File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Hr Block 1040x

Federal Tax Form 1040ez2011 1040 Tax FormsIrs 2011 Tax Form1040nr Ez OnlineGo 2007 TaxesFree 1040ez Form1040x 2010 Form1040ez Tax FormsHow To File A Tax Extension For FreeTax Act 2012 FreeFile Amended Tax Return 2011Free Turbo Tax FilingTurbo Tax Free FileWhere To File 1040x 20102010 Turbotax2011 1040 Form DownloadFile My 2012 Taxes Online FreeAmended Tax Return 1098 TLate TaxIrs Free FileForm1040ezFile State Taxes2010 1040ez Tax FormHow Do You File 2011 Taxes In 20132011 Irs Forms And Publications1040ez Tax Form1040 Ez Tax Return Form1040ez Tax Filing1040nr Online FreeMilitary Pay TaxesIrs Free Tax Filing2011 Tax 1040 Form1040ez 2011 Pdf1040ez Free FileTurbo Tax 2011Filing An Amended Tax Return 2012How Do I File An Amendment To My Tax ReturnFree Website To File State TaxesI Need To Efile My 2011 TaxesOnline State Tax Filing

Hr Block 1040x

Hr block 1040x Publication 555 - Main Content Table of Contents Domicile Community or Separate Property and Income Identifying Income, Deductions, and CreditsIncome Exemptions Deductions Credits, Taxes, and Payments Community Property Laws DisregardedRequesting relief. Hr block 1040x Equitable relief. Hr block 1040x Earned income. Hr block 1040x Trade or business income. Hr block 1040x Partnership income or loss. Hr block 1040x Separate property income. Hr block 1040x Social security benefits. Hr block 1040x Other income. Hr block 1040x End of the Community Preparing a Federal Income Tax ReturnJoint Return Versus Separate Returns Separate Return Preparation How To Get Tax HelpLow Income Taxpayer Clinics Domicile Whether you have community property and community income depends on the state where you are domiciled. Hr block 1040x If you and your spouse (or your registered domestic partner) have different domiciles, check the laws of each to see whether you have community property or community income. Hr block 1040x You have only one domicile even if you have more than one home. Hr block 1040x Your domicile is a permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Hr block 1040x The question of your domicile is mainly a matter of your intention as indicated by your actions. Hr block 1040x You must be able to show that you intend a given place or state to be your permanent home. Hr block 1040x If you move into or out of a community property state during the year, you may or may not have community income. Hr block 1040x Factors considered in determining domicile include: Where you pay state income tax, Where you vote, Location of property you own, Your citizenship, Length of residence, and Business and social ties to the community. Hr block 1040x Amount of time spent. Hr block 1040x    The amount of time spent in one place does not always explain the difference between home and domicile. Hr block 1040x A temporary home or residence may continue for months or years while a domicile may be established the first moment you occupy the property. Hr block 1040x Your intent is the determining factor in proving where you have your domicile. Hr block 1040x    Note. Hr block 1040x When this publication refers to where you live, it means your domicile. Hr block 1040x Community or Separate Property and Income If you file a federal tax return separately from your spouse, you must report half of all community income and all of your separate income. Hr block 1040x Likewise, a registered domestic partner must report half of all community income and all of his or her separate income on his or her federal tax return. Hr block 1040x You each must attach your Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. Hr block 1040x Generally, the laws of the state in which you are domiciled govern whether you have community property and community income or separate property and separate income for federal tax purposes. Hr block 1040x The following is a summary of the general rules. Hr block 1040x These rules are also shown in Table 1. Hr block 1040x Community property. Hr block 1040x    Generally, community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. Hr block 1040x That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. Hr block 1040x That cannot be identified as separate property. Hr block 1040x Community income. Hr block 1040x    Generally, community income is income from: Community property. Hr block 1040x Salaries, wages, and other pay received for the services performed by you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. Hr block 1040x Real estate that is treated as community property under the laws of the state where the property is located. Hr block 1040x Note Separate property. Hr block 1040x    Generally, separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). Hr block 1040x Money earned while domiciled in a noncommunity property state. Hr block 1040x Property that you or your spouse (or your registered domestic partner) received separately as a gift or inheritance during your marriage (or registered domestic partnership). Hr block 1040x Property that you or your spouse (or your registered domestic partner) bought with separate funds, or acquired in exchange for separate property, during your marriage (or registered domestic partnership). Hr block 1040x Property that you and your spouse (or your registered domestic partner) converted from community property to separate property through an agreement valid under state law. Hr block 1040x The part of property bought with separate funds, if part was bought with community funds and part with separate funds. Hr block 1040x Separate income. Hr block 1040x    Generally, income from separate property is the separate income of the spouse (or the registered domestic partner) who owns the property. Hr block 1040x    In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. Hr block 1040x Table 1. Hr block 1040x General Rules — Property and Income: Community or Separate? Community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. Hr block 1040x (Includes the part of property bought with community property funds if part was bought with community funds and part with separate funds. Hr block 1040x ) That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. Hr block 1040x That cannot be identified as separate property. Hr block 1040x Separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). Hr block 1040x Money earned while domiciled in a noncommunity property state. Hr block 1040x Property either of you received as a gift or inherited separately during your marriage (or registered domestic partnership). Hr block 1040x Property bought with separate funds, or exchanged for separate property, during your marriage (or registered domestic partnership). Hr block 1040x Property that you and your spouse (or your registered domestic partner) agreed to convert from community to separate property through an agreement valid under state law. Hr block 1040x The part of property bought with separate funds, if part was bought with community funds and part with separate funds. Hr block 1040x Community income 1,2,3 is income from: Community property. Hr block 1040x Salaries, wages, or pay for services of you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. Hr block 1040x Real estate that is treated as community property under the laws of the state where the property is located. Hr block 1040x Separate income 1,2 is income from: Separate property which