignment of other interests in the property is ordinary income subject to a depletion allowance. Free filing state taxes Part of future production sold. Free filing state taxes   If you own mineral property but sell part of the future production, in most cases you treat the money you receive from the buyer at the time of the sale as a loan from the buyer. Free filing state taxes Do not include it in your income or take depletion based on it. Free filing state taxes   When production begins, you include all the proceeds in your income, deduct all the production expenses, and deduct depletion from that amount to arrive at your taxable income from the property. Free filing state taxes Unemployment Benefits The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits. Free filing state taxes Unemployment compensation. Free filing state taxes   You must include in income all unemployment compensation you receive. Free filing state taxes You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you. Free filing state taxes In most cases, you enter unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Free filing state taxes Types of unemployment compensation. Free filing state taxes   Unemployment compensation generally includes any amount received under an unemployment compensation law of the United States or of a state. Free filing state taxes It includes the following benefits. Free filing state taxes Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund. Free filing state taxes State unemployment insurance benefits. Free filing state taxes Railroad unemployment compensation benefits. Free filing state taxes Disability payments from a government program paid as a substitute for unemployment compensation. Free filing state taxes (Amounts received as workers' compensation for injuries or illness are not unemployment compensation. Free filing state taxes See chapter 5 for more information. Free filing state taxes ) Trade readjustment allowances under the Trade Act of 1974. Free filing state taxes Unemployment assistance under the Disaster Relief and Emergency Assistance Act. Free filing state taxes Unemployment assistance under the Airline Deregulation Act of 1974 Program. Free filing state taxes Governmental program. Free filing state taxes   If you contribute to a governmental unemployment compensation program and your contributions are not deductible, amounts you receive under the program are not included as unemployment compensation until you recover your contributions. Free filing state taxes If you deducted all of your contributions to the program, the entire amount you receive under the program is included in your income. Free filing state taxes Repayment of unemployment compensation. Free filing state taxes   If you repaid in 2013 unemployment compensation you received in 2013, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Free filing state taxes On the dotted line next to your entry enter “Repaid” and the amount you repaid. Free filing state taxes If you repaid unemployment compensation in 2013 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. Free filing state taxes If the amount is more than $3,000, see Repayments , earlier. Free filing state taxes Tax withholding. Free filing state taxes   You can choose to have federal income tax withheld from your unemployment compensation. Free filing state taxes To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Free filing state taxes Tax will be withheld at 10% of your payment. Free filing state taxes    If you do not choose to have tax withheld from your unemployment compensation, you may be liable for estimated tax. Free filing state taxes If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. Free filing state taxes For more information on estimated tax, see chapter 4. Free filing state taxes Supplemental unemployment benefits. Free filing state taxes   Benefits received from an employer-financed fund (to which the employees did not contribute) are not unemployment compensation. Free filing state taxes They are taxable as wages and are subject to withholding for income tax. Free filing state taxes They may be subject to social security and Medicare taxes. Free filing state taxes For more information, see Supplemental Unemployment Benefits in section 5 of Publication 15-A, Employer's Supplemental Tax Guide. Free filing state taxes Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Free filing state taxes Repayment of benefits. Free filing state taxes   You may have to repay some of your supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. Free filing state taxes If you repay supplemental unemployment benefits in the same year you receive them, reduce the total benefits by the amount you repay. Free filing state taxes If you repay the benefits in a later year, you must include the full amount of the benefits received in your income for the year you received them. Free filing state taxes   Deduct the repayment in the later year as an adjustment to gross income on Form 1040. Free filing state taxes (You cannot use Form 1040A or Form 1040EZ. Free filing state taxes ) Include the repayment on Form 1040, line 36, and enter “Sub-Pay TRA” and the amount on the dotted line next to line 36. Free filing state taxes If the amount you repay in a later year is more than $3,000, you may be able to take a credit against your tax for the