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How To File State Return For Free

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How To File State Return For Free

How to file state return for free 1. How to file state return for free   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. How to file state return for free Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. How to file state return for free Reseller statement. How to file state return for free Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. How to file state return for free Deep-draft ocean-going vessels. How to file state return for free Passenger vessels. How to file state return for free Ocean-going barges. How to file state return for free State or local governments. How to file state return for free Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. How to file state return for free Gasoline, including aviation gasoline and gasoline blendstocks. How to file state return for free Diesel fuel, including dyed diesel fuel. How to file state return for free Diesel-water fuel emulsion. How to file state return for free Kerosene, including dyed kerosene and kerosene used in aviation. How to file state return for free Other Fuels (including alternative fuels). How to file state return for free Compressed natural gas (CNG). How to file state return for free Fuels used in commercial transportation on inland waterways. How to file state return for free Any liquid used in a fractional ownership program aircraft as fuel. How to file state return for free The following terms are used throughout the discussion of fuel taxes. How to file state return for free Other terms are defined in the discussion of the specific fuels to which they pertain. How to file state return for free Agri-biodiesel. How to file state return for free   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. How to file state return for free Approved terminal or refinery. How to file state return for free   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. How to file state return for free Biodiesel. How to file state return for free   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. How to file state return for free Blended taxable fuel. How to file state return for free   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. How to file state return for free This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. How to file state return for free Blender. How to file state return for free   This is the person that produces blended taxable fuel. How to file state return for free Bulk transfer. How to file state return for free   This is the transfer of taxable fuel by pipeline or vessel. How to file state return for free Bulk transfer/terminal system. How to file state return for free   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. How to file state return for free Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. How to file state return for free Cellulosic biofuel. How to file state return for free   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. How to file state return for free Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). How to file state return for free For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. How to file state return for free Also see Second generation biofuel below. How to file state return for free Diesel-water fuel emulsion. How to file state return for free   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. How to file state return for free The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. How to file state return for free Dry lease aircraft exchange. How to file state return for free   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. How to file state return for free Enterer. How to file state return for free   This is the importer of record (under customs law) for the taxable fuel. How to file state return for free However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. How to file state return for free If there is no importer of record, the owner at the time of entry into the United States is the enterer. How to file state return for free Entry. How to file state return for free   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. How to file state return for free This does not apply to fuel brought into Puerto Rico (which is part of the U. How to file state return for free S. How to file state return for free customs territory), but does apply to fuel brought into the United States from Puerto Rico. How to file state return for free Fractional ownership aircraft program and fractional program aircraft. How to file state return for free   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. How to file state return for free Measurement of taxable fuel. How to file state return for free   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. How to file state return for free Other fuels. How to file state return for free   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. How to file state return for free Pipeline operator. How to file state return for free   This is the person that operates a pipeline within the bulk transfer/terminal system. How to file state return for free Position holder. How to file state return for free   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. How to file state return for free You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. How to file state return for free A terminal operator that owns taxable fuel in its terminal is a position holder. How to file state return for free Rack. How to file state return for free   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. How to file state return for free Refiner. How to file state return for free   This is any person that owns, operates, or otherwise controls a refinery. How to file state return for free Refinery. How to file state return for free   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. How to file state return for free However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. How to file state return for free For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. How to file state return for free Registrant. How to file state return for free   This is a taxable fuel registrant (see Registration Requirements, later). How to file state return for free Removal. How to file state return for free   This is any physical transfer of taxable fuel. How to file state return for free It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. How to file state return for free However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. How to file state return for free Renewable diesel. How to file state return for free   See Renewable Diesel Credits in chapter 2. How to file state return for free Sale. How to file state return for free   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. How to file state return for free For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. How to file state return for free Second generation biofuel. How to file state return for free   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. How to file state return for free S. How to file state return for free C. How to file state return for free 7545). How to file state return for free It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. How to file state return for free It is not alcohol of less than 150 proof (disregard any added denaturants). How to file state return for free See Form 6478 for more information. How to file state return for free State. How to file state return for free   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. How to file state return for free An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. How to file state return for free Taxable fuel. How to file state return for free   This means gasoline, diesel fuel, and kerosene. How to file state return for free Terminal. How to file state return for free   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. How to file state return for free It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. How to file state return for free A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. How to file state return for free Terminal operator. How to file state return for free   This is any person that owns, operates, or otherwise controls a terminal. How to file state return for free Throughputter. How to file state return for free   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). How to file state return for free Vessel operator. How to file state return for free   This is the person that operates a vessel within the bulk transfer/terminal system. How to file state return for free However, vessel does not include a deep draft ocean-going vessel. How to file state return for free Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. How to file state return for free A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. How to file state return for free For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. How to file state return for free The returns are due the last day of the month following the month in which the transaction occurs. How to file state return for free Generally, these returns can be filed on paper or electronically. How to file state return for free For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. How to file state return for free Publication 3536 is only available on the IRS website. How to file state return for free Form 720-TO. How to file state return for free   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. How to file state return for free Each terminal operator must file a separate form for each approved terminal. How to file state return for free Form 720-CS. How to file state return for free   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. How to file state return for free Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. How to file state return for free See Form 637 for other persons who must register and for more information about registration. How to file state return for free Persons that are required to be registered. How to file state return for free   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. How to file state return for free Persons that may register. How to file state return for free   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. How to file state return for free Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. How to file state return for free However, they must be registered to file claims for certain sales and uses of fuel. How to file state return for free See Form 637 for more information. How to file state return for free Taxable fuel registrant. How to file state return for free   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. How to file state return for free The term registrant as used in the discussions of these fuels means a taxable fuel registrant. How to file state return for free Additional information. How to file state return for free   See the Form 637 instructions for the information you must submit when you apply for registration. How to file state return for free Failure to register. How to file state return for free   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. How to file state return for free Gasoline and Aviation Gasoline Gasoline. How to file state return for free   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. How to file state return for free Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. How to file state return for free Gasoline also includes gasoline blendstocks, discussed later. How to file state return for free Aviation gasoline. How to file state return for free   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. How to file state return for free Taxable Events The tax on gasoline is $. How to file state return for free 184 per gallon. How to file state return for free The tax on aviation gasoline is $. How to file state return for free 194 per gallon. How to file state return for free When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. How to file