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How To File State Taxes Online For Free

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How To File State Taxes Online For Free

How to file state taxes online for free Publication 15-T - Additional Material Table of Contents This image is too large to be displayed in the current screen. How to file state taxes online for free Please click the link to view the image. How to file state taxes online for free Form W-4 (2009) This image is too large to be displayed in the current screen. How to file state taxes online for free Please click the link to view the image. How to file state taxes online for free Deductions and Adjustments Worksheet Notice to Employees Please click here for the text description of the image. How to file state taxes online for free Multi-Media/Back Page Prev  Up  Next   Home   More Online Publications
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"Slamming" occurs when a phone company illegally switches your phone service without your permission. If you notice a different company name on your bill or see phone charges that are higher than normal, take action:

  • Contact the company that slammed you and ask to be switched back to your original company. Tell the company you are exercising your right to refuse to pay any charges.
  • Report the problem to your original company and ask to be enrolled in your previous calling plan. If you're unable to resolve your complaint, contact the FCC.

"Cramming" occurs when companies add charges to your telephone bill without your permission. These charges may be for services such as voice mail, ringtones, or club memberships. You may not notice these monthly charges because they are relatively small, $5 to $30, and look like your regular phone charges.

Take These Steps to Avoid Slammers and Crammers:

  • Block changes to your phone service. Ask your telephone service provider if they offer a blocking service, which usually requires the company to notify you before making any changes to your service.
  • Read the fine print on contest entry forms and coupons. You could be agreeing to switch your phone service or buy optional services.
  • Watch out for impostors. Companies could falsely claim to be your regular phone company and offer some type of discount plan or change in billing. They might also say they are taking a survey or pretend to be a government agency.
  • Beware of "negative option notices". You can be switched or signed up for optional services unless you say "NO" to telemarketers.
  • Examine your telephone bill carefully, including pages that show the details, and look for suspicious charges.

Your phone service cannot be shut off for refusal to pay for unauthorized services. For help, contact your local or state consumer protection agency, state public utilities commission, or the FCC.

Beware: Caller ID Spoofing

Scammers have adopted the practice of Caller ID spoofing to obtain personal information from consumers. In this fraud, someone calls you using a false name and phone number for the Caller ID screen. During the call, the scammer describes an urgent scenario, such as the cancellation of an account. The caller may say you can avoid the cancellation if you provide your bank account or credit card number to pay the company. If you give the sensitive information, he can use it to steal your identity, or use your bank accounts.
You can prevent being a victim of caller ID spoofing. Don’t give out personal information on an incoming call. Hang up and call the customer service phone number printed on your statement, the company’s website or in the phonebook.
Report caller ID spoofers to the Federal Communications Commission online or 1-888-225-5322.

Beware: GPS Enabled Apps on Your Mobile Phone

GPS enabled apps on mobile phones make it easy to share your fun adventures through social media. Some apps let others know your general vicinity, while others allow you to virtually “check in” at your favorite places so that you can earn free merchandise. Beware: this same information in the wrong hands can make you vulnerable to stalking, home burglary, or worse. Take advantage of the privacy settings on these apps and only share your location with people that you know and trust.

