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 H&r Block Efile

2011 Tax Forms 1040 EzFiling Taxes MilitaryHr Block Tax Returns1040ez Tax FormsH&r BlaockIrs Free File 1040ez1040nr Online FreeIrs Easy FormFree State Tax E-file1040 Ez FormState Income Tax1040 Form2007 Tax FormIrs Amended Tax Form 1040xIrs Gov Irs FormsNj 1040ezHr Block 1040xForm 1040a Instructions 2012EfileTax Act Online 2011H R Block Free FileFree Taxes OnlineFederal Tax Amendment2011 1040ezSenior Tax Filing2011 Taxes FreeTurbotax1040 FormTaxcut Com1040ez 2011Free State Tax SoftwareInstructions For Filing 1040xHr Block 2010 DownloadEz1040Amended Tax OnlineH&r Block State TaxesFree Federal And State Tax Return1040ez Form 2013 InstructionsStudent Tax FilingSelf Employment Tax Form

Free H&r Block Efile

Free h&r block efile 3. Free h&r block efile   Credit for Withholding and Estimated Tax for 2013 Table of Contents Introduction Topics - This chapter discusses: WithholdingForm W-2 Form W-2G The 1099 Series Form Not Correct Form Received After Filing Separate Returns Fiscal Years (FY) Estimated TaxSeparate Returns Divorced Taxpayers Excess Social Security or Railroad Retirement Tax WithholdingJoint returns. Free h&r block efile Worksheet for Nonrailroad Employees Worksheets for Railroad Employees Introduction When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Free h&r block efile Also take credit for the estimated tax you paid for 2013. Free h&r block efile These credits are subtracted from your total tax. Free h&r block efile Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Free h&r block efile If the total of your withholding and your estimated tax payments for any payment period is less than the amount you needed to pay by the due date for that period, you may be charged a penalty, even if the total of these credits is more than your tax for the year. Free h&r block efile Topics - This chapter discusses: How to take credit for withholding, How to take credit for estimated taxes you paid, and How to take credit for excess social security, Medicare, or railroad retirement tax withholding. Free h&r block efile Withholding If you had income tax withheld during 2013, you generally should be sent a statement by January 31, 2014, showing your income and the tax withheld. Free h&r block efile Depending on the source of your income, you will receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Free h&r block efile Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Free h&r block efile You should receive a separate Form W-2 from each employer you worked for. Free h&r block efile If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Free h&r block efile However, your employer must provide or send it to you by January 31, 2014. Free h&r block efile If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Free h&r block efile If you have not received your Form W-2 by January 31, contact your employer or payer to request a copy. Free h&r block efile If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Free h&r block efile The phone number for the IRS is listed in chapter 5. Free h&r block efile You will be asked for the following information. Free h&r block efile Your name, address, city and state, zip code, and social security number. Free h&r block efile Your employer's name, address, city, state, zip code, and the employer's identification number (if known). Free h&r block efile An estimate of the wages you earned, the federal income tax withheld, and the period you worked for that employer. Free h&r block efile The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible. Free h&r block efile Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Free h&r block efile Total the federal income tax withheld (shown in box 2 of all Forms W-2 received) and enter that amount on the appropriate line of your tax return. Free h&r block efile In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Free h&r block efile Your sick pay may be combined with other wages in one Form W-2 or you may receive a separate Form W-2 for sick pay. Free h&r block efile If you file a paper tax return, attach Copy B of Form W-2 to your return. Free h&r block efile Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Free h&r block efile If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Free h&r block efile Report the amounts you won on line 21 of Form 1040. Free h&r block efile Take credit for the tax withheld on line 62 of Form 1040. Free h&r block efile If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Free h&r block efile Gambling losses can be deducted on Schedule A (Form 1040) as a miscellaneous itemized deduction. Free h&r block efile However, you cannot deduct more than the gambling winnings you report on Form 1040. Free h&r block efile File Form W-2G with your income tax return only if it shows any federal income tax withheld in box 2. Free h&r block efile The 1099 Series Most forms in the 1099 series are not filed with your return. Free h&r block efile In general, these forms should be furnished to you by January 31, 2014. Free h&r block efile Unless instructed to file any of these forms with your return, keep them for your records. Free h&r block efile There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-C, Cancellation of Debt; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third-Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received From Cooperatives; Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530); Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free h&r block efile ; Form SSA-1099, Social Security Benefit Statement; and Form RRB-1099, Payments by the Railroad Retirement Board. Free h&r block efile