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Free State Tax Online Filing

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Free State Tax Online Filing

Free state tax online filing Index A Abroad, citizens living, filing requirements, U. Free state tax online filing S. Free state tax online filing Citizens or Resident Aliens Living Abroad Absence, temporary, Temporary absences. Free state tax online filing , Temporary absences. Free state tax online filing , Temporary absences. Free state tax online filing Accounting periods, joint returns, Accounting period. Free state tax online filing Adopted child, Exception for adopted child. Free state tax online filing , Adopted child. Free state tax online filing , Adopted child. Free state tax online filing Taxpayer identification number, Taxpayer identification numbers for adoptees. Free state tax online filing Age Filing status determination, Age. Free state tax online filing Gross income and filing requirements (Table 1), Table 1. Free state tax online filing 2013 Filing Requirements Chart for Most Taxpayers Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Test, Age Test Aliens Dual-status (see Dual-status taxpayers) Nonresident (see Nonresident aliens) Alimony, Alimony. Free state tax online filing Alternative minimum tax (AMT), effect on filing requirements (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Amended returns, Joint Return After Separate Returns, Changing your mind. Free state tax online filing (see also Form 1040X) Change from itemized to standard deduction (or vice versa), Electing to itemize for state tax or other purposes. Free state tax online filing American citizens abroad, U. Free state tax online filing S. Free state tax online filing Citizens or Resident Aliens Living Abroad Annulled marriages, filing status, Annulled marriages. Free state tax online filing Armed forces Combat zone, signing return for spouse, Spouse in combat zone. Free state tax online filing Dependency allotments, Armed Forces dependency allotments. Free state tax online filing GI Bill benefits, Tuition payments and allowances under the GI Bill. Free state tax online filing Military quarters allotments, Tax-exempt military quarters allowances. Free state tax online filing Assistance (see Tax help) ATINs (Adoption taxpayer identification numbers), Taxpayer identification numbers for adoptees. Free state tax online filing B Birth of child, Death or birth. Free state tax online filing Blind persons, standard deduction, Higher Standard Deduction for Blindness C Canada, resident of, U. Free state tax online filing S. Free state tax online filing citizen or resident alien. Free state tax online filing , Citizen or Resident Test, Child in Canada or Mexico. Free state tax online filing Capital expenses, Capital expenses. Free state tax online filing Child born alive, Child born alive. Free state tax online filing Child care expenses, Child care expenses. Free state tax online filing Child custody, Custodial parent and noncustodial parent. Free state tax online filing Child support under pre-1985 agreement, Child support under pre-1985 agreement. Free state tax online filing Child tax credit, Child tax credit. Free state tax online filing Child, qualifying, Qualifying Child Children Adopted child (see Adoption) Adoption (see Adopted child) Birth of child, Death or birth. Free state tax online filing , Death or birth. Free state tax online filing Claiming parent, when child is head of household, Special rule for parent. Free state tax online filing Custody of, Custodial parent and noncustodial parent. Free state tax online filing Death of child, Death or birth. Free state tax online filing , Death or birth. Free state tax online filing Dividends of, Unearned income. Free state tax online filing Filing requirements as dependents (Table 2), Table 2. Free state tax online filing 2013 Filing Requirements for Dependents Investment income of child under age 18, Table 2. Free state tax online filing 2013 Filing Requirements for Dependents , Unearned income. Free state tax online filing Kidnapped, Kidnapped child. Free state tax online filing , Kidnapped child. Free state tax online filing Social security number, Social Security Numbers for Dependents Stillborn, Stillborn child. Free state tax online filing Church employees, filing requirements (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Citizen or resident test, Citizen or Resident Test Citizens outside U. Free state tax online filing S. Free state tax online filing , filing requirements, U. Free state tax online filing S. Free state tax online filing Citizens or Resident Aliens Living Abroad Common law marriage, Considered married. Free state tax online filing Community property states, Community property states. Free state tax online filing Cousin, Cousin. Free state tax online filing Custody of child, Custodial