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 Tax Calculator 2012

Free Tax PrepE File State Taxes Only FreeHow To File Amended Federal Tax ReturnFederal Income Tax Amended ReturnHow To File Taxes As A College StudentBack Taxes OwedHow To Fill Out Tax Form 1040xFree State Tax Preparation1040ez Form For 2011File Tax Amendment OnlineState Income Tax ChartsIrs 1040x2012 Tax Form 1040ezFree Income Tax Preparation1040nr Form 2011I Need To File My 2010 Taxes FreeExtension FormMyfreetaxes Com TucsonFile State Taxes Only For FreeTurbotax Military EditionIrs Amended FormFree Downloadable Irs Tax FormsFiling Amended Tax Return OnlineEz Form 10401090ez Form1040ez Form And InstructionsFiling Free State Taxes OnlineFree Tax Usa 2012Download Form 1040xIrs Form 1040x 20121040ez Tax Form For 2013H&r Block File TaxesH & R Block Free EfileFreetaxusa 2012How Do I Amend My 2012 Tax Return OnlineTurbo Tax 2011 DownloadFree TaxDireccion Irs Para Enviar Form 1040xCollege Student Tax ReturnE File Federal Taxes 2012

Free Tax Calculator 2012

Free tax calculator 2012 34. Free tax calculator 2012   Child Tax Credit Table of Contents Introduction Useful Items - You may want to see: Qualifying Child Amount of CreditLimits on the Credit Claiming the Credit Additional Child Tax Credit Completing Schedule 8812 (Form 1040A or 1040)Part I Parts II–IV Introduction The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children. Free tax calculator 2012 The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit. Free tax calculator 2012 This chapter explains the following. Free tax calculator 2012 Who is a qualifying child. Free tax calculator 2012 The amount of the credit. Free tax calculator 2012 How to claim the credit. Free tax calculator 2012 The child tax credit and the additional child tax credit should not be confused with the child and dependent care credit discussed in chapter 32. Free tax calculator 2012 If you have no tax. Free tax calculator 2012   Credits, such as the child tax credit or the credit for child and dependent care expenses, are used to reduce tax. Free tax calculator 2012 If your tax on Form 1040, line 46, or Form 1040A, line 28, is zero, do not figure the child tax credit because there is no tax to reduce. Free tax calculator 2012 However, you may qualify for the additional child tax credit on line 65 (Form 1040) or line 39 (Form 1040A). Free tax calculator 2012 Useful Items - You may want to see: Publication 972 Child Tax Credit Form (and Instructions) Schedule 8812 (Form 1040A or 1040) Child Tax Credit W-4 Employee's Withholding Allowance Certificate Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you , later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen, a U. Free tax calculator 2012 S. Free tax calculator 2012 national, or a resident of the United States. Free tax calculator 2012 If the child was adopted, see Adopted child , later. Free tax calculator 2012 For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c. Free tax calculator 2012 Example 1. Free tax calculator 2012 Your son turned 17 on December 30, 2013. Free tax calculator 2012 He is a citizen of the United States and you claimed him as a dependent on your return. Free tax calculator 2012 He is not a qualifying child for the child tax credit because he was not under age 17 at the end of 2013. Free tax calculator 2012 Example 2. Free tax calculator 2012 Your daughter turned 8 years old in 2013. Free tax calculator 2012 She is not a citizen of the United States, has an ITIN, and lived in Mexico all of 2013. Free tax calculator 2012 She is not a qualifying child for the child tax credit because she was not a resident of the United States for 2013. Free tax calculator 2012 Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). Free tax calculator 2012   If you are claiming a child tax credit or additional child tax credit for a child you identified on your tax return with an ITIN instead of an SSN, you must complete Part I of Schedule 8812 (Form 1040A or 1040). Free tax calculator 2012   Although a child may be your dependent, you may only claim a child tax credit or additional child tax credit for a dependent who is a citizen, national, or resident of the United States. Free tax calculator 2012 To be treated as a resident of the United States, a child generally will need to meet the requirements of the substantial presence test. Free tax calculator 2012 For more information about the substantial presence test, see Publication 519, U. Free tax calculator 2012 S. Free tax calculator 2012 Tax Guide for Aliens. Free tax calculator 2012 Adopted child. Free tax calculator 2012   An adopted child is always treated as your own child. Free tax calculator 2012 An adopted child includes a child lawfully placed with you for legal adoption. Free tax calculator 2012   If you are a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen or U. Free tax calculator 2012 S. Free tax calculator 2012 national and your adopted child lived with you all year as a member of your household in 2013, that child meets condition (7) above to be a qualifying child for the child tax credit. Free tax calculator 2012 Exceptions to time lived with you. Free tax calculator 2012   A child is considered to have lived with you for more than half of 2013 if the child was born or died in 2013 and your home was this child's home for more than half the time he or she was alive. Free tax calculator 2012 Temporary absences by you or the child for special circumstances, such as for school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. Free tax calculator 2012   There are also exceptions for kidnapped children and children of divorced or separated parents. Free tax calculator 2012 For details, see Residency Test in chapter 3. Free tax calculator 2012 Qualifying child of more than one person. Free tax calculator 2012   A special rule applies if your qualifying child is the qualifying child of more than one person. Free tax calculator 2012 For details, see Special Rule for Qualifying Child of More Than One Person in chapter 3. Free tax calculator 2012 Amount of Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. Free tax calculator 2012 Limits on the Credit You must reduce your child tax credit if either (1) or (2) applies. Free tax calculator 2012 The amount on Form 1040, line 46, or Form 1040A, line 28, is less than the credit. Free tax calculator 2012 If this amount is zero, you cannot take this credit because there is no tax to reduce. Free tax calculator 2012 But you may be able to take the additional child tax credit. Free tax calculator 2012 See Additional Child Tax Credit , later. Free tax calculator 2012 Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. Free tax calculator 2012 Married filing jointly - $110,000. Free tax calculator 2012 Single, head of household, or qualifying widow(er) - $75,000. Free tax calculator 2012 Married filing separately - $55,000. Free tax calculator 2012 Modified AGI. Free tax calculator 2012   For purposes of the child tax credit, your modified AGI is your AGI plus the following amounts that may apply to you. Free tax calculator 2012 Any amount excluded from income because of the exclusion of income from  Puerto Rico. Free tax calculator 2012 On the dotted line next to Form 1040, line 38, enter the amount excluded and identify it as “EPRI. Free tax calculator 2012 ” Also attach a copy of any Form(s) 499R-2/W-2PR to your return. Free tax calculator 2012 Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. Free tax calculator 2012 Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. Free tax calculator 2012 Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. Free tax calculator 2012   If you do not have any of the above, your modified AGI is the same as your AGI. Free tax calculator 2012 AGI. Free tax calculator 2012   Your AGI is the amount on Form 1040, line 38, or Form 1040A, line 22. Free tax calculator 2012 Claiming the Credit To claim the child tax credit, you must file Form 1040 or Form 1040A. Free tax calculator 2012 You cannot claim the child tax credit on Form 1040EZ. Free tax calculator 2012 You must provide the name and identification number (usually a social security number) on your tax return for each qualifying child. Free tax calculator 2012 If you claim the child tax credit with a child identified by an ITIN, you must also file Schedule 8812. Free tax calculator 2012 To figure your credit, first review the Child Tax Credit Worksheet in your Form 1040 or 1040A instructions. Free tax calculator 2012 If you are instructed to use Publication 972, you may not use the worksheet in your tax return instructions; instead, you must use Publication 972 to figure the credit. Free tax calculator 2012 If you are not instructed to use Publication 972, you may use the Child Tax Credit Worksheet in your Form 1040 or 1040A instructions or Publication 972 to figure the credit. Free tax calculator 2012 Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. Free tax calculator 2012 The additional child tax credit may give you a refund even if you do not owe any tax. Free tax calculator 2012 How to claim the additional child tax credit. Free tax calculator 2012   To claim the additional child tax credit, follow the steps below. Free tax calculator 2012 Make sure you figured the amount, if any, of your child tax credit. Free tax calculator 2012 See Claiming the Credit , earlier. Free tax calculator 2012 If you answered “Yes” on line 9 or line 10 of the Child Tax Credit Worksheet in the Form 1040 or Form 1040A instructions, or line 13 of the Child Tax Credit Worksheet in Publication 972, use Parts II through IV of Schedule 8812 to see if you can take the additional child tax credit. Free tax calculator 2012 If you have an additional child tax credit on line 13 of Schedule 8812, carry it to Form 1040, line 65, or Form 1040A, line 39. Free tax calculator 2012 Completing Schedule 8812 (Form 1040A or 1040) Schedule 8812 contains four parts, but can really be thought of as two sections. Free tax calculator 2012 Part I is distinct and separate from Parts II–IV. Free tax calculator 2012 If all your children are identified by social security numbers or IRS adoption taxpayer identification numbers and you are not claiming the additional child tax credit, you do not need to complete or attach Schedule 8812 to your tax return. Free tax calculator 2012 Part I You only need to complete Part I if you are claiming the child tax credit for a child identified by an IRS individual taxpayer identification number (ITIN). Free tax calculator 2012 When completing Part I, only answer the questions with regard to children identified by an ITIN; you do not need to complete Part I of Schedule 8812 for any child that is identified by a social security number (SSN) or an IRS adoption taxpayer identification number (ATIN). Free tax calculator 2012 If all the children for whom you checked the box in column 4 of line 6c on your Form 1040 or Form 1040A are identified by an SSN or an ATIN, you do not need to complete Part I of Schedule 8812. Free tax calculator 2012 Parts II–IV Parts II–IV help you figure your additional child tax credit. Free tax calculator 2012 Generally, you should only complete Parts II–IV if you are instructed to do so after completing the Child Tax Credit Worksheet in your tax return instructions or Publication 972. Free tax calculator 2012 See How to claim the additional child tax credit , earlier. Free tax calculator 2012 Prev  Up  Next   Home   More Online Publications