later year instead of deducting the amount repaid. Free filing state taxes For more information on this, see Repayments , earlier. Free filing state taxes Private unemployment fund. Free filing state taxes   Unemployment benefit payments from a private (nonunion) fund to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. Free filing state taxes Report the taxable amount on Form 1040, line 21. Free filing state taxes Payments by a union. Free filing state taxes   Benefits paid to you as an unemployed member of a union from regular union dues are included in your income on Form 1040, line 21. Free filing state taxes However, if you contribute to a special union fund and your payments to the fund are not deductible, the unemployment benefits you receive from the fund are includible in your income only to the extent they are more than your contributions. Free filing state taxes Guaranteed annual wage. Free filing state taxes   Payments you receive from your employer during periods of unemployment, under a union agreement that guarantees you full pay during the year, are taxable as wages. Free filing state taxes Include them on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Free filing state taxes State employees. Free filing state taxes   Payments similar to a state's unemployment compensation may be made by the state to its employees who are not covered by the state's unemployment compensation law. Free filing state taxes Although the payments are fully taxable, do not report them as unemployment compensation. Free filing state taxes Report these payments on Form 1040, line 21. Free filing state taxes Welfare and Other Public Assistance Benefits Do not include in your income governmental benefit payments from a public welfare fund based upon need, such as payments to blind individuals under a state public assistance law. Free filing state taxes Payments from a state fund for the victims of crime should not be included in the victims' incomes if they are in the nature of welfare payments. Free filing state taxes Do not deduct medical expenses that are reimbursed by such a fund. Free filing state taxes You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently. Free filing state taxes Reemployment Trade Adjustment Assistance (RTAA) payments. Free filing state taxes   RTAA payments received from a state must be included in your income. Free filing state taxes The state must send you Form 1099-G to advise you of the amount you should include in income. Free filing state taxes The amount should be reported on Form 1040, line 21. Free filing state taxes Persons with disabilities. Free filing state taxes   If you have a disability, you must include in income compensation you receive for services you perform unless the compensation is otherwise excluded. Free filing state taxes However, you do not include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. Free filing state taxes Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work. Free filing state taxes Disaster relief grants. Free filing state taxes    Do not include post-disaster grants received under the Robert T. Free filing state taxes 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, child care, or funeral expenses. Free filing state taxes Do not deduct casualty losses or medical expenses that are specifically reimbursed by these disaster relief grants. Free filing state taxes If you have deducted a casualty loss for the loss of your personal residence and you later receive a disaster relief grant for the loss of the same residence, you may have to include part or all of the grant in your taxable income. Free filing state taxes See Recoveries , earlier. Free filing state taxes Unemployment assistance payments under the Act are taxable unemployment compensation. Free filing state taxes See Unemployment compensation under Unemployment Benefits, earlier. Free filing state taxes Disaster relief payments. Free filing state taxes   You can exclude from income any amount you receive that is a qualified disaster relief payment. Free filing state taxes A qualified disaster relief payment is an amount paid to you: To reimburse or pay reasonable and necessary personal, family, living, or funeral expenses that result from a qualified disaster; To reimburse or pay reasonable and necessary expenses incurred for the repair or rehabilitation of your home or repair or replacement of its contents to the extent it is due to a qualified disaster; By a person engaged in the furnishing or sale of transportation as a common carrier because of the death or personal physical injuries incurred as a result of a qualified disaster; or By a federal, state, or local government, or agency, or instrumentality in connection with a qualified disaster in order to promote the general welfare. Free filing state taxes You can exclude this amount only to the extent any expense it pays for is not paid for by insurance or otherwise. Free filing state taxes The exclusion does not apply if you were a participant or conspirator in a terrorist action or a representative of one. Free filing state taxes   A qualified disaster is: A disaster which results from a terrorist or military action; A federally declared disaster; or A disaster which results from an accident involving a common carrier, or from any other event, which is determined to be catastrophic by the