state return for free 141 per gallon. How to file state return for free See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. How to file state return for free Tax is imposed on the removal, entry, or sale of gasoline. How to file state return for free Each of these events is discussed later. How to file state return for free Also, see the special rules that apply to gasoline blendstocks, later. How to file state return for free If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. How to file state return for free See Refunds of Second Tax in chapter 2. How to file state return for free Removal from terminal. How to file state return for free   All removals of gasoline at a terminal rack are taxable. How to file state return for free The position holder for that gasoline is liable for the tax. How to file state return for free Two-party exchanges. How to file state return for free   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. How to file state return for free A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. How to file state return for free The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. How to file state return for free The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. How to file state return for free The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. How to file state return for free The transaction is subject to a written contract. How to file state return for free Terminal operator's liability. How to file state return for free   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. How to file state return for free   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. How to file state return for free The terminal operator is a registrant. How to file state return for free The terminal operator has an unexpired notification certificate (discussed later) from the position holder. How to file state return for free The terminal operator has no reason to believe any information on the certificate is false. How to file state return for free Removal from refinery. How to file state return for free   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. How to file state return for free It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. How to file state return for free It is made at the refinery rack. How to file state return for free The refiner is liable for the tax. How to file state return for free Exception. How to file state return for free   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. How to file state return for free The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. How to file state return for free The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. How to file state return for free The removal from the refinery is by railcar. How to file state return for free The same person operates the refinery and the facility at which the gasoline is received. How to file state return for free Entry into the United States. How to file state return for free   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. How to file state return for free It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. How to file state return for free It is not made by bulk transfer. How to file state return for free The enterer is liable for the tax. How to file state return for free Importer of record's liability. How to file state return for free   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. How to file state return for free   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. How to file state return for free The importer of record has an unexpired notification certificate (discussed later) from the enterer. How to file state return for free The importer of record has no reason to believe any information in the certificate is false. How to file state return for free Customs bond. How to file state return for free   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. How to file state return for free Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. How to file state return for free   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. How to file state return for free The position holder is liable for the tax. How to file state return for free The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. How to file state return for free However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. How to file state return for free Bulk transfers not received at approved terminal or refinery. How to file state return for free   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. How to file state return for free No tax was previously imposed (as discussed earlier) on any of the following events. How to file state return for free The removal from the refinery. How to file state return for free The entry into the United States. How to file state return for free The removal from a terminal by an unregistered position holder. How to file state return for free Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). How to file state return for free   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. How to file state return for free However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. How to file state return for free The owner is a registrant. How to file state return for free The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. How to file state return for free The owner has no reason to believe any information on the certificate is false. How to file state return for free The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. How to file state return for free The operator is jointly and severally liable if the owner does not meet these conditions. How to file state return for free Sales to unregistered person. How to file state return for free   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. How to file state return for free   The seller is liable for the tax. How to file state return for free However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. How to file state return for free   The seller is a registrant. How to file state return for free The seller has an unexpired notification certificate (discussed later) from the buyer. How to file state return for free The seller has no reason to believe any information on the certificate is false. How to file state return for free The buyer of the gasoline is liable for the tax if the seller meets these conditions. How to file state return for free The buyer is jointly and severally liable if the seller does not meet these conditions. How to file state return for free Exception. How to file state return for free   The tax does not apply to a sale if all of the following apply. How to file state return for free The buyer's principal place of business is not in the United States. How to file state return for free The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. How to file state return for free The seller is a registrant and the exporter of record. How to file state return for free The fuel was exported. How to file state return for free Removal or sale of blended gasoline. How to file state return for free   The removal or sale of blended gasoline by the blender is taxable. How to file state return for free See Blended taxable fuel under Definitions, earlier. How to file state return for free   The blender is liable for the tax. How to file state return for free The tax is figured on the number of gallons not previously subject to the tax on gasoline. How to file state return for free   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. How to file state return for free See Form 720 to report this tax. How to file state return for free You also must be registered with the IRS as a blender. How to file state return for free See Form 637. How to file state return for free   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. How to file state return for free Notification certificate. How to file state return for free   The notification certificate is used to notify a person of the registration status of the registrant. How to file state return for free A copy of the registrant's letter of registration cannot be used as a notification certificate. How to file state return for free A model notification certificate is shown in the Appendix as Model Certificate C. How to file state return for free A notification certificate must contain all information necessary to complete the model. How to file state return for free   The certificate may be included as part of any business records normally used for a sale. How to file state return for free A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. How to file state return for free The registrant must provide a new certificate if any information on a certificate has changed. How to file state return for free Additional persons liable. How to file state return for free   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. How to file state return for free Gasoline Blendstocks Gasoline blendstocks may be subject to $. How to file state return for free 001 per gallon LUST tax as discussed below. How to file state return for free Gasoline includes gasoline blendstocks. How to file state return for free The previous discussions apply to these blendstocks. How to file state return for free However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. How to file state return for free 001 per gallon or are not subject to the excise tax. How to file state return for free Blendstocks. How to file state return for free   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. How to file state return for free   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. How to file state return for free Not used to produce finished gasoline. How to file state return for free   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. How to file state return for free Removals and entries not connected to sale. How to file state return for free   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. How to file state return for free Removals and entries connected to sale. How to file state return for free   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. How to file state return for free The person has an unexpired certificate (discussed later) from the buyer. How to file state return for free The person has no reason to believe any information in the certificate is false. How to file state return for free Sales after removal or entry. How to file state return for free   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. How to file state return for free The seller is liable for the tax. How to file state return for free However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. How to file state return for free The seller has an unexpired certificate (discussed next) from the buyer. How to file state return for free The seller has no reason to believe any information in the certificate is false. How to file state return for free Certificate of buyer. How to file state return for free   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. How to file state return for free The certificate may be included as part of any business records normally used for a sale. How to file state return for free A model certificate is shown in the Appendix as Model Certificate D. How to file state return for free The certificate must contain all information necessary to complete the model. How to file state return for free   A certificate expires on the earliest of the following dates. How to file state return for free The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to file state return for free The date a new certificate is provided to the seller. How to file state return for free The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. How to file state return for free The buyer must provide a new certificate if any information on a certificate has changed. How to file state return for free   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. How to file state return for free Received at approved terminal or refinery. How to file state return for free   