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How Do I Amend My Tax Return

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How Do I Amend My Tax Return

How do i amend my tax return 4. How do i amend my tax return   Tax Withholding and Estimated Tax Table of Contents What's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 What's New for 2014 Tax law changes for 2014. How do i amend my tax return  When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2014. How do i amend my tax return For more information, see Publication 505. How do i amend my tax return Reminders Estimated tax safe harbor for higher income taxpayers. How do i amend my tax return  If your 2013 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2014 or 110% of the tax shown on your 2013 return to avoid an estimated tax penalty. How do i amend my tax return Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. How do i amend my tax return In general, the federal income tax is a pay-as-you-go tax. How do i amend my tax return There are two ways to pay as you go. How do i amend my tax return Withholding. How do i amend my tax return If you are an employee, your employer probably withholds income tax from your pay. How do i amend my tax return Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. How do i amend my tax return The amount withheld is paid to the IRS in your name. How do i amend my tax return Estimated tax. How do i amend my tax return If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. How do i amend my tax return People who are in business for themselves generally will have to pay their tax this way. How do i amend my tax return Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. How do i amend my tax return Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. How do i amend my tax return This chapter explains these methods. How do i amend my tax return In addition, it also explains the following. How do i amend my tax return Credit for withholding and estimated tax. How do i amend my tax return When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. How do i amend my tax return , and for the estimated tax you paid for 2013. How do i amend my tax return Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). How do i amend my tax return Underpayment penalty. How do i amend my tax return If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. How do i amend my tax return In most cases, the IRS can figure this penalty for you. How do i amend my tax return See Underpayment Penalty for 2013 at the end of this chapter. How do i amend my tax return Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request 1040-ES Estimated Tax for Individuals 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen Tax Withholding for 2014 This section discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. How do i amend my tax return This section explains the rules for withholding tax from each of these types of income. How do i amend my tax return This section also covers backup withholding on interest, dividends, and other payments. How do i amend my tax return Salaries and Wages Income tax is withheld from the pay of most employees. How do i amend my tax return Your pay includes your regular pay, bonuses, commissions, and vacation allowances. How do i amend my tax return It also includes reimbursements and other expense allowances paid under a nonaccountable plan. How do i amend my tax return See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. How do i amend my tax return If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. How do i amend my tax return This is explained under Exemption From Withholding , later. How do i amend my tax return You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. How do i amend my tax return If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . How do i amend my tax return Military retirees. How do i amend my tax return   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. How do i amend my tax return Household workers. How do i amend my tax return   If you are a household worker, you can ask your employer to withhold income tax from your pay. How do i amend my tax return A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. How do i amend my tax return   Tax is withheld only if you want it withheld and your employer agrees to withhold it. How do i amend my tax return If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . How do i amend my tax return Farmworkers. How do i amend my tax return   Generally, income tax is withheld from your cash wages for work on a farm unless your employer does both of these: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. How do i amend my tax return Differential wage payments. How do i amend my tax return    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. How do i amend my tax return Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. How do i amend my tax return The wages and withholding will be reported on Form W-2, Wage and Tax Statement. How do i amend my tax return   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. How do i amend my tax return Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. How do i amend my tax return The amount you earn in each payroll period. How do i amend my tax return The information you give your employer on Form W-4. How do i amend my tax return Form W-4 includes four types of information that your employer will use to figure your withholding. How do i amend my tax return Whether to withhold at the single rate or at the lower married rate. How do i amend my tax return How many withholding allowances you claim (each allowance reduces the amount withheld). How do i amend my tax return Whether you want an additional amount withheld. How do i amend my tax return Whether you are claiming an exemption from withholding in 2014. How do i amend my tax return See Exemption From Withholding , later. How do i amend my tax return Note. How do i amend my tax return You must specify a filing status and a number of withholding allowances on Form W-4. How do i amend my tax return You cannot specify only a dollar amount of withholding. How do i amend my tax return New Job When you start a new job, you must fill out Form W-4 and give it to your employer. How do i amend my tax return Your employer should have copies of the form. How do i amend my tax return If you need to change the information later, you must fill out a new form. How do i amend my tax return If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. How do i amend my tax return You may be able to avoid overwithholding if your employer agrees to use the part-year method. How do i amend my tax return See Part-Year Method in chapter 1 of Publication 505 for more information. How do i amend my tax return Employee also receiving pension income. How do i amend my tax return   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. How do i amend my tax return However, you can choose to split your withholding allowances between your pension and job in any manner. How do i amend my tax return Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. How do i amend my tax return When this happens, you may need to give your employer a new Form W-4 to change your withholding status or your number of allowances. How do i amend my tax return If the changes reduce the number of allowances you are claiming or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. How do i amend my tax return Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. How do i amend my tax return Changing your withholding for 2015. How do i amend my tax return   If events in 2014 will decrease the number of your withholding allowances for 2015, you must give your employer a new Form W-4 by December 1, 2014. How do i amend my tax return If the event occurs in December 2014, submit a new Form W-4 within 10 days. How do i amend my tax return Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too little or too much. How do i amend my tax return If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. How do i amend my tax return You should try to have your withholding match your actual tax liability. How do i amend my tax return If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. How do i amend my tax return If too much tax is withheld, you will lose the use of that money until you get your refund. How do i amend my tax return Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. How do i amend my tax return Note. How do i amend my tax return You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. How do i amend my tax return Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. How do i amend my tax return The worksheets are for your own records. How do i amend my tax return Do not give them to your employer. How do i amend my tax return Multiple jobs. How do i amend my tax return   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. How do i amend my tax return Then split your allowances between the Forms W-4 for each job. How do i amend my tax return You cannot claim the same allowances with more than one employer at the same time. How do i amend my tax return You can claim all your allowances with one employer and none with the other(s), or divide them any other way. How do i amend my tax return Married individuals. How do i amend my tax return   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. How do i amend my tax return Use only one set of worksheets. How do i amend my tax return You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. How do i amend my tax return   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. How do i amend my tax return Alternative method of figuring withholding allowances. How do i amend my tax return   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. How do i amend my tax return For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. How do i amend my tax return Personal Allowances Worksheet. How do i amend my tax return   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. How do i amend my tax return Deduction and Adjustments Worksheet. How do i amend my tax return   Use the Deduction and Adjustments Worksheet on Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. How do i amend my tax return Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. How do i amend my tax return Two-Earners/Multiple Jobs Worksheet. How do i amend my tax return   You may need to complete the Two-Earners/Multiple Jobs Worksheet on Form W-4 if you have more than one job, a working spouse, or are also receiving a pension. How do i amend my tax return Also, on this worksheet you can add any additional withholding necessary to cover any amount you expect to owe other than income tax, such as self-employment tax. How do i amend my tax return Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. How do i amend my tax return You accurately complete all the Form W-4 worksheets that apply to you. How do i amend my tax return You give your employer a new Form W-4 when changes occur. How do i amend my tax return But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. How do i amend my tax return This is most likely to happen in the following situations. How do i amend my tax return You are married and both you and your spouse work. How do i amend my tax return You have more than one job at a time. How do i amend my tax return You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. How