belongs to the spouse (or registered domestic partner) who owns the property. Hr block 1040x 1In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. Hr block 1040x 2Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year , later. Hr block 1040x In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. Hr block 1040x In other states, it is separate income. Hr block 1040x 3Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. Hr block 1040x See Community Property Laws Disregarded , later. Hr block 1040x Identifying Income, Deductions, and Credits If you file separate returns, you and your spouse (or your registered domestic partner) each must attach your Form 8958 to your Form 1040 to identify your community and separate income, deductions, credits, and other return amounts according to the laws of your state. Hr block 1040x Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. Hr block 1040x See Community Property Laws Disregarded, later. Hr block 1040x Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year, later. Hr block 1040x In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. Hr block 1040x In other states, it is separate income. Hr block 1040x Income The following is a discussion of the general effect of community property laws on the federal income tax treatment of certain items of income. Hr block 1040x Wages, earnings, and profits. Hr block 1040x    A spouse's (or your registered domestic partner's) wages, earnings, and net profits from a sole proprietorship are community income and must be evenly split. Hr block 1040x Dividends, interest, and rents. Hr block 1040x    Dividends, interest, and rents from community property are community income and must be evenly split. Hr block 1040x Dividends, interest, and rents from separate property are characterized in accordance with the discussion under Income from separate property , later. Hr block 1040x Example. Hr block 1040x If you and your spouse (or your registered domestic partner) buy a bond that is considered community property under your state laws, half the bond interest belongs to you and half belongs to your spouse. Hr block 1040x You each must show the bond interest and the split of that interest on your Form 8958, and report half the interest on your Form 1040. Hr block 1040x Attach your Form 8958 to your Form 1040. Hr block 1040x Alimony received. Hr block 1040x    Alimony or separate maintenance payments made prior to divorce are taxable to the payee spouse only to the extent they exceed 50% (his or her share) of the reportable community income. Hr block 1040x This is so because the payee spouse is already required to report half of the community income. Hr block 1040x See also Alimony paid , later. Hr block 1040x Gains and losses. Hr block 1040x    Gains and losses are classified as separate or community depending on how the property is held. Hr block 1040x For example, a loss on separate property, such as stock held separately, is a separate loss. Hr block 1040x On the other hand, a loss on community property, such as a casualty loss to your home held as community property, is a community loss. Hr block 1040x See Publication 544, Sales and Other Dispositions of Assets, for information on gains and losses. Hr block 1040x See Publication 547, Casualties, Disasters, and Thefts, for information on losses due to a casualty or theft. Hr block 1040x Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). Hr block 1040x    There are several kinds of individual retirement arrangements (IRAs). Hr block 1040x They are traditional IRAs (including SEP-IRAs), SIMPLE IRAs, and Roth IRAs. Hr block 1040x IRAs and ESAs by law are deemed to be separate property. Hr block 1040x Therefore, taxable IRA and ESA distributions are separate property, even if the funds in the account would otherwise be community property. Hr block 1040x These distributions are wholly taxable to the spouse (or registered domestic partner) whose name is on the account. Hr block 1040x That spouse (or registered domestic partner) is also liable for any penalties and additional taxes on the distributions. Hr block 1040x Pensions. Hr block 1040x    Generally, distributions from pensions will be characterized as community or separate income depending on the respective periods of participation in the pension while married (or during the registered domestic partnership) and domiciled in a community property state or in a noncommunity property state during the total period of participation in the pension. Hr block 1040x See the example under Civil service retirement , later. Hr block 1040x These rules may vary between states. Hr block 1040x Check your state law. Hr block 1040x Lump-sum distributions. Hr block 1040x    If you were born before January 2, 1936, and receive a lump-sum distribution from a qualified retirement plan, you may be able to choose an optional method of figuring the tax on the distribution. Hr block 1040x For the 10-year tax option, you must disregard community property laws. Hr block 1040x For more information, see Publication 575, Pension and Annuity Income, and Form 4972, Tax on Lump-Sum Distributions. Hr block 1040x Civil service retirement. Hr block 1040x    For income tax purposes, community property laws apply to annuities payable under the Civil Service Retirement Act (CSRS) or Federal Employee Retirement System (FERS). Hr block 1040x   Whether a civil service annuity is separate or community income depends on your marital status (or your status as a registered domestic partner) and domicile of the employee when the services were performed for which the annuity is paid. Hr block 1040x Even if you now live in a noncommunity property state and you receive a civil service annuity, it may be community income if it is based on services you performed while married (or during the registered domestic partnership) and domiciled in a community property state. Hr block 1040x   If a civil service annuity is a mixture of community income and separate income, it must be divided between the two kinds of income. Hr block 1040x The division is based on the employee's domicile and marital status (or registered domestic partnership) in community and noncommunity property states during his or her periods of service. Hr block 1040x Example. Hr block 1040x Henry Wright retired this year after 30 years of civil service. Hr block 1040x He and his wife were domiciled in a community property state during the past 15 years. Hr block 1040x Since half the service was performed while the Wrights were married and domiciled in a community property state, half the civil service retirement pay is considered to be community income. Hr block 1040x If Mr. Hr block 1040x Wright receives $1,000 a month in retirement pay, $500 is considered community income—half ($250) is his income and half ($250) is his wife's. Hr block 1040x Military retirement pay. Hr block 1040x    State community property laws apply to military retirement pay. Hr block 1040x Generally, the pay is either separate or community income based on the marital status and domicile of the couple while the member of the Armed Forces was in active military service. Hr block 1040x For example, military retirement pay for services performed during marriage and domicile in a community property state is community income. Hr block 1040x   Active military pay earned while married and domiciled in a community property state is also