The How To File State Taxes Online For Free

How to file state taxes online for free 2. How to file state taxes online for free   Accounting Methods Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Accounting MethodsCash Method Accrual Method Farm Inventory Cash Versus Accrual Method Special Methods of Accounting Combination Method Changes in Methods of Accounting Introduction You must use an accounting method that clearly shows your income and expenses. How to file state taxes online for free You must also figure your taxable income and file an income tax return for an annual accounting period called a tax year. How to file state taxes online for free This chapter discusses accounting methods. How to file state taxes online for free For information on accounting periods, see Publication 538, Accounting Periods and Methods, and the Instructions for Form 1128, Application To Adopt, Change, or Retain a Tax Year. How to file state taxes online for free Topics - This chapter discusses: Cash method Accrual method Farm inventory Special methods of accounting Changes in methods of accounting Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 535 Business Expenses Form (and Instructions) 1128 Application To Adopt, Change, or Retain a Tax Year 3115 Application for Change in Accounting Method See chapter 16 for information about getting publications and forms. How to file state taxes online for free Accounting Methods An accounting method is a set of rules used to determine when and how your income and expenses are reported on your tax return. How to file state taxes online for free Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. How to file state taxes online for free A material item is one that affects the proper time for inclusion of income or allowance of a deduction. How to file state taxes online for free An item considered material for financial statement purposes is generally also considered material for income tax purposes. How to file state taxes online for free See Publication 538 for more information. How to file state taxes online for free You generally choose an accounting method for your farm business when you file your first income tax return that includes a Schedule F (Form 1040), Profit or Loss From Farming. How to file state taxes online for free If you later want to change your accounting method, you generally must get IRS approval. How to file state taxes online for free How to obtain IRS approval is discussed later under Changes in Methods of Accounting . How to file state taxes online for free Types of accounting methods. How to file state taxes online for free   Generally, you can use any of the following accounting methods. How to file state taxes online for free Each method is discussed in detail below. How to file state taxes online for free Cash method. How to file state taxes online for free Accrual method. How to file state taxes online for free Special methods of accounting for certain items of income and expenses. How to file state taxes online for free Combination (hybrid) method using elements of two or more of the above. How to file state taxes online for free Business and other items. How to file state taxes online for free   You can account for business and personal items using different accounting methods. How to file state taxes online for free For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. How to file state taxes online for free Two or more businesses. How to file state taxes online for free   If you operate two or more separate and distinct businesses, you can use a different accounting method for each business. How to file state taxes online for free Generally, no business is separate and distinct unless a complete and separate set of books and records is maintained for each business. How to file state taxes online for free Cash Method Most farmers use the cash method because they find it easier to keep records using the cash method. How to file state taxes online for free However, certain farm corporations and partnerships and all tax shelters must use an accrual method of accounting. How to file state taxes online for free See Accrual Method Required , later. How to file state taxes online for free Income Under the cash method, include in your gross income all items of income you actually or constructively received during the tax year. How to file state taxes online for free Items of income include money received as well as property or services received. How to file state taxes online for free If you receive property or services, you must include the fair market value (FMV) of the property or services in income. How to file state taxes online for free See chapter 3 for information on how to report farm income on your income tax return. How to file state taxes online for free Constructive receipt. How to file state taxes online for free   Income is constructively received when an amount is credited to your account or made available to you without restriction. How to file state taxes online for free You do not need to have possession of the income for it to be treated as income for the tax year. How to file state taxes online for free If you authorize someone to be your agent and receive income for you, you are considered to have received the income when your agent receives it. How to file state taxes online for free Income is not constructively received if your receipt of the income is subject to substantial restrictions or limitations. How to file state taxes online for free Direct payments and counter-cyclical payments. How to file state taxes online for free   If you received direct payments or counter-cyclical payments under Subtitle A or C of the Farm Security and Rural Investment Act of 2002, you will not be considered to have constructively received a payment merely because you had the option to receive it in the year before it is required to be paid. How to file state taxes online for free Delaying receipt of income. How to file state taxes online for free   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. How to file state taxes online for free You must report the income in the year the money or property is received or made available to you without restriction. How to file state taxes online for free Example. How to file state taxes online for free Frances Jones, a farmer, was entitled to receive a $10,000 payment on a grain contract in December 2013. How to file state taxes online for free She was told in December that her payment was available. How to file state taxes