If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Free h&r block efile See the instructions to these forms for details. Free h&r block efile Reporting your withholding. Free h&r block efile   Report on your tax return all federal income tax withholding shown on your Form 1099, Form SSA-1099, and/or Form RRB-1099. Free h&r block efile Include the amount withheld in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Free h&r block efile Form 1099-R. Free h&r block efile   Attach Form 1099-R to your paper return if federal income tax withholding is shown in box 4. Free h&r block efile Do not attach any other Form 1099. Free h&r block efile Form Not Correct If you receive a form with incorrect information, you should ask the payer for a corrected form. Free h&r block efile Call the telephone number or write to the address given for the payer on the form. Free h&r block efile The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Free h&r block efile A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Free h&r block efile In certain situations, you will receive two forms in place of the original incorrect form. Free h&r block efile This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Free h&r block efile One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Free h&r block efile This form will have an “X” in the “CORRECTED” box at the top of the form. Free h&r block efile The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Free h&r block efile Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Free h&r block efile S. Free h&r block efile Individual Income Tax Return. Free h&r block efile Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Free h&r block efile Do not include any amount withheld from your spouse's income. Free h&r block efile However, different rules may apply if you live in a community property state. Free h&r block efile Community property states. Free h&r block efile   The following are community property states. Free h&r block efile Arizona. Free h&r block efile California. Free h&r block efile Idaho. Free h&r block efile Louisiana. Free h&r block efile Nevada. Free h&r block efile New Mexico. Free h&r block efile Texas. Free h&r block efile Washington. Free h&r block efile Wisconsin. Free h&r block efile Generally, if you live in a community property state and file a separate return, you and your spouse each must report half of all community income in addition to your own separate income. Free h&r block efile If you are required to report half of all community income, you are entitled to take credit for half of all taxes withheld on the community income. Free h&r block efile If you were divorced during the year, each of you generally must report half the community income and can take credit for half the withholding on that community income for the period before the divorce. Free h&r block efile   For more information on these rules, and some exceptions, see Publication 555, Community Property. Free h&r block efile Fiscal Years (FY) If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules, described below, to determine your credit for federal income tax withholding. Free h&r block efile Fiscal year withholding. Free h&r block efile    You can claim credit on your tax return only for the tax withheld during the calendar year (CY) ending within your fiscal year. Free h&r block efile You cannot claim credit for any of the tax withheld during the calendar year beginning in your fiscal year. Free h&r block efile You will be able to claim credit for that withholding on your return for your next fiscal year. Free h&r block efile   The Form W-2 or 1099 you receive for the calendar year that ends during your fiscal year will show the tax withheld and the income you received during that calendar year. Free h&r block efile   Although you take credit for all the withheld tax shown on the form, report only the part of the income shown on the form that you received during your fiscal year. Free h&r block efile Add to that the income you received during the rest of your fiscal year. Free h&r block efile Example. Free h&r block efile Miles Hanson files his return for a fiscal year ending June 30, 2013. Free h&r block efile In January 2013, he received a Form W-2 that showed that his wages for 2012 were $31,200 and that his income tax withheld was $3,380. Free h&r block efile His records show that he had received $15,000 of the wages by June 30, 2012, and $16,200 from July 1 through December 31, 2012. Free h&r block efile See Table 3-1 . Free h&r block efile On his return for the fiscal year ending June 30, 2013, Miles will report the $16,200 he was paid in July through December of 2012, plus the $18,850 he was paid during the rest of the fiscal year, January 1, 2013, through June 30, 2013. Free h&r block efile However, he takes credit for all $3,380 that was withheld during 2012. Free h&r block efile On his return for the fiscal year ending June 30, 2012, he reported the $15,000 he was paid in January through June 2012, but took no credit for the tax withheld during that time. Free h&r block efile On his return for the fiscal year ending June 30, 2014, he will take the credit for any tax withheld during 2013 but not for any tax withheld during 2014. Free h&r block efile Table 3-1. Free h&r block efile Example for Fiscal Year Ending June 30, 2013—Miles Hanson Date Form W-2 Miles' records Tax return for FY ending 6/30/20121 Tax return for FY ending 6/30/2013 Wages With- holding Wages With- holding Wages With- holding Wages With- holding CY 20122 $31,200 $3,380             1/1/2012 –  6/30/2012     $15,000 $1,600 $15,000       7/1/2012 –  12/31/2012     $16,200 $1,780     $16,200 $3,380 CY 2013 $37,700 $4,316 3             1/1/2013 –  6/30/2013     $18,850 $2,158     $18,850   7/1/2013 –  12/31/2013     $18,850 4 $2,158         1Miles' tax return for FY ending 6/30/2012 also included his wages for 7/1–12/31/2011 and the withholding shown on his 2011 Form W-2. Free h&r block efile  2Calendar year (January 1 – December 31). Free h&r block efile   3Withholding shown on 2013 Form W-2 ($4,316) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which calendar year 2013 ends. Free h&r block efile   4Wages for 7/1–12/31/2013 ($18,850) will be included in Miles' tax return for FY ending 6/30/2014, the fiscal year in which the wages were received. Free h&r block efile Backup withholding. Free h&r block efile   If income tax has been withheld under the backup withholding rule, take credit for it on your tax return for the fiscal year in which you received the income. Free h&r block efile Example. Free h&r block efile Emily Smith's records show that she received income in November 2013 and February 2014 from which there was backup withholding ($100 and $50, respectively). Free h&r block efile Emily takes credit for the entire $150 of backup withholding on her tax return for the fiscal year ending September 30, 2014. Free h&r block efile Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Free h&r block efile Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Free h&r block efile You must use Form 1040 or Form 1040A if you paid estimated tax. Free h&r block efile You cannot file Form 1040EZ. Free h&r block efile If you were a beneficiary of an estate or trust, you should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Free h&r block efile , from the fiduciary. Free h&r block efile If you have estimated taxes credited to you from the estate or trust (from Schedule K-1 (Form 1041)), you must report the estimated taxes on Schedule E (Form 1040). Free h&r block efile On the dotted line next to the entry space for line 37 of Schedule E (Form 1040), enter “ES payment claimed” and the amount. Free h&r block efile However, do not include this amount in the total on line 37. Free h&r block efile Instead, enter the amount on Form 1040, line 63. Free h&r block efile This estimated tax payment for 2013 is treated as being made by you on January 15, 2014. Free h&r block efile Name changed. Free h&r block efile   If you changed your name, and you made estimated tax payments using your former name, attach a statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and The social security number under which you made the payments. Free h&r block efile  The statement should cover payments you made jointly with your spouse as well as any you made separately. Free h&r block efile   Be sure to report the change to your local Social Security Administration office before filing your 2014 tax return. Free h&r block efile This prevents delays in processing your return and issuing refunds. Free h&r block efile It also safeguards your future social security benefits. Free h&r block efile For more information, call the Social Security Administration at 1-800-772-1213. Free h&r block efile Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Free h&r block efile If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Free h&r block efile One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Free h&r block efile If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free h&r block efile Example. Free h&r block efile James and Evelyn Brown made joint estimated tax payments for 2013 totaling $3,000. Free h&r block efile They file separate 2013 Forms 1040. Free h&r block efile James' tax is $4,000 and Evelyn's is $1,000. Free h&r block efile If they do not agree on how to divide the $3,000, they must divide it proportionately between their returns. Free h&r block efile Because James' tax ($4,000) is 80% of the total tax ($5,000), his share of the estimated tax is $2,400 (80% of $3,000). Free h&r block efile The balance, $600 (20% of $3,000), is Evelyn's share. Free h&r block efile Divorced Taxpayers If you made joint estimated tax payments for 2013 and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Free h&r block efile If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free h&r block efile See Example earlier under Separate Returns. Free h&r block efile If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided at the top of page 1 of Form 1040 or Form 1040A. Free h&r block efile If you divorced and remarried in 2013, enter your present spouse's SSN in that space. Free h&r block efile Enter your former spouse's SSN, followed by “DIV,” under Payments to the left of Form 1040, line 63, or in the blank space to the left of Form 1040A, line 37. Free h&r block efile Excess Social Security or Railroad Retirement Tax Withholding Most employers must withhold social security tax from your wages. Free h&r block efile In some cases, however, the federal government and state and local governments do not have to withhold social security tax from their employees' wages. Free h&r block efile If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Free h&r block efile Two or more employers. Free h&r block efile   If you worked for two or more employers in 2013, too much social security tax or tier 1 RRTA tax may have been withheld from your pay. Free h&r block efile You may be able to claim the excess as a credit against your income tax when you file your return. Free h&r block efile Table 3-2 shows the maximum amount that should have been withheld for any of these taxes for 2013. Free h&r block efile Figure the excess withholding on the appropriate worksheet. Free h&r block efile    Table 3-2. Free h&r block efile Maximum Social Security and RRTA Withholding