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. How to file state return for free The person is a registrant. How to file state return for free The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. How to file state return for free The person has no reason to believe any information on the certificate is false. How to file state return for free Bulk transfers to registered industrial user. How to file state return for free   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. How to file state return for free An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. How to file state return for free Credits or Refunds. How to file state return for free   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. How to file state return for free For more information, see chapter 2. How to file state return for free Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). How to file state return for free However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. How to file state return for free Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. How to file state return for free A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. How to file state return for free A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. How to file state return for free However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. How to file state return for free Diesel fuel does not include gasoline, kerosene, excluded liquid, No. How to file state return for free 5 and No. How to file state return for free 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. How to file state return for free An excluded liquid is either of the following. How to file state return for free A liquid that contains less than 4% normal paraffins. How to file state return for free A liquid with all the following properties. How to file state return for free Distillation range of 125 degrees Fahrenheit or less. How to file state return for free Sulfur content of 10 ppm or less. How to file state return for free Minimum color of +27 Saybolt. How to file state return for free Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. How to file state return for free Kerosene. How to file state return for free   This means any of the following liquids. How to file state return for free One of the two grades of kerosene (No. How to file state return for free 1-K and No. How to file state return for free 2-K) covered by ASTM specification D3699. How to file state return for free Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). How to file state return for free See Kerosene for Use in Aviation, later. How to file state return for free   However, kerosene does not include excluded liquid, discussed earlier. How to file state return for free   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. How to file state return for free Diesel-powered highway vehicle. How to file state return for free   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. How to file state return for free Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. How to file state return for free For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. How to file state return for free 2) in chapter 2. How to file state return for free Diesel-powered train. How to file state return for free   This is any diesel-powered equipment or machinery that rides on rails. How to file state return for free The term includes a locomotive, work train, switching engine, and track maintenance machine. How to file state return for free Taxable Events The tax on diesel fuel and kerosene is $. How to file state return for free 244 per gallon. How to file state return for free It is imposed on the removal, entry, or sale of diesel fuel and kerosene. How to file state return for free Each of these events is discussed later. How to file state return for free Only the $. How to file state return for free 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. How to file state return for free If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. How to file state return for free See Refunds of Second Tax in chapter 2. How to file state return for free Use in certain intercity and local buses. How to file state return for free   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. How to file state return for free A claim for $. How to file state return for free 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. How to file state return for free An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. How to file state return for free The bus must be engaged in one of the following activities. How to file state return for free Scheduled transportation along regular routes regardless of the size of the bus. How to file state return for free Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). How to file state return for free A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. How to file state return for free Removal from terminal. How to file state return for free   All removals of diesel fuel and kerosene at a terminal rack are taxable. How to file state return for free The position holder for that fuel is liable for the tax. How to file state return for free Two-party exchanges. How to file state return for free   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. How to file state return for free A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. How to file state return for free The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. How to file state return for free The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. How to file state return for free The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. How to file state return for free The transaction is subject to a written contract. How to file state return for free Terminal operator's liability. How to file state return for free   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). How to file state return for free   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. How to file state return for free However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. How to file state return for free The terminal operator is a registrant. How to file state return for free The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. How to file state return for free The terminal operator has no reason to believe any information on the certificate is false. How to file state return for free Removal from refinery. How to file state return for free   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. How to file state return for free It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. How to file state return for free It is made at the refinery rack. How to file state return for free The refiner is liable for the tax. How to file state return for free Exception. How to file state return for free   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. How to file state return for free The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. How to file state return for free The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. How to file state return for free The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. How to file state return for free Entry into the United States. How to file state return for free   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. How to file state return for free It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. How to file state return for free It is not made by bulk transfer. How to file state return for free The enterer is liable for the tax. How to file state return for free Importer of record's liability. How to file state return for free   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. How to file state return for free   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. How to file state return for free The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. How to file state return for free The importer of record has no reason to believe any information in the certificate is false. How to file state return for free Customs bond. How to file state return for free   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. How to file state return for free Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. How to file state return for free   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. How to file state return for free The position holder is liable for the tax. How to file state return for free The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. How to file state return for free However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. How to file state return for free Bulk transfers not received at approved terminal or refinery. How to file state return for free   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. How to file state return for free No tax was previously imposed (as discussed earlier) on any of the following events. How to file state return for free The removal from the refinery. How to file state return for free The entry into the United States. How to file state return for free The removal from a terminal by an unregistered position holder. How to file state return for free Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). How to file state return for free   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. How to file state return for free However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. How to file state return for free The owner is a registrant. How to file state return for free The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. How to file state return for free The owner has no reason to believe any information on the certificate is false. How to file state return for free The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. How to file state return for free The operator is jointly and severally liable if the owner does not meet these conditions. How to file state return for free Sales to unregistered person. How to file state return for free   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. How to file state return for free   The seller is liable for the tax. How to file state return for free However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. How to file state return for free The seller is a registrant. How to file state return for free The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. How to file state return for free The seller has no reason to believe any information on the certificate is false. How to file state return for free The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. How to file state return for free The buyer is jointly and severally liable if the seller does not meet these conditions. How to file state return for free Exception. How to file state return for free   The tax does not apply to a sale if all of the following apply. How to file state return for free The buyer's principal place of business is not in the United States. How to file state return for free The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. How to file state return for free The seller is a registrant and the exporter of record. How to file state return for free The fuel was exported. How to file state return for free Removal or sale of blended diesel fuel or kerosene. How to file state return for free   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. How to file state return for free Blended taxable fuel produced using biodiesel is subject to the tax. How to file state return for free See Blended taxable fuel under Definitions, earlier. How to file state return for free   The blender is liable for the tax. How to file state return for free The tax is figured on the number of gallons not previously subject to the tax. How to file state return for free   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. How to file state return for free Generally, the biodiesel mixture must be diesel fuel (defined earlier). How to file state return for free See Form 720 to report this tax. How to file state return for free You also must be registered by the IRS as a blender. How to file state