online for free She requested not to be paid until January 2014. How to file state taxes online for free However, she must still include this payment in her 2013 income because it was made available to her in 2013. How to file state taxes online for free Debts paid by another person or canceled. How to file state taxes online for free   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. How to file state taxes online for free If you receive income in this way, you constructively receive the income when the debt is canceled or paid. How to file state taxes online for free See Cancellation of Debt in chapter 3. How to file state taxes online for free Deferred payment contract. How to file state taxes online for free   If you sell an item under a deferred payment contract that calls for payment in a future year, there is no constructive receipt in the year of sale. How to file state taxes online for free However, if the sales contract states that you have the right to the proceeds of the sale from the buyer at any time after delivery of the item, then you must include the sales price in income in the year of the sale, regardless of when you actually receive payment. How to file state taxes online for free Example. How to file state taxes online for free You are a farmer who uses the cash method and a calendar tax year. How to file state taxes online for free You sell grain in December 2013 under a bona fide arm's-length contract that calls for payment in 2014. How to file state taxes online for free You include the proceeds from the sale in your 2014 gross income since that is the year payment is received. How to file state taxes online for free However, if the contract states that you have the right to the proceeds from the buyer at any time after the grain is delivered, you must include the sales price in your 2013 income, regardless of when you actually receive payment. How to file state taxes online for free Repayment of income. How to file state taxes online for free   If you include an amount in income and in a later year you have to repay all or part of it, then you can usually deduct the repayment in the year repaid. How to file state taxes online for free If the repayment is more than $3,000, a special rule applies. How to file state taxes online for free For details, see Repayments in chapter 11 of Publication 535, Business Expenses. How to file state taxes online for free Expenses Under the cash method, generally you deduct expenses in the tax year you pay them. How to file state taxes online for free This includes business expenses for which you contest liability. How to file state taxes online for free However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained under Uniform Capitalization Rules in chapter 6. How to file state taxes online for free See chapter 4 for information on how to deduct farm business expenses on your income tax return. How to file state taxes online for free Prepayment. How to file state taxes online for free   Generally, you cannot deduct expenses paid in advance. How to file state taxes online for free This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. How to file state taxes online for free Example. How to file state taxes online for free On November 1, 2013, you signed and paid $3,600 for a 3-year (36-month) insurance contract for equipment. How to file state taxes online for free In 2013, you are allowed to deduct only $200 (2/36 x $3,600) of the cost of the policy that is attributable to 2013. How to file state taxes online for free In 2014, you'll be able to deduct $1,200 (12/36 x $3,600); in 2015, you'll be able to deduct $1,200 (12/36 x $3,600); and in 2016 you'll be able to deduct the remaining balance of $1,000. How to file state taxes online for free An exception applies if the expense qualifies for the 12-month rule. How to file state taxes online for free See Publication 538 for more information and examples. How to file state taxes online for free See chapter 4 for special rules for prepaid farm supplies and prepaid livestock feed. How to file state taxes online for free Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. How to file state taxes online for free The purpose of an accrual method of accounting is to correctly match income and expenses. How to file state taxes online for free Certain businesses engaged in farming must use an accrual method of accounting for its farm business and for sales and purchases of inventory items. How to file state taxes online for free See Accrual Method Required and Farm Inventory , later. How to file state taxes online for free Income Generally, you include an amount in income for the tax year in which all events that fix your right to receive the income have occurred, and you can determine the amount with reasonable accuracy. How to file state taxes online for free Under this rule, include an amount in income on the earliest of the following dates. How to file state taxes online for free When you receive payment. How to file state taxes online for free When the income amount is due to you. How to file state taxes online for free When you earn the income. How to file state taxes online for free When title passes. How to file state taxes online for free If you use an accrual method of accounting, complete Part III of Schedule F (Form 1040) to report your income. How to file state taxes online for free Inventory. How to file state taxes online for free   If you keep an inventory, generally you must use an accrual method of accounting to determine your gross income. How to file state taxes online for free An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. How to file state taxes online for free See Publication 538 for more information. How to file state taxes online for free Also see Farm Inventory , later, for more information on items that must be included in inventory by farmers and inventory valuation methods for farmers. How to file state taxes online for free Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both of the following apply. How to file state taxes online for free The all-events test has been met. How to file state taxes online for free This test is met when: All events have occurred that fix the fact that you have a liability, and The amount of the liability can be determined with reasonable accuracy. How to file state taxes online for free Economic performance has occurred. How to file state taxes online for free Economic performance. How to file state taxes online for free   Generally, you cannot