for 2013 Type of tax Maximum wages subject to tax Tax rate Maximum tax to be withheld Social security $113,700 6. Free h&r block efile 2% $7,049. Free h&r block efile 40 Tier 1 RRTA $113,700 6. Free h&r block efile 2% $7,049. Free h&r block efile 40 Tier 2 RRTA $84,300 4. Free h&r block efile 4% $3,709. Free h&r block efile 20 Joint returns. Free h&r block efile   If you are filing a joint return, you and your spouse must figure any excess social security or tier 1 RRTA separately. Free h&r block efile Note. Free h&r block efile All wages are subject to Medicare tax withholding. Free h&r block efile Employer's error. Free h&r block efile   If you had only one employer and he or she withheld too much social security, Medicare, or tier 1 RRTA tax, ask the employer to refund the excess amount to you. Free h&r block efile If the employer refuses to refund the overcollection, ask for a statement indicating the amount of the overcollection to support your claim. Free h&r block efile File a claim for refund using Form 843, Claim for Refund and Request for Abatement. Free h&r block efile Worksheet for Nonrailroad Employees If you did not work for a railroad during 2013, figure the excess social security withholding on Worksheet 3-1. Free h&r block efile Note. Free h&r block efile If you worked for both a railroad employer and a nonrailroad employer, use Worksheet 3-2, to figure excess social security and tier 1 RRTA tax. Free h&r block efile Where to claim credit for excess social security withholding. Free h&r block efile   If you file Form 1040, enter the excess on line 69. Free h&r block efile   If you file Form 1040A, include the excess in the total on line 41. Free h&r block efile Write “Excess SST” and show the amount of the credit in the space to the left of the line. Free h&r block efile   You cannot claim excess social security tax withholding on Form 1040EZ. Free h&r block efile Worksheets for Railroad Employees If you worked for a railroad during 2013, figure your excess withholding on Worksheet 3-2 and 3-3, as appropriate. Free h&r block efile Where to claim credit for excess tier 1 RRTA withholding. Free h&r block efile   If you file Form 1040, enter the excess on line 69. Free h&r block efile   If you file Form 1040A, include the excess in the total on line 41. Free h&r block efile Write “Excess SST” and show the amount of the credit in the space to the left of the line. Free h&r block efile   You cannot claim excess tier 1 RRTA withholding on Form 1040EZ. Free h&r block efile How to claim refund of excess tier 2 RRTA. Free h&r block efile   To claim a refund of tier 2 tax, use Form 843. Free h&r block efile Be sure to attach a copy of all of your Forms W-2. Free h&r block efile   See Worksheet 3-3 and the Instructions for Form 843, for more details. Free h&r block efile Worksheet 3-1. Free h&r block efile Excess Social Security—Nonrailroad Employees 1. Free h&r block efile Add all social security tax withheld (but not more than  $7,049. Free h&r block efile 40 for each employer). Free h&r block efile This tax should be shown  in box 4 of your Forms W-2. Free h&r block efile Enter the total here 1. Free h&r block efile   2. Free h&r block efile Enter any uncollected social security tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Free h&r block efile   3. Free h&r block efile Add lines 1 and 2. Free h&r block efile If $7,049. Free h&r block efile 40 or less, stop here. Free h&r block efile You cannot claim the credit 3. Free h&r block efile   4. Free h&r block efile Social security limit 4. Free h&r block efile $7,049. Free h&r block efile 40 5. Free h&r block efile Excess. Free h&r block efile Subtract line 4 from line 3 5. Free h&r block efile   Worksheet 3-2. Free h&r block efile Excess Social Security and Tier 1 RRTA—Railroad Employees 1. Free h&r block efile Add all social security and tier 1 RRTA tax withheld (but not more than $7,049. Free h&r block efile 40 for each employer). Free h&r block efile Social security tax should be shown in box 4 and tier 1 RRTA should be shown  in box 14 of your Forms W-2. Free h&r block efile Enter the total here 1. Free h&r block efile   2. Free h&r block efile Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Free h&r block efile   3. Free h&r block efile Add lines 1 and 2. Free h&r block efile If $7,049. Free h&r block efile 40 or less, stop here. Free h&r block efile You cannot claim the credit 3. Free h&r block efile   4. Free h&r block efile Social security and tier 1 RRTA tax limit 4. Free h&r block efile $7,049. Free h&r block efile 40 5. Free h&r block efile Excess. Free h&r block efile Subtract line 4 from line 3 5. Free h&r block efile   Worksheet 3-3. Free h&r block efile Excess Tier 2 RRTA—Railroad Employees 1. Free h&r block efile Add all tier 2 RRTA tax withheld (but not more than $3,709. Free h&r block efile 20 for each employer). Free h&r block efile Box 14 of your Forms W-2 should show tier 2 RRTA tax. Free h&r block efile Enter the total here 1. Free h&r block efile   2. Free h&r block efile Enter any uncollected tier 2 RRTA tax on tips or group-term life insurance on Form 1040, line 60, identified by “UT” 2. Free h&r block efile   3. Free h&r block efile Add lines 1 and 2. Free h&r block efile If $3,709. Free h&r block efile 20 or less, stop here. Free h&r block efile You cannot claim the credit. Free h&r block efile 3. Free h&r block efile   4. Free h&r block efile Tier 2 RRTA tax limit 4. Free h&r block efile $3,709. Free h&r block efile 20 5. Free h&r block efile Excess. Free h&r block efile Subtract line 4 from line 3. Free h&r block efile 5. Free h&r block efile   Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP05A Notice