return for free See Form 637 for more information. How to file state return for free   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. How to file state return for free Additional persons liable. How to file state return for free   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. How to file state return for free Credits or Refunds. How to file state return for free   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. How to file state return for free For more information, see chapter 2. How to file state return for free Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. How to file state return for free 001 per gallon LUST tax as discussed below, unless the fuel is for export. How to file state return for free The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. How to file state return for free The person otherwise liable for tax (for example, the position holder) is a registrant. How to file state return for free In the case of a removal from a terminal, the terminal is an approved terminal. How to file state return for free The diesel fuel or kerosene satisfies the dyeing requirements (described next). How to file state return for free Dyeing requirements. How to file state return for free   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. How to file state return for free It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. How to file state return for free 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. How to file state return for free Is indelibly dyed by mechanical injection. How to file state return for free See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. How to file state return for free Notice required. How to file state return for free   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. How to file state return for free   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. How to file state return for free   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). How to file state return for free That seller is subject to the penalty described next. How to file state return for free Penalty. How to file state return for free   A penalty is imposed on a person if any of the following situations apply. How to file state return for free Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. How to file state return for free Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. How to file state return for free The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. How to file state return for free The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. How to file state return for free   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. How to file state return for free After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. How to file state return for free   This penalty is in addition to any tax imposed on the fuel. How to file state return for free   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. How to file state return for free   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. How to file state return for free   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. How to file state return for free However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. How to file state return for free The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. How to file state return for free Exception to penalty. How to file state return for free   The penalty under item (3) will not apply in any of the following situations. How to file state return for free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. How to file state return for free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. How to file state return for free The alteration or attempted alteration occurs in an exempt area of Alaska. How to file state return for free See Removal for sale or use in Alaska, later. How to file state return for free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. How to file state return for free Alaska and Feedstocks Tax of $. How to file state return for free 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). How to file state return for free Undyed kerosene used for feedstock purposes. How to file state return for free Removal for sale or use in Alaska. How to file state return for free   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. How to file state return for free The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. How to file state return for free The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. How to file state return for free In the case of a removal from a terminal, the terminal is an approved terminal. How to file state return for free The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. How to file state return for free   If all three of the requirements above are not met, then tax is imposed at $. How to file state return for free 244 per gallon. How to file state return for free   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. How to file state return for free Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. How to file state return for free Later sales. How to file state return for free   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. How to file state return for free The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. How to file state return for free However, the sale is not taxable (other than the LUST tax at $. How to file state return for free 001 per gallon) if all the following requirements are met. How to file state return for free The fuel is sold in Alaska for certain nontaxable uses. How to file state return for free The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. How to file state return for free The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. How to file state return for free Feedstock purposes. How to file state return for free   The $. How to file state return for free 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. How to file state return for free The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. How to file state return for free In the case of a removal from a terminal, the terminal is an approved terminal. How to file state return for free Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. How to file state return for free   If all of the requirements above are not met, then tax is imposed at $. How to file state return for free 244 per gallon. How to file state return for free   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. How to file state return for free For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. How to file state return for free A feedstock user is a person that uses kerosene for a feedstock purpose. How to file state return for free A registered feedstock user is a person that has been registered by the IRS as a feedstock user. How to file state return for free See Registration Requirements, earlier. How to file state return for free Later sales. How to file state return for free   The excise tax ($. How to file state return for free 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. How to file state return for free The tax is imposed at the time of the later sale and that seller is liable for the tax. How to file state return for free Certificate. How to file state return for free   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. How to file state return for free The certificate may be included as part of any business records normally used for a sale. How to file state return for free A model certificate is shown in the Appendix as Model Certificate G. How to file state return for free Your certificate must contain all information necessary to complete the model. How to file state return for free   A certificate expires on the earliest of the following dates. How to file state return for free The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to file state return for free The date the seller is provided a new certificate or notice that the current certificate is invalid. How to file state return for free The date the seller is notified the buyer's registration has been revoked or suspended. How to file state return for free   The buyer must provide a new certificate if any information on a certificate has changed. How to file state return for free Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. How to file state return for free Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. How to file state return for free Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. How to file state return for free Any liquid other than gasoline, diesel fuel, or kerosene. How to file state return for free Generally, this back-up tax is imposed at a rate of $. How to file state return for free 244 per gallon. How to file state return for free Liability for tax. How to file state return for free   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. How to file state return for free In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. How to file state return for free Exemptions from the back-up tax. How to file state return for free   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. How to file state return for free   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. How to file state return for free Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. How to file state return for free A reduced tax rate of $. How to file state return for free 198 per gallon is imposed on a diesel-water fuel emulsion. How to file state return for free To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. How to file state return for free If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. How to file state return for free 244 per gallon. How to file state return for free Credits or refunds. How to file state return for free   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. How to file state return for free Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. How to file state return for free 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). How to file state return for free For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. How to file state return for free 219. How to file state return for free The rate of $. How to file state return for free 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. How to file state return for free The airport terminal does not need to be a secured airport terminal for this rate to apply. How to file state return for free However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. How to file state return for free For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. How to file state return for free 044 per gallon. How to file state return for free For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. How to file state return for free 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. How to file state return for free See Terminal located within a secured area of an airport, later. How to file state return for free In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. How to file state return for free For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. How to file state return for free 001. How to file state return for free There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. How to file state return for free The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. How to file state return for free See Terminal located within a secured area of an airport, later. How to file state return for free In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. How to file state return for free The position holder is liable for the $. How to file state return for free 001 per gallon tax. How to file state return for free For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. How to file state return for free 141 per gallon applies. How to file state return for free Certain refueler trucks, tankers, and tank wagons treated as terminals. How to file state return for free   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. How to file state return for free Such terminal is located within an area of an airport. How to file state