parent and noncustodial parent. Free state tax online filing D Death Of child, Death or birth of child. Free state tax online filing Of dependent, Death or birth. Free state tax online filing , Death or birth. Free state tax online filing Of spouse, Spouse died during the year. Free state tax online filing , Spouse died. Free state tax online filing , Spouse died before signing. Free state tax online filing , Death of spouse. Free state tax online filing Decedents, Spouse died during the year. Free state tax online filing , Decedent's final return. Free state tax online filing (see also Death of spouse) Filing requirements, Deceased Persons Deductions Personal exemption, Personal Exemptions Standard deduction, Standard Deduction Dependent taxpayer test, Dependent Taxpayer Test Dependents Birth of, Death or birth. Free state tax online filing Born and died within year, Born and died in 2013. Free state tax online filing Child's earnings, Child's earnings. Free state tax online filing Death of, Death or birth. Free state tax online filing Earned income, Earned income. Free state tax online filing Exemption for, Exemptions for Dependents Filing requirements, Table 2. Free state tax online filing 2013 Filing Requirements for Dependents , Dependents Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Not allowed to claim dependents, Dependent Taxpayer Test Qualifying child, Qualifying Child Qualifying relative, Qualifying Relative Social security number, Social Security Numbers for Dependents, Taxpayer identification numbers for adoptees. Free state tax online filing Standard deduction for, Standard Deduction for Dependents Unearned income, Unearned income. Free state tax online filing Disabled Child, Permanently and totally disabled. Free state tax online filing Dependent, Disabled dependent working at sheltered workshop. Free state tax online filing Divorced parents, Children of divorced or separated parents (or parents who live apart). Free state tax online filing Divorced taxpayers Child custody, Custodial parent and noncustodial parent. Free state tax online filing Filing status, Divorced persons. Free state tax online filing , Divorce and remarriage. Free state tax online filing , Divorced persons. Free state tax online filing Joint returns, responsibility for, Divorced taxpayer. Free state tax online filing Personal exemption, Divorced or separated spouse. Free state tax online filing Domestic help, no exemption for, Housekeepers, maids, or servants. Free state tax online filing Dual-status taxpayers Exemptions, Dual-status taxpayers. Free state tax online filing Joint returns not available, Nonresident alien or dual-status alien. Free state tax online filing E Earned income Defined for purposes of standard deduction, Earned income defined. Free state tax online filing Dependent filing requirements (Table 2), Table 2. Free state tax online filing 2013 Filing Requirements for Dependents Earned income credit Two persons with same qualifying child, Special Rule for Qualifying Child of More Than One Person Elderly persons Home for the aged, Home for the aged. Free state tax online filing Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Equitable relief, Innocent spouse, Relief from joint responsibility. Free state tax online filing Exemptions, Exemptions, Taxpayer identification numbers for adoptees. Free state tax online filing Dependents, Exemptions for Dependents Personal (see Personal exemption) F Fair rental value, Fair rental value defined. Free state tax online filing Figures (see Tables and figures) Filing requirements, Who Must File, Filing Status Filing status, Filing Status, Qualifying Widow(er) With Dependent Child Annulled marriages, Annulled marriages. Free state tax online filing Change to Joint return after separate returns, Joint Return After Separate Returns Separate returns after joint return, Separate Returns After Joint Return, Kidnapped child. Free state tax online filing Determination of, Filing status. Free state tax online filing , Filing Status Head of household, Head of household or qualifying widow(er) with dependent child. Free state tax online filing , Head of Household Marital status, determination of, Marital Status Married filing jointly (see Joint returns) Married filing separately (see Married filing separately) Unmarried persons (see Single taxpayers) Food benefits, Support provided by the state (welfare, food benefits, housing, etc. Free state tax online filing ). Free state tax online filing Foreign employment, filing requirements, U. Free state tax online filing S. Free state tax online filing Citizens or Resident Aliens Living Abroad Foreign students, Foreign students' place of residence. Free state tax online filing Form 1040 Personal exemption, Form 1040 filers. Free state tax online filing Social security numbers, Social Security Numbers for Dependents Use of, How to