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How To File An Amended Tax Return For 2012 Turbotax

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How To File An Amended Tax Return For 2012 Turbotax

How to file an amended tax return for 2012 turbotax Internal Revenue Bulletin:  2009-17  April 27, 2009  Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2009-24 Table of Contents SECTION 1. How to file an amended tax return for 2012 turbotax PURPOSE SECTION 2. How to file an amended tax return for 2012 turbotax BACKGROUND SECTION 3. How to file an amended tax return for 2012 turbotax SCOPE SECTION 4. How to file an amended tax return for 2012 turbotax APPLICATION. How to file an amended tax return for 2012 turbotax 01 In General. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 02 Limitations on Depreciation Deductions for Certain Automobiles. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 03 Inclusions in Income of Lessees of Passenger Automobiles. How to file an amended tax return for 2012 turbotax SECTION 5. How to file an amended tax return for 2012 turbotax EFFECTIVE DATE SECTION 6. How to file an amended tax return for 2012 turbotax DRAFTING INFORMATION SECTION 1. How to file an amended tax return for 2012 turbotax PURPOSE . How to file an amended tax return for 2012 turbotax 01 This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2009, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2009, including a separate table of inclusion amounts for lessees of trucks and vans. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 02 The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. How to file an amended tax return for 2012 turbotax SECTION 2. How to file an amended tax return for 2012 turbotax BACKGROUND . How to file an amended tax return for 2012 turbotax 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year that the passenger automobile is placed in service by the taxpayer and each succeeding year. How to file an amended tax return for 2012 turbotax Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. How to file an amended tax return for 2012 turbotax The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. How to file an amended tax return for 2012 turbotax This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 02 Section 168(k)(1)(A) provides a 50 percent additional first year depreciation deduction for certain new property acquired by a taxpayer after December 31, 2007, and before January 1, 2010, if no written binding contract for the acquisition of the property existed before January 1, 2008. How to file an amended tax return for 2012 turbotax Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A) by $8,000 for passenger automobiles to which the 50 percent additional first year depreciation deduction applies. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 03 Section 168(k)(2)(D)(i) provides that the 50 percent additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). How to file an amended tax return for 2012 turbotax Section 168(k)(2)(D)(iii) permits a taxpayer to elect to not claim the 50 percent additional first year depreciation deduction for any class of property. How to file an amended tax return for 2012 turbotax Section 168(k)(4) permits a corporation to elect to not claim the 50 percent additional first year depreciation deduction for all eligible qualified property (that is extension property or that is not extension property, as applicable) and instead to increase the business credit limitation under § 38(c) or the alternative minimum tax credit limitation under § 53(c). How to file an amended tax return for 2012 turbotax Accordingly, this revenue procedure provides tables for passenger automobiles for which the 50 percent additional depreciation deduction applies and tables for passenger automobiles for which the 50 percent additional first year depreciation deduction does not apply, including passenger automobiles in a class of property for which the taxpayer “elects out” of the 50 percent additional first year depreciation deduction or passenger automobiles that are eligible qualified property to which the § 168(k)(4) election applies. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 04 For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. How to file an amended tax return for 2012 turbotax The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. How to file an amended tax return for 2012 turbotax Under § 1. How to file an amended tax return for 2012 turbotax 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. How to file an amended tax return for 2012 turbotax One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. How to file an amended tax return for 2012 turbotax Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. How to file an amended tax return for 2012 turbotax SECTION 3. How to file an amended tax return for 2012 turbotax SCOPE . How to file an amended tax return for 2012 turbotax 01 The limitations on depreciation deductions in section 4. How to file an amended tax return for 2012 turbotax 02(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2009, and continue to apply for each taxable year that the passenger automobile remains in service. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 02 The tables in section 4. How to file an amended tax return for 2012 turbotax 03 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2009. How to file an amended tax return for 2012 turbotax Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. How to file an amended tax return for 2012 turbotax See Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2002-14, 2002-1 C. How to file an amended tax return for 2012 turbotax B. How to file an amended tax return for 2012 turbotax 450, for passenger automobiles first leased before January 1, 2003, Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2003-75, 2003-2 C. How to file an amended tax return for 2012 turbotax B. How to file an amended tax return for 2012 turbotax 1018, for passenger automobiles first leased during calendar year 2003, Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2004-20, 2004-1 C. How to file an amended tax return for 2012 turbotax B. How to file an amended tax return for 2012 turbotax 642, for passenger automobiles first leased during calendar year 2004, Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2005-13, 2005-1 C. How to file an amended tax return for 2012 turbotax B. How to file an amended tax return for 2012 turbotax 759, for passenger automobiles first leased during calendar year 2005, Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2006-18, 2006-1 C. How to file an amended tax return for 2012 turbotax B. How to file an amended tax return for 2012 turbotax 645, for passenger automobiles first leased during calendar year 2006, Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2007-30, 2007-1 C. How to file an amended tax return for 2012 turbotax B. How to file an amended tax return for 2012 turbotax 1104, for passenger automobiles first leased during calendar year 2007, and Rev. How to file an amended tax return for 2012 turbotax Proc. How to file an amended tax return for 2012 turbotax 2008-22, 2008-12 I. How to file an amended tax return for 2012 turbotax R. How to file an amended tax return for 2012 turbotax B. How to file an amended tax return for 2012 turbotax 658, for passenger automobiles first leased during calendar year 2008. How to file an amended tax return for 2012 turbotax SECTION 4. How to file an amended tax return for 2012 turbotax APPLICATION . How to file an amended tax return for 2012 turbotax 01 In General. How to file an amended tax return for 2012 turbotax (1) Limitations on depreciation deductions for certain automobiles. How to file an amended tax return for 2012 turbotax The limitations on depreciation deductions for passenger automobiles placed in service by the taxpayer for the first time during calendar year 2009 are in Tables 1 through 4 in section 4. How to file an amended tax return for 2012 turbotax 02(2) of this revenue procedure. How to file an amended tax return for 2012 turbotax (2) Inclusions in income of lessees of passenger automobiles. How to file an amended tax return for 2012 turbotax A taxpayer first leasing a passenger automobile during calendar year 2009 must determine the inclusion amount that is added to gross income using Tables 5 and 6 in section 4. How to file an amended tax return for 2012 turbotax 03 of this revenue procedure. How to file an amended tax return for 2012 turbotax In addition, the taxpayer must follow the procedures of § 1. How to file an amended tax return for 2012 turbotax 280F-7(a). How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 02 Limitations on Depreciation Deductions for Certain Automobiles. How to file an amended tax return for 2012 turbotax (1) Amount of the inflation adjustment. How to file an amended tax return for 2012 turbotax (a) Passenger automobiles (other than trucks or vans). How to file an amended tax return for 2012 turbotax Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. How to file an amended tax return for 2012 turbotax The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. How to file an amended tax return for 2012 turbotax The new car component of the CPI was 115. How to file an amended tax return for 2012 turbotax 2 for October 1987 and 134. How to file an amended tax return for 2012 turbotax 837 for October 2008. How to file an amended tax return for 2012 turbotax The October 2008 index exceeded the October 1987 index by 19. How to file an amended tax return for 2012 turbotax 637. How to file an amended tax return for 2012 turbotax The Internal Revenue Service has, therefore, determined that the automobile price inflation adjustment for 2009 for passenger automobiles (other than trucks and vans) is 17. How to file an amended tax return for 2012 turbotax 05 percent (19. How to file an amended tax return for 2012 turbotax 637/115. How to file an amended tax return for 2012 turbotax 2 x 100%). How to file an amended tax return for 2012 turbotax This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2009. How to file an amended tax return for 2012 turbotax The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. How to file an amended tax return for 2012 turbotax 1705, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2009. How to file an amended tax return for 2012 turbotax (b) Trucks and vans. How to file an amended tax return for 2012 turbotax To determine the dollar limitations applicable to trucks and vans first placed in service during calendar year 2009, the new truck component of the CPI is used instead of the new car component. How to file an amended tax return for 2012 turbotax The new truck component of the CPI was 112. How to file an amended tax return for 2012 turbotax 4 for October 1987 and 133. How to file an amended tax return for 2012 turbotax 640 for October 2008. How to file an amended tax return for 2012 turbotax The October 2008 index exceeded the October 1987 index by 21. How to file an amended tax return for 2012 turbotax 24. How to file an amended tax return for 2012 turbotax The Service has, therefore, determined that the automobile price inflation adjustment for 2009 for trucks and vans is 18. How to file an amended tax return for 2012 turbotax 90 percent (21. How to file an amended tax return for 2012 turbotax 24/112. How to file an amended tax return for 2012 turbotax 4 x 100%). How to file an amended tax return for 2012 turbotax This adjustment is applicable to all trucks and vans that are first placed in service in calendar year 2009. How to file an amended tax return for 2012 turbotax The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. How to file an amended tax return for 2012 turbotax 1890, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to trucks and vans. How to file an amended tax return for 2012 turbotax (2) Amount of the limitation. How to file an amended tax return for 2012 turbotax For passenger automobiles placed in service by the taxpayer in calendar year 2009, Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year. How to file an amended tax return for 2012 turbotax Use Table 1 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a passenger automobile (other than a truck or van) in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a passenger automobile that is eligible qualified property to which the § 168(k)(4) election applies. How to file an amended tax return for 2012 turbotax Use Table 2 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. How to file an amended tax return for 2012 turbotax Use Table 3 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a truck or van in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a truck or van that is eligible qualified property to which the § 168(k)(4) election applies. How to file an amended tax return for 2012 turbotax Use Table 4 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. How to file an amended tax return for 2012 turbotax REV. How to file an amended tax return for 2012 turbotax PROC. How to file an amended tax return for 2012 turbotax 2009-24 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $2,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. How to file an amended tax return for 2012 turbotax PROC. How to file an amended tax return for 2012 turbotax 2009-24 TABLE 2 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $10,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. How to file an amended tax return for 2012 turbotax PROC. How to file an amended tax return for 2012 turbotax 2009-24 TABLE 3 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. How to file an amended tax return for 2012 turbotax PROC. How to file an amended tax return for 2012 turbotax 2009-24 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 . How to file an amended tax return for 2012 turbotax 03 Inclusions in Income of Lessees of Passenger Automobiles. How to file an amended tax return for 2012 turbotax The inclusion amounts for passenger automobiles first leased in calendar year 2009 are calculated under the procedures described in § 1. How to file an amended tax return for 2012 turbotax 280F-7(a). How to file an amended tax return for 2012 turbotax Lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure in applying these procedures, while lessees of trucks and vans should use Table 6 of this revenue procedure. How to file an amended tax return for 2012 turbotax REV. How to file an amended tax return for 2012 turbotax PROC. How to file an amended tax return for 2012 turbotax 2009-24 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 9 19 28 34 38 19,000 19,500 10 21 32 38 43 19,500 20,000 11 24 36 42 48 20,000 20,500 12 27 39 46 54 20,500 21,000 13 29 43 51 58 21,000 21,500 15 31 47 55 64 21,500 22,000 16 34 50 60 68 22,000 23,000 17 38 56 66 76 23,000 24,000 20 42 64 75 86 24,000 25,000 22 47 71 84 96 25,000 26,000 24 52 78 93 107 26,000 27,000 26 58 85 101 117 27,000 28,000 29 62 93 110 127 28,000 29,000 31 67 100 119 138 29,000 30,000 33 72 108 128 147 30,000 31,000 35 77 115 137 157 31,000 32,000 38 82 122 146 167 32,000 33,000 40 87 129 155 178 33,000 34,000 42 92 137 163 188 34,000 35,000 44 97 144 172 199 35,000 36,000 47 102 151 181 208 36,000 37,000 49 107 159 189 219 37,000 38,000 51 112 166 199 228 38,000 39,000 53 117 173 208 239 39,000 40,000 56 122 180 216 250 40,000 41,000 58 127 188 225 259 41,000 42,000 60 132 195 234 269 42,000 43,000 62 137 203 242 280 43,000 44,000 65 141 210 252 290 44,000 45,000 67 146 218 260 300 45,000 46,000 69 151 225 269 311 46,000 47,000 71 157 232 278 320 47,000 48,000 74 161 240 286 331 48,000 49,000 76 166 247 296 340 49,000 50,000 78 171 255 304 351 50,000 51,000 80 176 262 313 361 51,000 52,000 83 181 269 322 371 52,000 53,000 85 186 276 331 381 53,000 54,000 87 191 284 339 392 54,000 55,000 89 196 291 349 401 55,000 56,000 92 201 298 357 412 56,000 57,000 94 206 306 365 423 57,000 58,000 96 211 313 375 432 58,000 59,000 98 216 320 384 442 59,000 60,000 101 221 327 393 452 60,000 62,000 104 228 339 406 467 62,000 64,000 109 238 353 424 488 64,000 66,000 113 248 368 441 509 66,000 68,000 118 258 382 459 529 68,000 70,000 122 268 397 476 550 70,000 72,000 127 277 413 493 570 72,000 74,000 131 288 427 511 590 74,000 76,000 136 297 442 529 610 76,000 78,000 140 307 457 546 631 78,000 80,000 145 317 471 564 651 80,000 85,000 152 335 497 595 686 85,000 90,000 164 359 534 639 737 90,000 95,000 175 384 570 683 789 95,000 100,000 186 409 607 727 839 100,000 110,000 203 446 662 793 916 110,000 120,000 226 495 736 881 1,018 120,000 130,000 248 545 809 970 1,119 130,000 140,000 271 594 883 1,058 1,220 140,000 150,000 293 644 956 1,146 1,322 150,000 160,000 316 693 1,030 1,234 1,424 160,000 170,000 338 743 1,103 1,322 1,526 170,000 180,000 361 792 1,177 1,410 1,628 180,000 190,000 383 842 1,250 1,498 1,730 190,000 200,000 406 891 1,324 1,586 1,831 200,000 210,000 428 941 1,397 1,675 1,932 210,000 220,000 451 990 1,471 1,762 2,035 220,000 230,000 473 1,040 1,544 1,851 2,136 230,000 240,000 496 1,089 1,618 1,939 2,238 240,000 And up 518 1,139 1,691 2,027 2,340 REV. How to file an amended tax return for 2012 turbotax PROC. How to file an amended tax return for 2012 turbotax 2009-24 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Electric Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th and Later $18,500 $19,000 8 17 25 30 35 19,000 19,500 9 19 29 35 40 19,500 20,000 10 22 33 38 45 20,000 20,500 11 25 36 43 50 20,500 21,000 12 27 40 48 55 21,000 21,500 13 30 43 52 60 21,500 22,000 15 32 47 56 66 22,000 23,000 16 36 52 64 72 23,000 24,000 18 41 60 72 83 24,000 25,000 21 45 68 81 93 25,000 26,000 23 50 75 90 103 26,000 27,000 25 56 82 98 114 27,000 28,000 27 61 89 107 124 28,000 29,000 30 65 97 116 134 29,000 30,000 32 70 104 125 144 30,000 31,000 34 75 112 134 154 31,000 32,000 36 80 119 143 164 32,000 33,000 39 85 126 151 175 33,000 34,000 41 90 134 160 184 34,000 35,000 43 95 141 169 195 35,000 36,000 45 100 148 178 205 36,000 37,000 48 105 155 187 215 37,000 38,000 50 110 163 195 226 38,000 39,000 52 115 170 204 236 39,000 40,000 55 120 177 213 246 40,000 41,000 57 125 185 221 256 41,000 42,000 59 130 192 231 266 42,000 43,000 61 135 199 240 276 43,000 44,000 64 139 207 249 286 44,000 45,000 66 144 215 257 296 45,000 46,000 68 149 222 266 307 46,000 47,000 70 155 229 274 317 47,000 48,000 73 159 237 283 327 48,000 49,000 75 164 244 292 338 49,000 50,000 77 169 251 301 348 50,000 51,000 79 174 259 310 357 51,000 52,000 82 179 266 318 368 52,000 53,000 84 184 273 328 378 53,000 54,000 86 189 281 336 388 54,000 55,000 88 194 288 345 399 55,000 56,000 91 199 295 354 408 56,000 57,000 93 204 302 363 419 57,000 58,000 95 209 310 371 429 58,000 59,000 97 214 317 381 439 59,000 60,000 100 219 324 389 450 60,000 62,000 103 226 336 402 465 62,000 64,000 107 236 351 420 485 64,000 66,000 112 246 365 438 505 66,000 68,000 116 256 380 455 526 68,000 70,000 121 266 394 473 546 70,000 72,000 125 276 409 491 566 72,000 74,000 130 286 423 509 586 74,000 76,000 134 296 438 526 607 76,000 78,000 139 305 454 543 627 78,000 80,000 143 316 467 561 648 80,000 85,000 151 333 493 592 684 85,000 90,000 163 357 531 635 735 90,000 95,000 174 382 567 680 785 95,000 100,000 185 407 604 724 836 100,000 110,000 202 444 659 790 912 110,000 120,000 225 493 733 878 1,014 120,000 130,000 247 543 806 966 1,116 130,000 140,000 270 592 880 1,054 1,218 140,000 150,000 292 642 953 1,143 1,319 150,000 160,000 315 691 1,027 1,230 1,421 160,000 170,000 337 741 1,100 1,319 1,522 170,000 180,000 360 790 1,174 1,407 1,624 180,000 190,000 382 840 1,247 1,495 1,726 190,000 200,000 405 889 1,321 1,583 1,828 200,000 210,000 427 939 1,394 1,671 1,930 210,000 220,000 450 988 1,468 1,759 2,031 220,000 230,000 472 1,038 1,541 1,847 2,134 230,000 240,000 495 1,087 1,615 1,935 2,235 240,000 and up 517 1,137 1,688 2,024 2,336 SECTION 5. How to file an amended tax return for 2012 turbotax EFFECTIVE DATE This revenue procedure applies to passenger automobiles (other than leased passenger automobiles) that are first placed in service by a taxpayer during calendar year 2009, and to leased passenger automobiles that are first leased by a taxpayer during calendar year 2009. How to file an amended tax return for 2012 turbotax SECTION 6. How to file an amended tax return for 2012 turbotax DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. How to file an amended tax return for 2012 turbotax Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). How to file an amended tax return for 2012 turbotax For further information regarding this revenue procedure, contact Mr. How to file an amended tax return for 2012 turbotax Harvey at (202) 622-4930 (not a toll-free call). How to file an amended tax return for 2012 turbotax Prev  Up  Next   Home   More Internal Revenue Bulletins
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Report Phishing