return for free Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. How to file state return for free Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. How to file state return for free The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. How to file state return for free Information reporting will be required by terminal operators regarding this provision. How to file state return for free Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. How to file state return for free Terminal located within a secured area of an airport. How to file state return for free   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. How to file state return for free This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. How to file state return for free Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. How to file state return for free 044 per gallon. How to file state return for free However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). How to file state return for free For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. How to file state return for free For the aircraft operator to be liable for the tax $. How to file state return for free 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. How to file state return for free Commercial aviation. How to file state return for free   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. How to file state return for free However, commercial aviation does not include any of the following uses. How to file state return for free Any use exclusively for the purpose of skydiving. How to file state return for free Certain air transportation by seaplane. How to file state return for free See Seaplanes under Transportation of Persons by Air in chapter 4. How to file state return for free Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. How to file state return for free For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. How to file state return for free Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. How to file state return for free For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. How to file state return for free Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. How to file state return for free See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. How to file state return for free Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. How to file state return for free 141 per gallon. How to file state return for free The fractional ownership program manager is liable for the tax. How to file state return for free The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. How to file state return for free If the surtax is imposed, the following air transportation taxes do not apply. How to file state return for free Transportation of persons by air. How to file state return for free Transportation of property by air. How to file state return for free Use of international air travel facilities. How to file state return for free These taxes are described under Air Transportation Taxes, later. How to file state return for free A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. How to file state return for free Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. How to file state return for free Fractional program aircraft. How to file state return for free   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. How to file state return for free S. How to file state return for free   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. How to file state return for free In such situations, the flight is not commercial aviation. How to file state return for free Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. How to file state return for free Fractional owner. How to file state return for free   Any person owning any interest (including the entire interest) in a fractional program aircraft. How to file state return for free Dry lease aircraft exchange. How to file state return for free   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. How to file state return for free Special rule relating to deadhead service. How to file state return for free   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. How to file state return for free More information. How to file state return for free   See section 4043 for more information on the surtax. How to file state return for free Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. How to file state return for free Certificate. How to file state return for free   The certificate may be included as part of any business records normally used for a sale. How to file state return for free See Model Certificate K in the Appendix. How to file state return for free   A certificate expires on the earliest of the following dates. How to file state return for free The date 1 year after the effective date (not earlier than the date signed) of the certificate. How to file state return for free The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. How to file state return for free The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. How to file state return for free   The buyer must provide a new certificate if any information on a certificate has changed. How to file state return for free   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. How to file state return for free Exempt use. How to file state return for free   The rate on kerosene for use in aviation is $. How to file state return for free 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. How to file state return for free An exempt use includes kerosene for the exclusive use of a state or local government. How to file state return for free There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. How to file state return for free Flash title transaction. How to file state return for free   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. How to file state return for free In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. How to file state return for free In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. How to file state return for free Reseller statement. How to file state return for free   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. How to file state return for free Credits or Refunds. How to file state return for free   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). How to file state return for free A claim may be made by a registered ultimate vendor for certain sales. How to file state return for free For more information, see chapter 2. How to file state return for free Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. How to file state return for free Other Fuels include alternative fuels. How to file state return for free Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. How to file state return for free Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. How to file state return for free Qualified methanol and ethanol fuels. How to file state return for free   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. How to file state return for free The tax rates are listed in the Instructions for Form 720. How to file state return for free Partially exempt methanol and ethanol fuels. How to file state return for free   A reduced tax rate applies to these fuels. How to file state return for free Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. How to file state return for free The tax rates are listed in the Instructions for Form 720. How to file state return for free Motor vehicles. How to file state return for free   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. How to file state return for free They are propelled by a motor. How to file state return for free They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t
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The How To File State Return For Free

How to file state return for free 23. How to file state return for free   Interest Expense Table of Contents Introduction Useful Items - You may want to see: Home Mortgage InterestAmount Deductible Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement Investment InterestInvestment Property Allocation of Interest Expense Limit on Deduction Items You Cannot DeductPersonal Interest Allocation of Interest How To ReportMore than one borrower. How to file state return for free Mortgage proceeds used for business or investment. How to file state return for free Introduction This chapter discusses what interest expenses you can deduct. How to file state return for free Interest is the amount you pay for the use of borrowed money. How to file state return for free The following are types of interest you can deduct as itemized deductions on Schedule A (Form 1040). How to file state return for free Home mortgage interest, including certain points and mortgage insurance premiums. How to file state return for free Investment interest. How to file state return for free This chapter explains these deductions. How to file state return for free It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. How to file state return for free Use Table 23-1 to find out where to get more information on various types of interest, including investment interest. How to file state return for free Useful Items - You may want to see: Publication 936 Home Mortgage Interest Deduction 550 Investment Income and Expenses Home Mortgage Interest Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). How to file state return for free The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. How to file state return for free You can deduct home mortgage interest if all the following conditions are met. How to file state return for free You file Form 1040 and itemize deductions on Schedule A (Form 1040). How to file state return for free The mortgage is a secured debt on a qualified home in which you have an ownership interest. How to file state return for free (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interest of the lender. How to file state return for free The term “qualified home” means your main home or second home. How to file state return for free For details, see Publication 936. How to file state return for free )  Both you and the lender must intend that the loan be repaid. How to file state return for free Amount Deductible In most cases, you can deduct all of your home mortgage interest. How to file state return for free How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. How to file state return for free Fully deductible interest. How to file state return for free   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. How to file state return for free (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. How to file state return for free )   The three categories are as follows: Mortgages you took out on or before October 13, 1987 (called grandfathered debt). How to file state return for free Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). How to file state return for free Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). How to file state return for free The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. How to file state return for free   See Part II of Publication 936 for more detailed definitions of grandfathered, home acquisition, and home equity debt. How to file state return for free    You can use Figure 23-A to check whether your home mortgage interest is fully deductible. How to file state return for free Figure 23-A. How to file state return for free Is My Home Mortgage Interest Fully Deductible? Please click here for the text description of the image. How to file state return for free Figure 23-A. How to file state return for free Is My Interest Fully Deductible? Limits on deduction. How to file state return for free   You cannot fully deduct interest on a mortgage that does not fit into any of the three categories listed earlier. How to file state return for free If this applies to you, see Part II of Publication 936 to figure the amount of interest you can deduct. How to file state return for free Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. How to