Topic 551 - Standard Deduction

The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. In general, the standard deduction is adjusted each year for inflation and varies according to your filing status. You cannot take the standard deduction if you itemize deductions.

Your standard deduction consists of the basic standard deduction and any additional standard deduction for age or blindness.

The basic standard deduction of an individual who can be claimed as a dependent on another person's tax return is the greater of:

  1. An amount specified by law, or
  2. The individual's earned income plus a specified amount (but the total cannot be more than the basic standard deduction for his or her filing status)

The additional standard deduction consists of the sum of any additional amounts for age or blindness. The additional amount for age will be allowed if you are age 65 or older at the end of the tax year. You are considered to be 65 on the day before your 65th birthday. For the definition of blindness, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information. The additional amount for blindness will be allowed if you are blind on the last day of the tax year. For example, a single taxpayer who is age 65 and blind would be entitled to a basic standard deduction and an additional standard deduction equal to the sum of the additional amounts for both age and blindness.

If you or your spouse were age 65 or older or blind at the end of the year, be sure to claim an additional standard deduction by checking the appropriate boxes for age or blindness on Form 1040A (PDF) or Form 1040 (PDF). You may not use Form 1040EZ (PDF) to claim an additional standard deduction.

Certain taxpayers are not entitled to the standard deduction. They are:

  1. A married individual filing as married filing separately, whose spouse itemizes deductions
  2. An individual who was a nonresident alien or dual status alien during any part of the year (note that residents of India may be able to claim the standard deduction if they meet certain criteria. Refer to Publication 519, U.S. Tax Guide for Aliens, for more information)
  3. An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period, or
  4. An estate or trust, common trust fund, or partnership

For more information, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information.