The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

What is phishing?
Phishing is a scam typically carried out by unsolicited email and/or websites that pose as legitimate sites and lure unsuspecting victims to provide personal and financial information.

All unsolicited email claiming to be from either the IRS or any other IRS-related components such as the Office of Professional Responsibility or EFTPS, should be reported to phishing@irs.gov.

However, if you have experienced monetary losses due to an IRS-related incident please file a complaint with the Federal Trade Commission through their Complaint Assistant to make that information available to investigators.

ALERT: IRS Warns of Phone Scam

What to do if you receive a suspicious IRS-related communication

If

Then

You receive an email claiming to be from the IRS that contains a request for personal information …
  1. Do not reply.
  2. Do not open any attachments. Attachments may contain malicious code that will infect your computer.
  3. Do not click on any links.
    If you clicked on links in a suspicious email or phishing website and entered confidential information, visit our identity protection page.
  4. Forward the email as-is, to us at phishing@irs.gov.
  5. After you forward the email and/or header information to us, delete the original email message you received.

Note:
Please forward the full original email to us at phishing@irs.gov. Do not forward scanned images of printed emails as that strips the email of valuable information only available in the electronic copy.

You discover a website on the Internet that claims to be the IRS but you suspect it is bogus … ... send the URL of the suspicious site to phishing@irs.gov. Please add in the subject line of the email, 'Suspicious website'.
You receive a phone call or paper letter via mail from an individual claiming to be the IRS but you suspect they are not an IRS employee …

Phone call:

  1. Ask for a call back number and employee badge number.
  2. Contact the IRS to determine if the caller is an IRS employee with a legitimate need to contact you.
  3. If you determine the person calling you is an IRS employee with a legitimate need to contact you, call them back.

Letter or notice via paper mail:

  1. Contact the IRS to determine if the mail is a legitimate IRS letter.
  2. If it is a legitimate IRS letter, reply if needed.

Report the incident to the Treasury Inspector General for Tax Administration if the caller or party that sent the paper letter is not legitimate.

You receive an unsolicited e-mail or fax, involving a stock or share purchase 

... and you are a U.S. citizen located in the United States or its territories or a U.S. citizen living abroad.

  1. Complete the appropriate complaint form with the U.S. Securities and Exchange Commission.
  2. Forward email to phishing@irs.gov.
    Please add in the subject line of the email, 'Stock'.
  3. If you are a victim of monetary or identity theft, you may submit a complaint through the FTC Complaint Assistant.  

... and you are not a U.S. citizen and reside outside the United States.