Secretary of the Treasury or his or her delegate. Free filing state taxes   For amounts paid under item (4), a disaster is qualified if it is determined by an applicable federal, state, or local authority to warrant assistance from the federal, state, or local government, agency, or instrumentality. Free filing state taxes Disaster mitigation payments. Free filing state taxes   You also can exclude from income any amount you receive that is a qualified disaster mitigation payment. Free filing state taxes Qualified disaster mitigation payments are also most commonly paid to you in the period immediately following damage to property as a result of a natural disaster. Free filing state taxes However, disaster mitigation payments are used to mitigate (reduce the severity of) potential damage from future natural disasters. Free filing state taxes They are paid to you through state and local governments based on the provisions of the Robert T. Free filing state taxes Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act. Free filing state taxes   You cannot increase the basis or adjusted basis of your property for improvements made with nontaxable disaster mitigation payments. Free filing state taxes Home Affordable Modification Program (HAMP). Free filing state taxes   If you benefit from Pay-for-Performance Success Payments under HAMP, the payments are not taxable. Free filing state taxes Mortgage assistance payments under section 235 of the National Housing Act. Free filing state taxes   Payments made under section 235 of the National Housing Act for mortgage assistance are not included in the homeowner's income. Free filing state taxes Interest paid for the homeowner under the mortgage assistance program cannot be deducted. Free filing state taxes Medicare. Free filing state taxes   Medicare benefits received under title XVIII of the Social Security Act are not includible in the gross income of the individuals for whom they are paid. Free filing state taxes This includes basic (part A (Hospital Insurance Benefits for the Aged)) and supplementary (part B (Supplementary Medical Insurance Benefits for the Aged)). Free filing state taxes Old-age, survivors, and disability insurance benefits (OASDI). Free filing state taxes   Generally, OASDI payments under section 202 of title II of the Social Security Act are not includible in the gross income of the individuals to whom they are paid. Free filing state taxes This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment. Free filing state taxes Nutrition Program for the Elderly. Free filing state taxes    Food benefits you receive under the Nutrition Program for the Elderly are not taxable. Free filing state taxes If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits. Free filing state taxes Payments to reduce cost of winter energy. Free filing state taxes   Payments made by a state to qualified people to reduce their cost of winter energy use are not taxable. Free filing state taxes Other Income The following brief discussions are arranged in alphabetical order. Free filing state taxes Other income items briefly discussed below are referenced to publications which provide more topical information. Free filing state taxes Activity not for profit. Free filing state taxes   You must include on your return income from an activity from which you do not expect to make a profit. Free filing state taxes An example of this type of activity is a hobby or a farm you operate mostly for recreation and pleasure. Free filing state taxes Enter this income on Form 1040, line 21. Free filing state taxes Deductions for expenses related to the activity are limited. Free filing state taxes They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040). Free filing state taxes See Not-for-Profit Activities in chapter 1 of Publication 535 for information on whether an activity is considered carried on for a profit. Free filing state taxes Alaska Permanent Fund dividend. Free filing state taxes   If you received a payment from Alaska's mineral income fund (Alaska Permanent Fund dividend), report it as income on line 21 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. Free filing state taxes The state of Alaska sends each recipient a document that shows the amount of the payment with the check. Free filing state taxes The amount also is reported to IRS. Free filing state taxes Alimony. Free filing state taxes   Include in your income on Form 1040, line 11, any alimony payments you receive. Free filing state taxes Amounts you receive for child support are not income to you. Free filing state taxes Alimony and child support payments are discussed in chapter 18. Free filing state taxes Bribes. Free filing state taxes   If you receive a bribe, include it in your income. Free filing state taxes Campaign contributions. Free filing state taxes   These contributions are not income to a candidate unless they are diverted to his or her personal use. Free filing state taxes To be exempt from tax, the contributions must be spent for campaign purposes or kept in a fund for use in future campaigns. Free filing state taxes However, interest earned on bank deposits, dividends received on contributed securities, and net gains realized on sales of contributed securities are taxable and must be reported on Form 1120-POL, U. Free filing state taxes S. Free filing state taxes Income