Page Last Reviewed or Updated: February 27, 2014

The Free Tax Calculator 2012

Free tax calculator 2012 Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Free tax calculator 2012 Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Free tax calculator 2012 Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Free tax calculator 2012 Any forgiven tax liability owed to the IRS will not have to be paid. Free tax calculator 2012 Any forgiven tax liability that has already been paid will be refunded. Free tax calculator 2012 (See Refund of Taxes Paid, later. Free tax calculator 2012 ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Free tax calculator 2012 Then read Amount of Tax Forgiven. Free tax calculator 2012 Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Free tax calculator 2012 Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Free tax calculator 2012 See Minimum Amount of Relief later under Amount of Tax Forgiven. Free tax calculator 2012 Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Free tax calculator 2012 Oklahoma City attack. Free tax calculator 2012   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Free tax calculator 2012 Example 1. Free tax calculator 2012 A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Free tax calculator 2012 His income tax is forgiven for 1994 and 1995. Free tax calculator 2012 Example 2. Free tax calculator 2012 A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Free tax calculator 2012 She subsequently died of her wounds in 1996. Free tax calculator 2012 Her income tax is forgiven for 1994, 1995, and 1996. Free tax calculator 2012 September 11 attacks and anthrax attacks. Free tax calculator 2012   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Free tax calculator 2012 Example 1. Free tax calculator 2012 A Pentagon employee died in the September 11 attack. Free tax calculator 2012 Her income tax is forgiven for 2000 and 2001. Free tax calculator 2012 Example 2. Free tax calculator 2012 A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Free tax calculator 2012 His income tax liability is forgiven for 2000, 2001, and 2002. Free tax calculator 2012 Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Free tax calculator 2012 On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Free tax calculator 2012 To figure the tax to be forgiven, use the following worksheets. Free tax calculator 2012 Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Free tax calculator 2012 Use Worksheet B for any eligible year the decedent filed a joint return. Free tax calculator 2012 See the illustrated Worksheet B near the end of this publication. Free tax calculator 2012 Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Free tax calculator 2012 Instead, complete Worksheet C and file a return for the decedent's last tax year. Free tax calculator 2012 See Minimum Amount of Relief, later. Free tax calculator 2012 If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Free tax calculator 2012 In English–7 a. Free tax calculator 2012 m. Free tax calculator 2012 to 10 p. Free tax calculator 2012 m. Free tax calculator 2012 local time. Free tax calculator 2012 In Spanish–8 a. Free tax calculator 2012 m. Free tax calculator 2012 to 9:30 p. Free tax calculator 2012 m. Free tax calculator 2012 local time. Free tax calculator 2012 Both spouses died. Free tax calculator 2012   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Free tax calculator 2012 Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Free tax calculator 2012 If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Free tax calculator 2012 However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Free tax calculator 2012 The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Free tax calculator 2012 Residents of community property states. Free tax calculator 2012   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Free tax calculator 2012 Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Free tax calculator 2012 Worksheet B. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax calculator 2012 1       2 Enter the decedent's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 2       3 Enter the decedent's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax calculator 2012 See the instructions. Free tax calculator 2012 4       5 Subtract line 4 from line 3. Free tax calculator 2012 5       6 Enter the surviving spouse's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 6       7 Enter the surviving spouse's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax calculator 2012 8       9 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Add lines 5 and 9. Free tax calculator 2012 10       11 Enter the total tax from the joint return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 11       12 Add lines 4 and 8. Free tax calculator 2012 12       13 Subtract line 12 from line 11. Free tax calculator 2012 13       14 Divide line 5 by line 10. Free tax calculator 2012 Enter the result as a decimal. Free tax calculator 2012 14       15 Tax to be forgiven. Free tax calculator 2012 Multiply line 13 by line 14 and enter the result. Free tax calculator 2012 15       Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Worksheet B. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax calculator 2012 1       2 Enter the decedent's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 2       3 Enter the decedent's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax calculator 2012 See the instructions. Free tax calculator 2012 4       5 Subtract line 4 from line 3. Free tax calculator 2012 5       6 Enter the surviving spouse's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 6       7 Enter the surviving spouse's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax calculator 2012 8       9 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Add lines 5 and 9. Free tax calculator 2012 10       11 Enter the total tax from the joint return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 11       12 Add lines 4 and 8. Free tax calculator 2012 12       13 Subtract line 12 from line 11. Free tax calculator 2012 13       14 Divide line 5 by line 10. Free tax calculator 2012 Enter the result as a decimal. Free tax calculator 2012 14       15 Tax to be forgiven. Free tax calculator 2012 Multiply line 13 by line 14 and enter the result. Free tax calculator 2012 15       Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Instructions for Worksheet B Table 1. Free tax calculator 2012 Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free tax calculator 2012 * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free tax calculator 2012 ** File Form 4506 to get a transcript of the decedent's account. Free tax calculator 2012 Table 1. Free tax calculator 2012 Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Free tax calculator 2012 * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Free tax calculator 2012 ** File Form 4506 to get a transcript of the decedent's account. Free tax calculator 2012 Lines 2 and 6. Free tax calculator 2012   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Free tax calculator 2012   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Free tax calculator 2012 Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Free tax calculator 2012 Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free tax calculator 2012   Allocate business deductions to the owner of the business. Free tax calculator 2012 Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Free tax calculator 2012 Lines 3 and 7. Free tax calculator 2012   Figure the total tax as if a separate return had been filed. Free tax calculator 2012 The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Free tax calculator 2012 When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Free tax calculator 2012   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Free tax calculator 2012 If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Free tax calculator 2012 Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Free tax calculator 2012 Line 4. Free tax calculator 2012   Enter the total, if any, of the following taxes. Free tax calculator 2012 Self-employment tax. Free tax calculator 2012 Social security and Medicare tax on tip income not reported to employer. Free tax calculator 2012 Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free tax calculator 2012 Tax on excess accumulation in qualified