  1. Complete the appropriate complaint form with the U.S. Securities and Exchange Commission.
  2. Contact your securities regulator and file a complaint.
  3. Forward email to phishing@irs.gov.
    Please add in the subject line of the e-mail, 'Stock'.
  4. If you are a victim of monetary or identity theft, you may report your complaint to econsumer.gov.
You receive an unsolicited fax (such as Form W8-BEN) claiming to be from the IRS, requesting personal information … Contact the IRS to determine if the fax is from the IRS.
  • If you learn the fax is not from the IRS, please send us the information via email at phishing@irs.gov. In the subject line of the email, please type the word ‘FAX’.
You receive a text message or Short Message Service (SMS) message claiming to be from the IRS …
  1. Do not reply.
  2. Do not open any attachments. Attachments may contain malicious code that will infect your computer or mobile phone.
  3. Do not click on any links. If you clicked on links in a suspicious SMS and entered confidential information, visit our identity protection page.
  4. Forward the text as-is, to us at 202-552-1226. Note: Standard text messaging rates apply.
  5. If possible, in a separate text, forward the originating number to us at 202-552-1226
  6. After you forward the text, please delete the original text.

You have a tax-related question ...

Note: Do not submit tax-related questions to phishing@irs.gov.

If you have a tax-related question, unrelated to phishing or identity theft, please contact the IRS.

How to identify phishing email scams claiming to be from the IRS and bogus IRS websites


The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

The IRS does not:

  • request detailed personal information through e-mail.
  • send any communication requesting your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.

What to do if you receive a suspicious email message that does not claim to be from the IRS

 If

 Then

You receive a suspicious phishing email not claiming to be from the IRS ... Forward the email as-is to reportphishing@antiphishing.org.
You receive an email you suspect contains malicious code or a malicious attachment and you HAVE clicked on the link or downloaded the attachment … Visit OnGuardOnline.gov to learn what to do if you suspect you have malware on your computer.
You receive an email you suspect contains malicious code or a malicious attachment and you HAVE NOT clicked on the link or downloaded the attachment … Forward the email to your Internet Service Provider’s abuse department and/or to spam@uce.gov.

 

 

Page Last Reviewed or Updated: 26-Mar-2014

Phishing-Malware

See YouTube for more ID theft videos.

 