do i amend my tax return You will owe additional amounts with your return, such as self-employment tax. How do i amend my tax return Your withholding is based on obsolete Form W-4 information for a substantial part of the year. How do i amend my tax return Your earnings are more than the amount shown under Check your withholding in the instructions at the top of page 1 of Form W-4. How do i amend my tax return You work only part of the year. How do i amend my tax return You change the number of your withholding allowances during the year. How do i amend my tax return Cumulative wage method. How do i amend my tax return   If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. How do i amend my tax return You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. How do i amend my tax return You must ask your employer in writing to use this method. How do i amend my tax return   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. How do i amend my tax return ) since the beginning of the year. How do i amend my tax return Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. How do i amend my tax return It will help you compare the total tax to be withheld during the year with the tax you can expect to figure on your return. How do i amend my tax return It also will help you determine how much, if any, additional withholding is needed each payday to avoid owing tax when you file your return. How do i amend my tax return If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. How do i amend my tax return You can use the IRS Withholding Calculator at www. How do i amend my tax return irs. How do i amend my tax return gov/Individuals, instead of Publication 505 or the worksheets included with Form W-4, to determine whether you need to have your withholding increased or decreased. How do i amend my tax return Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. How do i amend my tax return These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. How do i amend my tax return New Form W-4. How do i amend my tax return   When you start a new job, your employer should have you complete a Form W-4. How do i amend my tax return Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. How do i amend my tax return   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. How do i amend my tax return The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. How do i amend my tax return No Form W-4. How do i amend my tax return   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. How do i amend my tax return Repaying withheld tax. How do i amend my tax return   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. How do i amend my tax return Your employer cannot repay any of the tax previously withheld. How do i amend my tax return Instead, claim the full amount withheld when you file your tax return. How do i amend my tax return   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. How do i amend my tax return Your employer can repay the amount that was withheld incorrectly. How do i amend my tax return If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. How do i amend my tax return Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. How do i amend my tax return The exemption applies only to income tax, not to social security or Medicare tax. How do i amend my tax return You can claim exemption from withholding for 2014 only if both of the following situations apply. How do i amend my tax return For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. How do i amend my tax return For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. How do i amend my tax return Students. How do i amend my tax return   If you are a student, you are not automatically exempt. How do i amend my tax return See chapter 1 to find out if you must file a return. How do i amend my tax return If you work only part time or only during the summer, you may qualify for exemption from withholding. How do i amend my tax return Age 65 or older or blind. How do i amend my tax return   If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. How do i amend my tax return Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. How do i amend my tax return Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. How do i amend my tax return Claiming exemption from withholding. How do i amend my tax return   To claim exemption, you must give your employer a Form W-4. How do i amend my tax return Do not complete lines 5 and 6. How do i amend my tax return Enter “Exempt” on line 7. How do i amend my tax return   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. How do i amend my tax return If you claim exemption in 2014, but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. How do i amend my tax return   Your claim of exempt status may be reviewed by the IRS. How do i amend my tax return An exemption is good for only 1 year. How do i amend my tax return   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. How do i amend my tax return Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. How do i amend my tax return The payer can figure withholding on supplemental wages using the same method used for your regular wages. How do i amend my tax return However, if these payments are identified separately from your regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. How do i amend my tax return Expense allowances. How do i amend my tax return   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. How do i amend my tax return   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. How do i amend my tax return   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. How do i amend my tax return Penalties You may have to pay a penalty of $500 if both of the following apply. How do i amend my tax return You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. How do i amend my tax return You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. How do i amend my tax return There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. How do i amend my tax return The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. How do i amend my tax return These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. How do i amend my tax return A simple error or an honest mistake will not result in one of these penalties. How do i amend my tax return For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a W-4 penalty. How do i amend my tax return Tips The tips you receive while working on your job are considered part of your pay. How do i amend my tax return You must include your tips on your tax return on the same line as your regular pay. How do i amend my tax return However, tax is not withheld directly from tip income, as it is from your regular pay. How do i amend my tax return Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. How do i amend my tax return See chapter 6 for information on reporting your tips to your employer. How do i amend my tax return For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. How do i amend my tax return How employer figures amount to withhold. How do i amend my tax return   The tips you report to your employer are counted as part of your income for the month you report them. How do i amend my tax return Your employer can figure your withholding in either of two ways. How do i amend my tax return By withholding at the regular rate on the sum of your pay plus your reported tips. How do i amend my tax return By withholding at the regular rate on your pay plus a percentage of your reported tips. How do i amend my tax return Not enough pay to cover taxes. How do i amend my tax return   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. How do i amend my tax return See Giving your employer money for taxes in chapter 6. How do i amend my tax return Allocated tips. How do i amend my tax return   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. How do i amend my tax return Withholding is based only on your pay plus your reported tips. How do i amend my tax return Your employer should refund to you any incorrectly withheld tax. How do i amend my tax return See Allocated Tips in chapter 6 for more information. How do i amend my tax return Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. How do i amend my tax return Your employer generally must withhold income tax on these benefits from your regular pay. How do i amend my tax return For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. How do i amend my tax return Although the value of your personal use of an employer-provided car, truck, or other highway motor vehicle is taxable, your employer can choose not to withhold income tax on that amount. How do i amend my tax return Your employer must notify you if this choice is made. How do i amend my tax return For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. How do i amend my tax return Sick Pay Sick pay is a payment to you to replace your regular wages while you are temporarily absent from work due to sickness or personal injury. How do i amend my tax return To qualify as sick pay, it must be paid under a plan to which your employer is a party. How do i amend my tax return If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. How do i amend my tax return An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. How do i amend my tax return However, if you receive sick pay from a third party who is not acting as an agent of your employer, income tax will be withheld only if you choose to have it withheld. How do i amend my tax return See Form W-4S , later. How do i amend my tax return If you receive payments under a plan in which your employer does not participate (such as an accident or health plan where you paid all the premiums), the payments are not sick pay and usually are not taxable. How do i amend my tax return Union agreements. How do i amend my tax return   If you receive sick pay under a collective bargaining agreement between your union and your employer, the agreement may determine the amount of income tax withholding. How do i amend my tax return See your union representative or your employer for more information. How do i amend my tax return Form W-4S. How do i amend my tax return   If you choose to have income tax withheld from sick pay paid by a third party, such as an insurance company, you must fill out Form W-4S. How do i amend my tax return Its instructions contain a worksheet you can use to figure the amount you want withheld. How do i amend my tax return They also explain restrictions that may apply. How do i amend my tax return   Give the completed form to the payer of your sick pay. How do i amend my tax return The payer must withhold according to your directions on the form. How do i amend my tax return Estimated tax. How do i amend my tax return   If you do not request withholding on Form W-4S, or if you do not have enough tax withheld, you may have to make estimated tax payments. How do i amend my tax return If you do not pay enough tax, either through estimated tax or withholding, or a combination of both, you may have to pay a penalty. How do i amend my tax return See Underpayment Penalty for 2013 at the end of this chapter. How do i amend my tax return Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. How do i amend my tax return This rule applies to distributions from: A traditional individual retirement arrangement (IRA); A life insurance company under an endowment, annuity, or life