file state return for free It also describes certain special situations that may affect your deduction. How to file state return for free Late payment charge on mortgage payment. How to file state return for free   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. How to file state return for free Mortgage prepayment penalty. How to file state return for free   If you pay off your home mortgage early, you may have to pay a penalty. How to file state return for free You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. How to file state return for free Sale of home. How to file state return for free   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of sale. How to file state return for free Example. How to file state return for free John and Peggy Harris sold their home on May 7. How to file state return for free Through April 30, they made home mortgage interest payments of $1,220. How to file state return for free The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. How to file state return for free Their mortgage interest deduction is $1,270 ($1,220 + $50). How to file state return for free Prepaid interest. How to file state return for free   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. How to file state return for free You can deduct in each year only the interest that qualifies as home mortgage interest for that year. How to file state return for free However, there is an exception that applies to points, discussed later. How to file state return for free Mortgage interest credit. How to file state return for free   You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. How to file state return for free Figure the credit on Form 8396, Mortgage Interest Credit. How to file state return for free If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. How to file state return for free   For more information on the credit, see chapter 37. How to file state return for free Ministers' and military housing allowance. How to file state return for free   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. How to file state return for free Hardest Hit Fund and Emergency Homeowners' Loan Programs. How to file state return for free   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. How to file state return for free You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. How to file state return for free You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. How to file state return for free If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). How to file state return for free However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. How to file state return for free Mortgage assistance payments under section 235 of the National Housing Act. How to file state return for free   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. How to file state return for free You cannot deduct the interest that is paid for you. How to file state return for free No other effect on taxes. How to file state return for free   Do not include these mortgage assistance payments in your income. How to file state return for free Also, do not use these payments to reduce other deductions, such as real estate taxes. How to file state return for free Divorced or separated individuals. How to file state return for free   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. How to file state return for free See the discussion of Payments for jointly-owned home in chapter 18. How to file state return for free Redeemable ground rents. How to file state return for free   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. How to file state return for free   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. How to file state return for free For more information, see Publication 936. How to file state return for free Nonredeemable ground rents. How to file state return for free   Payments on a nonredeemable ground rent are not mortgage interest. How to file state return for free You can deduct them as rent if they are a business expense or if they are for rental property. How to file state return for free Reverse mortgages. How to file state return for free   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. How to file state return for free With a reverse mortgage, you retain title to your home. How to file state return for free Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. How to file state return for free Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. How to file state return for free Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full. How to file state return for free Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Publication 936. How to file state return for free Rental payments. How to file state return for free   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. How to file state return for free This is true even if the settlement papers call them interest. How to file state return for free You cannot deduct these payments as home mortgage interest. How to file state return for free Mortgage proceeds invested in tax-exempt securities. How to file state return for free   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. How to file state return for free “Grandfathered debt” and “home equity debt” are defined earlier under Amount Deductible. How to file state return for free Refunds of interest. How to file state return for free   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. How to file state return for free If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. How to file state return for free However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. How to file state return for free This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. How to file state return for free    If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. How to file state return for free For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. How to file state return for free   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in chapter 12. How to file state return for free Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. How to file state return for free Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. How to file state return for free A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. How to file state return for free See Points paid by the seller , later. How to file state return for free General Rule You generally cannot deduct the full amount of points in the year paid. How to file state return for free Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. How to file state return for free See Deduction Allowed Ratably , next. How to file state return for free For exceptions to the general rule, see Deduction Allowed in Year Paid , later. How to file state return for free Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. How to file state return for free You use the cash method of accounting. How to file state return for free This means you report income in the year you receive it and deduct expenses in the year you pay them. How to file state return for free Most individuals use this method. How to file state return for free Your loan is secured by a home. How to file state return for free (The home does not need to be your main home. How to file state return for free ) Your loan period is not more than 30 years. How to file state return for free If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. How to file state return for free Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. How to file state return for free Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. How to file state return for free (You can use Figure 23-B as a quick guide to see whether your points are fully deductible in the year paid. How to file state return for free ) Your loan is secured by your main home. How to file state return for free (Your main home is the one you ordinarily live in most of the time. How to file state return for free ) Paying points is an established business practice in the area where the loan was made. How to file state return for free The points paid were not more than the points generally charged in that area. How to file state return for free You use the cash method of accounting. How to file state return for free This means you report income in the year you receive it and deduct expenses in the year you pay them. How to file state return for free (If you want more information about this method, see Accounting Methods in chapter 1. How to file state return for free ) The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. How to file state return for free The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. How to file state return for free The funds you provided are not required to have been applied to the points. How to file state return for free They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. How to file state return for free You cannot have borrowed these funds from your lender or mortgage broker. How to file state return for free You use your loan to buy or build your main home. How to file state return for free The points were computed as a percentage of the principal amount of the mortgage. How to file state return for free The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. How to file state return for free The points may be shown as paid from either your funds or the seller's. How to file state return for free Figure 23-B. How to file state return for free Are My Points Fully Deductible This Year? Please click here for the text description of the image. How to file state return for free Figure 23-B. How to file state return for free Are My Points Fully Deductible This Year? Note. How to file state return for free If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. How to file state return for free Home improvement loan. How to file state return for free   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. How to file state return for free Second home. How to file state return for free You cannot fully deduct in the year paid points you pay on loans secured by your second home. How to file state return for free You can deduct these points only over the life of the loan. How to file state return for free Refinancing. How to file state return for free   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. How to file state return for free This is true even if the new mortgage is secured by your main home. How to file state return for free   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. How to file state return for free You can deduct the rest of the points over the life of the loan. How to file state return for free Example 1. How to file state return for free In 1998, Bill Fields got a mortgage to buy a home. How to file state return for free In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. How to file state return for free The mortgage is secured by his home. How to file state return for free To get the new loan, he had to pay three points ($3,000). How to file state return for free Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. How to file state return for free Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. How to file state return for free The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. How to file state return for free Bill's first payment on the new loan was due July 1. How to file state return for free He made six payments on the loan in 2013 and is a cash basis taxpayer. How to file state return for free Bill used the funds from the new mortgage to repay his existing mortgage. How to file state return for free Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. How to file state return for free He cannot deduct all of the points in 2013. How to file state return for free He can deduct two points ($2,000) ratably over the life of the loan. How to file state return for free He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. How to file state return for free The other point ($1,000) was a fee for services and is not deductible. How to file state return for free Example 2. How to file