The How To File An Amended Tax Return For 2012 Turbotax

How to file an amended tax return for 2012 turbotax Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax Exception—Community Income. How to file an amended tax return for 2012 turbotax Exception—Qualified joint venture. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax Identification NumbersEmployer Identification Number (EIN) Payee's Identification Number Tax Year Accounting Method Business TaxesIncome Tax Self-Employment Tax Employment Taxes Excise Taxes Depositing Taxes Information Returns PenaltiesWaiver of penalty. How to file an amended tax return for 2012 turbotax Business ExpensesBusiness Start-Up Costs Depreciation Business Use of Your Home Car and Truck Expenses RecordkeepingWhy Keep Records? Kinds of Records To Keep How Long To Keep Records Sample Record System How to Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What New Business Owners Need To Know As a new business owner, you need to know your federal tax responsibilities. How to file an amended tax return for 2012 turbotax Table 1 can help you learn what those responsibilities are. How to file an amended tax return for 2012 turbotax Ask yourself each question listed in the table, then see the related discussion to find the answer. How to file an amended tax return for 2012 turbotax In addition to knowing about federal taxes, you need to make some basic business decisions. How to file an amended tax return for 2012 turbotax Ask yourself: What are my financial resources? What products and services will I sell? How will I market my products and services? How will I develop a strategic business plan? How will I manage my business on a day-to-day basis? How will I recruit employees? The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. How to file an amended tax return for 2012 turbotax For information on how to contact the SBA, see How to Get More Information, later. How to file an amended tax return for 2012 turbotax Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. How to file an amended tax return for 2012 turbotax When beginning a business, you must decide which form of business to use. How to file an amended tax return for 2012 turbotax Legal and tax considerations enter into this decision. How to file an amended tax return for 2012 turbotax Only tax considerations are discussed in this publication. How to file an amended tax return for 2012 turbotax Your form of business determines which income tax return form you have to file. How to file an amended tax return for 2012 turbotax See Table 2 to find out which form you have to file. How to file an amended tax return for 2012 turbotax Sole proprietorships. How to file an amended tax return for 2012 turbotax   A sole proprietorship is an unincorporated business that is owned by one individual. How to file an amended tax return for 2012 turbotax It is the simplest form of business organization to start and maintain. How to file an amended tax return for 2012 turbotax The business has no existence apart from you, the owner. How to file an amended tax return for 2012 turbotax Its liabilities are your personal liabilities. How to file an amended tax return for 2012 turbotax You undertake the risks of the business for all assets owned, whether or not used in the business. How to file an amended tax return for 2012 turbotax You include the income and expenses of the business on your personal tax return. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax   For more information on sole proprietorships, see Publication 334, Tax Guide for Small Business. How to file an amended tax return for 2012 turbotax If you are a farmer, see Publication 225, Farmer's Tax Guide. How to file an amended tax return for 2012 turbotax Partnerships. How to file an amended tax return for 2012 turbotax   A partnership is the relationship existing between two or more persons who join to carry on a trade or business. How to file an amended tax return for 2012 turbotax Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. How to file an amended tax return for 2012 turbotax   A partnership must file an annual information return to report the income, deductions, gains, losses, etc. How to file an amended tax return for 2012 turbotax , from its operations, but it does not pay income tax. How to file an amended tax return for 2012 turbotax Instead, it “passes through” any profits or losses to its partners. How to file an amended tax return for 2012 turbotax Each partner includes his or her share of the partnership's items on his or her tax return. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax   For more information on partnerships, see Publication 541, Partnerships. How to file an amended tax return for 2012 turbotax Husband and wife business. How to file an amended tax return for 2012 turbotax   If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. How to file an amended tax return for 2012 turbotax Do not use Schedule C or C-EZ. How to file an amended tax return for 2012 turbotax Instead, file Form 1065, U. How to file an amended tax return for 2012 turbotax S. How to file an amended tax return for 2012 turbotax Return of Partnership Income. How to file an amended tax return for 2012 turbotax For more information, see Publication 541, Partnerships. How to file an amended tax return for 2012 turbotax Exception—Community Income. How to file an amended tax return for 2012 turbotax   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. How to file an amended tax return for 2012 turbotax S. How to file an amended tax return for 2012 turbotax possession, you can treat the business either as a sole proprietorship or a partnership. How to file an amended tax return for 2012 turbotax The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. How to file an amended tax return for 2012 turbotax A change in your reporting position will be treated as a conversion of the entity. How to file an amended tax return for 2012 turbotax Exception—Qualified joint venture. How to file an amended tax return for 2012 turbotax   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. How to file an amended tax return for 2012 turbotax Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. How to file an amended tax return for 2012 turbotax For an explanation of "material participation," see the Instructions for Schedule C, line G. How to file an amended tax return for 2012 turbotax   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. How to file an amended tax return for 2012 turbotax Each of you must file a separate Schedule C or C-EZ and a separate Schedule SE. How to file an amended tax return for 2012 turbotax For more information, see Qualified Joint Venture in the Instructions for Schedule SE. How to file an amended tax return for 2012 turbotax Corporations. How to file an amended tax return for 2012 turbotax   In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. How to file an amended tax return for 2012 turbotax A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. How to file an amended tax return for 2012 turbotax A corporation can also take special deductions. How to file an amended tax return for 2012 turbotax   The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. How to file an amended tax return for 2012 turbotax However, shareholders cannot deduct any loss of the corporation. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax   For more information on corporations, see Publication 542, Corporations. How to file an amended tax return for 2012 turbotax S corporations. How to file an amended tax return for 2012 turbotax   An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation. How to file an amended tax return for 2012 turbotax Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. How to file an amended tax return for 2012 turbotax On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax   For more information on S corporations, see the instructions for Form 2553, Election by a Small Business Corporation, and Form 1120S, U. How to file an amended tax return for 2012 turbotax S. How to file an amended tax return for 2012 turbotax Income Tax Return for an S Corporation. How to file an amended tax return for 2012 turbotax Limited liability company. How to file an amended tax return for 2012 turbotax   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. How to file an amended tax return for 2012 turbotax The members of an LLC are not personally liable for its debts. How to file an amended tax return for 2012 turbotax An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in regulations section 301. How to file an amended tax return for 2012 turbotax 7701-3. How to file an amended tax return for 2012 turbotax For more information, see the instructions for Form 8832, Entity Classification Election. How to file an amended tax return for 2012 turbotax Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. How to file an amended tax return for 2012 turbotax The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). How to file an amended tax return for 2012 turbotax An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. How to file an amended tax return for 2012 turbotax An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000. How to file an amended tax return for 2012 turbotax You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. How to file an amended tax return for 2012 turbotax You must also furnish your number to other persons who use your identification number on any returns or documents they send to the IRS. How to file an amended tax return for 2012 turbotax This includes returns or documents filed to report the following information. How to file an amended tax return for 2012 turbotax Interest, dividends, royalties, etc. How to file an amended tax return for 2012 turbotax , paid to you. How to file an amended tax return for 2012 turbotax Any amount paid to you as a dependent care provider. How to file an amended tax return for 2012 turbotax Certain other amounts paid to you that total $600 or more for the year. How to file an amended tax return for 2012 turbotax If you do not furnish your identification number as required, you may be subject to penalties. How to file an amended tax return for 2012 turbotax See Penalties, later. How to file an amended tax return for 2012 turbotax Employer Identification Number (EIN) EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities. How to file an amended tax return for 2012 turbotax If you don't already have an EIN, you need to get one if you: Have employees, Have a qualified retirement plan, Operate your business as a corporation or partnership, or File returns for: Employment taxes, or Excise taxes. How to file an amended tax return for 2012 turbotax Applying for an EIN. How to file an amended tax return for 2012 turbotax   You may apply for an EIN: Online—Click on the EIN link at www. How to file an amended tax return for 2012 turbotax irs. How to file an amended tax return for 2012 turbotax gov/businesses/small. How to file an amended tax return for 2012 turbotax The EIN is issued immediately once the application information is validated. How to file an amended tax return for 2012 turbotax By telephone at 1-800-829-4933. How to file an amended tax return for 2012 turbotax By mailing or faxing Form SS-4, Application for Employer Identification Number. How to file an amended tax return for 2012 turbotax When to apply. How to file an amended tax return for 2012 turbotax   You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. How to file an amended tax return for 2012 turbotax If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. How to file an amended tax return for 2012 turbotax If you apply by telephone or through the IRS website, you can get an EIN immediately. How to file an amended tax return for 2012 turbotax If you apply by fax, you can get an EIN within 4 business days. How to file an amended tax return for 2012 turbotax   If you do not receive your EIN by the time a return is due, file your return anyway. How to file an amended tax return for 2012 turbotax Write “Applied for” and the date you applied for the number in the space for the EIN. How to file an amended tax return for 2012 turbotax Do not use your social security number as a substitute for an EIN on your tax returns. How to file an amended tax return for 2012 turbotax More than one EIN. How to file an amended tax return for 2012 turbotax   You should have only one EIN. How to file an amended tax return for 2012 turbotax If you have more than one EIN and are not sure which to use, contact the Internal Revenue Service Center where you file your return. How to file an amended tax return for 2012 turbotax Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. How to file an amended tax return for 2012 turbotax The IRS will tell you which number to use. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax   For more information about EINs, see Publication 1635, Understanding Your EIN. How to file an amended tax return for 2012 turbotax Payee's Identification Number In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns). How to file an amended tax return for 2012 turbotax The forms used to report these payments must include the payee's identification number. How to file an amended tax return for 2012 turbotax Employee. How to file an amended tax return for 2012 turbotax   If you have employees, you must get an SSN from each of them. How to file an amended tax return for 2012 turbotax Record the name and SSN of each employee exactly as they are shown on the employee's social security card. How to file an amended tax return for 2012 turbotax If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. How to file an amended tax return for 2012 turbotax This may occur, for example, if the employee's name has changed due to marriage or divorce. How to file an amended tax return for 2012 turbotax   If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. How to file an amended tax return for 2012 turbotax This form is available at SSA offices or by calling 1-800-772-1213. How to file an amended tax return for 2012 turbotax It is also available from the SSA website at www. How to file an amended tax return for 2012 turbotax ssa. How to file an amended tax return for 2012 turbotax gov. How to file an amended tax return for 2012 turbotax Other payee. How to file an amended tax return for 2012 turbotax   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. How to file an amended tax return for 2012 turbotax If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN. How to file an amended tax return for 2012 turbotax   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. How to file an amended tax return for 2012 turbotax This form is available from IRS offices or by calling 1-800-829-3676. How to file an amended tax return for 2012 turbotax It is also available from the IRS website at IRS. How to file an amended tax return for 2012 turbotax gov. How to file an amended tax return for 2012 turbotax    If the payee does not provide you with an identification number, you may have to withhold part of the payments as backup withholding. How to file an amended tax return for 2012 turbotax For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. How to file an amended tax return for 2012 turbotax Tax Year You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. How to file an amended tax return for 2012 turbotax A tax year is usually 12 consecutive months. How to file an amended tax return for 2012 turbotax There are two kinds of tax years. How to file an amended tax return for 2012 turbotax Calendar tax year. How to file an amended tax return for 2012 turbotax A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. How to file an amended tax return for 2012 turbotax Fiscal tax year. How to file an amended tax return for 2012 turbotax A fiscal tax year is 12 consecutive months ending on the last day of any month except December. How to file an amended tax return for 2012 turbotax A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. How to file an amended tax return for 2012 turbotax If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. How to file an amended tax return for 2012 turbotax You must use a calendar tax year if: You keep no books. How to file an amended tax return for 2012 turbotax You have no annual accounting period. How to file an amended tax return for 2012 turbotax Your present tax year does not qualify as a fiscal year. How to file an amended tax return for 2012 turbotax You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. How to file an amended tax return for 2012 turbotax For more information, see Publication 538, Accounting Periods and Methods. How to file an amended tax return for 2012 turbotax First-time filer. How to file an amended tax return for 2012 turbotax   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. How to file an amended tax return for 2012 turbotax You adopt a tax year by filing your first income tax return using that tax year. How to file an amended tax return for 2012 turbotax You have not adopted a tax year if you merely did any of the following. How to file an amended tax return for 2012 turbotax Filed an application for an extension of time to file an income tax return. How to file an amended tax return for 2012 turbotax Filed an application for an employer identification number. How to file an amended tax return for 2012 turbotax Paid estimated taxes for that tax year. How to file an amended tax return for 2012 turbotax Changing your