retirement plans. Free tax calculator 2012 Household employment taxes. Free tax calculator 2012 Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free tax calculator 2012 Tax on golden parachute payments. Free tax calculator 2012 Minimum Amount of Relief The minimum amount of relief is $10,000. Free tax calculator 2012 If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Free tax calculator 2012 The IRS will refund the difference as explained under Refund of Taxes Paid. Free tax calculator 2012 Use Worksheet C to figure the additional tax payment. Free tax calculator 2012 But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Free tax calculator 2012 Example 1. Free tax calculator 2012 An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Free tax calculator 2012 The $6,400 is eligible for forgiveness. Free tax calculator 2012 The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Free tax calculator 2012 Example 2. Free tax calculator 2012 A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Free tax calculator 2012 The IRS will treat $10,000 as a tax payment for 2001. Free tax calculator 2012 Income received after date of death. Free tax calculator 2012   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Free tax calculator 2012 Examples are the final paycheck or dividends on stock owned by the decedent. Free tax calculator 2012 However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Free tax calculator 2012 Nonqualifying income. Free tax calculator 2012   The following income is not exempt from tax. Free tax calculator 2012 The tax on it is not eligible for forgiveness. Free tax calculator 2012 Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Free tax calculator 2012 Amounts that would not have been payable but for an action taken after September 11, 2001. Free tax calculator 2012 The following are examples of nonqualifying income. Free tax calculator 2012 Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Free tax calculator 2012 Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Free tax calculator 2012 Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Free tax calculator 2012 Interest on savings bonds cashed by the beneficiary of the decedent. Free tax calculator 2012 If you are responsible for the estate of a decedent, see Publication 559. Free tax calculator 2012 Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Free tax calculator 2012 Instructions for lines 2–9 of Worksheet C. Free tax calculator 2012   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Free tax calculator 2012 To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Free tax calculator 2012 Or, if special requirements are met, you can use the alternative computation instead. Free tax calculator 2012 See Alternative computation, later. Free tax calculator 2012   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Free tax calculator 2012 Use Form 1041 to figure what the taxable income would be without including the exempt income. Free tax calculator 2012 Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Free tax calculator 2012 Alternative computation. Free tax calculator 2012   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Free tax calculator 2012 You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Free tax calculator 2012 The estate claimed an income distribution deduction on line 18 (Form 1041). Free tax calculator 2012 Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Free tax calculator 2012 If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Free tax calculator 2012 If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Free tax calculator 2012 Complete the rest of Worksheet C to determine the additional payment allowed. Free tax calculator 2012 Worksheet C. Free tax calculator 2012 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax calculator 2012 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax calculator 2012 1 Minimum relief amount. Free tax calculator 2012 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax calculator 2012 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax calculator 2012 3       4 Add lines 2 and 3. Free tax calculator 2012 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 5       6 Add lines 4 and 5. Free tax calculator 2012 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax calculator 2012 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax calculator 2012 8       9 Tax on exempt income. Free tax calculator 2012 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax calculator 2012 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax calculator 2012 10       11 Add lines 9 and 10. Free tax calculator 2012 11   12 Additional payment allowed. Free tax calculator 2012 If line 11 is $10,000 or more, enter -0- and stop here. Free tax calculator 2012 No additional amount is allowed as a tax payment. Free tax calculator 2012 Otherwise, subtract line 11 from line 1 and enter the result. Free tax calculator 2012 12   Note. Free tax calculator 2012 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax calculator 2012 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax calculator 2012 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax calculator 2012 Write "Sec. Free tax calculator 2012 692(d)(2) Payment" and the amount to the right of the entry space. Free tax calculator 2012 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax calculator 2012 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax calculator 2012 Write “Sec. Free tax calculator 2012 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax calculator 2012 Worksheet C. Free tax calculator 2012 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax calculator 2012 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax calculator 2012 1 Minimum relief amount. Free tax calculator 2012 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax calculator 2012 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax calculator 2012 3       4 Add lines 2 and 3. Free tax calculator 2012 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 5       6 Add lines 4 and 5. Free tax calculator 2012 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax calculator 2012 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax calculator 2012 8       9 Tax on exempt income. Free tax calculator 2012 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax calculator 2012 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax calculator 2012 10       11 Add lines 9 and 10. Free tax calculator 2012 11   12 Additional payment allowed. Free tax calculator 2012 If line 11 is $10,000 or more, enter -0- and stop here. Free tax calculator 2012 No additional amount is allowed as a tax payment. Free tax calculator 2012 Otherwise, subtract line 11 from line 1 and enter the result. Free tax calculator 2012 12   Note. Free tax calculator 2012 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax calculator 2012 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax calculator 2012 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax calculator 2012 Write "Sec. Free tax calculator 2012 692(d)(2) Payment" and the amount to the right of the entry space. Free tax calculator 2012 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax calculator 2012 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax calculator 2012 Write “Sec. Free tax calculator 2012 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax calculator 2012 Worksheet D. Free tax calculator 2012 Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free tax calculator 2012 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free tax calculator 2012 5   6 Estate's tax on exempt income. Free tax calculator 2012 Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free tax calculator 2012 Figure the total tax that would have been payable by all beneficiaries. Free tax calculator 2012 Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free tax calculator 2012 Add the amounts by which each beneficiary's income tax is increased. Free tax calculator 2012 7   8 Add lines 6 and 7. Free tax calculator 2012 Enter this amount on line 9 of Worksheet C. Free tax calculator 2012 8   Worksheet D. Free tax calculator 2012 Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Free tax calculator 2012 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Free tax calculator 2012 5   6 Estate's tax on exempt income. Free tax calculator 2012 Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Free tax calculator 2012 Figure the total tax that would have been payable by all beneficiaries. Free tax calculator 2012 Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Free tax calculator 2012 Add the amounts by which each beneficiary's income tax is increased. Free tax calculator 2012 7   8 Add lines 6 and 7. Free tax calculator 2012 Enter this amount on line 9 of Worksheet C. Free tax calculator 2012 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Free tax calculator 2012 Income tax liabilities that have been paid. Free tax calculator 2012 Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Free tax calculator 2012 See Minimum Amount of Relief, earlier. Free tax calculator 2012 Example 1. Free tax calculator 2012 A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Free tax calculator 2012 The total, $14,000, is eligible for tax forgiveness. Free tax calculator 2012 However, he paid only $13,000 of that amount. Free tax calculator 2012 The IRS will refund the $13,000 paid. Free tax calculator 2012 Example 2. Free tax calculator 2012 A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Free tax calculator 2012 The child qualifies for the minimum relief of $10,000. Free tax calculator 2012 The $10,000 is treated as a tax payment for 2001 and will be refunded. Free tax calculator 2012 Period for filing a claim for credit or refund. Free tax calculator 2012   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Free tax calculator 2012 For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Free tax calculator 2012 To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Free tax calculator 2012 Extension of time for victims of Oklahoma City attack. Free tax calculator 2012   The period described above has been extended for victims of the Oklahoma City attack. Free tax calculator 2012 Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Free tax calculator 2012 How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Free tax calculator 2012 Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Free tax calculator 2012 Return required but not yet filed. Free tax calculator 2012   File Form 1040 if the decedent was a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen or resident. Free tax calculator 2012 File Form 1040NR if the decedent was a nonresident alien. Free tax calculator 2012 A nonresident alien is someone who is not a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen or resident. Free tax calculator 2012 Return required and already filed. Free tax calculator 2012   File a separate Form 1040X for each year you are claiming tax relief. Free tax calculator 2012 Return not required and not filed. Free tax calculator 2012   File Form 1040 only for the year of death if the decedent was a U. Free tax calculator 2012 S. Free tax calculator 2012 citizen or resident. Free tax calculator 2012 File Form 1040NR if the decedent was a nonresident alien. Free tax calculator 2012 Return not required but already filed. Free tax calculator 2012   File Form 1040X only for the year of death. Free tax calculator 2012 How to complete the returns. Free tax calculator 2012   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Free tax calculator 2012 Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Free tax calculator 2012 If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Free tax calculator 2012 If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Free tax calculator 2012 Also, please write one of the following across the top of page 1 of each return. Free tax calculator 2012 KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Free tax calculator 2012 ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Free tax calculator 2012 If you need a copy, use Form 4506. Free tax calculator 2012 The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Free tax calculator 2012 Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Free tax calculator 2012 Send Form 4506 to the address shown in the form instructions. Free tax calculator 2012 Taxpayer identification number. Free tax calculator 2012   A taxpayer identification number must be furnished on the decedent's returns. Free tax calculator 2012 This is usually the decedent's social security number (SSN). Free tax calculator 2012 However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Free tax calculator 2012 If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Free tax calculator 2012 S. Free tax calculator 2012 income tax return for any tax year, do not apply for an ITIN. Free tax calculator 2012 You may claim a refund by filing Form 1040NR without an SSN or ITIN. Free tax calculator 2012 Necessary Documents Please attach the following documents to the return or amended return. Free tax calculator 2012 Proof of death. Free tax calculator 2012   Attach a copy of the death certificate. Free tax calculator 2012 If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Free tax calculator 2012 Form 1310. Free tax calculator 2012   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Free tax calculator 2012 You are a surviving spouse filing an original or amended joint return with the decedent. Free tax calculator 2012 You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Free tax calculator 2012 A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Free tax calculator 2012 A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Free tax calculator 2012      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Free tax calculator 2012 Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Free tax calculator 2012 Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Free tax calculator 2012 Use one of the addresses shown below. Free tax calculator 2012 Where you file the returns or claims depends on whether you use the U. Free tax calculator 2012 S. Free tax calculator 2012 Postal Service or a private delivery service. Free tax calculator 2012 Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Free tax calculator 2012 U. Free tax calculator 2012 S. Free tax calculator 2012 Postal Service. Free tax calculator 2012   If you use the U. Free tax calculator 2012 S. Free tax calculator 2012 Postal Service, file these returns and claims at the following address. Free tax calculator 2012 Internal Revenue Service P. Free tax calculator 2012 O. Free tax calculator 2012 Box 4053 Woburn, MA 01888 Private delivery service. Free tax calculator 2012   Private delivery services cannot deliver items to P. Free tax calculator 2012 O. Free tax calculator 2012 boxes. Free tax calculator 2012 If you use a private delivery service, file these returns and claims at the following address. Free tax calculator 2012 Internal Revenue Service Stop 661 310 Lowell St. Free tax calculator 2012 Andover, MA 01810 Designated private delivery services. Free tax calculator 2012   You can use the following private delivery services to file these returns and claims. Free tax calculator 2012 Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Free tax calculator 2012 DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Free tax calculator 2012 Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Free tax calculator 2012 United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Free tax calculator 2012 M. Free tax calculator 2012 , UPS Worldwide Express Plus, and UPS Worldwide Express. Free tax calculator 2012 The private delivery service can tell you how to get written proof of the mailing date. Free tax calculator 2012 Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Free tax calculator 2012 September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Free tax calculator 2012 Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Free tax calculator 2012 These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Free tax calculator 2012 No withholding applies to these payments. Free tax calculator 2012 Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Free tax calculator 2012 Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Free tax calculator 2012 Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Free tax calculator 2012 (A personal residence can be a rented residence or one you own. Free tax calculator 2012 ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Free tax calculator 2012 Qualified disaster relief payments also include the following. Free tax calculator 2012 Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Free tax calculator 2012 Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Free tax calculator 2012 Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Free tax calculator 2012 Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Free tax calculator 2012 Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Free tax calculator 2012 Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Free tax calculator 2012 However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Free tax calculator 2012 If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Free tax calculator 2012 For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Free tax calculator 2012 If that period has expired, you are granted an extension. Free tax calculator 2012 You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Free tax calculator 2012 On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Free tax calculator 2012 102(b)(2). Free tax calculator 2012 ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Free tax calculator 2012 The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Free tax calculator 2012 Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Free tax calculator 2012 Bureau of Justice Assistance payments. Free tax calculator 2012   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Free tax calculator 2012 Government plan annuity. Free tax calculator 2012   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Free tax calculator 2012 This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Free tax calculator 2012 For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Free tax calculator 2012 More information. Free tax calculator 2012   For more information, see Publication 559. Free tax calculator 2012 Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Free tax calculator 2012 The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Free tax calculator 2012 If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Free tax calculator 2012 Affected taxpayers. Free tax calculator 2012   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Free tax calculator 2012 Any individual whose main home is located in a covered area (defined later). Free tax calculator 2012 Any business entity or sole proprietor whose principal place of business is located in a covered area. Free tax calculator 2012 Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Free tax calculator 2012 The main home or principal place of business does not have to be located in the covered area. Free tax calculator 2012 Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Free tax calculator 2012 Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Free tax calculator 2012 The spouse on a joint return with a taxpayer who is eligible for postponements. Free tax calculator 2012 Any other person determined by the IRS to be affected by a terrorist attack. Free tax calculator 2012 Covered area. Free tax calculator 2012   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Free tax calculator 2012 Abatement of interest. Free tax calculator 2012   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Free tax calculator 2012 Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Free tax calculator 2012 You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Free tax calculator 2012 The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Free tax calculator 2012 The due date (with extensions) for the 2000 return. Free tax calculator 2012 For more information about disaster area losses, see Publication 547. Free tax calculator 2012 Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Free tax calculator 2012 The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Free tax calculator 2012 The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Free tax calculator 2012 These credits may reduce or eliminate the estate tax due. Free tax calculator 2012 A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Free tax calculator 2012 Recovery from the September 11th Victim Compensation Fund. Free tax calculator 2012   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Free tax calculator 2012 However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Free tax calculator 2012 Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Free tax calculator 2012 Which estates must file a return. Free tax calculator 2012   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Free tax calculator 2012 S. Free tax calculator 2012 citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Free tax calculator 2012 Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Free tax calculator 2012 Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Free tax calculator 2012 S. Free tax calculator 2012 Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Free tax calculator 2012 Where to file. Free tax calculator 2012   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Free tax calculator 2012 Internal Revenue Service E & G Department/Stop 824T 201 W. Free tax calculator 2012 Rivercenter Blvd. Free tax calculator 2012 Covington, KY 41011 More information. Free tax calculator 2012   For more information on the federal estate tax, see the instructions for Form 706. Free tax calculator 2012 Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Free tax calculator 2012 The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Free tax calculator 2012 However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Free tax calculator 2012 For information about these requirements, see Internal Revenue Code section 5891. Free tax calculator 2012 Worksheet B Illustrated. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax calculator 2012 1 2000 2001   2 Enter the decedent's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 2 $17,259 $14,295   3 Enter the decedent's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax calculator 2012 See the instructions. Free tax calculator 2012 4 3,532 3,109   5 Subtract line 4 from line 3. Free tax calculator 2012 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions for line 2. Free tax calculator 2012 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax calculator 2012 8 0 0   9 Subtract line 8 from line 7. Free tax calculator 2012 9 5,277 5,391   10 Add lines 5 and 9. Free tax calculator 2012 10 7,868 7,532   11 Enter the total tax from the joint return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 11 10,789 9,728   12 Add lines 4 and 8. Free tax calculator 2012 12 3,532 3,109   13 Subtract line 12 from line 11. Free tax calculator 2012 13 7,257 6,619   14 Divide line 5 by line 10. Free tax calculator 2012 Enter the result as a decimal. Free tax calculator 2012 14 . Free tax calculator 2012 329 . Free tax calculator 2012 284   15 Tax to be forgiven. Free tax calculator 2012 Multiply line 13 by line 14 and enter the result. Free tax calculator 2012 15 $2,388 $1,880   Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Worksheet B Illustrated. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax calculator 2012 1 2000 2001   2 Enter the decedent's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 2 $17,259 $14,295   3 Enter the decedent's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax calculator 2012 See the instructions. Free tax calculator 2012 4 3,532 3,109   5 Subtract line 4 from line 3. Free tax calculator 2012 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions for line 2. Free tax calculator 2012 6 29,025 29,850   7 Enter the surviving spouse's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax calculator 2012 8 0 0   9 Subtract line 8 from line 7. Free tax calculator 2012 9 5,277 5,391   10 Add lines 5 and 9. Free tax calculator 2012 10 7,868 7,532   11 Enter the total tax from the joint return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 11 10,789 9,728   12 Add lines 4 and 8. Free tax calculator 2012 12 3,532 3,109   13 Subtract line 12 from line 11. Free tax calculator 2012 13 7,257 6,619   14 Divide line 5 by line 10. Free tax calculator 2012 Enter the result as a decimal. Free tax calculator 2012 14 . Free tax calculator 2012 329 . Free tax calculator 2012 284   15 Tax to be forgiven. Free tax calculator 2012 Multiply line 13 by line 14 and enter the result. Free tax calculator 2012 15 $2,388 $1,880   Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Free tax calculator 2012 They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Free tax calculator 2012 The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Free tax calculator 2012 After the husband