community income. Hr block 1040x This income is considered to be received half by the member of the Armed Forces and half by the spouse. Hr block 1040x Partnership income. Hr block 1040x    If an interest is held in a partnership, and income from the partnership is attributable to the efforts of either spouse (or registered domestic partner), the partnership income is community property. Hr block 1040x If it is merely a passive investment in a separate property partnership, the partnership income will be characterized in accordance with the discussion under Income from separate property , later. Hr block 1040x Tax-exempt income. Hr block 1040x    For spouses, community income exempt from federal tax generally keeps its exempt status for both spouses. Hr block 1040x For example, under certain circumstances, income earned outside the United States is tax exempt. Hr block 1040x If you earned income and met the conditions that made it exempt, the income is also exempt for your spouse even though he or she may not have met the conditions. Hr block 1040x Registered domestic partners should consult the particular exclusion provision to see if the exempt status applies to both. Hr block 1040x Income from separate property. Hr block 1040x    In some states, income from separate property is separate income. Hr block 1040x These states include Arizona, California, Nevada, New Mexico, and Washington. Hr block 1040x Other states characterize income from separate property as community income. Hr block 1040x These states include Idaho, Louisiana, Texas, and Wisconsin. Hr block 1040x Exemptions When you file separate returns, you must claim your own exemption amount for that year. Hr block 1040x (See your tax return instructions. Hr block 1040x ) You cannot divide the amount allowed as an exemption for a dependent between you and your spouse (or your registered domestic partner). Hr block 1040x When community funds provide support for more than one person, each of whom otherwise qualifies as a dependent, you and your spouse (or your registered domestic partner) may divide the number of dependency exemptions as explained in the following example. Hr block 1040x Example. Hr block 1040x Ron and Diane White have three dependent children and live in Nevada. Hr block 1040x If Ron and Diane file separately, only Ron can claim his own exemption, and only Diane can claim her own exemption. Hr block 1040x Ron and Diane can agree that one of them will claim the exemption for one, two, or all of their children and the other will claim any remaining exemptions. Hr block 1040x They cannot each claim half of the total exemption amount for their three children. Hr block 1040x Deductions If you file separate returns, your deductions generally depend on whether the expenses involve community or separate income. Hr block 1040x Business and investment expenses. Hr block 1040x    If you file separate returns, expenses incurred to earn or produce community business or investment income are generally divided equally between you and your spouse (or your registered domestic partner). Hr block 1040x Each of you is entitled to deduct one-half of the expenses on your separate returns. Hr block 1040x Expenses incurred by a spouse (or registered domestic partner) to produce separate business or investment income is deductible by the spouse (or the registered domestic partner) who earns the corresponding separate business or investment income. Hr block 1040x    Other limits may also apply to business and investment expenses. Hr block 1040x For more information, see Publication 535, Business Expenses, and Publication 550, Investment Income and Expenses. Hr block 1040x Alimony paid. Hr block 1040x    Payments that may otherwise qualify as alimony are not deductible by the payer if they are the recipient spouse's part of community income. Hr block 1040x They are deductible as alimony only to the extent they are more than that spouse's part of community income. Hr block 1040x Example. Hr block 1040x You live in a community property state. Hr block 1040x You are separated but the special rules explained later under Spouses living apart all year do not apply. Hr block 1040x Under a written agreement, you pay your spouse $12,000 of your $20,000 total yearly community income. Hr block 1040x Your spouse receives no other community income. Hr block 1040x Under your state law, earnings of a spouse living separately and apart from the other spouse continue as community property. Hr block 1040x On your separate returns, each of you must report $10,000 of the total community income. Hr block 1040x In addition, your spouse must report $2,000 as alimony received. Hr block 1040x You can deduct $2,000 as alimony paid. Hr block 1040x IRA deduction. Hr block 1040x    Deductions for IRA contributions cannot be split between spouses (or registered domestic partners). Hr block 1040x The deduction for each spouse (or each registered domestic partner) is figured separately and without regard to community property laws. Hr block 1040x Personal expenses. Hr block 1040x   Expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. Hr block 1040x If these expenses are paid from community funds, divide the deduction equally between you and your spouse. Hr block 1040x Credits, Taxes, and Payments The following is a discussion of the general effect of community property laws on the treatment of certain credits, taxes, and payments on your separate return. Hr block 1040x Child tax credit. Hr block 1040x    You may be entitled to a child tax credit for each of your qualifying children. Hr block 1040x You must provide the name and identification number (usually the social security number) of each qualifying child on your return. Hr block 1040x See your tax return instructions for the maximum amount of the credit you can claim for each qualifying child. Hr block 1040x Limit on credit. Hr block 1040x    The credit is limited if your modified adjusted gross income (modified AGI) is above a certain amount. Hr block 1040x The amount at which the limitation (phaseout) begins depends on your filing status. Hr block 1040x Generally, your credit is limited to your tax liability unless you have three or more qualifying children. Hr block 1040x See your tax return instructions for more information. Hr block 1040x Self-employment tax. Hr block 1040x    For the effect of community property laws on the income tax treatment of income from a sole proprietorship and partnerships, see Wages, earnings, and profits and Partnership income , earlier. Hr block 1040x The following rules only apply to persons married for federal tax purposes. Hr block 1040x Registered domestic partners report community income for self-employment tax purposes the same way they do for income tax purposes. Hr block 1040x Sole proprietorship. Hr block 1040x    With regard to net income from a trade or business (other than a partnership) that is community income, self-employment tax is imposed on the spouse carrying on the trade or business. Hr block 1040x Partnerships. Hr block 1040x    All of the distributive share of a married partner's income or loss from a partnership trade or business is attributable to the partner for computing any self-employment tax, even if a portion of the partner's distributive share of income or loss is community income or loss that is otherwise attributable to the partner's spouse for income tax