file. Free state tax online filing , How to file. Free state tax online filing , How to file. Free state tax online filing Form 1040A Personal exemption, Form 1040A filers. Free state tax online filing Social security numbers, Social Security Numbers for Dependents Use of, How to file. Free state tax online filing , How to file. Free state tax online filing , How to file. Free state tax online filing Form 1040EZ Personal exemption, Form 1040EZ filers. Free state tax online filing Use of, How to file. Free state tax online filing , How to file. Free state tax online filing Form 1040X Change of filing status, Joint Return After Separate Returns Itemized deductions, change to standard deduction, Changing your mind. Free state tax online filing Standard deduction, change to itemized deductions, Changing your mind. Free state tax online filing Form 1099-B, Form 1099-B received. Free state tax online filing Form 8814, parents' election to report child's interest and dividends, Election to report child's unearned income on parent's return. Free state tax online filing Form 8857, innocent spouse relief, Relief from joint responsibility. Free state tax online filing Form SS-5, social security number request, No SSN. Free state tax online filing Form W-7, individual taxpayer identification number request, Taxpayer identification numbers for aliens. Free state tax online filing Form W-7A, adoption taxpayer identification number request, Taxpayer identification numbers for adoptees. Free state tax online filing Foster care payments and expenses, Foster care payments and expenses. Free state tax online filing , Foster care. Free state tax online filing Foster child, Foster child. Free state tax online filing , Foster care payments and expenses. Free state tax online filing , Foster child. Free state tax online filing , Foster care. Free state tax online filing Free tax services, Free help with your tax return. Free state tax online filing Funeral expenses, Do Not Include in Total Support G GI Bill benefits, Tuition payments and allowances under the GI Bill. Free state tax online filing Gross income Defined, Gross income. Free state tax online filing Filing requirements (Table 1), Table 1. Free state tax online filing 2013 Filing Requirements Chart for Most Taxpayers Dependent filing requirements (Table 2), Table 2. Free state tax online filing 2013 Filing Requirements for Dependents Test, Gross Income Test Group-term life insurance, Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return H Head of household, Head of Household, Kidnapped child. Free state tax online filing Exemption for spouse, Head of household. Free state tax online filing Filing requirements (Table 1), Table 1. Free state tax online filing 2013 Filing Requirements Chart for Most Taxpayers Health insurance premiums, Medical insurance premiums. Free state tax online filing Help (see Tax help) Home Aged, home for, Home for the aged. Free state tax online filing Cost of keeping up, Keeping Up a Home Household workers, no exemption for, Housekeepers, maids, or servants. Free state tax online filing I Income Gross, Gross Income Test Tax exempt, Tax-exempt income. Free state tax online filing Individual retirement arrangements (IRAs) Filing requirements (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Married filing separately, Individual retirement arrangements (IRAs). Free state tax online filing Individual taxpayer identification numbers (ITINs), Reminders, Taxpayer identification numbers for aliens. Free state tax online filing Innocent spouse relief, Relief from joint responsibility. Free state tax online filing Insurance premiums Life, Do Not Include in Total Support Medical, Medical insurance premiums. Free state tax online filing IRAs (see Individual retirement arrangements (IRAs)) Itemized deductions Changing from standard to itemized deduction (or vice versa), Changing your mind. Free state tax online filing Choosing to itemize, Who Should Itemize Married filing separately, Married persons who filed separate returns. Free state tax online filing When to itemize, When to itemize. Free state tax online filing ITINs (Individual taxpayer identification numbers), Taxpayer identification numbers for aliens. Free state tax online filing J Joint return test, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Joint returns, Married Filing Jointly, Nonresident alien or dual-status alien. Free state tax online filing Dependents on, Joint return. Free state tax online filing Personal exemption, Joint return. Free state tax online filing K Kidnapped children Qualifying child, Kidnapped child. Free state tax online filing Qualifying relative, Kidnapped child. Free state tax online filing Widow(er) with dependent child, Death or birth. Free state tax online filing L Life insurance premiums, Do Not Include in Total Support Local income taxes, itemized deductions, Electing