deduct or capitalize a business expense until economic performance occurs. How to file state taxes online for free If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. How to file state taxes online for free If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. How to file state taxes online for free Example. How to file state taxes online for free Jane, who is a farmer, uses a calendar tax year and an accrual method of accounting. How to file state taxes online for free She entered into a contract with ABC Farm Consulting in 2012. How to file state taxes online for free The contract stated that Jane pay ABC Farm Consulting $2,000 in December 2012. How to file state taxes online for free It further stipulates that ABC Farm Consulting will develop a plan for integrating her farm with a larger farm operation based in a neighboring state by March 1, 2013. How to file state taxes online for free Jane paid ABC Farm Consulting $2,000 in December 2012. How to file state taxes online for free Integration of operations according to the plan began in May 2013 and they completed the integration in December 2013. How to file state taxes online for free Economic performance for Jane's liability in the contract occurs as the services are provided. How to file state taxes online for free Jane incurs the $2,000 cost in 2013. How to file state taxes online for free An exception to the economic performance rule allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. How to file state taxes online for free For more information, see Economic Performance in Publication 538. How to file state taxes online for free Special rule for related persons. How to file state taxes online for free   Business expenses and interest owed to a related person who uses the cash method of accounting are not deductible until you make the payment and the corresponding amount is includible in the related person's gross income. How to file state taxes online for free Determine the relationship for this rule as of the end of the tax year for which the expense or interest would otherwise be deductible. How to file state taxes online for free For more information, see Internal Revenue Code section 267. How to file state taxes online for free Accrual Method Required Generally, the following businesses, if engaged in farming, must use an accrual method of accounting. How to file state taxes online for free A corporation (other than a family corporation) that had gross receipts of more than $1,000,000 for any tax year beginning after 1975. How to file state taxes online for free A family corporation that had gross receipts of more than $25,000,000 for any tax year beginning after 1985. How to file state taxes online for free A partnership with a corporation as a partner, if that corporation meets the requirements of (1) or (2) above. How to file state taxes online for free A tax shelter. How to file state taxes online for free Note. How to file state taxes online for free Items (1), (2), and (3) above do not apply to an S corporation or a business operating a nursery or sod farm, or the raising or harvesting of trees (other than fruit and nut trees). How to file state taxes online for free Family corporation. How to file state taxes online for free   A family corporation is generally a corporation that meets one of the following ownership requirements. How to file state taxes online for free Members of the same family own at least 50% of the total combined voting power of all classes of stock entitled to vote and at least 50% of the total shares of all other classes of stock of the corporation. How to file state taxes online for free Members of two families have owned, directly or indirectly, since October 4, 1976, at least 65% of the total combined voting power of all classes of voting stock and at least 65% of the total shares of all other classes of the corporation's stock. How to file state taxes online for free Members of three families have owned, directly or indirectly, since October 4, 1976, at least 50% of the total combined voting power of all classes of voting stock and at least 50% of the total shares of all other classes of the corporation's stock. How to file state taxes online for free For more information on family corporations, see Internal Revenue Code section 447. How to file state taxes online for free Tax shelter. How to file state taxes online for free   A tax shelter is a partnership, noncorporate enterprise, or S corporation that meets either of the following tests. How to file state taxes online for free Its principal purpose is the avoidance or evasion of federal income tax. How to file state taxes online for free It is a farming syndicate. How to file state taxes online for free A farming syndicate is an entity that meets either of the following tests. How to file state taxes online for free Interests in the activity have been offered for sale in an offering required to be registered with a federal or state agency with the authority to regulate the offering of securities for sale. How to file state taxes online for free More than 35% of the losses during the tax year are allocable to limited partners or limited entrepreneurs. How to file state taxes online for free   A “limited partner” is one whose personal liability for partnership debts is limited to the money or other property the partner contributed or is required to contribute to the partnership. How to file state taxes online for free   A “limited entrepreneur” is one who has an interest in an enterprise other than as a limited partner and does not actively participate in the management of the enterprise. How to file state taxes online for free Farm Inventory If you are required to keep an inventory, you should keep a complete record of your inventory as part of your farm records. How to file state taxes online for free This record should show the actual count or measurement of the inventory. How to file state taxes online for free It should also show all factors that enter into its valuation, including quality and weight, if applicable. How to file state taxes online for free Hatchery business. How to file state taxes online for free   If you are in the hatchery business, and use an accrual method of accounting, you must include in inventory eggs in the process of incubation. How to file state taxes online for free Products held for sale. How to file state taxes online for free   All harvested and purchased farm products held for sale or for feed or seed, such as grain, hay, silage, concentrates, cotton, tobacco, etc. How