purposes. Hr block 1040x If both spouses are partners, any self-employment tax is allocated based on their distributive shares. Hr block 1040x Federal income tax withheld. Hr block 1040x    Report the credit for federal income tax withheld on community wages in the same manner as your wages. Hr block 1040x If you and your spouse file separate returns on which each of you reports half the community wages, each of you is entitled to credit for half the income tax withheld on those wages. Hr block 1040x Likewise, each registered domestic partner is entitled to credit for half the income tax withheld on those wages. Hr block 1040x Estimated tax payments. Hr block 1040x    In determining whether you must pay estimated tax, apply the estimated tax rules to your estimated income. Hr block 1040x These rules are explained in Publication 505. Hr block 1040x   If you think you may owe estimated tax and want to pay the tax separately (registered domestic partners must pay the tax separately), determine whether you must pay it by taking into account: Half the community income and deductions, All of your separate income and deductions, and Your own exemption and any exemptions for dependents that you may claim. Hr block 1040x   Whether you and your spouse pay estimated tax jointly or separately will not affect your choice of filing joint or separate income tax returns. Hr block 1040x   If you and your spouse paid estimated tax jointly but file separate income tax returns, either of you can claim all of the estimated tax paid, or you may divide it between you in any way that you agree upon. Hr block 1040x   If you cannot agree on how to divide it, the estimated tax you can claim equals the total estimated tax paid times the tax shown on your separate return, divided by the total of the tax shown on your return and your spouse's return. Hr block 1040x   If you paid your estimated taxes separately, you get credit for only the estimated taxes you paid. Hr block 1040x Earned income credit. Hr block 1040x    You may be entitled to an earned income credit (EIC). Hr block 1040x You cannot claim this credit if your filing status is married filing separately. Hr block 1040x   If you are married, but qualify to file as head of household under rules for married taxpayers living apart (see Publication 501, Exemptions, Standard Deduction, and Filing Information), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under community property laws. Hr block 1040x That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Hr block 1040x Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. Hr block 1040x The same rule applies to registered domestic partners. Hr block 1040x    This rule does not apply when determining your adjusted gross income (AGI) for the EIC. Hr block 1040x Your AGI includes that part of both your and your spouse's (or your registered domestic partner's) wages that you are required to include in gross income shown on your tax return. Hr block 1040x   For more information about the EIC, see Publication 596, Earned Income Credit (EIC). Hr block 1040x Overpayments. Hr block 1040x    The amount of an overpayment on a joint return is allocated under the community property laws of the state in which you are domiciled. Hr block 1040x If, under the laws of your state, community property is subject to premarital or other separate debts of either spouse, the full joint overpayment may be used to offset the obligation. Hr block 1040x If, under the laws of your state, community property is not subject to premarital or other separate debts of either spouse, only the portion of the joint overpayment allocated to the spouse liable for the obligation can be used to offset that liability. Hr block 1040x The portion allocated to the other spouse can be refunded. Hr block 1040x Community Property Laws Disregarded The following discussions are situations where special rules apply to community property and community income for spouses. Hr block 1040x These rules do not apply to registered domestic partners. Hr block 1040x Certain community income not treated as community income by one spouse. Hr block 1040x    Community property laws may not apply to an item of community income that you received but did not treat as community income. Hr block 1040x You are responsible for reporting all of that income item if: You treat the item as if only you are entitled to the income, and You do not notify your spouse of the nature and amount of the income by the due date for filing the return (including extensions). Hr block 1040x Relief from liability arising from community property law. Hr block 1040x    You are not responsible for the tax relating to an item of community income if all the following conditions are met. Hr block 1040x You did not file a joint return for the tax year. Hr block 1040x You did not include an item of community income in gross income. Hr block 1040x The item of community income you did not include is one of the following: Wages, salaries, and other compensation your spouse (or former spouse) received for services he or she performed as an employee. Hr block 1040x Income your spouse (or former spouse) derived from a trade or business he or she operated as a sole proprietor. Hr block 1040x Your spouse's (or former spouse's) distributive share of partnership income. Hr block 1040x Income from your spouse's (or former spouse's) separate property (other than income described in (a), (b), or (c)). Hr block 1040x Use the appropriate community property law to determine what is separate property. Hr block 1040x Any other income that belongs to your spouse (or former spouse) under community property law. Hr block 1040x You establish that you did not know of, and had no reason to know of, that community income. Hr block 1040x Under all facts and circumstances, it would not be fair to include the item of community income in your gross income. Hr block 1040x Requesting relief. Hr block 1040x    For information on how and when to request relief from liabilities arising from community property laws, see Community Property Laws in Publication 971, Innocent Spouse Relief. Hr block 1040x Equitable relief. Hr block 1040x    If you do not qualify for the relief discussed earlier under Relief from liability arising from community property law and are now liable for an underpaid or understated tax you believe should be paid only by your spouse (or former spouse), you may request equitable relief. Hr block 1040x To request equitable relief, you must file Form 8857, Request for Innocent Spouse Relief. Hr block 1040x Also see Publication 971. Hr block 1040x Spousal agreements. Hr block 1040x    In some states a married couple may enter into an agreement that affects the status of property or income as community or separate property. Hr block 1040x Check your state law to determine how it affects you. Hr block 1040x Nonresident alien spouse. Hr block 1040x    If you are a U. Hr block 1040x S. Hr block 1040x citizen or resident alien and you choose to treat your nonresident alien spouse as a U. Hr block 1040x S. Hr block 1040x resident for tax purposes and you are domiciled in a community property state or country, use the community property rules. Hr block 1040x You must file a joint return for the year you make the choice. Hr block 1040x You can file separate returns in later years. Hr block 1040x For details on making this choice, see Publication 