We are examining your return and we need documentation to verify the following:

  • Your income
  • The withholding you reported on your income and social security benefits
  • The tax credits you claimed
  • The household help you claimed
  • Your business income.

We are holding your refund pending the results of the examination.


What you need to do

  • Read the notice carefully. It explains the information you must send to us.
  • Provide copies of the documentation we request to verify the items that we are auditing.
  • Tear off the voucher on the last page of this notice and attach it to the documents you are submitting.
  • Send the requested information within 30 days from the date of this notice to the address shown on the notice.

You may want to

  • Review this notice with your tax preparer.
  • If you are experiencing economic harm, believe an IRS system or procedure isn’t working as it should, or are seeking help in resolving tax problems that have not been resolved through normal channels, you may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach them at 1-877-777-4778 or TTY/TTD 1-800-829-4059.

Answers to Common Questions

Why is my return being reviewed?
While most returns are accepted as filed, some are selected for examination. The IRS examines some federal tax returns to determine if income, expenses, and credits are being reported accurately. The IRS selects returns for examination using various methods which include random sampling, computerized screening, and comparison of information received by the IRS such as Forms W-2 and 1099. Having your return selected for examination does not suggest that you made an error or were dishonest.

What if I did not file a tax return claiming the items you are questioning and someone else is using my name and social security number?
Send us a completed and signed Form 14039, Identity Theft Affidavit. You can download this form online at www.irs.gov. You can also refer to the IRS Identity Theft resource page for more information.