to file state taxes online for free , must be included in inventory. How to file state taxes online for free Supplies. How to file state taxes online for free   Supplies acquired for sale or that become a physical part of items held for sale must be included in inventory. How to file state taxes online for free Deduct the cost of supplies in the year used or consumed in operations. How to file state taxes online for free Do not include incidental supplies in inventory as these are deductible in the year of purchase. How to file state taxes online for free Livestock. How to file state taxes online for free   Livestock held primarily for sale must be included in inventory. How to file state taxes online for free Livestock held for draft, breeding, or dairy purposes can either be depreciated or included in inventory. How to file state taxes online for free See also Unit-livestock-price method , later. How to file state taxes online for free If you are in the business of breeding and raising chinchillas, mink, foxes, or other fur-bearing animals, these animals are livestock for inventory purposes. How to file state taxes online for free Growing crops. How to file state taxes online for free   Generally, growing crops are not required to be included in inventory. How to file state taxes online for free However, if the crop has a preproductive period of more than 2 years, you may have to capitalize (or include in inventory) costs associated with the crop. How to file state taxes online for free See Uniform capitalization rules below. How to file state taxes online for free Also see Uniform Capitalization Rules in  chapter 6. How to file state taxes online for free Items to include in inventory. How to file state taxes online for free   Your inventory should include all items held for sale, or for use as feed, seed, etc. How to file state taxes online for free , whether raised or purchased, that are unsold at the end of the year. How to file state taxes online for free Uniform capitalization rules. How to file state taxes online for free   The following applies if you are required to use an accrual method of accounting. How to file state taxes online for free The uniform capitalization rules apply to all costs of raising a plant, even if the preproductive period of raising a plant is 2 years or less. How to file state taxes online for free The costs of animals are subject to the uniform capitalization rules. How to file state taxes online for free Inventory valuation methods. How to file state taxes online for free   The following methods, described below, are those generally available for valuing inventory. How to file state taxes online for free The method you use must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. How to file state taxes online for free Cost. How to file state taxes online for free Lower of cost or market. How to file state taxes online for free Farm-price method. How to file state taxes online for free Unit-livestock-price method. How to file state taxes online for free Cost and lower of cost or market methods. How to file state taxes online for free   See Publication 538 for information on these valuation methods. How to file state taxes online for free If you value your livestock inventory at cost or the lower of cost or market, you do not need IRS approval to change to the unit-livestock-price method. How to file state taxes online for free However, if you value your livestock inventory using the farm-price method, then you must obtain permission from the IRS to change to the unit-livestock-price method. How to file state taxes online for free Farm-price method. How to file state taxes online for free   Under this method, each item, whether raised or purchased, is valued at its market price less the direct cost of disposition. How to file state taxes online for free Market price is the current price at the nearest market in the quantities you usually sell. How to file state taxes online for free Cost of disposition includes broker's commissions, freight, hauling to market, and other marketing costs. How to file state taxes online for free If you use this method, you must use it for your entire inventory, except that livestock can be inventoried under the unit-livestock-price method. How to file state taxes online for free Unit-livestock-price method. How to file state taxes online for free   This method recognizes the difficulty of establishing the exact costs of producing and raising each animal. How to file state taxes online for free You group or classify livestock according to type and age and use a standard unit price for each animal within a class or group. How to file state taxes online for free The unit price you assign should reasonably approximate the normal costs incurred in producing the animals in such classes. How to file state taxes online for free Unit prices and classifications are subject to approval by the IRS on examination of your return. How to file state taxes online for free You must annually reevaluate your unit livestock prices and adjust the prices upward or downward to reflect increases or decreases in the costs of raising livestock. How to file state taxes online for free IRS approval is not required for these adjustments. How to file state taxes online for free Any other changes in unit prices or classifications do require IRS approval. How to file state taxes online for free   If you use this method, include all raised livestock in inventory, regardless of whether they are held for sale or for draft, breeding, sport, or dairy purposes. How to file state taxes online for free This method accounts only for the increase in cost of raising an animal to maturity. How to file state taxes online for free It does not provide for any decrease in the animal's market value after it reaches maturity. How to file state taxes online for free Also, if you raise cattle, you are not required to inventory hay you grow to feed your herd. How to file state taxes online for free   Do not include sold or lost animals in the year-end inventory. How to file state taxes online for free If your records do not show which animals were sold or lost, treat the first animals acquired as sold or lost. How to file state taxes online for free The animals on hand at the end of the year are considered those most recently acquired. How to file state taxes online for free   You must include in inventory all livestock purchased primarily for sale. How to file state taxes online for free You can