519, U. Hr block 1040x S. Hr block 1040x Tax Guide for Aliens. Hr block 1040x   If you are a U. Hr block 1040x S. Hr block 1040x citizen or resident alien and do not choose to treat your nonresident alien spouse as a U. Hr block 1040x S. Hr block 1040x resident for tax purposes, treat your community income as explained next under Spouses living apart all year. Hr block 1040x However, you do not have to meet the four conditions discussed there. Hr block 1040x Spouses living apart all year. Hr block 1040x    If you are married at any time during the calendar year, special rules apply for reporting certain community income. Hr block 1040x You must meet all the following conditions for these special rules to apply. Hr block 1040x You and your spouse lived apart all year. Hr block 1040x You and your spouse did not file a joint return for a tax year beginning or ending in the calendar year. Hr block 1040x You and/or your spouse had earned income for the calendar year that is community income. Hr block 1040x You and your spouse have not transferred, directly or indirectly, any of the earned income in condition (3) above between yourselves before the end of the year. Hr block 1040x Do not take into account transfers satisfying child support obligations or transfers of very small amounts or value. Hr block 1040x If all these conditions are met, you and your spouse must report your community income as discussed next. Hr block 1040x See also Certain community income not treated as community income by one spouse , earlier. Hr block 1040x Earned income. Hr block 1040x    Treat earned income that is not trade or business or partnership income as the income of the spouse who performed the services to earn the income. Hr block 1040x Earned income is wages, salaries, professional fees, and other pay for personal services. Hr block 1040x   Earned income does not include amounts paid by a corporation that are a distribution of earnings and profits rather than a reasonable allowance for personal services rendered. Hr block 1040x Trade or business income. Hr block 1040x    Treat income and related deductions from a trade or business that is not a partnership as those of the spouse carrying on the trade or business. Hr block 1040x Partnership income or loss. Hr block 1040x    Treat income or loss from a trade or business carried on by a partnership as the income or loss of the spouse who is the partner. Hr block 1040x Separate property income. Hr block 1040x    Treat income from the separate property of one spouse as the income of that spouse. Hr block 1040x Social security benefits. Hr block 1040x    Treat social security and equivalent railroad retirement benefits as the income of the spouse who receives the benefits. Hr block 1040x Other income. Hr block 1040x    Treat all other community income, such as dividends, interest, rents, royalties, or gains, as provided under your state's community property law. Hr block 1040x Example. Hr block 1040x George and Sharon were married throughout the year but did not live together at any time during the year. Hr block 1040x Both domiciles were in a community property state. Hr block 1040x They did not file a joint return or transfer any of their earned income between themselves. Hr block 1040x During the year their incomes were as follows:   George Sharon Wages $20,000 $22,000 Consulting business 5,000   Partnership   10,000 Dividends from separate property 1,000 2,000 Interest from community property 500 500 Total $26,500 $34,500 Under the community property law of their state, all the income is considered community income. Hr block 1040x (Some states treat income from separate property as separate income—check your state law. Hr block 1040x ) Sharon did not take part in George's consulting business. Hr block 1040x Ordinarily, on their separate returns they would each report $30,500, half the total community income of $61,000 ($26,500 + $34,500). Hr block 1040x But because they meet the four conditions listed earlier under Spouses living apart all year , they must disregard community property law in reporting all their income (except the interest income) from community property. Hr block 1040x They each report on their returns only their own earnings and other income, and their share of the interest income from community property. Hr block 1040x George reports $26,500 and Sharon reports $34,500. Hr block 1040x Other separated spouses. Hr block 1040x    If you and your spouse are separated but do not meet the four conditions discussed earlier under Spouses living apart all year , you must treat your income according to the laws of your state. Hr block 1040x In some states, income earned after separation but before a decree of divorce continues to be community income. Hr block 1040x In other states, it is separate income. Hr block 1040x End of the Community The marital community may end in several ways. Hr block 1040x When the marital community ends, the community assets (money and property) are divided between the spouses. Hr block 1040x Similarly, a registered domestic partnership may end in several ways and the community assets must be divided between the registered domestic partners. Hr block 1040x Death of spouse. Hr block 1040x    If you own community property and your spouse dies, the total fair market value (FMV) of the community property, including the part that belongs to you, generally becomes the basis of the entire property. Hr block 1040x For this rule to apply, at least half the value of the community property interest must be includible in your spouse's gross estate, whether or not the estate must file a return (this rule does not apply to registered domestic partners). Hr block 1040x Example. Hr block 1040x Bob and Ann owned community property that had a basis of $80,000. Hr block 1040x When Bob died, his and Ann's community property had an FMV of $100,000. Hr block 1040x One-half of the FMV of their community interest was includible in Bob's estate. Hr block 1040x The basis of Ann's half of the property is $50,000 after Bob died (half of the $100,000 FMV). Hr block 1040x The basis of the other half to Bob's heirs is also $50,000. Hr block 1040x   For more information about the basis of assets, see Publication 551, Basis of Assets. Hr block 1040x    The above basis rule does not apply if your spouse died in 2010 and the spouse's executor elected out of the estate tax, in which case section 1022 will apply. Hr block 1040x See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for additional information. Hr block 1040x Divorce or separation. Hr block 1040x    If spouses divorce or separate, the (equal or unequal) division of community property in connection with the divorce or property settlement does not result in a gain or loss. Hr block 1040x For registered domestic partners, an unequal division of community property in a property settlement may result in a gain or loss. Hr block 1040x For information on the tax consequences of the division of property under a property settlement or divorce decree, see Publication 504. Hr block 1040x   Each spouse (or each registered domestic partner) is taxed on half the community income for the part of the year before the community ends. Hr block 1040x However, see Spouses living apart all year , earlier. Hr block 1040x Any income received after the community ends is separate income. Hr block 1040x This separate income is taxable