insurance contract; A pension, annuity, or profit-sharing plan; A stock bonus plan; and Any other plan that defers the time you receive compensation. How do i amend my tax return The amount withheld depends on whether you receive payments spread out over more than 1 year (periodic payments), within 1 year (nonperiodic payments), or as an eligible rollover distribution (ERD). How do i amend my tax return Income tax withholding from an ERD is mandatory. How do i amend my tax return More information. How do i amend my tax return   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. How do i amend my tax return For information on IRAs, see chapter 17. How do i amend my tax return For more information on withholding on pensions and annuities, including a discussion of Form W-4P, see Pensions and Annuities in chapter 1 of Publication 505. How do i amend my tax return Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. How do i amend my tax return Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. How do i amend my tax return Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. How do i amend my tax return Any other wager, if the proceeds are at least 300 times the amount of the bet. How do i amend my tax return It does not matter whether your winnings are paid in cash, in property, or as an annuity. How do i amend my tax return Winnings not paid in cash are taken into account at their fair market value. How do i amend my tax return Exception. How do i amend my tax return   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. How do i amend my tax return However, you may need to provide the payer with a social security number to avoid withholding. How do i amend my tax return See Backup withholding on gambling winnings in chapter 1 of Publication 505. How do i amend my tax return If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. How do i amend my tax return See Estimated Tax for 2014 , later. How do i amend my tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. How do i amend my tax return See Underpayment Penalty for 2013 at the end of this chapter. How do i amend my tax return Form W-2G. How do i amend my tax return   If a payer withholds income tax from your gambling winnings, you should receive a Form W-2G, Certain Gambling Winnings, showing the amount you won and the amount withheld. How do i amend my tax return Report the tax withheld on line 62 of Form 1040. How do i amend my tax return Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. How do i amend my tax return To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. How do i amend my tax return All unemployment compensation is taxable. How do i amend my tax return So, if you do not have income tax withheld, you may have to pay estimated tax. How do i amend my tax return See Estimated Tax for 2014 , later. How do i amend my tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. How do i amend my tax return For information, see Underpayment Penalty for 2013 at the end of this chapter. How do i amend my tax return Federal Payments You can choose to have income tax withheld from certain federal payments you receive. How do i amend my tax return These payments are: Social security benefits, Tier 1 railroad retirement benefits, Commodity credit corporation loans you choose to include in your gross income, Payments under the Agricultural Act of 1949 (7 U. How do i amend my tax return S. How do i amend my tax return C. How do i amend my tax return 1421 et. How do i amend my tax return seq. How do i amend my tax return ), as amended, or title II of the Disaster Assistance Act of 1988, that are treated as insurance proceeds and that you receive because: Your crops were destroyed or damaged by drought, flood, or any other natural disaster, or You were unable to plant crops because of a natural disaster described in (a), and Any other payment under Federal law as determined by the Secretary. How do i amend my tax return To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. How do i amend my tax return If you do not choose to have income tax withheld, you may have to pay estimated tax. How do i amend my tax return See Estimated Tax for 2014 , later. How do i amend my tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. How do i amend my tax return For information, see Underpayment Penalty for 2013 at the end of this chapter. How do i amend my tax return More information. How do i amend my tax return   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. How do i amend my tax return Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. How do i amend my tax return Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. How do i amend my tax return The information return shows how much you were paid during the year. How do i amend my tax return It also includes your name and taxpayer identification number (TIN). How do i amend my tax return TINs are explained in chapter 1 under Social Security Number (SSN) . How do i amend my tax return These payments generally are not subject to withholding. How do i amend my tax return However, “backup” withholding is required in certain situations. How do i amend my tax return Backup withholding can apply to most kinds of payments that are reported on Form 1099. How do i amend my tax return The payer must withhold at a flat 28% rate in the following situations. How do i amend my tax return You do not give the payer your TIN in the required manner. How do i amend my tax return The IRS notifies the payer that the TIN you gave is incorrect. How do i amend my tax return You are required, but fail, to certify that you are not subject to backup withholding. How do i amend my tax return The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. How do i amend my tax return The IRS will do this only after it has mailed you four notices over at least a 210-day period. How do i amend my tax return See Backup Withholding in chapter 1 of Publication 505 for more information. How do i amend my tax return Penalties. How do i amend my tax return   There are civil and criminal penalties for giving false information to avoid backup withholding. How do i amend my tax return The civil penalty is $500. How do i amend my tax return The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. How do i amend my tax return Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. How do i amend my tax return This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. How do i amend my tax return You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. How do i amend my tax return Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. How do i amend my tax return If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. How do i amend my tax return If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. How do i amend my tax return For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. How do i amend my tax return Who Does Not Have To Pay Estimated Tax If you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. How do i amend my tax return To do this, give a new Form W-4 to your employer. How do i amend my tax return See chapter 1 of Publication 505. How do i amend my tax return Estimated tax not required. How do i amend my tax return   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. How do i amend my tax return You had no tax liability for 2013. How do i amend my tax return You were a U. How do i amend my tax return S. How do i amend my tax return citizen or resident alien for the whole year. How do i amend my tax return Your 2013 tax year covered a 12-month period. How do i amend my tax return   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. How do i amend my tax return For the definition of “total tax” for 2013, see Publication 505, chapter 2. How do i amend my tax return Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. How do i amend my tax return You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments. How do i amend my tax return General rule. How do i amend my tax return   In most cases, you must pay estimated tax for 2014 if both of the following apply. How do i amend my tax return You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. How do i amend my tax return You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers, later). How do i amend my tax return Your 2013 tax return must cover all 12 months. How do i amend my tax return    If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet in Publication 505 for a more accurate calculation. How do i amend my tax return Special rules for farmers, fishermen, and higher income taxpayers. How do i amend my tax return   If at least two-thirds of your gross income for tax year 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under the General rule, earlier. How do i amend my tax return If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General rule , earlier. How do i amend my tax return See Figure 4-A and Publication 505, chapter 2 for more information. How do i amend my tax return Figure 4-A. How do i amend my tax return Do You Have To Pay Estimated Tax? Please click here for the text description of the image. How do i amend my tax return Figure 4-A Do You Have To Pay Estimated Tax? Aliens. How do i amend my tax return   Resident and nonresident aliens also may have to pay estimated tax. How do i amend my tax return Resident aliens should follow the rules in this chapter unless noted otherwise. How do i amend my tax return Nonresident aliens should get Form 1040-ES (NR), U. How do i amend my tax return S. How do i amend my tax return Estimated Tax for Nonresident Alien Individuals. How do i amend my tax return   You are an alien if you are not a citizen or national of the United States. How do i amend my tax return You are a resident alien if you either have a green card or meet the substantial presence test. How do i amend my tax return For more information about the substantial presence test, see Publication 519, U. How do i amend my tax return S. How do i amend my tax return Tax Guide for Aliens. How do i amend my tax return Married taxpayers. How do i amend my tax return   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. How do i amend my tax return   You and your spouse can make joint estimated tax payments even if you are not living together. How do i amend my tax return   However, you and your spouse cannot make joint estimated tax payments if:  You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, or Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes (see chapter 1 of Publication 519)). How do i amend my tax return   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. How do i amend my tax return Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. How do i amend my tax return 2013 separate returns and 2014 joint return. How do i amend my tax return   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. How do i amend my tax return You filed a separate return if you filed as single, head of household, or married filing separately. How do i amend my tax return 2013 joint return and 2014 separate returns. How do i amend my tax return   If you plan to file a separate return for 2014 but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. How do i amend my tax return You file a separate return if you file as single, head of household, or married filing separately. How do i amend my tax return   To figure your share of the tax on the joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status as for 2014. How do i amend my tax return Then multiply the tax on the joint return by the following fraction. How do i amend my tax return     The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. How do i amend my tax return Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. How do i amend my tax return Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. How do i amend my tax return For 2014, they plan to file married filing separately. How do i amend my tax return Joe figures his share of the tax on the 2013 joint return as follows. How do i amend my tax return   Tax on $40,100 based on a separate return $5,960     Tax on $8,400 based on a separate return 843     Total $6,803     Joe's percentage of total ($5,960 ÷ $6,803) 87. How do i amend my tax return 6%     Joe's share of tax on joint return  ($6,386 × 87. How do i amend my tax return 6%) $5,594   How To Figure Estimated Tax To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. How do i amend my tax return When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. How do i amend my tax return Use your 2013 federal tax return as a guide. How do i amend my tax return You can use Form 1040-ES and Publication 505 to figure your estimated tax. How do i amend my tax return Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). How do i amend my tax return You must make adjustments both for changes in your own situation and for recent changes in the tax law. How do i amend my tax return For a discussion of these changes, visit IRS. How do i amend my tax return gov. How do i amend my tax return For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. How do i amend my tax return When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. How do i amend my tax return Each period has a specific payment due date. How do i amend my tax return If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return. How do i amend my tax return The payment periods and due dates for estimated tax payments are shown next. How do i amend my tax return   For the period: Due date:*     Jan. How do i amend my tax return 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. How do i amend my tax return 15     Sept. How do i amend my tax return 1– Dec. How do i amend my tax return 31 Jan. How do i amend my tax return 15, next year     *See Saturday, Sunday, holiday rule and January payment . How do i amend my tax return Saturday, Sunday, holiday rule. How do i amend my tax return   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday. How do i amend my tax return January payment. How do i amend my tax return   If you file your 2014 Form 1040 or Form 1040A by January 31, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. How do i amend my tax return Fiscal year taxpayers. How do i amend my tax return   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. How do i amend my tax return When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. How do i amend my tax return If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. How do i amend my tax return You can pay all your estimated tax at that time, or you can pay it in installments. How do i amend my tax return If you choose to pay in installments, make your first payment by the due date for the first payment period. How do i amend my tax return Make your remaining installment payments by the due dates for the later periods. How do i amend my tax return No income subject to estimated tax during first period. How do i amend my tax return    If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. How do i amend my tax return You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. How do i amend my tax return The following chart shows when to make installment payments. How do i amend my tax return If you first have income on which you must pay estimated tax: Make a payment  by:* Make later installments by:* Before April 1 April 15 June 16 Sept. How do i amend my tax return 15 Jan. How do i amend my tax return 15 next year April 1–May 31 June 16 Sept. How do i amend my tax return 15 Jan. How do i amend my tax return 15 next year June 1–Aug. How do i amend my tax return 31 Sept. How do i amend my tax return 15 Jan. How do i amend my tax return 15 next year After Aug. How do i amend my tax return 31 Jan. How do i amend my tax return 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . How do i amend my tax return How much to pay to avoid a penalty. How do i amend my tax return   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. How do i amend my tax return How To Figure Each Payment You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. How do i amend my tax return You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. How do i amend my tax return These methods are described in chapter 2 of Publication 505. How do i amend my tax return If you do not pay enough during each payment period, you may be charged a penalty even if you are due a refund when you file your tax return. How do i amend my tax return If the earlier discussion of No income subject to estimated tax during first period or the later discussion of Change in estimated tax applies to you, you may benefit from reading Annualized Income Installment Method in chapter 2 of Publication 505 for information on how to avoid a penalty. How do i amend my tax return Underpayment penalty. How do i amend my tax return   Under the regular installment method, if your estimated tax payment for any period is less than one-fourth of your estimated tax, you may be charged a penalty for underpayment of estimated tax for that period when you file your tax return. How do i amend my tax return Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. How do i amend my tax return See chapter 4 of Publication 505 for more information. How do i amend my tax return Change in estimated tax. How do i amend my tax return   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. How do i amend my tax return Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. How do i amend my tax return Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. How do i amend my tax return You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you owe with your return under $1,000. How do i amend my tax return How To Pay Estimated Tax There are several ways to pay estimated tax. How do i amend my tax return Credit an overpayment on your 2013 return to your 2014 estimated tax. How do i amend my tax return Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. How do i amend my tax return Send in your payment (check or money order) with a payment voucher from Form 1040-ES. How do i amend my tax return Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. How do i amend my tax return On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. How do i amend my tax return Take the amount you have credited into account when figuring your estimated tax payments. How do i amend my tax return You cannot have any of the amount you credited to your estimated tax refunded to you until you file your tax return for the following year. How do i amend my tax return You also cannot use that overpayment in any other way. How do i amend my tax return Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. How do i amend my tax return You can pay using either of the following electronic payment methods. How do i amend my tax return Direct transfer from your bank account. How do i amend my tax return Credit or debit card. How do i amend my tax return To pay your taxes online or for more information, go to www. How do i amend my tax return irs. How do i amend my tax return gov/e-pay. How do i amend my tax return Pay by Phone Paying by phone is another safe and secure method of paying electronically. How do i amend my tax return Use one of the following methods. How do i amend my tax return Direct transfer from your bank account. How do i amend my tax return Credit or debit card. How do i amend my tax return To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). How do i amend my tax return People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD can call 1-800-733-4829. How do i amend my tax return To pay using a credit or debit card, you can call one of the following service providers. How do i amend my tax return There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. How do i amend my tax return WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. How do i amend my tax return payUSAtax. How do i amend my tax return com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. How do i amend my tax return officialpayments. How do i amend my tax return com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. How do i amend my tax return PAY1040. How do i amend my tax return com For the latest details on how to pay by phone, go to www. How do i amend my tax return irs. How do i amend my tax return gov/e-pay. How do i amend my tax return Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. How do i amend my tax return During 2013, if you: made at least one estimated tax payment but not by electronic means, did not use software or a paid preparer to prepare or file your return,  then you should receive a copy of the 2014 Form 1040-ES/V. How do i amend my tax return The enclosed payment vouchers will be preprinted with your name, address, and social security number. How do i amend my tax return Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. How do i amend my tax return Use the window envelopes that came with your Form 1040-ES package. How do i amend my tax return If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. How do i amend my tax return Note. How do i amend my tax return These criteria can change without notice. How do i amend my tax return If you do not receive a Form 1040-ES/V package and you are required to make an estimated tax payment, you should go to www. How do i amend my tax return irs. How do i amend my tax return gov and print a copy of Form 1040-ES which includes four blank payment vouchers. How do i amend my tax return Complete one of these and make your payment timely to avoid penalties for paying late. How do i amend my tax return Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. How do i amend my tax return If you did not pay estimated tax last year, you can order Form 1040-ES from the IRS (see inside back cover of this publication) or download it from IRS. How do i amend my tax return gov. How do i amend my tax return Follow the instructions to make sure you use the vouchers correctly. How do i amend my tax return Joint estimated tax payments. How do i amend my tax return   If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. How do i amend my tax return Change of address. How do i amend my tax return   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. How do i amend my tax return Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. How do i amend my tax return Credit for Withholding and Estimated Tax for 2013 When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. How do i amend my tax return Also take credit for the estimated tax you paid for 2013. How do i amend my tax return These credits are subtracted from your total tax. How do i amend my tax return Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. How do i amend my tax return Two or more employers. How do i amend my tax return   If you had two or more employers in 2013 and were paid wages of more than $113,700, too much social security or tier 1 railroad retirement tax may have been withheld from your pay. How do i amend my tax return You may be able to claim the excess as a credit against your income tax when you file your return. How do i amend my tax return See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. How do i amend my tax return Withholding If you had income tax withheld during 2013, you should be sent a statement by January 31, 2014, showing your income and the tax withheld. How do i amend my tax return Depending on the source of your income, you should receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. How do i amend my tax return Forms W-2 and W-2G. How do i amend my tax return   If you file a paper return, always file Form W-2 with your income tax return. How do i amend my tax return File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. How do i amend my tax return   You should get at least two copies of each form. How do i amend my tax return If you file a paper return, attach one copy to the front of your federal income tax return. How do i amend my tax return Keep one copy for your records. How do i amend my tax return You also should receive copies to file with your state and local returns. How do i amend my tax return Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. How do i amend my tax return You should receive a separate Form W-2 from each employer you worked for. How do i amend my tax return If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. How do i amend my tax return However, your employer must provide or send it to you by January 31, 2014. How do i amend my tax return If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. How do i amend my tax return If you have not received your Form W-2 by January 31, you should ask your employer for it. How do i amend my tax return If you do not receive it by February 15, call the IRS. How do i amend my tax return Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. How do i amend my tax return Include the federal income tax withheld (as shown in box 2 of Form W-2) on: Line 62 if you file Form 1040, Line 36 if you file Form 1040A, or Line 7 if you file Form 1040EZ. How do i amend my tax return In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. How do i amend my tax return Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. How do i amend my tax return If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. How do i amend my tax return Report the amounts you won on line 21 of Form 1040. How do i amend my tax return Take credit for the tax withheld on line 62 of Form 1040. How do i amend my tax return If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. How do i amend my tax return The 1099 Series Most forms in the 1099 series are not filed with your return. How do i amend my tax return These forms should be furnished to you by January 31, 2014 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2014). How do i amend my tax return Unless instructed to file any of these forms with your return, keep them for your records. How do i amend my tax return There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received from Cooperatives; Form 1099-Q, Payments From Qualified Education Programs; Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How do i amend my tax return ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. How do i amend my tax return If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. How do i amend my tax return See the instructions to these forms for details. How do i amend my tax return Form 1099-R. How do i amend my tax return   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. How do i amend my tax return Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. How do i amend my tax return You cannot use Form 1040EZ if you received payments reported on Form 1099-R. How do i amend my tax return Backup withholding. How do i amend my tax return   If you were subject to backup withholding on income you received during 2013, include the amount withheld, as shown on your Form 1099, in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. How do i amend my tax return Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. How do i amend my tax return Call the telephone number or write to the address given for the payer on the form. How do i amend my tax return The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. How do i amend my tax return A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. How do i amend my tax return In certain situations, you will receive two forms in place of the original incorrect form. How do i amend my tax return This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). How do i amend my tax return One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. How do i amend my tax return This form will have an “X” in the “CORRECTED” box at the top of the form. How do i amend my tax return The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). How do i amend my tax return Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, you should report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. How do i amend my tax return S. How do i amend my tax return Individual Income Tax Return. How do i amend my tax return Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. How do i amend my tax return Do not include any amount withheld from your spouse's income. How do i amend my tax return However, different rules may apply if you live in a community property state. How do i amend my tax return Community property states are listed in chapter 2. How do i amend my tax return For more information on these rules, and some exceptions, see Publication 555, Community Property. How do i amend my tax return Fiscal Years If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules to determine your credit for federal income tax withholding. How do i amend my tax return For a discussion of how to take credit for withholding on a fiscal year return, see Fiscal Years (FY) in chapter 3 of Publication 505. How do i amend my tax return Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. How do i amend my tax return Include any overpayment from 2012 that you had credited to your 2013 estimated tax. How do i amend my tax return You must use Form 1040 or Form 1040A if you paid estimated tax. How do i amend my tax return You cannot use Form 1040EZ. How do i amend my tax return Name changed. How do i amend my tax return   If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and Your social security number. How do i amend my tax return The statement should cover payments you made jointly with your spouse as well as any you made separately. How do i amend my tax return   Be sure to report the change to the Social Security Administration. How do i amend my tax return This prevents delays in processing your return and issuing any refunds. How do i amend my tax return Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. How do i amend my tax return If you made joint estimated tax payments, you must decide how to divide the payments between your returns. How do i amend my tax return One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. How do i amend my tax return If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. How do i amend my tax return Divorced Taxpayers If you made joint estimated tax payments for 2013, and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. How do i amend my tax return If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. How do i amend my tax return If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided on the front of Form 1040 or Form 1040A. How do i amend my tax return If you divorced and remarried in 2013, enter your present spouse's SSN in that space and write your former spouse's SSN, followed by “DIV,” to the left of Form 1040, line 63, or Form 1040A, line 37. How do i amend my tax return Underpayment Penalty for 2013 If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. How do i amend my tax return Generally, you will not have to pay a penalty for 2013 if any of the following apply. How do i amend my tax return The total of your withholding and estimated tax payments was at least as much as your 2012 tax (or 110% of your 2012 tax if your AGI was more than $150,000, $75,000 if your 2013 filing status is married filing separately) and you paid all required estimated tax payments on time. How do i amend my tax return The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. How do i amend my tax return Your total 2013 tax minus your withholding and refundable credits is less than $1,000. How do i amend my tax return You did not have a tax liability for 2012 and your 2012 tax year was 12 months, or You did not have any withholding taxes and your current year tax less any household employment taxes is less than $1,000. How do i amend my tax return See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. How do i amend my tax return Farmers and fishermen. How do i amend my tax return   Special rules apply if you are a farmer or fisherman. How do i amend my tax return See Farmers and Fishermen in chapter 4 of Publication 505 for more information. How do i amend my tax return IRS can figure the penalty for you. How do i amend my tax return   If you think you owe the penalty but you do not want to figure it yourself when you file your tax return, you may not have to. How do i amend my tax return Generally, the IRS will figure the penalty for you and send you a bill. How do i amend my tax return However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-F and attach it to your paper return. How do i amend my tax return See chapter 4 of Publication 505. How do i amend my tax return Prev  Up  Next   Home   More Online Publications
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Understanding your CP13M Notice

We made changes to your return involving the Making Work Pay credit or the Government Retiree Credit. You're not due a refund nor do you owe an additional amount because of our changes. Your account balance is zero.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully — it will explain how the Making Work Pay credit or the Government Retiree Credit relate to the changes we made.
  • Review the notice and compare our changes to the information on your tax return.
  • Correct the copy of your tax return that you kept for your records.
  • You don't need to do anything if you agree with the notice.
  • If you disagree with the notice, please contact us at the toll-free number listed on its top right corner (within 60 days of its date).

You may want to...


Answers to Common Questions

What is the Making Work Pay credit?
It is a refundable tax credit that can go up to $400 for individuals and $800 for married taxpayers.

What is the Government Retiree Credit?
It is a refundable tax credit that can go up to $250 for individuals and $500 for married taxpayers.

What should I do if I disagree with the changes you made?
Contact us at the toll free number listed on the top right corner of your notice if you disagree with the changes we made.

What should I do if I need to make another correction to my tax return?
You'll need to file an amended return to make a correction.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Perform a quick check on the amount you have withheld to make sure you won't owe money next year. You can use this IRS withholding calculator.