Tax Return for Certain Political Organizations. Free filing state taxes Excess campaign funds transferred to an office account must be included in the officeholder's income on Form 1040, line 21, in the year transferred. Free filing state taxes Car pools. Free filing state taxes   Do not include in your income amounts you receive from the passengers for driving a car in a car pool to and from work. Free filing state taxes These amounts are considered reimbursement for your expenses. Free filing state taxes However, this rule does not apply if you have developed car pool arrangements into a profit-making business of transporting workers for hire. Free filing state taxes Cash rebates. Free filing state taxes   A cash rebate you receive from a dealer or manufacturer of an item you buy is not income, but you must reduce your basis by the amount of the rebate. Free filing state taxes Example. Free filing state taxes You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. Free filing state taxes The $2,000 is not income to you. Free filing state taxes Your basis in the car is $22,000. Free filing state taxes This is the basis on which you figure gain or loss if you sell the car and depreciation if you use it for business. Free filing state taxes Casualty insurance and other reimbursements. Free filing state taxes   You generally should not report these reimbursements on your return unless you are figuring gain or loss from the casualty or theft. Free filing state taxes See chapter 25 for more information. Free filing state taxes Child support payments. Free filing state taxes   You should not report these payments on your return. Free filing state taxes See chapter 18 for more information. Free filing state taxes Court awards and damages. Free filing state taxes   To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. Free filing state taxes The character of the income as ordinary income or capital gain depends on the nature of the underlying claim. Free filing state taxes Include the following as ordinary income. Free filing state taxes Interest on any award. Free filing state taxes Compensation for lost wages or lost profits in most cases. Free filing state taxes Punitive damages, in most cases. Free filing state taxes It does not matter if they relate to a physical injury or physical sickness. Free filing state taxes Amounts received in settlement of pension rights (if you did not contribute to the plan). Free filing state taxes Damages for: Patent or copyright infringement, Breach of contract, or Interference with business operations. Free filing state taxes Back pay and damages for emotional distress received to satisfy a claim under title VII of the Civil Rights Act of 1964. Free filing state taxes Attorney fees and costs (including contingent fees) where the underlying recovery is included in gross income. Free filing state taxes   Do not include in your income compensatory damages for personal physical injury or physical sickness (whether received in a lump sum or installments). Free filing state taxes Emotional distress. Free filing state taxes   Emotional distress itself is not a physical injury or physical sickness, but damages you receive for emotional distress due to a physical injury or sickness are treated as received for the physical injury or sickness. Free filing state taxes Do not include them in your income. Free filing state taxes   If the emotional distress is due to a personal injury that is not due to a physical injury or sickness (for example, employment discrimination or injury to reputation), you must include the damages in your income, except for any damages you receive for medical care due to that emotional distress. Free filing state taxes Emotional distress includes physical symptoms that result from emotional distress, such as headaches, insomnia, and stomach disorders. Free filing state taxes Deduction for costs involved in unlawful discrimination suits. Free filing state taxes   You may be able to deduct attorney fees and court costs paid to recover a judgment or settlement for a claim of unlawful discrimination under various provisions of federal, state, and local law listed in Internal Revenue Code section 62(e), a claim against the United States government, or a claim under section 1862(b)(3)(A) of the Social Security Act. Free filing state taxes For more information, see Publication 525. Free filing state taxes Credit card insurance. Free filing state taxes   In most cases, if you receive benefits under a credit card disability or unemployment insurance plan, the benefits are taxable to you. Free filing state taxes These plans make the minimum monthly payment on your credit card account if you cannot make the payment due to injury, illness, disability, or unemployment. Free filing state taxes Report on Form 1040, line 21, the amount of benefits you received during the year that is more than the amount of the premiums you paid during the year. Free filing state taxes Down payment assistance. Free filing state taxes   If you purchase a home and receive assistance from a nonprofit corporation to make the down payment, that assistance is not included in your income. Free filing state taxes If the corporation qualifies as a tax-exempt charitable organization, the assistance is treated as a gift and is included in your basis of the house. Free filing state taxes