only to the spouse (or the registered domestic partner) to whom it belongs. Hr block 1040x   An absolute decree of divorce or annulment ends the marital community in all community property states. Hr block 1040x A decree of annulment, even though it holds that no valid marriage ever existed, usually does not nullify community property rights arising during the “marriage. Hr block 1040x ” However, you should check your state law for exceptions. Hr block 1040x   A decree of legal separation or of separate maintenance may or may not end the marital community. Hr block 1040x The court issuing the decree may terminate the marital community and divide the property between the spouses. Hr block 1040x   A separation agreement may divide the community property between you and your spouse. Hr block 1040x It may provide that this property, along with future earnings and property acquired, will be separate property. Hr block 1040x This agreement may end the community. Hr block 1040x   In some states, the marital community ends when the spouses permanently separate, even if there is no formal agreement. Hr block 1040x Check your state law. Hr block 1040x   If you are a registered domestic partner, you should check your state law to determine when the community ends. Hr block 1040x Preparing a Federal Income Tax Return The following discussion does not apply to spouses who meet the conditions under Spouses living apart all year , discussed earlier. Hr block 1040x Those spouses must report their community income as explained in that discussion. Hr block 1040x Joint Return Versus Separate Returns Ordinarily, filing a joint return will give you a greater tax advantage than filing a separate return. Hr block 1040x But in some cases, your combined income tax on separate returns may be less than it would be on a joint return. Hr block 1040x This discussion concerning joint versus separate returns does not apply to registered domestic partners. Hr block 1040x The following rules apply if your filing status is married filing separately. Hr block 1040x You should itemize deductions if your spouse itemizes deductions, because you cannot claim the standard deduction. Hr block 1040x You cannot take the credit for child and dependent care expenses in most instances. Hr block 1040x You cannot take the earned income credit. Hr block 1040x You cannot exclude any interest income from qualified U. Hr block 1040x S. Hr block 1040x savings bonds that you used for higher education expenses. Hr block 1040x You cannot take the credit for the elderly or the disabled unless you lived apart from your spouse all year. Hr block 1040x You may have to include in income more of any social security benefits (including any equivalent railroad retirement benefits) you received during the year than you would on a joint return. Hr block 1040x You cannot deduct interest paid on a qualified student loan. Hr block 1040x You cannot take the education credits. Hr block 1040x You may have a smaller child tax credit than you would on a joint return. Hr block 1040x You cannot take the exclusion or credit for adoption expenses in most instances. Hr block 1040x Figure your tax both on a joint return and on separate returns under the community property laws of your state. Hr block 1040x You can then compare the tax figured under both methods and use the one that results in less tax. Hr block 1040x Separate Return Preparation If you file separate returns, you and your spouse must each report half of your combined community income and deductions in addition to your separate income and deductions. Hr block 1040x Each of you must complete and attach Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. Hr block 1040x On the appropriate lines of your separate Form 1040, list only your share of the income and deductions on the appropriate lines of your separate tax returns (wages, interest, dividends, etc. Hr block 1040x ). Hr block 1040x The same reporting rule applies to registered domestic partners. Hr block 1040x For a discussion of the effect of community property laws on certain items of income, deductions, credits, and other return amounts, see Identifying Income, Deductions, and Credits , earlier. Hr block 1040x Attach your Form 8958 to your separate return showing how you figured the income, deductions, and federal income tax withheld that each of you reported. Hr block 1040x Form 8958 is used for married spouses in community property states who choose to file married filing separately. Hr block 1040x Form 8958 is also used for registered domestic partners who are domiciled in Nevada, Washington, or California. Hr block 1040x A registered domestic partner in Nevada, Washington, or California must follow state community property laws and report half the combined community income of the individual and his or her registered domestic partner. Hr block 1040x Extension of time to file. Hr block 1040x    An extension of time for filing your separate return does not extend the time for filing your spouse's (or your registered domestic partner's) separate return. Hr block 1040x If you and your spouse file a joint return, you cannot file separate returns after the due date for filing either separate return has passed. Hr block 1040x How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Hr block 1040x Free help with your tax return. Hr block 1040x    You can get free help preparing your return nationwide from IRS-certified volunteers. Hr block 1040x The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Hr block 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Hr block 1040x Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Hr block 1040x In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Hr block 1040x To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Hr block 1040x gov, download the IRS2Go app, or call 1-800-906-9887. Hr block 1040x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Hr block 1040x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Hr block 1040x aarp. Hr block 1040x org/money/taxaide or call 1-888-227-7669. Hr block 1040x For more information on these programs, go to IRS. Hr block 1040x gov and enter “VITA” in the search box. Hr block 1040x Internet. Hr block 1040x    IRS. Hr block 1040x gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Hr block 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Hr block 1040x Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Hr block 1040x Check the status of your 2013 refund with the Where's My Refund? application on IRS. Hr block 1040x gov or download the IRS2Go app and select the Refund Status option. Hr block 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Hr block 1040x Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Hr block 1040x You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Hr block 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Hr block 1040x Use the Interactive Tax Assistant (ITA) to research your tax questions. Hr block 1040x No need to wait on the phone or stand in line. Hr block 1040x The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Hr block 1040x When you reach the response screen, you can print the entire interview and the final response for your records. Hr block 1040x New subject areas are added on a regular basis. Hr block 1040x  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Hr block 1040x gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Hr