Page Last Reviewed or Updated: 20-Feb-2014

The How Do I Amend My Tax Return

How do i amend my tax return Listed Property Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Listed Property DefinedPassenger Automobile Defined Dwelling Unit Other Property Used for Transportation Computers and Related Peripheral Equipment Predominant Use TestMeeting the Predominant Use Test Qualified Business Use Method of Allocating Use Applying the Predominant Use Test Deductions After Recovery Period Leased PropertyLessor Lessee What Records Must Be KeptAdequate Records Reporting Information on Form 4562 Deductions in Later Years Appendix Topics - This chapter discusses: Listed property defined The predominant use test What records must be kept Useful Items - You may want to see: Publication 463 Travel, Entertainment, and Gift Expenses 587 Business Use of Your Home (Including Use by Day-Care Providers) 917 Business Use of a Car 946 How To Depreciate Property Form (and Instructions) 2106–EZ Unreimbursed Employee Business Expenses 2106 Employee Business Expenses 4255 Recapture of Investment Credit 4562 Depreciation and Amortization This chapter discusses some special rules and recordkeeping requirements for listed property. How do i amend my tax return For complete coverage of the rules, including the rules concerning passenger automobiles, see Publication 946. How do i amend my tax return If listed property is not used predominantly (more than 50%) in a qualified business use as discussed inPredominant Use Test, later, the section 179 deduction is not allowable and the property must be depreciated using the straight line method. How do i amend my tax return Listed Property Defined Listed property is any of the following: Any passenger automobile (defined later), Any other property used for transportation, Any property of a type generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video recording equipment), Any computer and related peripheral equipment, defined later, unless it is used only at a regular business establishment and owned or leased by the person operating the establishment. How do i amend my tax return A regular business establishment includes a portion of a dwelling unit (defined later), if, and only if, that portion is used both regularly and exclusively for business as discussed in Publication 587. How do i amend my tax return Any cellular telephone (or similar telecommunication equipment) placed in service or leased in a tax year beginning after 1989. How do i amend my tax return Passenger Automobile Defined A passenger automobile is any four-wheeled vehicle made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (at 6,000 pounds or less of gross vehicle weight for trucks and vans). How do i amend my tax return It includes any part, component, or other item physically attached to the automobile or usually included in the purchase price of an automobile. How do i amend my tax return A passenger automobile does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business, and A vehicle used directly in the trade or business of transporting persons or property for compensation or hire. How do i amend my tax return Dwelling Unit A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. How do i amend my tax return It does not include a unit in a hotel, motel, inn, or other establishment where more than half the units are used on a transient basis. How do i amend my tax return Other Property Used for Transportation Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons or goods. How do i amend my tax return Listed property does not include: Any vehicle which, by reason of its design, is not likely to be used more than a minimal amount for personal purposes, such as clearly marked police and fire vehicles, ambulances, or hearses used for those purposes, Any vehicle that is designed to carry cargo and that has a loaded gross vehicle weight over 14,000 pounds, bucket trucks (cherry pickers), cement mixers, combines, cranes and derricks, delivery trucks with seating only for the driver (or only for the driver plus a folding jump seat), dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks, Any passenger bus used for that purpose with a capacity of at least 20 passengers and school buses, Any tractor or other special purpose farm vehicle, and unmarked vehicles used by law enforcement officers if the use is officially authorized, and Any vehicle, such as a taxicab, if substantially all its use is in the trade or business of providing services to transport persons or property for compensation or hire by unrelated persons. How do i amend my tax return Computers and Related Peripheral Equipment A computer is a programmable electronically activated device that: Is capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention, and Consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. How do i amend my tax return Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. How do i amend my tax return Computer or peripheral equipment does not include: Any equipment which is an integral part of property which is not a computer, Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and Equipment of a kind, used primarily for the user's amusement or entertainment, such as video games. How do i amend my tax return Predominant Use Test If “listed property,” defined earlier, placed in service after June 18, 1984, is not used predominantly (more than 50%) in a qualified business use during any tax year: The section 179 deduction on the property is not allowable, and You must depreciate the property using the straight line method. How do i amend my tax return Listed property placed in service before 1987. How do i amend my tax return   For listed property placed in service before 1987, depreciate the property over the following period: Class of Property Listed Property Recovery Period 3-year property 5 years 5-year property 12 years 10-year property 25 years 18-year real property 40 years 19-year real property 40 years If you must use the above recovery periods for listed property not used predominantly in a trade or business, use the percentages from Table 16 titled Listed Property Not Used Predominantly (Other Than 18- or 19-year Real Property), and Table 17 for 18- or 19-year real property, near the end of this publication in the Appendix. How do i amend my tax return Listed property placed in service after 1986. How do i amend my tax return   For information on listed property placed in service after 1986, see Publication 946. How do i amend my tax return Meeting the Predominant Use Test Listed property meets the predominant use test for any tax year if its business use is more than 50% of its total use. How do i amend my tax return You must allocate the use of any item of listed property used for more than one purpose during the tax year among its various uses. How do i amend my tax return The percentage of investment use of listed property cannot be used as part of the percentage of qualified business use to meet the predominant use test. How do i amend my tax return However, the combined total of business and investment use is taken into account to figure your depreciation deduction for the property. How do i amend my tax return Note: Property does not stop being predominantly used in a qualified business use because of a transfer at death. How do i amend my tax return Example. How do i amend my tax return Sarah Bradley uses a home computer 50% of the time to manage her investments. How do i amend my tax return She also uses the computer 40% of the time in her part-time consumer research business. How do i amend my tax return Sarah's home computer is listed property because it is not used at a regular business establishment. How do i amend my tax return Because her business use of the computer does not exceed 50%, the computer is not predominantly used in a qualified business use for the tax year. How do i amend my tax return Because she does not meet the predominant use test, she cannot elect a section 179 deduction for this property. How do i amend my tax return Her combined rate of business/investment use for determining her depreciation deduction is 90%. How do i amend my tax return Qualified Business Use A qualified business use is any use in your trade or business. How do i amend my tax return However, it does not include: The use of property held merely to produce income (investment use), The leasing of property to any 5% owner or related person (to the point that the property is used by a 5% owner or person related to the owner or lessee of the property), The use of property as compensation for the performance of services by a 5% owner or related person, or The use of property as compensation for the performance of services by any person (other than a5% owner or related person) unless the value of the use is included in that person's gross income for the use of the property and income tax is withheld on that amount where required. How do i amend my tax return See Employees, later. How do i amend my tax return 5% owner. How do i amend my tax return   A 5% owner of a business, other than a corporation, is any person who owns more than 5% of the capital or profits interest in the business. How do i amend my tax return   A 5% owner of a corporation is any person who owns, or is considered to own: More than 5% of the outstanding stock of the corporation, or Stock possessing more than 5% of the total combined voting power of all stock in the corporation. How do i amend my tax return Related person. How do i amend my tax return   A related person is anyone related to a taxpayer as discussed under Related persons, in chapter 2 under Nonqualifying Property in Publication 946. How do i amend my tax return Entertainment Use The use of listed property for entertainment, recreation, or amusement purposes is treated as a qualified business use only to the extent that expenses (other than interest and property tax expenses) for its use are deductible as ordinary and necessary business expenses. How do i amend my tax return See Publication 463. How do i amend my tax return Leasing or Compensatory Use of Aircraft If at least 25% of the total use of any aircraft during the tax year is for a qualified business use, the leasing or compensatory use of the aircraft by a 5% owner or related person is treated as a qualified business use. How do i amend my tax return Commuting The use of a vehicle for commuting is not business use, regardless of whether work is performed during the trip. How do i amend my tax return Use of Your Passenger Automobile by Another Person If someone else uses your automobile, that use is not business use unless: That use is directly connected with your