Tips for next year

  • Review all of your income and withholding documents for completeness and review your return to make sure you are eligible to claim all income, credits and business income that you reported
Page Last Reviewed or Updated: 19-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free H&r Block Efile

Free h&r block efile 1. Free h&r block efile   Scholarships, Fellowships, Grants, and Tuition Reductions Table of Contents Reminder Introduction Scholarships and FellowshipsTax-Free Scholarships and Fellowships Taxable Scholarships and Fellowships Reporting Scholarships and Fellowships Other Types of Educational AssistanceFulbright Grants Pell Grants and Other Title IV Need-Based Education Grants Payment to Service Academy Cadets Veterans' Benefits Qualified Tuition Reduction Reminder Individual retirement arrangements (IRAs). Free h&r block efile  You can set up and make contributions to an IRA if you receive taxable compensation. Free h&r block efile Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. Free h&r block efile For more information about IRAs, see Publication 590. Free h&r block efile Introduction This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. Free h&r block efile The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. Free h&r block efile Included are discussions of: Scholarships, Fellowships, Need-based education grants, such as a Pell Grant, and Qualified tuition reductions. Free h&r block efile Many types of educational assistance are tax free if they meet the requirements discussed here. Free h&r block efile Special rules apply to U. Free h&r block efile S. Free h&r block efile citizens and resident aliens who have received scholarships or fellowships for studying, teaching, or researching abroad. Free h&r block efile For information about these rules, see Publication 54, Tax Guide for U. Free h&r block efile S. Free h&r block efile Citizens and Resident Aliens Abroad. Free h&r block efile Scholarships and Fellowships A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. Free h&r block efile A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. Free h&r block efile Amount of scholarship or fellowship. Free h&r block efile   The amount of a scholarship or fellowship includes the following: The value of contributed services and accommodations. Free h&r block efile This includes such services and accommodations as room (lodging), board (meals), laundry service, and similar services or accommodations that are received by an individual as a part of a scholarship or fellowship. Free h&r block efile The amount of tuition, matriculation, and other fees that are paid or remitted to the student to aid the student in pursuing study or research. Free h&r block efile Any amount received in the nature of a family allowance as a part of a scholarship or fellowship. Free h&r block efile Tax-Free Scholarships and Fellowships A scholarship or fellowship is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. Free h&r block efile A scholarship or fellowship is tax free only to the extent: It does not exceed your expenses; It is not designated or earmarked for other purposes (such as room and board), and does not require (by its terms) that it cannot be used for qualified education expenses; and It does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship. Free h&r block efile (But for exceptions, see Payment for services,later. Free h&r block efile Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income. Free h&r block efile Candidate for a degree. Free h&r block efile   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an educational institution that: Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency. Free h&r block efile Eligible educational institution. Free h&r block efile   An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Free h&r block efile Qualified education expenses. Free h&r block efile   For purposes of tax-free scholarships and fellowships, these are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Free h&r block efile These items must be required of all students in your course of instruction. Free h&r block efile Expenses that do not qualify. Free h&r block efile   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Free h&r block efile Payment for services. Free h&r block efile   Generally, you cannot exclude from your gross income the part of any scholarship or fellowship that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. Free h&r block efile This applies even if all candidates for a degree must perform the services to receive the degree. Free h&r block efile (See exceptions next. Free h&r block efile ) Exceptions. Free h&r block efile   You do not have to treat as payment for services the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Free h&r block efile Example 1. Free h&r block efile You received a scholarship of $2,500. Free h&r block efile The scholarship was not received under either of the exceptions mentioned above. Free h&r block efile As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. Free h&r block efile Of the $2,500 scholarship, $1,000 represents payment for teaching. Free h&r block efile The provider of your scholarship gives you a Form W-2 showing $1,000 as income. Free h&r block efile Your qualified education expenses were at least $1,500. Free h&r block efile Assuming that all other conditions are met, $1,500 of your scholarship is tax free. Free h&r block efile The $1,000 you received for teaching is taxable. Free h&r block efile Example 2. Free h&r block efile You are a candidate for a degree at a medical school. Free h&r block efile You receive a scholarship (not under