block 1040x You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Hr block 1040x The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Hr block 1040x When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Hr block 1040x Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Hr block 1040x You can also ask the IRS to mail a return or an account transcript to you. Hr block 1040x Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Hr block 1040x gov or by calling 1-800-908-9946. Hr block 1040x Tax return and tax account transcripts are generally available for the current year and the past three years. Hr block 1040x Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Hr block 1040x Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Hr block 1040x If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Hr block 1040x Check the status of your amended return using Where's My Amended Return? Go to IRS. Hr block 1040x gov and enter Where's My Amended Return? in the search box. Hr block 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Hr block 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Hr block 1040x Make a payment using one of several safe and convenient electronic payment options available on IRS. Hr block 1040x gov. Hr block 1040x Select the Payment tab on the front page of IRS. Hr block 1040x gov for more information. Hr block 1040x Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Hr block 1040x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Hr block 1040x gov. Hr block 1040x Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Hr block 1040x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Hr block 1040x gov. Hr block 1040x Request an Electronic Filing PIN by going to IRS. Hr block 1040x gov and entering Electronic Filing PIN in the search box. Hr block 1040x Download forms, instructions and publications, including accessible versions for people with disabilities. Hr block 1040x Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Hr block 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Hr block 1040x An employee can answer questions about your tax account or help you set up a payment plan. Hr block 1040x Before you visit, check the Office Locator on IRS. Hr block 1040x gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Hr block 1040x If you have a special need, such as a disability, you can request an appointment. Hr block 1040x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Hr block 1040x Apply for an Employer Identification Number (EIN). Hr block 1040x Go to IRS. Hr block 1040x gov and enter Apply for an EIN in the search box. Hr block 1040x Read the Internal Revenue Code, regulations, or other official guidance. Hr block 1040x Read Internal Revenue Bulletins. Hr block 1040x Sign up to receive local and national tax news and more by email. Hr block 1040x Just click on “subscriptions” above the search box on IRS. Hr block 1040x gov and choose from a variety of options. Hr block 1040x    Phone. Hr block 1040x You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Hr block 1040x Download the free IRS2Go app from the iTunes app store or from Google Play. Hr block 1040x Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Hr block 1040x gov, or download the IRS2Go app. Hr block 1040x Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Hr block 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Hr block 1040x Most VITA and TCE sites offer free electronic filing. Hr block 1040x Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Hr block 1040x Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Hr block 1040x Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Hr block 1040x If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Hr block 1040x The IRS issues more than 9 out of 10 refunds in less than 21 days. Hr block 1040x Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Hr block 1040x Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Hr block 1040x The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Hr block 1040x Note, the above information is for our automated hotline. Hr block 1040x Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Hr block 1040x Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Hr block 1040x You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Hr block 1040x It can take up to 3 weeks from the date you mailed it to show up in our system. Hr block 1040x Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Hr block 1040x You should receive your order within 10 business days. Hr block 1040x Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Hr block 1040x If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Hr block 1040x Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Hr block 1040x The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Hr block 1040x These individuals can also contact the IRS through relay services such as the Federal Relay Service. Hr block 1040x    Walk-in. Hr block 1040x You can find a selection of forms, publications and services — in-person. Hr block 1040x Products. Hr block 1040x You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Hr block 1040x Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Hr block 1040x Services. Hr block 1040x You can walk in to your local TAC for face-to-face tax help. Hr block 1040x An employee can answer questions about your tax account or help you set up a payment plan. Hr block 1040x Before visiting, use the Office Locator tool on IRS. Hr block 1040x gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Hr block 1040x    Mail. Hr block 1040x You can send your order for forms, instructions, and publications to the address below. Hr block 1040x You should receive a response within 10 business days after your request is received. Hr block 1040x Internal Revenue Service 1201 N. Hr block 1040x Mitsubishi Motorway Bloomington, IL 61705-6613   The Taxpayer Advocate Service Is Here to Help You. Hr block 1040x The Taxpayer Advocate Service (TAS) is your voice at the IRS. Hr block 1040x Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Hr block 1040x   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Hr block 1040x We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Hr block 1040x You face (or your business is facing) an immediate threat of adverse action. Hr block 1040x You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Hr block 1040x   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Hr block 1040x Here's why we can help: TAS is an independent organization within the IRS. Hr block 1040x Our advocates know how to work with the IRS. Hr block 1040x Our services are free and tailored to meet your needs. Hr block 1040x We have offices in every state, the District of Columbia, and Puerto Rico. Hr block 1040x   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Hr block 1040x irs. Hr block 1040x gov/advocate, or call us toll-free at 1-877-777-4778. Hr block 1040x   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Hr block 1040x If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Hr block 1040x irs. Hr block 1040x gov/sams. Hr block 1040x Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Hr block 1040x Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Hr block 1040x Visit www. Hr block 1040x irs. Hr block 1040x gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List. Hr block 1040x Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