choose either to include in inventory or depreciate livestock purchased for draft, breeding, sport or dairy purposes. How to file state taxes online for free However, you must be consistent from year to year, regardless of the method you have chosen. How to file state taxes online for free You cannot change your method without obtaining approval from the IRS. How to file state taxes online for free   You must include in inventory animals purchased after maturity or capitalize them at their purchase price. How to file state taxes online for free If the animals are not mature at purchase, increase the cost at the end of each tax year according to the established unit price. How to file state taxes online for free However, in the year of purchase, do not increase the cost of any animal purchased during the last 6 months of the year. How to file state taxes online for free This “no increase” rule does not apply to tax shelters which must make an adjustment for any animal purchased during the year. How to file state taxes online for free It also does not apply to taxpayers that must make an adjustment to reasonably reflect the particular period in the year in which animals are purchased, if necessary to avoid significant distortions in income. How to file state taxes online for free Uniform capitalization rules. How to file state taxes online for free   A farmer can determine costs required to be allocated under the uniform capitalization rules by using the farm-price or unit-livestock-price inventory method. How to file state taxes online for free This applies to any plant or animal, even if the farmer does not hold or treat the plant or animal as inventory property. How to file state taxes online for free Cash Versus Accrual Method The following examples compare the cash and accrual methods of accounting. How to file state taxes online for free Example 1. How to file state taxes online for free You are a farmer who uses an accrual method of accounting. How to file state taxes online for free You keep your books on the calendar year basis. How to file state taxes online for free You sell grain in December 2013 but you are not paid until January 2014. How to file state taxes online for free Because the accrual method was used and 2013 was the tax year in which the grain was sold, you must both include the sales proceeds and deduct the costs incurred in producing the grain on your 2013 tax return. How to file state taxes online for free Example 2. How to file state taxes online for free Assume the same facts as in Example 1 except that you use the cash method and there was no constructive receipt of the sales proceeds in 2013. How to file state taxes online for free Under this method, you include the sales proceeds in income for 2014, the year you receive payment. How to file state taxes online for free Deduct the costs of producing the grain in the year you pay for them. How to file state taxes online for free Special Methods of Accounting There are special methods of accounting for certain items of income and expense. How to file state taxes online for free Crop method. How to file state taxes online for free   If you do not harvest and dispose of your crop in the same tax year that you plant it, you can, with IRS approval, use the crop method of accounting. How to file state taxes online for free You cannot use the crop method for any tax return, including your first tax return, unless you receive approval from the IRS. How to file state taxes online for free Under this method, you deduct the entire cost of producing the crop, including the expense of seed or young plants, in the year you realize income from the crop. How to file state taxes online for free    See chapter 4 for details on deducting the costs of operating a farm. How to file state taxes online for free Also see Regulations section 1. How to file state taxes online for free 162-12. How to file state taxes online for free Other special methods. How to file state taxes online for free   Other special methods of accounting apply to the following items. How to file state taxes online for free Amortization, see chapter 7. How to file state taxes online for free Casualties, see chapter 11. How to file state taxes online for free Condemnations, see chapter 11. How to file state taxes online for free Depletion, see chapter 7. How to file state taxes online for free Depreciation, see chapter 7. How to file state taxes online for free Farm business expenses, see chapter 4. How to file state taxes online for free Farm income, see chapter 3. How to file state taxes online for free Installment sales, see chapter 10. How to file state taxes online for free Soil and water conservation expenses, see chapter 5. How to file state taxes online for free Thefts, see chapter 11. How to file state taxes online for free Combination Method Generally, you can use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. How to file state taxes online for free However, the following restrictions apply. How to file state taxes online for free If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. How to file state taxes online for free If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. How to file state taxes online for free Changes in Methods of Accounting A change in your method of accounting includes a change in: Your overall method, such as from the cash method to an accrual method, and Your treatment of any material item, such as a change in your method of valuing inventory (for example, a change from the farm-price method to the unit-livestock-price method, discussed earlier). How to file state taxes online for free Generally, once you have set up your accounting method, you must receive approval from the IRS before you can change to another method of accounting. How to file state taxes online for free You may also have to pay a fee. How to file state taxes online for free To obtain approval, you must generally file Form 3115. How to file state taxes online for free There are instances when you can obtain automatic consent to change certain methods of accounting. How to file state taxes online for free See the List of Automatic Accounting Method Changes located in the Instructions for Form 3115. How to file state taxes online for free For more information on changes in methods of accounting, see Form 3115 and the Instructions for Form 3115. How to file state taxes online for free Also see Publication 538. How to file state taxes online for free Prev  Up  Next   Home   More Online Publications