state return for free The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. How to file state return for free Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. How to file state return for free His deduction is $500 ($2,000 × 25%). How to file state return for free Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. How to file state return for free This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. How to file state return for free The total amount Bill deducts in 2013 is $550 ($500 + $50). How to file state return for free Special Situations This section describes certain special situations that may affect your deduction of points. How to file state return for free Original issue discount. How to file state return for free   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. How to file state return for free This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. How to file state return for free Amounts charged for services. How to file state return for free   Amounts charged by the lender for specific services connected to the loan are not interest. How to file state return for free Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. How to file state return for free You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. How to file state return for free Points paid by the seller. How to file state return for free   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. How to file state return for free Treatment by seller. How to file state return for free   The seller cannot deduct these fees as interest. How to file state return for free But they are a selling expense that reduces the amount realized by the seller. How to file state return for free See chapter 15 for information on selling your home. How to file state return for free Treatment by buyer. How to file state return for free    The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. How to file state return for free If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. How to file state return for free If any of those tests are not met, the buyer deducts the points over the life of the loan. How to file state return for free   For information about basis, see chapter 13. How to file state return for free Funds provided are less than points. How to file state return for free   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. How to file state return for free In addition, you can deduct any points paid by the seller. How to file state return for free Example 1. How to file state return for free When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). How to file state return for free You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. How to file state return for free Of the $1,000 charged for points, you can deduct $750 in the year paid. How to file state return for free You spread the remaining $250 over the life of the mortgage. How to file state return for free Example 2. How to file state return for free The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. How to file state return for free In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). How to file state return for free You spread the remaining $250 over the life of the mortgage. How to file state return for free You must reduce the basis of your home by the $1,000 paid by the seller. How to file state return for free Excess points. How to file state return for free   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. How to file state return for free You must spread any additional points over the life of the mortgage. How to file state return for free Mortgage ending early. How to file state return for free   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. How to file state return for free However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. How to file state return for free Instead, deduct the remaining balance over the term of the new loan. How to file state return for free    A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. How to file state return for free Example. How to file state return for free Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. How to file state return for free He deducts $200 points per year. How to file state return for free Through 2012, Dan has deducted $2,200 of the points. How to file state return for free Dan prepaid his mortgage in full in 2013. How to file state return for free He can deduct the remaining $800 of points in 2013. How to file state return for free Limits on deduction. How to file state return for free   You cannot fully deduct points paid on a mortgage unless the mortgage fits into one of the categories listed earlier under Fully deductible interest . How to file state return for free See Publication 936 for details. How to file state return for free Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. How to file state return for free The insurance must be in connection with home acquisition debt and the insurance contract must have been issued after 2006. How to file state return for free Qualified mortgage insurance. How to file state return for free   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). How to file state return for free   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. How to file state return for free If provided by the Rural Housing Service, it is commonly known as a guarantee fee. How to file state return for free These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. How to file state return for free Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. How to file state return for free Special rules for prepaid mortgage insurance. How to file state return for free   Generally, if you paid premiums for qualified mortgage insurance that are allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. How to file state return for free You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. How to file state return for free No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. How to file state return for free This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. How to file state return for free See the Example below. How to file state return for free Example. How to file state return for free Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. How to file state return for free Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. How to file state return for free Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. How to file state return for free Ryan's adjusted gross income (AGI) for 2012 is $76,000. How to file state return for free Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2012. How to file state return for free For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less. How to file state return for free In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). How to file state return for free Limit on deduction. How to file state return for free   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. How to file state return for free See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. How to file state return for free If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. How to file state return for free Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. How to file state return for free You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. How to file state return for free A governmental unit is a person for purposes of furnishing the statement. How to file state return for free The statement for each year should be sent to you by January 31 of the following year. How to file state return for free A copy of this form will also be sent to the IRS. How to file state return for free The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. How to file state return for free However, it should not show any interest that was paid for you by a government agency. How to file state return for free As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. How to file state return for free However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. How to file state return for free See Points , earlier, to determine whether you can deduct points not shown on Form 1098. How to file state return for free Prepaid interest on Form 1098. How to file state return for free   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. How to file state return for free However, you cannot deduct the prepaid amount for January 2014 in 2013. How to file state return for free (See Prepaid interest , earlier. How to file state return for free ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. How to file state return for free You will include the interest for January 2014 with the other interest you pay for 2014. How to file state return for free See How To Report , later. How to file state return for free Refunded interest. How to file state return for free   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. How to file state return for free See Refunds of interest , earlier. How to file state return for free Mortgage insurance premiums. How to file state return for free   The amount of mortgage insurance premiums you paid during 2013 may be shown in box 4 of Form 1098. How to file state return for free See Mortgage Insurance Premiums, earlier. How to file state return for free Investment Interest This section discusses interest expenses you may be able to deduct as an investor. How to file state return for free If you borrow money to buy property you hold for investment, the interest you pay is investment interest. How to file state return for free You can deduct investment interest subject to the limit discussed later. How to file state return for free However, you cannot deduct interest you incurred to produce tax-exempt income. How to file state return for free Nor can you deduct interest expenses on straddles. How to file state return for free Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. How to file state return for free Investment Property Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. How to file state return for free It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). How to file state return for free Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). How to file state return for free Partners, shareholders, and beneficiaries. How to file state return for free   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. How to file state return for free Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. How to file state return for free Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. How to file state return for free The allocation is not affected by the use of property that secures the debt. How to file state return for free Limit on Deduction Generally, your deduction for investment interest expense is limited to the amount of your net investment income. How to file state return for free You can carry over the amount of investment interest that you could not deduct because of this limit to the next tax year. How to file state return for free The interest carried over is treated as investment interest paid or accrued in that next year. How to file state return for free You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. How to file state return for free Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. How to file state return for free Investment income. How to file state return for free    This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). How to file state return for free Investment income does not include Alaska Permanent Fund dividends. How to file state return for free It also does not include qualified dividends or net capital gain unless you choose to include them. How to file state return for free Choosing to include qualified dividends. How to file state return for free   Investment income generally does not include qualified dividends, discussed in chapter 8. How to file state return for free However, you can choose to include all or part of your qualified dividends in investment income. How to file state return for free   You make this choice by completing Form 4952, line 4g, according