tax year. How to file an amended tax return for 2012 turbotax   Once you have adopted your tax year, you may have to get IRS approval to change it. How to file an amended tax return for 2012 turbotax To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. How to file an amended tax return for 2012 turbotax You may have to pay a fee. How to file an amended tax return for 2012 turbotax For more information, see Publication 538. How to file an amended tax return for 2012 turbotax Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. How to file an amended tax return for 2012 turbotax You choose an accounting method for your business when you file your first income tax return. How to file an amended tax return for 2012 turbotax There are two basic accounting methods. How to file an amended tax return for 2012 turbotax Cash method. How to file an amended tax return for 2012 turbotax Under the cash method, you report income in the tax year you receive it. How to file an amended tax return for 2012 turbotax You usually deduct or capitalize expenses in the tax year you pay them. How to file an amended tax return for 2012 turbotax Accrual method. How to file an amended tax return for 2012 turbotax Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. How to file an amended tax return for 2012 turbotax You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year. How to file an amended tax return for 2012 turbotax For other methods, see Publication 538. How to file an amended tax return for 2012 turbotax If you need inventories to show income correctly, you must generally use an accrual method of accounting for purchases and sales. How to file an amended tax return for 2012 turbotax Inventories include goods held for sale in the normal course of business. How to file an amended tax return for 2012 turbotax They also include raw materials and supplies that will physically become a part of merchandise intended for sale. How to file an amended tax return for 2012 turbotax Inventories are explained in Publication 538. How to file an amended tax return for 2012 turbotax Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. How to file an amended tax return for 2012 turbotax For more information, see Publication 538. How to file an amended tax return for 2012 turbotax You must use the same accounting method to figure your taxable income and to keep your books. How to file an amended tax return for 2012 turbotax Also, you must use an accounting method that clearly shows your income. How to file an amended tax return for 2012 turbotax In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. How to file an amended tax return for 2012 turbotax An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year. How to file an amended tax return for 2012 turbotax More than one business. How to file an amended tax return for 2012 turbotax   When you own more than one business, you can use a different accounting method for each business if the method you use for each clearly shows your income. How to file an amended tax return for 2012 turbotax You must keep a complete and separate set of books and records for each business. How to file an amended tax return for 2012 turbotax Changing your method of accounting. How to file an amended tax return for 2012 turbotax   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. How to file an amended tax return for 2012 turbotax A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item. How to file an amended tax return for 2012 turbotax For examples of changes that require approval and information on how to get approval for the change, see Publication 538. How to file an amended tax return for 2012 turbotax Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. How to file an amended tax return for 2012 turbotax The following are the four general kinds of business taxes. How to file an amended tax return for 2012 turbotax Income tax. How to file an amended tax return for 2012 turbotax Self-employment tax. How to file an amended tax return for 2012 turbotax Employment taxes. How to file an amended tax return for 2012 turbotax Excise taxes. How to file an amended tax return for 2012 turbotax See Table 2 for the forms you file to report these taxes. How to file an amended tax return for 2012 turbotax You may want to get Publication 509. How to file an amended tax return for 2012 turbotax It has tax calendars that tell you when to file returns and make tax payments. How to file an amended tax return for 2012 turbotax Income Tax All businesses except partnerships must file an annual income tax return. How to file an amended tax return for 2012 turbotax Partnerships file an information return. How to file an amended tax return for 2012 turbotax Which form you use depends on how your business is organized. How to file an amended tax return for 2012 turbotax See Table 2 to find out which return you have to file. How to file an amended tax return for 2012 turbotax The federal income tax is a pay-as-you-go tax. How to file an amended tax return for 2012 turbotax You must pay the tax as you earn or receive income during the year. How to file an amended tax return for 2012 turbotax An employee usually has income tax withheld from his or her pay. How to file an amended tax return for 2012 turbotax If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. How to file an amended tax return for 2012 turbotax If you are not required to make estimated tax payments, you may pay any tax due when you file your return. How to file an amended tax return for 2012 turbotax Table 2. How to file an amended tax return for 2012 turbotax Which Forms Must I File? IF you are a. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax   THEN you may be liable for. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax   Use Form. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax Sole proprietor   Income tax   1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES     Employment taxes:         • Social security and Medicare   taxes and income tax   withholding   941 or 944 (943 for farm employees)     • Federal unemployment (FUTA)   tax   940     Excise taxes   See Excise Taxes Partnership   Annual return of income   1065     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes Partner in a partnership (individual)   Income tax   1040 and Schedule E 2     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES Corporation or S corporation   Income tax   1120 (corporation) 2  1120S (S corporation) 2     Estimated tax   1120-W (corporation only)     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes S corporation shareholder   Income tax   1040 and Schedule E 2     Estimated tax   1040-ES 1 File a separate schedule for each business. How to file an amended tax return for 2012 turbotax 2 Various other schedules may be needed. How to file an amended tax return for 2012 turbotax Estimated tax. How to file an amended tax return for 2012 turbotax   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. How to file an amended tax return for 2012 turbotax Sole proprietors, partners, and S corporation shareholders. How to file an amended tax return for 2012 turbotax   You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. How to file an amended tax return for 2012 turbotax Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. How to file an amended tax return for 2012 turbotax For more information, see Publication 505, Tax Withholding and Estimated Tax. How to file an amended tax return for 2012 turbotax Corporations. How to file an amended tax return for 2012 turbotax   You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. How to file an amended tax return for 2012 turbotax Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. How to file an amended tax return for 2012 turbotax You must deposit the payments as explained later under Depositing Taxes. How to file an amended tax return for 2012 turbotax For more information, see Publication 542. How to file an amended tax return for 2012 turbotax Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. How to file an amended tax return for 2012 turbotax Your payments of SE tax contribute to your coverage under the social security system. How to file an amended tax return for 2012 turbotax Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. How to file an amended tax return for 2012 turbotax You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. How to file an amended tax return for 2012 turbotax Your net earnings from self-employment were $400 or more. How to file an amended tax return for 2012 turbotax You had church employee income of $108. How to file an amended tax return for 2012 turbotax 28 or more. How to file an amended tax return for 2012 turbotax Use Schedule SE (Form 1040) to figure your SE tax. How to file an amended tax return for 2012 turbotax For more information, see Publication 334, Tax Guide for Small Business. How to file an amended tax return for 2012 turbotax You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. How to file an amended tax return for 2012 turbotax The Social Security Administration (SSA) time limit for posting self-employment income. How to file an amended tax return for 2012 turbotax   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. How to file an amended tax return for 2012 turbotax If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. How to file an amended tax return for 2012 turbotax The SSA will not change its records to increase your self-employment income. How to file an amended tax return for 2012 turbotax Employment Taxes This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees. How to file an amended tax return for 2012 turbotax Employment taxes include the following. How to file an amended tax return for 2012 turbotax Social security and Medicare taxes. How to file an amended tax return for 2012 turbotax Federal income tax withholding. How to file an amended tax return for 2012 turbotax Federal unemployment (FUTA) tax. How to file an amended tax return for 2012 turbotax If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. How to file an amended tax return for 2012 turbotax If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. How to file an amended tax return for 2012 turbotax These publications explain your tax responsibilities as an employer. How to file an amended tax return for 2012 turbotax If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. How to file an amended tax return for 2012 turbotax That publication has information to help you determine whether an individual is an employee or an independent contractor. How to file an amended tax return for 2012 turbotax If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. How to file an amended tax return for 2012 turbotax An independent contractor is someone who is self-employed. How to file an amended tax return for 2012 turbotax Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. How to file an amended tax return for 2012 turbotax Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. How to file an amended tax return for 2012 turbotax To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees) and the methods described in Publication 15. How to file an amended tax return for 2012 turbotax Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). How to file an amended tax return for 2012 turbotax Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. How to file an amended tax return for 2012 turbotax Medicare tax pays for benefits under the hospital insurance part of FICA. How to file an amended tax return for 2012 turbotax You withhold part of these taxes from your employee's wages and you pay a part yourself. How to file an amended tax return for 2012 turbotax To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. How to file an amended tax return for 2012 turbotax Which form do I file?   Report these taxes on Form 941, Employer's QUARTERLY Federal Tax Return, or Form 944, Employer's ANNUAL Federal Tax Return. How to file an amended tax return for 2012 turbotax (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. How to file an amended tax return for 2012 turbotax ) Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. How to file an amended tax return for 2012 turbotax You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. How to file an amended tax return for 2012 turbotax You pay FUTA tax only from your own funds. How to file an amended tax return for 2012 turbotax Employees do not pay this tax or have it withheld from their pay. How to file an amended tax return for 2012 turbotax Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. How to file an amended tax return for 2012 turbotax See Publication 15 to find out if you can use this form. How to file an amended tax return for 2012 turbotax Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. How to file an amended tax return for 2012 turbotax Form I-9. How to file an amended tax return for 2012 turbotax   You must verify that each new employee is legally eligible to work in the United States. How to file an amended tax return for 2012 turbotax Both you and the employee must complete the U. How to file an amended tax return for 2012 turbotax S. How to file an amended tax return for 2012 turbotax Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. How to file an amended tax return for 2012 turbotax You can get the form from USCIS offices or from the USCIS website at www. How to file an amended tax return for 2012 turbotax uscis. How to file an amended tax return for 2012 turbotax gov. How to file an amended tax return for 2012 turbotax Call the USCIS at 1-800-375-5283 for more information about your responsibilities. How to file an amended tax return for 2012 turbotax Form W-4. How to file an amended tax return for 2012 turbotax   Each employee must fill out Form W-4, Employee's Withholding Allowance Certificate. How to file an amended tax return for 2012 turbotax You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. How to file an amended tax return for 2012 turbotax For more information, see Publication 15. How to file an amended tax return for 2012 turbotax Employees claiming more than 10 withholding allowances. How to file an amended tax return for 2012 turbotax   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. How to file an amended tax return for 2012 turbotax See section 16 of Publication 15. How to file an amended tax return for 2012 turbotax Form W-2 Wage Reporting After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. How to file an amended tax return for 2012 turbotax You must also send copies to the Social Security Administration. How to file an amended tax return for 2012 turbotax See Information Returns, later, for more information on Form W-2. How to file an amended tax return for 2012 turbotax Excise Taxes This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following. How to file an amended tax return for 2012 turbotax Manufacture or sell certain products. How to file an amended tax return for 2012 turbotax Operate certain kinds of businesses. How to file an amended tax return for 2012 turbotax Use various kinds of equipment, facilities, or products. How to file an amended tax return for 2012 turbotax Receive payment for certain services. How to file an amended tax return for 2012 turbotax For more information on excise taxes, see Publication 510, Excise Taxes. How to file an amended tax return for 2012 turbotax Form 720. How to file an amended tax return for 2012 turbotax   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. How to file an amended tax return for 2012 turbotax Environmental taxes. How to file an amended tax return for 2012 turbotax Communications and air transportation taxes. How to file an amended tax return for 2012 turbotax Fuel taxes. How to file an amended tax return for 2012 turbotax Tax on the first retail sale of heavy trucks, trailers, and tractors. How to file an amended tax return for 2012 turbotax Manufacturers taxes on the sale or use of a variety of different articles. How to file an amended tax return for 2012 turbotax Form 2290. How to file an amended tax return for 2012 turbotax   There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. How to file an amended tax return for 2012 turbotax The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. How to file an amended tax return for 2012 turbotax Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. How to file an amended tax return for 2012 turbotax For more information, see the instructions for Form 2290. How to file an amended tax return for 2012 turbotax Form 730. How to file an amended tax return for 2012 turbotax   If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. How to file an amended tax return for 2012 turbotax Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the wagers you receive. How to file an amended tax return for 2012 turbotax Form 11-C. How to file an amended tax return for 2012 turbotax   Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering. How to file an amended tax return for 2012 turbotax Depositing Taxes You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return. How to file an amended tax return for 2012 turbotax Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). How to file an amended tax return for 2012 turbotax Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. How to file an amended tax return for 2012 turbotax Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. How to file an amended tax return for 2012 turbotax Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. How