business, The value of the use is property reported by you as income to the other person and tax is withheld on the income where required, or The value of the use results in a payment of fair market rent. How do i amend my tax return Any payment to you for the use of the automobile is treated as a rent payment for 3). How do i amend my tax return Employees Any use by an employee of his or her own listed property (or listed property rented by an employee) in performing services as an employee is not business use unless: The use is for the employer's convenience, and The use is required as a condition of employment. How do i amend my tax return Use for the employer's convenience. How do i amend my tax return   Whether the use of listed property is for the employer's convenience must be determined from all the facts. How do i amend my tax return The use is for the employer's convenience if it is for a substantial business reason of the employer. How do i amend my tax return The use of listed property during the employee's regular working hours to carry on the employer's business is generally for the employer's convenience. How do i amend my tax return Use required as a condition of employment. How do i amend my tax return   Whether the use of listed property is a condition of employment depends on all the facts and circumstances. How do i amend my tax return The use of property must be required for the employee to perform duties properly. How do i amend my tax return The employer need not explicitly require the employee to use the property. How do i amend my tax return A mere statement by the employer that the use of the property is a condition of employment is not sufficient. How do i amend my tax return Example 1. How do i amend my tax return Virginia Sycamore is employed as a courier with We Deliver which provides local courier services. How do i amend my tax return She owns and uses a motorcycle to deliver packages to downtown offices. How do i amend my tax return We Deliver explicitly requires all delivery persons to own a small car or motorcycle for use in their employment. How do i amend my tax return The company reimburses delivery persons for their costs. How do i amend my tax return Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. How do i amend my tax return Example 2. How do i amend my tax return Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. How do i amend my tax return He must travel to these sites on a regular basis. How do i amend my tax return Uplift does not furnish an automobile or explicitly require him to use his own automobile. How do i amend my tax return However, it reimburses him for any costs he incurs in traveling to the various sites. How do i amend my tax return The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. How do i amend my tax return Method of Allocating Use For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. How do i amend my tax return You determine the percentage of qualified business use by dividing the number of miles the vehicle is driven for business purposes during the year by the total number of miles the vehicle is driven for all purposes (including business miles) during the year. How do i amend my tax return For other items of listed property, allocate the property's use on the basis of the most appropriate unit of time. How do i amend my tax return For example, you can determine the percentage of business use of a computer by dividing the number of hours the computer is used for business purposes during the year by the total number of hours the computer is used for all purposes (including business hours) during the year. How do i amend my tax return Applying the Predominant Use Test You must apply the predominant use test for an item of listed property each year of the recovery period. How do i amend my tax return First Recovery Year If any item of listed property is not used predominantly in a qualified business use in the year it is placed in service: The property is not eligible for a section 179 deduction, and The depreciation deduction must be figured using the straight line method. How do i amend my tax return Note: The required use of the straight line method for an item of listed property that does not meet the predominant use test is not the same as electing the straight line method. How do i amend my tax return It does not mean that you have to use the straight line method for other property in the same class as the item of listed property. How do i amend my tax return Years After the First Recovery Year If you use listed property predominantly (more than 50%) in a qualified business use in the tax year you place it in service, but not in a subsequent tax year during the recovery period, the following rules apply: Figure depreciation using the straight line method. How do i amend my tax return Do this for each year, beginning with the year you no longer use the property predominantly in a qualified business use, and Figure any excess depreciation on the property and add it to: Your gross income, and The adjusted basis of your property. How do i amend my tax return See Recapture of excess depreciation, next. How do i amend my tax return Recapture of excess depreciation. How do i amend my tax return   You must include any excess depreciation in your gross income for the first tax year the property is not predominantly used in a qualified business use. How do i amend my tax return Any excess depreciation must also be added to the adjusted basis of your property. How do i amend my tax return Excess depreciation is the excess (if any) of: The amount of depreciation allowable for the property (including any section 179 deduction claimed) for tax years before the first tax year the property was not predominantly used in a qualified business use, over The amount of depreciation that would have been allowable for those years if the property were not used predominantly in a qualified business use for the year it was placed in service. How do i amend my tax return This means you figure your depreciation using the percentages fromTable 16 or 17. How do i amend my tax return For information on investment credit recapture, see the instructions for Form 4255. How do i amend my tax return Deductions After Recovery Period When listed property (other than passenger automobiles) is used for business, investment, and personal purposes, no deduction is ever allowable for the personal use. How do i amend my tax return In tax years after the recovery period, you must determine if there is any unrecovered basis remaining before you compute the depreciation deduction for that tax year. How do i amend my tax return To make this determination, figure the depreciation for earlier tax years as if your property were used 100% for business or investment purposes, beginning with the first tax year in which some or all use is for business or investment. How do i amend my tax return See Car Used 50% or Less for Business in Publication 917. How do i amend my tax return Leased Property The limitations on cost recovery deductions apply to the rental of listed property. How do i amend my tax return The following discussion covers the rules that apply to the lessor (the owner of the property) and the lessee (the person who rents the property from the owner). How do i amend my tax return SeeLeasing a Car in Publication 917 for a discussion of leased passenger automobiles. How do i amend my tax return Lessor The limitations on cost recovery generally do not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. How do i amend my tax return A person is considered regularly engaged in the business of leasing listed property only if contracts for leasing of listed property are entered into with some frequency over a continuous period of time. How do i amend my tax return This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of the person's business in its entirety. How do i amend my tax return Occasional or incidental leasing activity is insufficient. How do i amend my tax return For example, a person leasing only one passenger automobile during a tax year is not regularly engaged in the business of leasing automobiles. How do i amend my tax return An employer who allows an employee to use the employer's property for personal purposes and charges the employee for the use is not regularly engaged in the business of leasing the property used by the employee. How do i amend my tax return Lessee A lessee of listed property (other than passenger automobiles), must include an amount in gross income called the inclusion amount for the first tax year the property is not used predominantly in a qualified business use. How do i amend my tax return Inclusion amount for property leased before 1987. How do i amend my tax return   You determine the inclusion amount for property leased after June 18, 1984 and before 1987 by multiplying the fair market value of the property by both the average business/investment use percentage and the applicable percentage. How do i amend my tax return You can find the applicable percentages for listed property that is 5- or 10-year recovery property in Tables 19 or 20 in Appendix A of Publication 946. How do i amend my tax return   The lease term for listed property other than 18- or 19-year real property, and residential rental or nonresidential real property, includes options to renew. How do i amend my tax return For 18- or 19-year real property and residential rental or nonresidential real property that is listed property, the period of the lease does not include any option to renew at fair market value, determined at the time of renewal. How do i amend my tax return You treat two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar property as one lease. How do i amend my tax return Special rules. How do i amend my tax return   The lessee adds the inclusion amount to gross income in the next tax year if: The lease term begins within 9 months before the close of the lessee's tax year, The lessee does not use the property predominantly in a qualified business use during that portion of the tax year, and The lease term continues into the lessee's next tax year. How do i amend my tax return The lessee determines the inclusion amount by taking into account the average of the business/investment use for both tax years and the applicable percentage for the tax year the lease term begins. How do i amend my tax return   If the lease term is less than one year, the amount included in gross income is the amount that bears the same ratio to the additional inclusion amount as the number of days in the lease term bears to 365. How do i amend my tax return Maximum inclusion amount. How do i amend my tax return   