died, his estate received income of $4,000. Free tax calculator 2012 Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Free tax calculator 2012 This net profit is exempt from income tax as explained earlier under Income received after date of death. Free tax calculator 2012 The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Free tax calculator 2012 To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Free tax calculator 2012 She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Free tax calculator 2012 To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Free tax calculator 2012 To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Free tax calculator 2012   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Free tax calculator 2012 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax calculator 2012 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax calculator 2012 1 Minimum relief amount. Free tax calculator 2012 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax calculator 2012 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free tax calculator 2012 3 0     4 Add lines 2 and 3. Free tax calculator 2012 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 5 1,000     6 Add lines 4 and 5. Free tax calculator 2012 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax calculator 2012 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax calculator 2012 8 435     9 Tax on exempt income. Free tax calculator 2012 Subtract line 8 from line 7. Free tax calculator 2012 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax calculator 2012 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax calculator 2012 10 4,268     11 Add lines 9 and 10. Free tax calculator 2012 11 $4,543 12 Additional payment allowed. Free tax calculator 2012 If line 11 is $10,000 or more, enter -0- and stop here. Free tax calculator 2012 No additional amount is allowed as a tax payment. Free tax calculator 2012 Otherwise, subtract line 11 from line 1 and enter the result. Free tax calculator 2012 12 $5,457 Note. Free tax calculator 2012 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax calculator 2012 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax calculator 2012 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax calculator 2012 Write "Sec. Free tax calculator 2012 692(d)(2) Payment" and the amount to the right of the entry space. Free tax calculator 2012 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax calculator 2012 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax calculator 2012 Write “Sec. Free tax calculator 2012 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax calculator 2012 Worksheet C Illustrated. Free tax calculator 2012 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Free tax calculator 2012 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax calculator 2012 1 Minimum relief amount. Free tax calculator 2012 Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax calculator 2012 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Free tax calculator 2012 3 0     4 Add lines 2 and 3. Free tax calculator 2012 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 5 1,000     6 Add lines 4 and 5. Free tax calculator 2012 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax calculator 2012 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax calculator 2012 8 435     9 Tax on exempt income. Free tax calculator 2012 Subtract line 8 from line 7. Free tax calculator 2012 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax calculator 2012 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax calculator 2012 10 4,268     11 Add lines 9 and 10. Free tax calculator 2012 11 $4,543 12 Additional payment allowed. Free tax calculator 2012 If line 11 is $10,000 or more, enter -0- and stop here. Free tax calculator 2012 No additional amount is allowed as a tax payment. Free tax calculator 2012 Otherwise, subtract line 11 from line 1 and enter the result. Free tax calculator 2012 12 $5,457 Note. Free tax calculator 2012 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax calculator 2012 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax calculator 2012 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax calculator 2012 Write "Sec. Free tax calculator 2012 692(d)(2) Payment" and the amount to the right of the entry space. Free tax calculator 2012 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax calculator 2012 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax calculator 2012 Write “Sec. Free tax calculator 2012 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax calculator 2012 Additional Worksheets The following additional worksheets are provided for your convenience. Free tax calculator 2012 Worksheet A. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free tax calculator 2012 1       2 Enter the total tax from the decedent's income tax return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free tax calculator 2012 (These taxes are not eligible for forgiveness. Free tax calculator 2012 )           a Self-employment tax. Free tax calculator 2012 3a         b Social security and Medicare tax on tip income not reported to employer. Free tax calculator 2012 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free tax calculator 2012 3c         d Tax on excess accumulation in qualified retirement plans. Free tax calculator 2012 3d         e Household employment taxes. Free tax calculator 2012 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free tax calculator 2012 3f         g Tax on golden parachute payments. Free tax calculator 2012 3g       4 Add lines 3a through 3g. Free tax calculator 2012 4       5 Tax to be forgiven. Free tax calculator 2012 Subtract line 4 from line 2. Free tax calculator 2012 5       Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Worksheet A. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Free tax calculator 2012 1       2 Enter the total tax from the decedent's income tax return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Free tax calculator 2012 (These taxes are not eligible for forgiveness. Free tax calculator 2012 )           a Self-employment tax. Free tax calculator 2012 3a         b Social security and Medicare tax on tip income not reported to employer. Free tax calculator 2012 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Free tax calculator 2012 3c         d Tax on excess accumulation in qualified retirement plans. Free tax calculator 2012 3d         e Household employment taxes. Free tax calculator 2012 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Free tax calculator 2012 3f         g Tax on golden parachute payments. Free tax calculator 2012 3g       4 Add lines 3a through 3g. Free tax calculator 2012 4       5 Tax to be forgiven. Free tax calculator 2012 Subtract line 4 from line 2. Free tax calculator 2012 5       Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Worksheet B. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax calculator 2012 1       2 Enter the decedent's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 2       3 Enter the decedent's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax calculator 2012 See the instructions. Free tax calculator 2012 4       5 Subtract line 4 from line 3. Free tax calculator 2012 5       6 Enter the surviving spouse's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 6       7 Enter the surviving spouse's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax calculator 2012 8       9 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Add lines 5 and 9. Free tax calculator 2012 10       11 Enter the total tax from the joint return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 11       12 Add lines 4 and 8. Free tax calculator 2012 12       13 Subtract line 12 from line 11. Free tax calculator 2012 13       14 Divide line 5 by line 10. Free tax calculator 2012 Enter the result as a decimal. Free tax calculator 2012 14       15 Tax to be forgiven. Free tax calculator 2012 Multiply line 13 by line 14 and enter the result. Free tax calculator 2012 15       Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Worksheet B. Free tax calculator 2012 Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Free tax calculator 2012 1       2 Enter the decedent's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 2       3 Enter the decedent's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Free