to file an amended tax return for 2012 turbotax The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. How to file an amended tax return for 2012 turbotax You must give a copy of each information return you are required to file to the recipient or payer. How to file an amended tax return for 2012 turbotax In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. How to file an amended tax return for 2012 turbotax For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. How to file an amended tax return for 2012 turbotax Form 1099-MISC. How to file an amended tax return for 2012 turbotax   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. How to file an amended tax return for 2012 turbotax These payments include the following items. How to file an amended tax return for 2012 turbotax Payments of $600 or more for services performed for your business by people not treated as your employees, such as subcontractors, attorneys, accountants, or directors. How to file an amended tax return for 2012 turbotax Rent payments of $600 or more, other than rents paid to real estate agents. How to file an amended tax return for 2012 turbotax Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. How to file an amended tax return for 2012 turbotax Royalty payments of $10 or more. How to file an amended tax return for 2012 turbotax Payments to certain crew members by operators of fishing boats. How to file an amended tax return for 2012 turbotax You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. How to file an amended tax return for 2012 turbotax Form W-2. How to file an amended tax return for 2012 turbotax   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. How to file an amended tax return for 2012 turbotax For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. How to file an amended tax return for 2012 turbotax Form 8300. How to file an amended tax return for 2012 turbotax   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. How to file an amended tax return for 2012 turbotax Cash includes U. How to file an amended tax return for 2012 turbotax S. How to file an amended tax return for 2012 turbotax and foreign coin and currency. How to file an amended tax return for 2012 turbotax It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. How to file an amended tax return for 2012 turbotax For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). How to file an amended tax return for 2012 turbotax Penalties The law provides penalties for not filing returns or paying taxes as required. How to file an amended tax return for 2012 turbotax Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. How to file an amended tax return for 2012 turbotax Failure to file tax returns. How to file an amended tax return for 2012 turbotax   If you do not file your tax return by the due date, you may have to pay a penalty. How to file an amended tax return for 2012 turbotax The penalty is based on the tax not paid by the due date. How to file an amended tax return for 2012 turbotax See your tax return instructions for more information about this penalty. How to file an amended tax return for 2012 turbotax Failure to pay tax. How to file an amended tax return for 2012 turbotax   If you do not pay your taxes by the due date, you will have to pay a penalty for each month, or part of a month, that your taxes are not paid. How to file an amended tax return for 2012 turbotax For more information, see your tax return instructions. How to file an amended tax return for 2012 turbotax Failure to withhold, deposit, or pay taxes. How to file an amended tax return for 2012 turbotax   If you do not withhold income, social security, or Medicare taxes from employees, or if you withhold taxes but do not deposit them or pay them to the IRS, you may be subject to a penalty of the unpaid tax, plus interest. How to file an amended tax return for 2012 turbotax You may also be subject to penalties if you deposit the taxes late. How to file an amended tax return for 2012 turbotax For more information, see Publication 15. How to file an amended tax return for 2012 turbotax Failure to follow information reporting requirements. How to file an amended tax return for 2012 turbotax   The following penalties apply if you are required to file information returns. How to file an amended tax return for 2012 turbotax For more information, see the General Instructions for Certain Information Returns. How to file an amended tax return for 2012 turbotax Failure to file information returns. How to file an amended tax return for 2012 turbotax A penalty applies if you do not file information returns by the due date, if you do not include all required information, or if you report incorrect information. How to file an amended tax return for 2012 turbotax Failure to furnish correct payee statements. How to file an amended tax return for 2012 turbotax A penalty applies if you do not furnish a required statement to a payee by the due date, if you do not include all required information, or if you report incorrect information. How to file an amended tax return for 2012 turbotax Waiver of penalty. How to file an amended tax return for 2012 turbotax   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. How to file an amended tax return for 2012 turbotax   In addition, there is no penalty for failure to include all the required information, or for including incorrect information, on a de minimis number of information returns if you correct the errors by August 1 of the year the returns are due. How to file an amended tax return for 2012 turbotax (To be considered de minimis, the number of returns cannot exceed the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. How to file an amended tax return for 2012 turbotax ) Failure to supply taxpayer identification number. How to file an amended tax return for 2012 turbotax   If you do not include your taxpayer identification number (SSN or EIN) or the taxpayer identification number of another person where required on a return, statement, or other document, you may be subject to a penalty of $50 for each failure. How to file an amended tax return for 2012 turbotax You may also be subject to the $50 penalty if you do not give your taxpayer identification number to another person when it is required on a return, statement, or other document. How to file an amended tax return for 2012 turbotax Business Expenses You can deduct business expenses on your income tax return. How to file an amended tax return for 2012 turbotax These are the current operating costs of running your business. How to file an amended tax return for 2012 turbotax To be deductible, a business expense must be both ordinary and necessary. How to file an amended tax return for 2012 turbotax An ordinary expense is one that is common and accepted in your field of business, trade, or profession. How to file an amended tax return for 2012 turbotax A necessary expense is one that is helpful and appropriate for your business, trade, or profession. How to file an amended tax return for 2012 turbotax An expense does not have to be indispensable to be considered necessary. How to file an amended tax return for 2012 turbotax The following are brief explanations of some expenses that are of interest to people starting a business. How to file an amended tax return for 2012 turbotax There are many other expenses that you may be able to deduct. How to file an amended tax return for 2012 turbotax See your form instructions and Publication 535, Business Expenses. How to file an amended tax return for 2012 turbotax Business Start-Up Costs Business start-up costs are the expenses you incur before you actually begin business operations. How to file an amended tax return for 2012 turbotax Your business start-up costs will depend on the type of business you are starting. How to file an amended tax return for 2012 turbotax They may include costs for advertising, travel, surveys, and training. How to file an amended tax return for 2012 turbotax These costs are generally capital expenses. How to file an amended tax return for 2012 turbotax You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). How to file an amended tax return for 2012 turbotax You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. How to file an amended tax return for 2012 turbotax The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. How to file an amended tax return for 2012 turbotax Any remaining cost must be amortized. How to file an amended tax return for 2012 turbotax For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. How to file an amended tax return for 2012 turbotax Depreciation If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. How to file an amended tax return for 2012 turbotax You must spread the cost over more than one tax year and deduct part of it each year. How to file an amended tax return for 2012 turbotax This method of deducting the cost of business property is called depreciation. How to file an amended tax return for 2012 turbotax Business property you must depreciate includes the following items. How to file an amended tax return for 2012 turbotax Office furniture. How to file an amended tax return for 2012 turbotax Buildings. How to file an amended tax return for 2012 turbotax Machinery and equipment. How to file an amended tax return for 2012 turbotax You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. How to file an amended tax return for 2012 turbotax This deduction is known as the “section 179 deduction. How to file an amended tax return for 2012 turbotax ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. How to file an amended tax return for 2012 turbotax Depreciation must be taken in the year it is allowable. How to file an amended tax return for 2012 turbotax Allowable depreciation not taken in a prior year cannot be taken in the current year. How to file an amended tax return for 2012 turbotax If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. How to file an amended tax return for 2012 turbotax S. How to file an amended tax return for 2012 turbotax Individual Income Tax Return, or by changing your accounting method. How to file an amended tax return for 2012 turbotax For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. How to file an amended tax return for 2012 turbotax Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. How to file an amended tax return for 2012 turbotax Even then, your deduction may be limited. How to file an amended tax return for 2012 turbotax To qualify to claim expenses for business use of your home, you must meet both the following tests. How to file an amended tax return for 2012 turbotax Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use, later), Regular, For your trade or business, AND The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or A separate structure (not attached to your home) you use in connection with your trade or business. How to file an amended tax return for 2012 turbotax Exclusive use. How to file an amended tax return for 2012 turbotax   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. How to file an amended tax return for 2012 turbotax The area used for business can be a room or other separately identifiable space. How to file an amended tax return for 2012 turbotax The space does not need to be marked off by a permanent partition. How to file an amended tax return for 2012 turbotax   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. How to file an amended tax return for 2012 turbotax Exceptions to exclusive use. How to file an amended tax return for 2012 turbotax   You do not have to meet the exclusive use test if either of the following applies. How to file an amended tax return for 2012 turbotax You use part of your home for the storage of inventory or product samples. How to file an amended tax return for 2012 turbotax You use part of your home as a daycare facility. How to file an amended tax return for 2012 turbotax For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). How to file an amended tax return for 2012 turbotax Principal place of business. How to file an amended tax return for 2012 turbotax   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. How to file an amended tax return for 2012 turbotax You use it exclusively and regularly for administrative or management activities of your trade or business. How to file an amended tax return for 2012 turbotax You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. How to file an amended tax return for 2012 turbotax   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. How to file an amended tax return for 2012 turbotax The relative importance of the activities performed at each location. How to file an amended tax return for 2012 turbotax If the relative importance factor does not determine your principal place of business, the time spent at each location. How to file an amended tax return for 2012 turbotax    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. How to file an amended tax return for 2012 turbotax However, for other ways to qualify to deduct home office expenses, see Publication 587. How to file an amended tax return for 2012 turbotax Which form do I file?   If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. How to file an amended tax return for 2012 turbotax If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. How to file an amended tax return for 2012 turbotax More information. How to file an amended tax return for 2012 turbotax   For more information about business use of your home, see Publication 587. How to file an amended tax return for 2012 turbotax Car and Truck Expenses If you use your car or truck in your business, you can deduct the costs of operating and maintaining it. How to file an amended tax return for 2012 turbotax You generally can deduct either your actual expenses or the standard mileage rate. How to file an amended tax return for 2012 turbotax Actual expenses. How to file an amended tax return for 2012 turbotax   If you deduct actual expenses, you can deduct the cost of the following items: Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. How to file an amended tax return for 2012 turbotax You can divide your expenses based on the miles driven for each purpose. How to file an amended tax return for 2012 turbotax Example. How to file an amended tax return for 2012 turbotax You are the sole proprietor of a flower shop. How to file an amended tax return for 2012 turbotax You drove your van 20,000 miles during the year. How to file an amended tax return for 2012 turbotax 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. How to file an amended tax return for 2012 turbotax You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. How to file an amended tax return for 2012 turbotax Standard mileage rate. How to file an amended tax return for 2012 turbotax   Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. How to file an amended tax return for 2012 turbotax You can use the standard mileage rate for a vehicle you own or lease. How to file an amended tax return for 2012 turbotax The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. How to file an amended tax return for 2012 turbotax It is announced annually by the IRS. How to file an amended tax return for 2012 turbotax To figure your deduction, multiply your business miles by the standard mileage rate for the year. How to file an amended tax return for 2012 turbotax    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. How to file an amended tax return for 2012 turbotax However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. How to file an amended tax return for 2012 turbotax Choosing the standard mileage rate. How to file an amended tax return for 2012 turbotax   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. How to file an amended tax return for 2012 turbotax In later years, you can choose to use either the standard mileage rate or actual expenses. How to file an amended tax return for 2012 turbotax   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). How to file an amended tax return for 2012 turbotax Additional information. How to file an amended tax return for 2012 turbotax   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. How to file an amended tax return for 2012 turbotax Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. How to file an amended tax return for 2012 turbotax It also explains how long you must keep your records for federal tax purposes. How to file an amended tax return for 2012 turbotax A sample recordkeeping system is illustrated at the end of this part. How to file an amended tax return for 2012 turbotax Why Keep Records? Everyone in business must keep records. How to file an amended tax return for 2012 turbotax Good records will help you do the following. How to file an amended tax return for 2012 turbotax Monitor the progress of your business. How to file an amended tax return for 2012 turbotax   You need good records to monitor the progress of your business. How to file an amended tax return for 2012 turbotax Records can show whether your business is improving, which items are selling, or what changes you need to make. How to file an amended tax return for 2012 turbotax Good records can increase the likelihood of business success. How to file an amended tax return for 2012 turbotax Prepare your financial statements. How to file an amended tax return for 2012 turbotax   You need good records to prepare accurate financial statements. How to file an amended tax return for 2012 turbotax These include income (profit and loss) statements and balance sheets. How to file an amended tax return for 2012 turbotax These statements can help you in dealing with your bank or creditors and help you manage your business. How to file an amended tax return for 2012 turbotax An income statement shows the income and expenses of the business for a given period of time. How to file an amended tax return for 2012 turbotax A balance sheet shows the assets, liabilities, and your equity in the business on a given date. How to file an amended tax return for 2012 turbotax Identify source of receipts. How to file an amended tax return for 2012 turbotax   You will receive money or property from many sources. How to file an amended tax return for 2012 turbotax Your records can identify the source of your receipts. How to file an amended tax return for 2012 turbotax You need this information to separate business from nonbusiness receipts and taxable from nontaxable income. How to file an amended tax return for 2012 turbotax Keep track of deductible expenses. How to file an amended tax return for 2012 turbotax   You may forget expenses when you prepare your tax return unless you record them when they occur. How to file an amended tax return for 2012 turbotax Prepare your tax returns. How to file an amended tax return for 2012 turbotax   You need good records to prepare your tax returns. How to file an amended tax return for 2012 turbotax These records must support the income, expenses, and credits you report. How to file an amended tax return for 2012 turbotax Generally, these are the same records you use to monitor your business and prepare your financial statements. How to file an amended tax return for 2012 turbotax Support items reported on tax returns. How to file an amended tax return for 2012 turbotax   You must keep your business records available at all times for inspection by the IRS. How to file an amended tax return for 2012 turbotax If the IRS examines any of your tax returns, you may be asked to explain the items reported. How to file an amended tax return for 2012 turbotax A complete set of records will speed up the examination. How to file an amended tax return for 2012 turbotax Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. How to file an amended tax return for 2012 turbotax You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. How to file an amended tax return for 2012 turbotax The business you are in affects the type of records you need to keep for federal tax purposes. How to file an amended tax return for 2012 turbotax You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. How to file an amended tax return for 2012 turbotax See Accounting Method, earlier. How to file an amended tax return for 2012 turbotax If you are in more than one business, you should keep a complete and separate set of records for each business. How to file an amended tax return for 2012 turbotax A corporation should keep minutes of board of directors' meetings. How to file an amended tax return for 2012 turbotax Your recordkeeping system should include a summary of your business transactions. How to file an amended tax return for 2012 turbotax This summary is ordinarily made in your books (for example, accounting journals and ledgers). How to file an amended tax return for 2012 turbotax Your books must show your gross income, as well as your deductions and credits. How to file an amended tax return for 2012 turbotax For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. How to file an amended tax return for 2012 turbotax In addition, you must keep supporting documents, explained later. How to file an amended tax return for 2012 turbotax Electronic records. How to file an amended tax return for 2012 turbotax   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. How to file an amended tax return for 2012 turbotax When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. How to file an amended tax return for 2012 turbotax An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. How to file an amended tax return for 2012 turbotax The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. How to file an amended tax return for 2012 turbotax All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. How to file an amended tax return for 2012 turbotax Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. How to file an amended tax return for 2012 turbotax   The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. How to file an amended tax return for 2012 turbotax You still have the responsibility of retaining any other books and records that are required to be retained. How to file an amended tax return for 2012 turbotax   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. How to file an amended tax return for 2012 turbotax This test is not considered an examination and the results must be shared with you. How to file an amended tax return for 2012 turbotax If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. How to file an amended tax return for 2012 turbotax If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copy books and records in a manner that allows you and the IRS to determine your correct tax. How to file an amended tax return for 2012 turbotax For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. How to file an amended tax return for 2012 turbotax Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. How to file an amended tax return for 2012 turbotax Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. How to file an amended tax return for 2012 turbotax These documents contain information you need to record in your books. How to file an amended tax return for 2012 turbotax It is important to keep these documents because they support the entries in your books and on your tax return. How to file an amended tax return for 2012 turbotax Keep them in an orderly fashion and in a safe place. How to file an amended tax return for 2012 turbotax For instance, organize them by year and type of income or expense. How to file an amended tax return for 2012 turbotax Gross receipts. How to file an amended tax return for 2012 turbotax   Gross receipts are the income you receive from your business. How to file an amended tax return for 2012 turbotax You should keep supporting documents that show the amounts and sources of your gross receipts. How to file an amended tax return for 2012 turbotax Documents that show gross receipts include the following. How to file an amended tax return for 2012 turbotax Cash register tapes. How to file an amended tax return for 2012 turbotax Bank deposit slips. How to file an amended tax return for 2012 turbotax Receipt books. How to file an amended tax return for 2012 turbotax Invoices. How to file an amended tax return for 2012 turbotax Credit card charge slips. How to file an amended tax return for 2012 turbotax Forms 1099-MISC. How to file an amended tax return for 2012 turbotax Purchases. How to file an amended tax return for 2012 turbotax   Purchases are the items you buy and resell to customers. How to file an amended tax return for 2012 turbotax If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. How to file an amended tax return for 2012 turbotax Your supporting documents should show the amount paid and that the amount was for purchases. How to file an amended tax return for 2012 turbotax Documents for purchases include the following. How to file an amended tax return for 2012 turbotax Canceled checks. How to file an amended tax return for 2012 turbotax Cash register tape receipts. How to file an amended tax return for 2012 turbotax Credit card sales slips. How to file an amended tax return for 2012 turbotax Invoices. How to file an amended tax return for 2012 turbotax These records will help you determine the value of your inventory at the end of the year. How to file an amended tax return for 2012 turbotax See Publication 538 for information on methods for valuing inventory. How to file an amended tax return for 2012 turbotax Expenses. How to file an amended tax return for 2012 turbotax   Expenses are the costs you incur (other than purchases) to carry on your business. How to file an amended tax return for 2012 turbotax Your supporting documents should show the amount paid and that the amount was for a business expense. How to file an amended tax return for 2012 turbotax Documents for expenses include the following. How to file an amended tax return for 2012 turbotax Canceled checks. How to file an amended tax return for 2012 turbotax Cash register tapes. How to file an amended tax return for 2012 turbotax Account statements. How to file an amended tax return for 2012 turbotax Credit card sales slips. How to file an amended tax return for 2012 turbotax Invoices. How to file an amended tax return for 2012 turbotax Petty cash slips for small cash payments. How to file an amended tax return for 2012 turbotax    A petty cash fund allows you to make small payments without having to write checks for small amounts. How to file an amended tax return for 2012 turbotax Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. How to file an amended tax return for 2012 turbotax Travel, transportation, entertainment, and gift expenses. How to file an amended tax return for 2012 turbotax   Specific recordkeeping rules apply to these expenses. How to file an amended tax return for 2012 turbotax For more information, see Publication 463. How to file an amended tax return for 2012 turbotax Employment taxes. How to file an amended tax return for 2012 turbotax   There are specific employment tax records you must keep. How to file an amended tax return for 2012 turbotax For a list, see Publication 15. How to file an amended tax return for 2012 turbotax Assets. How to file an amended tax return for 2012 turbotax   Assets are the property, such as machinery and furniture you own and use in your business. How to file an amended tax return for 2012 turbotax You must keep records to verify certain information about your business assets. How to file an amended tax return for 2012 turbotax You need records to figure the annual depreciation and the gain or loss when you sell the assets. How to file an amended tax return for 2012 turbotax Your records should show the following information. How to file an amended tax return for 2012 turbotax When and how you acquired the asset. How to file an amended tax return for 2012 turbotax Purchase price. How to file an amended tax return for 2012 turbotax Cost of any improvements. How to file an amended tax return for 2012 turbotax Section 179 deduction taken. How to file an amended tax return for 2012 turbotax Deductions taken for depreciation. How to file an amended tax return for 2012 turbotax Deductions taken for casualty losses, such as losses resulting from fires or storms. How to file an amended tax return for 2012 turbotax How you used the asset. How to file an amended tax return for 2012 turbotax When and how you disposed of the asset. How to file an amended tax return for 2012 turbotax Selling price. How to file an amended tax return for 2012 turbotax Expenses of sale. How to file an amended tax return for 2012 turbotax   The following documents may show this information. How to file an amended tax return for 2012 turbotax Purchase and sales invoices. How to file an amended tax return for 2012 turbotax Real estate closing statements. How to file an amended tax return for 2012 turbotax Canceled checks. How to file an amended tax return for 2012 turbotax What if I don't have a canceled check?   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. How to file an amended tax return for 2012 turbotax These include account statements prepared for the financial institution by a third party. How to file an amended tax return for 2012 turbotax These account statements must be highly legible. How to file an amended tax return for 2012 turbotax The following table lists acceptable account statements. How to file an amended tax return for 2012 turbotax  IF payment is by. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax THEN the statement must show the. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax Check Check number. How to file an amended tax return for 2012 turbotax Amount. How to file an amended tax return for 2012 turbotax Payee's name. How to file an amended tax return for 2012 turbotax Date the check amount was posted to the account by the financial institution. How to file an amended tax return for 2012 turbotax Electronic funds transfer Amount transferred. How to file an amended tax return for 2012 turbotax Payee's name. How to file an amended tax return for 2012 turbotax Date the transfer was posted to the account by the financial institution. How to file an amended tax return for 2012 turbotax Credit card Amount charged. How to file an amended tax return for 2012 turbotax Payee's name. How to file an amended tax return for 2012 turbotax Transaction date. How to file an amended tax return for 2012 turbotax    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. How to file an amended tax return for 2012 turbotax You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. How to file an amended tax return for 2012 turbotax Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. How to file an amended tax return for 2012 turbotax (Your business transactions are shown on the supporting documents just discussed. How to file an amended tax return for 2012 turbotax ) Business transactions are ordinarily summarized in books called journals and ledgers. How to file an amended tax return for 2012 turbotax You can buy them at your local stationery or office supply store. How to file an amended tax return for 2012 turbotax A journal is a book where you record each business transaction shown on your supporting documents. How to file an amended tax return for 2012 turbotax You may have to keep separate journals for transactions that occur frequently. How to file an amended tax return for 2012 turbotax A ledger is a book that contains the totals from all of your journals. How to file an amended tax return for 2012 turbotax It is organized into different accounts. How to file an amended tax return for 2012 turbotax Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. How to file an amended tax return for 2012 turbotax For example, a recordkeeping system for a small business might include the following items. How to file an amended tax return for 2012 turbotax Business checkbook. How to file an amended tax return for 2012 turbotax Daily summary of cash receipts. How to file an amended tax return for 2012 turbotax Monthly summary of cash receipts. How to file an amended tax return for 2012 turbotax Check disbursements journal. How to file an amended tax return for 2012 turbotax Depreciation worksheet. How to file an amended tax return for 2012 turbotax Employee compensation record. How to file an amended tax return for 2012 turbotax The business checkbook is explained next. How to file an amended tax return for 2012 turbotax The other items are illustrated later under Sample Record System. How to file an amended tax return for 2012 turbotax The system you use to record business transactions will be more effective if you follow good recordkeeping practices. How to file an amended tax return for 2012 turbotax For example, record expenses when they occur, and identify the source of recorded receipts. How to file an amended tax return for 2012 turbotax Generally, it is best to record transactions on a daily basis. How to file an amended tax return for 2012 turbotax Business checkbook. How to file an amended tax return for 2012 turbotax   One of the first things you should do when you start a business is open a business checking account. How to file an amended tax return for 2012 turbotax You should keep your business account separate from your personal checking account. How to file an amended tax return for 2012 turbotax   The business checkbook is your basic source of information for recording your business expenses. How to file an amended tax return for 2012 turbotax You should deposit all daily receipts in your business checking account. How to file an amended tax return for 2012 turbotax You should check your account for errors by reconciling it. How to file an amended tax return for 2012 turbotax See Reconciling the checking account, later. How to file an amended tax return for 2012 turbotax   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. How to file an amended tax return for 2012 turbotax You should also note on the deposit slip the source of the deposit and keep copies of all slips. How to file an amended tax return for 2012 turbotax   You should make all payments by check to document business expenses. How to file an amended tax return for 2012 turbotax Write checks payable to yourself only when making withdrawals from your business for personal use. How to file an amended tax return for 2012 turbotax Avoid writing checks payable to cash. How to file an amended tax return for 2012 turbotax If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. How to file an amended tax return for 2012 turbotax If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. How to file an amended tax return for 2012 turbotax    Use the business account for business purposes only. How to file an amended tax return for 2012 turbotax Indicate the source of deposits and the type of expense in the checkbook. How to file an amended tax return for 2012 turbotax Reconciling the checking account. How to file an amended tax return for 2012 turbotax   