either of the exceptions mentioned above) for your medical education and training. Free h&r block efile The terms of your scholarship require you to perform future services. Free h&r block efile A substantial penalty applies if you do not comply. Free h&r block efile The entire amount of your grant is taxable as payment for services in the year it is received. Free h&r block efile Athletic Scholarships An athletic scholarship is tax free only if and to the extent it meets the requirements discussed later. Free h&r block efile Worksheet 1-1. Free h&r block efile    You can use Worksheet 1-1, Taxable Scholarship and Fellowship Income , later, to figure the tax-free and taxable parts of your athletic scholarship. Free h&r block efile    Worksheet 1-1. Free h&r block efile Taxable Scholarship and Fellowship Income 1. Free h&r block efile Enter the total amount of any scholarship or fellowship for 2013. Free h&r block efile See Amount of scholarship or fellowship, earlier. Free h&r block efile 1. Free h&r block efile       If you are a degree candidate at an eligible educational institution, go to line 2. Free h&r block efile If you are not a degree candidate at an eligible educational institution, stop here. Free h&r block efile The entire amount is taxable. Free h&r block efile For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowships , earlier, in this chapter. Free h&r block efile       2. Free h&r block efile Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. Free h&r block efile (Do not include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. Free h&r block efile ) 2. Free h&r block efile     3. Free h&r block efile Subtract line 2 from line 1 3. Free h&r block efile     4. Free h&r block efile Enter the amount from line 3 that your scholarship or fellowship required you to use for other than qualified education expenses 4. Free h&r block efile     5. Free h&r block efile Subtract line 4 from line 3 5. Free h&r block efile     6. Free h&r block efile Enter the amount of your qualified education expenses 6. Free h&r block efile     7. Free h&r block efile Enter the smaller of line 5 or line 6. Free h&r block efile This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship) 7. Free h&r block efile     8. Free h&r block efile Subtract line 7 from line 5 8. Free h&r block efile     9. Free h&r block efile Taxable part. Free h&r block efile Add lines 2, 4, and 8. Free h&r block efile See Reporting Scholarships and Fellowships , earlier, for how to report this amount on your tax return 9. Free h&r block efile     Taxable Scholarships and Fellowships If and to the extent your scholarship or fellowship does not meet the requirements described earlier, it is taxable and must be included in gross income. Free h&r block efile You can use Worksheet 1–1, Taxable Scholarship and Fellowship Income, later, to figure the tax-free and taxable parts of your scholarship or fellowship. Free h&r block efile Reporting Scholarships and Fellowships Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable. Free h&r block efile If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary. Free h&r block efile If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount as explained below. Free h&r block efile You must report the taxable amount whether or not you received a Form W-2. Free h&r block efile If you receive an incorrect Form W-2, ask the payer for a corrected one. Free h&r block efile For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions. Free h&r block efile How To Report How you report any taxable scholarship or fellowship income depends on which return you file. Free h&r block efile Form 1040EZ. Free h&r block efile   If you file Form 1040EZ, include the taxable amount in the total on line 1. Free h&r block efile If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1. Free h&r block efile Form 1040A. Free h&r block efile   If you file Form 1040A, include the taxable amount in the total on line 7. Free h&r block efile If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7. Free h&r block efile Form 1040. Free h&r block efile   If you file Form 1040, include the taxable amount in the total on line 7. Free h&r block efile If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. Free h&r block efile Schedule SE (Form 1040). Free h&r block efile   To determine your net earnings from self-employment, include amounts you receive under a scholarship as pay for your services that are reported to you on Form 1099-MISC, Miscellaneous Income. Free h&r block efile If your net earnings are $400 or more, you must pay self-employment tax. Free h&r block efile Use Schedule SE, Self-Employment Tax, to figure this tax. Free h&r block efile Form 1040NR. Free h&r block efile   If you file Form 1040NR, report the taxable amount on line 12. Free h&r block efile Generally, you must report the amount shown in box 2 of Form(s) 1042-S, Foreign Person's U. Free h&r block efile S. Free h&r block efile Source Income Subject to Withholding. Free h&r block efile See the Instructions for Form 1040NR for more information. Free h&r block efile Form 1040NR-EZ. Free h&r block efile   If you file Form 1040NR-EZ, report the taxable amount on line 5. Free h&r block efile Generally, you must report the amount shown in box 2 of Form(s) 1042-S. Free h&r block efile See the Instructions for Form 1040NR-EZ for more information. Free h&r block efile Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. Free h&r block efile Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship in figuring how much of the grant is tax free. Free h&r block efile Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. Free h&r block