to its instructions. How to file state return for free   If you choose to include any amount of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. How to file state return for free Choosing to include net capital gain. How to file state return for free   Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). How to file state return for free However, you can choose to include all or part of your net capital gain in investment income. How to file state return for free    You make this choice by completing Form 4952, line 4g, according to its instructions. How to file state return for free   If you choose to include any amount of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. How to file state return for free    Before making either choice, consider the overall effect on your tax liability. How to file state return for free Compare your tax if you make one or both of these choices with your tax if you do not. How to file state return for free Investment income of child reported on parent's return. How to file state return for free    Investment income includes the part of your child's interest and dividend income that you choose to report on your return. How to file state return for free If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814, Parents' Election To Report Child's Interest and Dividends. How to file state return for free Child's qualified dividends. How to file state return for free   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. How to file state return for free However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. How to file state return for free   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). How to file state return for free Child's Alaska Permanent Fund dividends. How to file state return for free   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. How to file state return for free To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. How to file state return for free Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. How to file state return for free Subtract the result from the amount on Form 8814, line 12. How to file state return for free Child's capital gain distributions. How to file state return for free    If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D, line 13, or Form 1040, line 13) generally does not count as investment income. How to file state return for free However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. How to file state return for free   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). How to file state return for free Investment expenses. How to file state return for free   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. How to file state return for free Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. How to file state return for free Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A, line 27. How to file state return for free Losses from passive activities. How to file state return for free   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). How to file state return for free See Publication 925, Passive Activity and At-Risk Rules, for information about passive activities. How to file state return for free Form 4952 Use Form 4952, Investment Interest Expense Deduction, to figure your deduction for investment interest. How to file state return for free Exception to use of Form 4952. How to file state return for free   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. How to file state return for free Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. How to file state return for free You do not have any other deductible investment expenses. How to file state return for free You have no carryover of investment interest expense from 2012. How to file state return for free If you meet all of these tests, you can deduct all of your investment interest. How to file state return for free More Information For more information on investment interest, see Interest Expenses in chapter 3 of Publication 550. How to file state return for free Items You Cannot Deduct Some interest payments are not deductible. How to file state return for free Certain expenses similar to interest also are not deductible. How to file state return for free Nondeductible expenses include the following items. How to file state return for free Personal interest (discussed later). How to file state return for free Service charges (however, see Other Expenses (Line 23) in chapter 28). How to file state return for free Annual fees for credit cards. How to file state return for free Loan fees. How to file state return for free Credit investigation fees. How to file state return for free Interest to purchase or carry tax-exempt securities. How to file state return for free Penalties. How to file state return for free   You cannot deduct fines and penalties paid to a government for violations of law, regardless of their nature. How to file state return for free Personal Interest Personal interest is not deductible. How to file state return for free Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. How to file state return for free It includes the following items. How to file state return for free Interest on car loans (unless you use the car for business). How to file state return for free Interest on federal, state, or local income tax. How to file state return for free Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. How to file state return for free Late payment charges by a public utility. How to file state return for free You may be able to deduct interest you pay on a qualified student loan. How to file state return for free For details, see Publication 970, Tax Benefits for Education. How to file state return for free Allocation of Interest If you use the proceeds of a loan for more than one purpose (for example, personal and business), you must allocate the interest on the loan to each use. How to file state return for free However, you do not have to allocate home mortgage interest if it is fully deductible, regardless of how the funds are used. How to file state return for free You allocate interest (other than fully deductible home mortgage interest) on a loan in the same way as the loan itself is allocated. How to file state return for free You do this by tracing disbursements of the debt proceeds to specific uses. How to file state return for free For details on how to do this, see chapter 4 of Publication 535. How to file state return for free How To Report You must file Form 1040 to deduct any home mortgage interest expense on your tax return. How to file state return for free Where you deduct your interest expense generally depends on how you use the loan proceeds. How to file state return for free See Table 23-1 for a summary of where to deduct your interest expense. How to file state return for free Home mortgage interest and points. How to file state return for free   Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. How to file state return for free If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. How to file state return for free Attach a statement explaining the difference and print “See attached” next to line 10. How to file state return for free    Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. How to file state return for free If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. How to file state return for free The seller must give you this number and you must give the seller your TIN. How to file state return for free A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. How to file state return for free Failure to meet any of these requirements may result in a $50 penalty for each failure. How to file state return for free The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. How to file state return for free See Social Security Number (SSN) in chapter 1 for more information about TINs. How to file state return for free    If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. How to file state return for free   Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. How to file state return for free More than one borrower. How to file state return for free   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. How to file state return for free Show how much of the interest each of you paid, and give the name and address of the person who received the form. How to file state return for free Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. How to file state return for free Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. How to file state return for free   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. How to file state return for free You should let each of the other borrowers know what his or her share is. How to file state return for free Mortgage proceeds used for business or investment. How to file state return for free    If your home mortgage interest deduction is limited, but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 23-1. How to file state return for free It shows where to deduct the part of your excess interest that is for those activities. How to file state return for free Investment interest. How to file state return for free    Deduct investment interest, subject to certain limits discussed in Publication 550, on Schedule A (Form 1040), line 14. How to file state return for free Amortization of bond premium. How to file state return for free   There are various ways to treat the premium you pay to buy taxable bonds. How to file state return for free See Bond Premium Amortization in Publication 550. How to file state return for free Income-producing rental or royalty interest. How to file state return for free   Deduct interest on a loan for income-producing rental or royalty property that is not used in your business in Part I of Schedule E (Form 1040). How to file state return for free Example. How to file state return for free You rent out part of your home and borrow money to make repairs. How to file state return for free You can deduct only the interest payment for the rented part in Part I of Schedule E (Form 1040). How to file state return for free Deduct the rest of the interest payment on Schedule A (Form 1040) if it is deductible home mortgage interest. How to file state return for free Table 23-1. How to file state return for free Where To Deduct Your Interest Expense IF you have . How to file state return for free . How to file state return for free . How to file state return for free THEN deduct it on . How to file state return for free . How to file state return for free . How to file state return for free AND for more information go to . How to file state return for free . How to file state return for free . How to file state return for free deductible student loan interest Form 1040, line 33, or Form 1040A, line 18 Publication 970. How to file state return for free deductible home mortgage interest and points reported on Form 1098 Schedule A (Form 1040), line 10 Publication 936. How to file state return for free deductible home mortgage interest not reported on Form 1098 Schedule A (Form 1040), line 11 Publication 936. How to file state return for free deductible points not reported on Form 1098 Schedule A (Form 1040), line 12 Publication 936. How to file state return for free deductible mortgage insurance premiums Schedule A (Form 1040), line 13 Publication 936. How to file state return for free deductible investment interest (other than incurred to produce rents or royalties) Schedule A (Form 1040), line 14 Publication 550. How to file state return for free deductible business interest (non-farm) Schedule C or C-EZ (Form 1040) Publication 535. How to file state return for free deductible farm business interest Schedule F (Form 1040) Publications 225 and 535. How to file state return for free deductible interest incurred to produce rents or royalties Schedule E (Form 1040) Publications 527 and 535. How to file state return for free personal interest not deductible. How to file state return for free Prev  Up  Next   Home   More Online Publications