The inclusion amount cannot be more than the sum of the deductible amounts of rent allocable to the lessee's tax year in which the amount must be included in gross income. How do i amend my tax return What Records Must Be Kept You cannot take any depreciation or section 179 deduction for the use of listed property (including passenger automobiles) unless you can prove business/investment use with adequate records or sufficient evidence to support your own statements. How do i amend my tax return How long to keep records. How do i amend my tax return   For listed property, records must be kept for as long as any excess depreciation can be recaptured (included in income). How do i amend my tax return Adequate Records To meet the adequate records requirement, you must maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary evidence that, together with the receipt, is sufficient to establish each element of an expenditure or use. How do i amend my tax return It is not necessary to record information in an account book, diary, or similar record if the information is already shown on the receipt. How do i amend my tax return However, your records should back up your receipts in an orderly manner. How do i amend my tax return Elements of Expenditure or Use The records or other documentary evidence must support: The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments, and any other expenses, The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year, The date of the expenditure or use, and The business or investment purpose for the expenditure or use. How do i amend my tax return Written documents of your expenditure or use are generally better evidence than oral statements alone. How do i amend my tax return A written record prepared at or near the time of the expenditure or use has greater value as proof of the expenditure or use. How do i amend my tax return A daily log is not required. How do i amend my tax return However, some type of record containing the elements of an expenditure or the business or investment use of listed property made at or near the time and backed up by other documents is preferable to a statement prepared later. How do i amend my tax return Timeliness The elements of an expenditure or use must be recorded at the time you have full knowledge of the elements. How do i amend my tax return An expense account statement made from an account book, diary, or similar record prepared or maintained at or near the time of the expenditure or use is generally considered a timely record if in the regular course of business: The statement is submitted by an employee to the employer, or The statement is submitted by an independent contractor to the client or customer. How do i amend my tax return For example, a log maintained on a weekly basis, which accounts for use during the week, will be considered a record made at or near the time of use. How do i amend my tax return Business Purpose Supported An adequate record of business purpose must generally be in the form of a written statement. How do i amend my tax return However, the amount of backup necessary to establish a business purpose depends on the facts and circumstances of each case. How do i amend my tax return A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. How do i amend my tax return For example, a salesperson visiting customers on an established sales route will not normally need a written explanation of the business purpose of his or her travel. How do i amend my tax return Business Use Supported An adequate record contains enough information on each element of every business or investment use. How do i amend my tax return The amount of detail required to support the use depends on the facts and circumstances. How do i amend my tax return For example, a taxpayer whose only business use of a truck is to make customer deliveries on an established route can satisfy the requirement by recording the length of the route, including the total number of miles driven during the tax year and the date of each trip at or near the time of the trips. How do i amend my tax return Although an adequate record generally must be written, a record of the business use of listed property, such as a computer or automobile, can be prepared in a computer memory device using a logging program. How do i amend my tax return Separate or Combined Expenditures or Uses Each use by you is normally considered a separate use. How do i amend my tax return However, repeated uses can be combined as a single item. How do i amend my tax return Each expenditure is recorded as a separate item and not combined with other expenditures. How do i amend my tax return If you choose, however, amounts spent for the use of listed property during a tax year, such as for gasoline or automobile repairs, can be combined. How do i amend my tax return If these expenses are combined, you do not need to support the business purpose of each expense. How do i amend my tax return Instead, you can divide the expenses based on the total business use of the listed property. How do i amend my tax return Uses which can be considered part of a single use, such as a round trip or uninterrupted business use, can be accounted for by a single record. How do i amend my tax return For example, use of a truck to make deliveries at several locations which begin and end at the business premises and can include a stop at the business in between deliveries can be accounted for by a single record of miles driven. How do i amend my tax return Use of a passenger automobile by a salesperson for a business trip away from home over a period of time can be accounted for by a single record of miles traveled. How do i amend my tax return Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. How do i amend my tax return Confidential Information If any of the information on the elements of an expenditure or use is confidential, it does not need to be in the account book or similar record if it is recorded at or near the time of the expenditure or use. How do i amend my tax return It must be kept elsewhere and made available as support to the district director on request. How do i amend my tax return Substantial Compliance If you have not fully supported a particular element of an expenditure or use, but have complied with the adequate records requirement for the expenditure or use to the district director's satisfaction, you can establish this element by any evidence the district director deems adequate. How do i amend my tax return If you fail to establish that you have substantially complied with the adequate records requirement for an element of an expenditure or use to the district director's satisfaction, you must establish the element: By your own oral or written statement containing detailed information as to the element, and By other evidence sufficient to establish the element. How do i amend my tax return If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. How do i amend my tax return If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. How do i amend my tax return Sampling You can maintain an adequate record for portions of a tax year and use that record to support your business and investment use for the entire tax year if it can be shown by other evidence that the periods for which an adequate record is maintained are representative of use throughout the year. How do i amend my tax return Loss of Records When you establish that failure to produce adequate records is due to loss of the records through circumstances beyond your control, such as through fire, flood, earthquake, or other casualty, you have the right to support a deduction by reasonable reconstruction of your expenditures and use. How do i amend my tax return Reporting Information on Form 4562 If you claim a deduction for any listed property, you must provide the requested information on page 2, Section B of Form 4562. How do i amend my tax return If you claim a deduction for any vehicle, you must answer certain questions onpage 2 of Form 4562 to provide information about the vehicle use. How do i amend my tax return Employees. How do i amend my tax return   Employees claiming the standard mileage rate or actual expenses (including depreciation) must use Form 2106 instead of Part V of Form 4562. How do i amend my tax return Employees claiming the standard mileage rate may be able to use Form 2106–EZ. How do i amend my tax return Employer who provides vehicles to employees. How do i amend my tax return   An employer who provides vehicles to employees must obtain enough information from those employees to provide the requested information onForm 4562. How do i amend my tax return   An employer who provides more than five vehicles to employees need not include any information on his or her tax return. How do i amend my tax return Instead, the employer must obtain the information from his or her employees and indicate on his or her return that the information was obtained and is being retained. How do i amend my tax return   You do not need to provide the information requested on page 2 of Form 4562 if, as an employer: You can satisfy the requirements of a written policy statement for vehicles either not used for personal purposes, or not used for personal purposes other than commuting, or You treat all vehicle use by employees as personal use. How do i amend my tax return See the instructions for Form 4562. How do i amend my tax return Deductions in Later Years When listed property is used for business, investment, and personal purposes, no deduction is allowable for its personal use either in the current year or any later tax year. How do i amend my tax return In later years, you must determine if there is any remaining unadjusted or unrecovered basis before you compute the depreciation deduction for that tax year. How do i amend my tax return In making this determination, figure the depreciation deductions for earlier tax years as if the listed property were used 100% for business or investment purposes in those years, beginning with the first tax year in which some or all of the property use is for business or investment. How do i amend my tax return For more information about deductions after the recovery period for automobiles, see Publication 917. How do i amend my tax return Appendix The following tables are for use in figuring depreciation deductions under the ACRS system. How do i amend my tax return Table 1. How do i amend my tax return 15-Year Real Property* (Other Than Low-Inclome Housing) Table 3. How do i amend my tax return Low-Income Housing* Table 6 - Table 9 Table 6 - Table 9 Table 10 - Table 13 Table 14 - Table 17 Prev  Up  Next   Home   More Online Publications