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. How to file an amended tax return for 2012 turbotax The statement balance may not agree with the balance in your checkbook and books if the statement: Includes bank charges you did not enter in your books and subtract from your checkbook balance, or Does not include deposits made after the statement date or checks that did not clear your account before the statement date. How to file an amended tax return for 2012 turbotax   By reconciling your checking account, you will: Verify how much money you have in the account, Make sure that your checkbook and books reflect all bank charges and the correct balance in the checking account, and Correct any errors in your bank statement, checkbook, and books. How to file an amended tax return for 2012 turbotax    You should reconcile your checking account each month. How to file an amended tax return for 2012 turbotax     Before you reconcile your monthly bank statement, check your own figures. How to file an amended tax return for 2012 turbotax Begin with the balance shown in your checkbook at the end of the previous month. How to file an amended tax return for 2012 turbotax To this balance, add the total cash deposited during the month and subtract the total cash disbursements. How to file an amended tax return for 2012 turbotax   After checking your figures, the result should agree with your checkbook balance at the end of the month. How to file an amended tax return for 2012 turbotax If the result does not agree, you may have made an error in recording a check or deposit. How to file an amended tax return for 2012 turbotax You can find the error by doing the following. How to file an amended tax return for 2012 turbotax Adding the amounts on your check stubs and comparing that total with the total in the “amount of check” column in your check disbursements journal. How to file an amended tax return for 2012 turbotax If the totals do not agree, check the individual amounts to see if an error was made in your check stub record or in the related entry in your check disbursements journal. How to file an amended tax return for 2012 turbotax Adding the deposit amounts in your checkbook. How to file an amended tax return for 2012 turbotax Compare that total with the monthly total in your cash receipt book, if you have one. How to file an amended tax return for 2012 turbotax If the totals do not agree, check the individual amounts to find any errors. How to file an amended tax return for 2012 turbotax   If your checkbook and journal entries still disagree, then refigure the running balance in your checkbook to make sure additions and subtractions are correct. How to file an amended tax return for 2012 turbotax   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. How to file an amended tax return for 2012 turbotax Many banks print a reconciliation worksheet on the back of the statement. How to file an amended tax return for 2012 turbotax   To reconcile your account, follow these steps. How to file an amended tax return for 2012 turbotax Compare the deposits listed on the bank statement with the deposits shown in your checkbook. How to file an amended tax return for 2012 turbotax Note all differences in the dollar amounts. How to file an amended tax return for 2012 turbotax Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. How to file an amended tax return for 2012 turbotax Note all differences in the dollar amounts. How to file an amended tax return for 2012 turbotax Mark the check number in the checkbook as having cleared the bank. How to file an amended tax return for 2012 turbotax After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. How to file an amended tax return for 2012 turbotax Prepare a bank reconciliation. How to file an amended tax return for 2012 turbotax One is illustrated later under Sample Record System. How to file an amended tax return for 2012 turbotax Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. How to file an amended tax return for 2012 turbotax At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. How to file an amended tax return for 2012 turbotax If you still have differences, check the previous steps to find the errors. How to file an amended tax return for 2012 turbotax   Table 3. How to file an amended tax return for 2012 turbotax Period of Limitations IF you. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax   THEN the period is. How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax . How to file an amended tax return for 2012 turbotax 1. How to file an amended tax return for 2012 turbotax Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. How to file an amended tax return for 2012 turbotax Do not report income that you should report and it is more than 25% of the gross income shown on the return   6 years 3. How to file an amended tax return for 2012 turbotax File a fraudulent return   Not limited 4. How to file an amended tax return for 2012 turbotax Do not file a return   Not limited 5. How to file an amended tax return for 2012 turbotax File a claim for credit or refund after you filed your return   Later of: 3 years or  2 years after tax   was paid 6. How to file an amended tax return for 2012 turbotax File a claim for a loss from worthless securities or a bad debt deduction   7 years Bookkeeping System You must decide whether to use a single-entry or a double-entry bookkeeping system. How to file an amended tax return for 2012 turbotax The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. How to file an amended tax return for 2012 turbotax You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. How to file an amended tax return for 2012 turbotax Single-entry. How to file an amended tax return for 2012 turbotax   A single-entry system is based on the income statement (profit or loss statement). How to file an amended tax return for 2012 turbotax It can be a simple and practical system if you are starting a small business. How to file an amended tax return for 2012 turbotax The system records the flow of income and expenses through the use of: A daily summary of cash receipts, and Monthly summaries of cash receipts and disbursements. How to file an amended tax return for 2012 turbotax Double-entry. How to file an amended tax return for 2012 turbotax   A double-entry bookkeeping system uses journals and ledgers. How to file an amended tax return for 2012 turbotax Transactions are first entered in a journal and then posted to ledger accounts. How to file an amended tax return for 2012 turbotax These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). How to file an amended tax return for 2012 turbotax You close income and expense accounts at the end of each tax year. How to file an amended tax return for 2012 turbotax You keep asset, liability, and net worth accounts open on a permanent basis. How to file an amended tax return for 2012 turbotax   In the double-entry system, each account has a left side for debits and a right side for credits. How to file an amended tax return for 2012 turbotax It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. How to file an amended tax return for 2012 turbotax   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. How to file an amended tax return for 2012 turbotax If the amounts do not balance, you have made an error and you must find and correct it. How to file an amended tax return for 2012 turbotax   An example of a journal entry exhibiting a payment of rent in October is shown next. How to file an amended tax return for 2012 turbotax General Journal Date Description of Entry Debit  Credit Oct. How to file an amended tax return for 2012 turbotax 5 Rent expense 780. How to file an amended tax return for 2012 turbotax 00     Cash   780. How to file an amended tax return for 2012 turbotax 00                 Computerized System There are computer software packages you can use for recordkeeping. How to file an amended tax return for 2012 turbotax They can be purchased in many retail stores. How to file an amended tax return for 2012 turbotax These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. How to file an amended tax return for 2012 turbotax If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. How to file an amended tax return for 2012 turbotax To meet this qualification, the machine-sensible records must reconcile with your books and return. How to file an amended tax return for 2012 turbotax These records must provide enough detail to identify the underlying source documents. How to file an amended tax return for 2012 turbotax You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. How to file an amended tax return for 2012 turbotax This documentation must be sufficiently detailed to show all of the following items. How to file an amended tax return for 2012 turbotax Functions being performed as the data flows through the system. How to file an amended tax return for 2012 turbotax Controls used to ensure accurate and reliable processing. How to file an amended tax return for 2012 turbotax Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. How to file an amended tax return for 2012 turbotax Charts of accounts and detailed account descriptions. How to file an amended tax return for 2012 turbotax See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. How to file an amended tax return for 2012 turbotax How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. How to file an amended tax return for 2012 turbotax Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. How to file an amended tax return for 2012 turbotax The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. How to file an amended tax return for 2012 turbotax Table 3 contains the periods of limitations that apply to income tax returns. How to file an amended tax return for 2012 turbotax Unless otherwise stated, the years refer to the period after the return was filed. How to file an amended tax return for 2012 turbotax Returns filed before the due date are treated as filed on the due date. How to file an amended tax return for 2012 turbotax Keep copies of your filed tax returns. How to file an amended tax return for 2012 turbotax They help in preparing future tax returns and making computations if you file an amended return. How to file an amended tax return for 2012 turbotax Employment taxes. How to file an amended tax return for 2012 turbotax   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. How to file an amended tax return for 2012 turbotax For more information about recordkeeping for employment taxes, see Publication 15. How to file an amended tax return for 2012 turbotax Assets. How to file an amended tax return for 2012 turbotax   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. How to file an amended tax return for 2012 turbotax You must keep these records to figure any depreciation, amortization, or depletion deduction, and to figure your basis for computing gain or loss when you sell or otherwise dispose of the property. How to file an amended tax return for 2012 turbotax   Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. How to file an amended tax return for 2012 turbotax You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. How to file an amended tax return for 2012 turbotax Records for nontax purposes. How to file an amended tax return for 2012 turbotax   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. How to file an amended tax return for 2012 turbotax For example, your insurance company or creditors may require you to keep them longer than the IRS does. How to file an amended tax return for 2012 turbotax Sample Record System This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. How to file an amended tax return for 2012 turbotax Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. How to file an amended tax return for 2012 turbotax These sample records should not be viewed as a recommendation of how to keep your records. How to file an amended tax return for 2012 turbotax They are intended only to show how one business keeps its records. How to file an amended tax return for 2012 turbotax 1. How to file an amended tax return for 2012 turbotax Daily Summary of Cash Receipts This summary is a record of cash sales for the day. How to file an amended tax return for 2012 turbotax It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day. How to file an amended tax return for 2012 turbotax Henry takes the cash sales entry from his cash register tape. How to file an amended tax return for 2012 turbotax If he had no cash register, he would simply total his cash sale slips and any other cash received that day. How to file an amended tax return for 2012 turbotax He carries the total receipts shown in this summary for January 3 ($267. How to file an amended tax return for 2012 turbotax 80), including cash sales ($263. How to file an amended tax return for 2012 turbotax 60) and sales tax ($4. How to file an amended tax return for 2012 turbotax 20), to the Monthly Summary of Cash Receipts. How to file an amended tax return for 2012 turbotax Petty cash fund. How to file an amended tax return for 2012 turbotax   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. How to file an amended tax return for 2012 turbotax Each time he makes a payment from this fund, he makes out a petty cash slip and attaches it to his receipt as proof of payment. How to file an amended tax return for 2012 turbotax He sets up a fixed amount ($50) in his petty cash fund. How to file an amended tax return for 2012 turbotax The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. How to file an amended tax return for 2012 turbotax When the totals on the petty cash slips approach the fixed amount, he brings the cash in the fund back to the fixed amount by writing a check to “Petty Cash” for the total of the outstanding slips. How to file an amended tax return for 2012 turbotax (See the Check Disbursements Journal entry for check number 92. How to file an amended tax return for 2012 turbotax ) This restores the fund to its fixed amount of $50. How to file an amended tax return for 2012 turbotax He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. How to file an amended tax return for 2012 turbotax 2. How to file an amended tax return for 2012 turbotax Monthly Summary of Cash Receipts This shows the income activity for the month. How to file an amended tax return for 2012 turbotax Henry carries the total monthly net sales shown in this summary for January ($4,865. How to file an amended tax return for 2012 turbotax 05) to his Annual Summary. How to file an amended tax return for 2012 turbotax To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. How to file an amended tax return for 2012 turbotax He cannot take a deduction for sales tax turned over to the state because he only collected the tax. How to file an amended tax return for 2012 turbotax He does not include the tax in his income. How to file an amended tax return for 2012 turbotax 3. How to file an amended tax return for 2012 turbotax Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. How to file an amended tax return for 2012 turbotax All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. How to file an amended tax return for 2012 turbotax Frequent expenses have their own headings across the sheet. How to file an amended tax return for 2012 turbotax He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. How to file an amended tax return for 2012 turbotax Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. How to file an amended tax return for 2012 turbotax Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. How to file an amended tax return for 2012 turbotax If he did, he would record them in the journal, even though he could not deduct them as business expenses. How to file an amended tax return for 2012 turbotax Henry carries the January total of expenses for materials ($1,083. How to file an amended tax return for 2012 turbotax 50) to the Annual Summary. How to file an amended tax return for 2012 turbotax Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. How to file an amended tax return for 2012 turbotax , in the appropriate columns of that summary. How to file an amended tax return for 2012 turbotax 4. How to file an amended tax return for 2012 turbotax Employee Compensation Record This record shows the following information. How to file an amended tax return for 2012 turbotax The number of hours Henry's employee worked in a pay period. How to file an amended tax return for 2012 turbotax The employee's total pay for the period. How to file an amended tax return for 2012 turbotax The deductions Henry withheld in figuring the employee's net pay. How to file an amended tax return for 2012 turbotax The monthly gross payroll. How to file an amended tax return for 2012 turbotax Henry carries the January gross payroll ($520) to the Annual Summary. How to file an amended tax return for 2012 turbotax 5. How to file an amended tax return for 2012 turbotax Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. How to file an amended tax return for 2012 turbotax He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. How to file an amended tax return for 2012 turbotax He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. How to file an amended tax return for 2012 turbotax As in the journal, he keeps each major expense in a separate column. How to file an amended tax return for 2012 turbotax Henry carries the cash receipts total shown in the annual summary ($47,440. 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