tax calculator 2012 See the instructions. Free tax calculator 2012 4       5 Subtract line 4 from line 3. Free tax calculator 2012 5       6 Enter the surviving spouse's taxable income. Free tax calculator 2012 Figure taxable income as if a separate return had been filed. Free tax calculator 2012 See the instructions. Free tax calculator 2012 6       7 Enter the surviving spouse's total tax. Free tax calculator 2012 See the instructions. Free tax calculator 2012 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Free tax calculator 2012 8       9 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Add lines 5 and 9. Free tax calculator 2012 10       11 Enter the total tax from the joint return. Free tax calculator 2012 See Table 1 on page 5 for the line number for years before 2002. Free tax calculator 2012 11       12 Add lines 4 and 8. Free tax calculator 2012 12       13 Subtract line 12 from line 11. Free tax calculator 2012 13       14 Divide line 5 by line 10. Free tax calculator 2012 Enter the result as a decimal. Free tax calculator 2012 14       15 Tax to be forgiven. Free tax calculator 2012 Multiply line 13 by line 14 and enter the result. Free tax calculator 2012 15       Note. Free tax calculator 2012 If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Free tax calculator 2012 Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Free tax calculator 2012 If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Free tax calculator 2012 The IRS will determine the amount to be refunded. Free tax calculator 2012 Worksheet C. Free tax calculator 2012 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free tax calculator 2012 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax calculator 2012 1 Minimum tax forgiveness. Free tax calculator 2012 Note. Free tax calculator 2012 Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax calculator 2012 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax calculator 2012 3       4 Add lines 2 and 3. Free tax calculator 2012 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 5       6 Add lines 4 and 5. Free tax calculator 2012 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax calculator 2012 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax calculator 2012 8       9 Tax on exempt income. Free tax calculator 2012 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax calculator 2012 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax calculator 2012 10       11 Add lines 9 and 10. Free tax calculator 2012 11   12 Additional payment allowed. Free tax calculator 2012 If line 11 is $10,000 or more, enter -0- and stop here. Free tax calculator 2012 No additional amount is allowed as a tax payment. Free tax calculator 2012 Otherwise, subtract line 11 from line 1 and enter the result. Free tax calculator 2012 12   Note. Free tax calculator 2012 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax calculator 2012 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax calculator 2012 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax calculator 2012 Write "Sec. Free tax calculator 2012 692(d)(2) Payment" and the amount to the right of the entry space. Free tax calculator 2012 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax calculator 2012 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax calculator 2012 Write “Sec. Free tax calculator 2012 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax calculator 2012 Worksheet C. Free tax calculator 2012 Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Free tax calculator 2012 Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Free tax calculator 2012 1 Minimum tax forgiveness. Free tax calculator 2012 Note. Free tax calculator 2012 Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Free tax calculator 2012 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Free tax calculator 2012 3       4 Add lines 2 and 3. Free tax calculator 2012 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Free tax calculator 2012 (See Income received after date of death on page 5. Free tax calculator 2012 ) 5       6 Add lines 4 and 5. Free tax calculator 2012 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Free tax calculator 2012 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Free tax calculator 2012 8       9 Tax on exempt income. Free tax calculator 2012 Subtract line 8 from line 7. Free tax calculator 2012 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Free tax calculator 2012 If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Free tax calculator 2012 10       11 Add lines 9 and 10. Free tax calculator 2012 11   12 Additional payment allowed. Free tax calculator 2012 If line 11 is $10,000 or more, enter -0- and stop here. Free tax calculator 2012 No additional amount is allowed as a tax payment. Free tax calculator 2012 Otherwise, subtract line 11 from line 1 and enter the result. Free tax calculator 2012 12   Note. Free tax calculator 2012 The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Free tax calculator 2012 Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Free tax calculator 2012 If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Free tax calculator 2012 Write "Sec. Free tax calculator 2012 692(d)(2) Payment" and the amount to the right of the entry space. Free tax calculator 2012 Also indicate whether a Form 1041 is being filed for the decedent's estate. Free tax calculator 2012 If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Free tax calculator 2012 Write “Sec. Free tax calculator 2012 692(d)(2) Payment” on the dotted line to the left of the entry space. Free tax calculator 2012 How To Get Tax Help Special IRS assistance. Free tax calculator 2012   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Free tax calculator 2012 We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Free tax calculator 2012 Call 1–866–562–5227 Monday through Friday In English–7 a. Free tax calculator 2012 m. Free tax calculator 2012 to 10 p. Free tax calculator 2012 m. Free tax calculator 2012 local time In Spanish–8 a. Free tax calculator 2012 m. Free tax calculator 2012 to 9:30 p. Free tax calculator 2012 m. Free tax calculator 2012 local time   The IRS web site at www. Free tax calculator 2012 irs. Free tax calculator 2012 gov has notices and other tax relief information. Free tax calculator 2012 Check it periodically for any new guidance or to see if Congress has enacted new legislation. Free tax calculator 2012   Business taxpayers affected by the attacks can e-mail their questions to corp. Free tax calculator 2012 disaster. Free tax calculator 2012 relief@irs. Free tax calculator 2012 gov. Free tax calculator 2012   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Free tax calculator 2012 fema. Free tax calculator 2012 gov. Free tax calculator 2012 Other help from the IRS. Free tax calculator 2012   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Free tax calculator 2012 By selecting the method that is best for you, you will have quick and easy access to tax help. Free tax calculator 2012 Contacting your Taxpayer Advocate. Free tax calculator 2012   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Free tax calculator 2012   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Free tax calculator 2012 While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Free tax calculator 2012   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Free tax calculator 2012 Call the IRS at 1–800–829–1040. Free tax calculator 2012 Call, write, or fax the Taxpayer Advocate office in your area. Free tax calculator 2012 Call 1–800–829–4059 if you are a TTY/TDD user. Free tax calculator 2012   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Free tax calculator 2012 Free tax services. Free tax calculator 2012   To find out what services are available, get Publication 910, Guide to Free Tax Services. Free tax calculator 2012 It contains a list of free tax publications and an index of tax topics. Free tax calculator 2012 It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Free tax calculator 2012 Personal computer. Free tax calculator 2012 With your personal computer and modem, you can access the IRS on the Internet at www. Free tax calculator 2012 irs. Free tax calculator 2012 gov. Free tax calculator 2012 While visiting our web site, you can: Find answers to questions you may have. Free tax calculator 2012 Download forms and publications or search for forms and pub