efile They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. Free h&r block efile Payment to Service Academy Cadets An appointment to a United States military academy is not a scholarship or fellowship. Free h&r block efile Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. Free h&r block efile Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies. Free h&r block efile Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Free h&r block efile Do not include these payments as income on your federal tax return. Free h&r block efile If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific benefit by part or all of your VA payments. Free h&r block efile This applies only to the part of your VA payments that is required to be used for education expenses. Free h&r block efile You may want to visit the Veteran's Administration website at www. Free h&r block efile gibill. Free h&r block efile va. Free h&r block efile gov for specific information about the various VA benefits for education. Free h&r block efile Example. Free h&r block efile You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. Free h&r block efile Neither of these benefits is taxable and you do not report them on your tax return. Free h&r block efile You also want to claim an American opportunity credit on your return. Free h&r block efile You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit , later). Free h&r block efile To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. Free h&r block efile You do not subtract any amount of the BHA because it was paid to you and its use was not restricted. Free h&r block efile Qualified Tuition Reduction If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. Free h&r block efile This is called a “tuition reduction. Free h&r block efile ” You do not have to include a qualified tuition reduction in your income. Free h&r block efile A tuition reduction is qualified only if you receive it from, and use it at, an eligible educational institution. Free h&r block efile You do not have to use the tuition reduction at the eligible educational institution from which you received it. Free h&r block efile In other words, if you work for an eligible educational institution and the institution arranges for you to take courses at another eligible educational institution without paying any tuition, you may not have to include the value of the free courses in your income. Free h&r block efile The rules for determining if a tuition reduction is qualified, and therefore tax free, are different if the education provided is below the graduate level or is graduate education. Free h&r block efile You must include in your income any tuition reduction you receive that is payment for your services. Free h&r block efile Eligible educational institution. Free h&r block efile   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Free h&r block efile Officers, owners, and highly compensated employees. Free h&r block efile   Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. Free h&r block efile This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees. Free h&r block efile The group must be defined under a reasonable classification set up by the employer. Free h&r block efile The classification must not discriminate in favor of owners, officers, or highly compensated employees. Free h&r block efile Payment for services. Free h&r block efile   Generally, you must include in income the part of any qualified tuition reduction that represents payment for teaching, research, or other services by the student required as a condition of receiving the qualified tuition reduction. Free h&r block efile This applies even if all candidates for a degree must perform the services to receive the degree. Free h&r block efile (See below for exceptions. Free h&r block efile ) Exceptions. Free h&r block efile   You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Free h&r block efile Education Below the Graduate Level If you receive a tuition reduction for education below the graduate level (including primary, secondary, or high school), it is a qualified tuition reduction, and therefore tax free, only if your relationship to the educational institution providing the benefit is described below. Free h&r block efile You are an employee of the eligible educational institution. Free h&r block efile You were an employee of the eligible educational institution, but you retired or left on disability. Free h&r block efile You are a widow or widower of an individual who died while an employee of the eligible educational institution or who retired or left on disability. Free h&r block efile You are the dependent child or spouse of an individual described in (1) through (3), above. Free h&r block efile Child of deceased parents. Free h&r block efile   For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. Free h&r block efile Child of divorced parents. Free h&r block efile   For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. Free h&r block efile Graduate Education A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. Free h&r block efile It is provided by an eligible educational institution. Free h&r block efile You are a graduate student who performs teaching or research activities for the educational institution. Free h&r block efile You must include in income any other tuition reductions for graduate education that you receive. Free h&r block efile How To Report Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. Free h&r block efile Report the amount from Form W-2, box 1, on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Free h&r block efile Prev  Up  Next   Home   More Online Publications