to itemize for state tax or other purposes. Free state tax online filing Local law violated, Local law violated. Free state tax online filing Lodging, Lodging. Free state tax online filing Losses, rental real estate, Rental activity losses. Free state tax online filing M Marital status, determination of, Marital Status Married dependents, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Married filing jointly (see Joint returns) Married filing separately, Married Filing Separately Changing method from or to itemized deductions, Changing your mind. Free state tax online filing Exemption for spouse, Separate return. Free state tax online filing Itemized deductions, Married persons who filed separate returns. Free state tax online filing Married taxpayers, Married Filing Jointly (see also Joint returns) Age 65 or older spouse, standard deduction, Higher Standard Deduction for Age (65 or Older), Spouse 65 or Older or Blind Blind spouse, standard deduction, Higher Standard Deduction for Blindness, Spouse 65 or Older or Blind Dual-status alien spouse, Nonresident alien or dual-status alien. Free state tax online filing Filing status, Married persons. Free state tax online filing Medical insurance premiums, Medical insurance premiums. Free state tax online filing Medical savings accounts (MSAs, effect on filing requirements (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Medicare taxes, not support, Do Not Include in Total Support Member of household or relationship test, Member of Household or Relationship Test Mexico, resident of, U. Free state tax online filing S. Free state tax online filing citizen or resident alien. Free state tax online filing , Citizen or Resident Test, Child in Canada or Mexico. Free state tax online filing Military (see Armed forces) Missing children, photographs of in IRS publications, Reminders Multiple support agreement, Multiple Support Agreement N National of the United States, U. Free state tax online filing S. Free state tax online filing national. Free state tax online filing Nonresident aliens, Nonresident aliens. Free state tax online filing Dependents, Taxpayer identification numbers for aliens. Free state tax online filing Exemptions, Nonresident aliens. Free state tax online filing Joint return, Nonresident alien or dual-status alien. Free state tax online filing Spouse, Nonresident alien spouse. Free state tax online filing Taxpayer identification number, Taxpayer identification numbers for aliens. Free state tax online filing O Overseas taxpayers, U. Free state tax online filing S. Free state tax online filing Citizens or Resident Aliens Living Abroad P Parent, claiming head of household for, Special rule for parent. Free state tax online filing Parents who never married, Parents who never married. Free state tax online filing Parents, divorced or separated, Children of divorced or separated parents (or parents who live apart). Free state tax online filing Penalty, failure to file, Who Must File Personal exemption, Personal Exemptions Photographs of missing children in IRS publications, Reminders Publications (see Tax help) Puerto Rico, residents of, Residents of Puerto Rico Q Qualifying Child, Qualifying Child Relative, Qualifying Relative Surviving spouse, Qualifying Widow(er) With Dependent Child Widow/widower, Qualifying Widow(er) With Dependent Child R Recapture taxes, Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Relationship test, Relationship Test, Member of Household or Relationship Test Relative, qualifying, Qualifying Relative Remarriage after divorce, Divorce and remarriage. Free state tax online filing Rental losses, Rental activity losses. Free state tax online filing Residency test, Residency Test S Same-sex marriage Filing status, Same-sex marriage. Free state tax online filing Scholarships, Earned income. Free state tax online filing , Scholarships. Free state tax online filing , Gross income defined. Free state tax online filing , Do Not Include in Total Support , Earned income defined. Free state tax online filing Self-employed persons Filing requirements (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Gross income, Self-employed persons. Free state tax online filing Separate returns (see Married filing separately) Separated parents, Children of divorced or separated parents (or parents who live apart). Free state tax online filing Separated taxpayers Filing status, Considered married. Free state tax online filing , Married persons living apart. Free state tax online filing Living apart but not legally separated, Considered married. Free state tax online filing Personal exemption, Divorced or separated spouse. Free state tax online filing Signatures, joint returns, Signing a joint return. Free state tax online filing Single taxpayers Filing status, Unmarried persons. Free state tax online filing , Single Gross income filing requirements (Table 1), Table 1. Free state tax online filing 2013 Filing Requirements Chart for Most Taxpayers How to file and forms, How to file. Free state tax online filing Personal exemption, Your Own Exemption Social security and Medicare taxes Reporting of (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Support, not included in, Do Not Include in Total Support Social security benefits, Social security benefits. Free state tax online filing Social security numbers (SSNs) for dependents, Social Security Numbers for Dependents Spouse Deceased, Spouse died. Free state tax online filing , Spouse died before signing. Free state tax online filing , Death of spouse. Free state tax online filing Dual-status alien spouse, Nonresident alien or dual-status alien. Free state tax online filing Exemption for, Your Spouse's Exemption Innocent spouse relief, Relief from joint responsibility. Free state tax online filing Nonresident alien, Nonresident alien spouse. Free state tax online filing Signing joint returns, Signing a joint return. Free state tax online filing Surviving (see Surviving spouse) SSNs (see Social security numbers (SSNs) for dependents) Standard deduction, What's New, Standard Deduction, Married persons who filed separate returns. Free state tax online filing Married filing jointly, Married Filing Jointly State or local income taxes, Electing to itemize for state tax or other purposes. Free state tax online filing Stillborn child, Stillborn child. Free state tax online filing Students Defined, Student defined. Free state tax online filing Foreign, Foreign students' place of residence. Free state tax online filing Support test Qualifying child, Support Test (To Be a Qualifying Child) Qualifying relative, Support Test (To Be a Qualifying Relative) Surviving spouse Death of spouse (see Death of spouse) Gross income filing requirements (Table 1), Table 1. Free state tax online filing 2013 Filing Requirements Chart for Most Taxpayers Single filing status, Widow(er). Free state tax online filing Widow(er) with dependent child, Qualifying Widow(er) With Dependent Child, How to file. Free state tax online filing , Death or birth. Free state tax online filing T Tables and figures, Keeping Up a Home, Worksheet 2. Free state tax online filing Worksheet for Determining Support (see also Worksheets) Filing requirements Dependents (Table 2), Table 2. Free state tax online filing 2013 Filing Requirements for Dependents Gross income levels (Table 1), Table 1. Free state tax online filing 2013 Filing Requirements Chart for Most Taxpayers Other situations requiring filing (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Tax help, How To Get Tax Help Tax returns Amended (see Form 1040X) Filing of (see Filing requirements) Joint returns (see Joint returns) Who must file, What's New, Who Must File, Filing Requirements for Most Taxpayers, Who Should File Tax-exempt income, Tax-exempt income. Free state tax online filing Taxes, not support, Do Not Include in Total Support Temporary absences, Temporary absences. Free state tax online filing , Temporary absences. Free state tax online filing Tiebreaker rules, Tiebreaker rules. Free state tax online filing Tips, reporting of (Table 3), Table 3. Free state tax online filing Other Situations When You Must File a 2013 Return Total support, Total Support Tuition, benefits under GI Bill, Tuition payments and allowances under the GI Bill. Free state tax online filing U U. Free state tax online filing S. Free state tax online filing citizen or resident, Citizen or Resident Test U. Free state tax online filing S. Free state tax online filing citizens filing abroad, filing requirements Filing requirements, U. Free state tax online filing S. Free state tax online filing Citizens or Resident Aliens Living Abroad U. Free state tax online filing S. Free state tax online filing national, U. Free state tax online filing S. Free state tax online filing national. Free state tax online filing U. Free state tax online filing S. Free state tax online filing possessions, income from, Individuals With Income From U. Free state tax online filing S. Free state tax online filing Possessions Unmarried persons (see Single taxpayers) W Welfare benefits, Support provided by the state (welfare, food benefits, housing, etc. Free state tax online filing ). Free state tax online filing What's New, What's New Widow/widower (see Surviving spouse) Worksheets Exemption Phaseout, Worksheet 3. Free state tax online filing Worksheet for Determining the Deduction for Exemptions Head of household status and cost of keeping up home, Keeping Up a Home Support test, Worksheet 2. Free state tax online filing Worksheet for Determining Support Prev  Up     Home   More Online Publications
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The Free State Tax Online Filing

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