If the corporation does not qualify, the assistance is treated as a rebate or reduction of the purchase price and is not included in your basis. Free filing state taxes Employment agency fees. Free filing state taxes   If you get a job through an employment agency, and the fee is paid by your employer, the fee is not includible in your income if you are not liable for it. Free filing state taxes However, if you pay it and your employer reimburses you for it, it is includible in your income. Free filing state taxes Energy conservation subsidies. Free filing state taxes   You can exclude from gross income any subsidy provided, either directly or indirectly, by public utilities for the purchase or installation of an energy conservation measure for a dwelling unit. Free filing state taxes Energy conservation measure. Free filing state taxes   This includes installations or modifications that are primarily designed to reduce consumption of electricity or natural gas, or improve the management of energy demand. Free filing state taxes Dwelling unit. Free filing state taxes   This includes a house, apartment, condominium, mobile home, boat, or similar property. Free filing state taxes If a building or structure contains both dwelling and other units, any subsidy must be properly allocated. Free filing state taxes Estate and trust income. Free filing state taxes    An estate or trust, unlike a partnership, may have to pay federal income tax. Free filing state taxes If you are a beneficiary of an estate or trust, you may be taxed on your share of its income distributed or required to be distributed to you. Free filing state taxes However, there is never a double tax. Free filing state taxes Estates and trusts file their returns on Form 1041, U. Free filing state taxes S. Free filing state taxes Income Tax Return for Estates and Trusts, and your share of the income is reported to you on Schedule K-1 (Form 1041). Free filing state taxes Current income required to be distributed. Free filing state taxes   If you are the beneficiary of an estate or trust that must distribute all of its current income, you must report your share of the distributable net income, whether or not you actually received it. Free filing state taxes Current income not required to be distributed. Free filing state taxes    If you are the beneficiary of an estate or trust and the fiduciary has the choice of whether to distribute all or part of the current income, you must report: All income that is required to be distributed to you, whether or not it is actually distributed, plus All other amounts actually paid or credited to you, up to the amount of your share of distributable net income. Free filing state taxes How to report. Free filing state taxes   Treat each item of income the same way that the estate or trust would treat it. Free filing state taxes For example, if a trust's dividend income is distributed to you, you report the distribution as dividend income on your return. Free filing state taxes The same rule applies to distributions of tax-exempt interest and capital gains. Free filing state taxes   The fiduciary of the estate or trust must tell you the type of items making up your share of the estate or trust income and any credits you are allowed on your individual income tax return. Free filing state taxes Losses. Free filing state taxes   Losses of estates and trusts generally are not deductible by the beneficiaries. Free filing state taxes Grantor trust. Free filing state taxes   Income earned by a grantor trust is taxable to the grantor, not the beneficiary, if the grantor keeps certain control over the trust. Free filing state taxes (The grantor is the one who transferred property to the trust. Free filing state taxes ) This rule applies if the property (or income from the property) put into the trust will or may revert (be returned) to the grantor or the grantor's spouse. Free filing state taxes   Generally, a trust is a grantor trust if the grantor has a reversionary interest valued (at the date of transfer) at more than 5% of the value of the transferred property. Free filing state taxes Expenses paid by another. Free filing state taxes   If your personal expenses are paid for by another person, such as a corporation, the payment may be taxable to you depending upon your relationship with that person and the nature of the payment. Free filing state taxes But if the payment makes up for a loss caused by that person, and only restores you to the position you were in before the loss, the payment is not includible in your income. Free filing state taxes Fees for services. Free filing state taxes   Include all fees for your services in your income. Free filing state taxes Examples of these fees are amounts you receive for services you perform as: A corporate director, An executor, administrator, or personal representative of an estate, A manager of a trade or business you operated before declaring Chapter 11 bankruptcy, A notary public, or An election precinct official. Free filing state taxes Nonemployee compensation. Free filing state taxes   If you are not an employee and the fees for your services from the same payer total $600 or more for the year, you may receive a Form 1099-MISC. Free filing state taxes You may need to report your fees as self-employment income. Free filing state taxes See Self-Employed Persons , in chapter 1, for a discussion of when you are considered self-employed. Free filing state taxes Corporate director. Free filing state taxes   Corporate director fees are self-employment income. Free filing state taxes Report these payments on Schedule C or Schedule C-EZ (Form 1040). Free filing state taxes Personal representatives. Free filing state taxes   All personal representatives must include in their gross income fees paid to them from an estate. Free filing state taxes If you are not in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on Form 1040, line 21. Free filing state taxes If you are in the trade or business of being an executor, report these fees as self-employment income on Schedule C or Schedule C-EZ (Form 1040). Free filing state taxes The fee is not includible in income if it is waived. Free filing state taxes Manager of trade or business for bankruptcy estate. Free filing state taxes   Include in your income all payments received from your bankruptcy estate for managing or operating a trade or business that you operated before you filed for bankruptcy. Free filing state taxes Report this income on Form 1040, line 21. Free filing state taxes Notary public. Free filing state taxes    Report payments for these services on Schedule C or Schedule C-EZ (Form 1040). Free filing state taxes These payments are not subject to self-employment tax. Free filing state taxes See the separate instructions for Schedule SE (Form 1040) for details. Free filing state taxes Election precinct official. Free filing state taxes    You should receive a Form W-2 showing payments for services performed as an election official or election worker. Free filing state taxes Report these payments on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040EZ. Free filing state taxes Foster care providers. Free filing state taxes   Payments you receive from a state, political subdivision, or a qualified foster care placement agency for providing care to qualified foster individuals in your home generally are not included in your income. Free filing state taxes However, you must include in your income payments received for the care of more than 5 individuals age 19 or older and certain difficulty-of-care payments. Free filing state taxes   A qualified foster individual is a person who: Is living in a foster family home, and Was placed there by: An agency of a state or one of its political subdivisions, or A qualified foster care placement agency. Free filing state taxes Difficulty-of-care payments. Free filing state taxes   These are additional payments that are designated by the payer as compensation for providing the additional care that is required for physically, mentally, or emotionally handicapped qualified foster individuals. Free filing state taxes A state must determine that the additional compensation is needed, and the care for which the payments are made must be provided in your home. Free filing state taxes   You must include in your income difficulty-of-care payments received for more than: 10 qualified foster individuals under age 19, or 5 qualified foster individuals age 19 or older. Free filing state taxes Maintaining space in home. Free filing state taxes   If you are paid to maintain space in your home for emergency foster care, you must include the payment in your income. Free filing state taxes Reporting taxable payments. Free filing state taxes    If you receive payments that you must include in your income, you are in business as a foster care provider and you are self-employed. Free filing state taxes Report the payments on Schedule C or Schedule C-EZ (Form 1040). Free filing state taxes See Publication 587, Business Use of Your Home, to help you determine the amount you can deduct for the use of your home. Free filing state taxes Found property. Free filing state taxes   If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession. Free filing state taxes Free tour. Free filing state taxes   If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Free filing state taxes Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. Free filing state taxes You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. Free filing state taxes If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040). Free filing state taxes Gambling winnings. Free filing state taxes   You must include your gambling winnings in income on Form 1040, line 21. Free filing state taxes If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. Free filing state taxes Lotteries and raffles. Free filing state taxes   Winnings from lotteries and raffles are gambling winnings. Free filing state taxes In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses, and other noncash prizes. Free filing state taxes    If you win a state lottery prize payable in installments, see Publication 525 for more information. Free filing state taxes Form W-2G. Free filing state taxes   You may have received a Form W-2G, Certain Gambling Winnings, showing the amount of your gambling winnings and any tax taken out of them. Free filing state taxes Include the amount from box 1 on Form 1040, line 21. Free filing state taxes Include the amount shown in box 4 on Form 1040, line 62, as federal income tax withheld. Free filing state taxes Reporting winnings and recordkeeping. Free filing state taxes   For more information on reporting gam