IRS Extends Tax Relief to Some New Jersey and New York Victims of Hurricane Sandy; Return Filing and Tax Payment Deadline Extended to April 1, 2013

IRS YouTube Videos
Help for Disaster Victims: English | Spanish | ASL
How to Request a Copy of Your Tax Return: English | ASL

Podcast
Disaster Assistance: English | Spanish

IR-2013-16, Feb. 1, 2013

WASHINGTON –– In the aftermath of Hurricane Sandy, the Internal Revenue Service announced additional tax relief to affected individuals and businesses. The IRS today is further extending tax deadlines of that relief until April 1 for the following localities:

  • In New Jersey (starting Oct. 26): Monmouth and Ocean counties.
  • In New York (starting Oct. 27): Nassau, Queens, Richmond and Suffolk counties.

Beyond the relief provided by law to taxpayers in the FEMA-designated counties, the IRS will work with any taxpayer who resides outside the disaster area but whose books, records or tax professional are located in the areas affected by Hurricane Sandy. All workers assisting the relief activities in the covered disaster areas who are affiliated with a recognized government or philanthropic organization are eligible for relief. Taxpayers who live outside of the impacted area and think they may qualify for this relief need to contact the IRS at 866-562-5227.

The IRS also announced today that Taxpayer Assistance Centers in several New York and New Jersey locations will be open additional hours to provide help to taxpayers impacted by Hurricane Sandy. There will also be special assistance available at several New Jersey and New York locations on Saturday, February 23 from 9 a.m. until 2 p.m. More information will be available on irs.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting in late October. As a result, affected individuals and businesses will have until April 1, 2013, to file these returns and pay any taxes due. This includes the fourth quarter individual estimated tax payment, normally due Jan. 15, 2013. It also includes payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on Oct. 31, 2012 and Jan. 31, 2013 respectively, and calendar year corporate income tax returns due March 15. It also applies to tax-exempt organizations required to file Form 990 series returns with an original or extended deadline falling during this period.  

The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply. The IRS automatically provides this relief to any taxpayer located in the disaster area. Taxpayers need not contact the IRS to get this relief.

The tax relief is part of a coordinated federal response to the damage caused by the hurricane and is based on local damage assessments by FEMA. For information on disaster recovery, individuals should visit disasterassistance.gov

Follow the IRS on New Media
Subscribe to IRS Newswire

Page Last Reviewed or Updated: 05-Nov-2013

The Hr Block 1040x

Hr block 1040x 10. Hr block 1040x   Education Savings Bond Program Table of Contents Introduction Who Can Cash In Bonds Tax FreeAdjusted qualified education expenses. Hr block 1040x Eligible educational institution. Hr block 1040x Dependent for whom you claim an exemption. Hr block 1040x MAGI when using Form 1040A. Hr block 1040x MAGI when using Form 1040. Hr block 1040x Figuring the Tax-Free AmountEffect of the Amount of Your Income on the Amount of Your Exclusion Claiming the Exclusion Introduction Generally, you must pay tax on the interest earned on U. Hr block 1040x S. Hr block 1040x savings bonds. Hr block 1040x If you do not include the interest in income in the years it is earned, you must include it in your income in the year in which you cash in the bonds. Hr block 1040x However, when you cash in certain savings bonds under an education savings bond program, you may be able to exclude the interest from income. Hr block 1040x Who Can Cash In Bonds Tax Free You may be able to cash in qualified U. Hr block 1040x S. Hr block 1040x savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions. Hr block 1040x You pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return. Hr block 1040x Your modified adjusted gross income (MAGI) is less than the amount specified for your filing status. Hr block 1040x Your filing status is not married filing separately. Hr block 1040x Qualified U. Hr block 1040x S. Hr block 1040x savings bonds. Hr block 1040x   A qualified U. Hr block 1040x S. Hr block 1040x savings bond is a series EE bond issued after 1989 or a series I bond. Hr block 1040x The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners). Hr block 1040x   The owner must be at least 24 years old before the bond's issue date. Hr block 1040x The issue date is printed on the front of the savings bond. Hr block 1040x    The issue date is not necessarily the date of purchase—it will be the first day of the month in which the bond is purchased (or posted, if bought electronically). Hr block 1040x Qualified education expenses. Hr block 1040x   These include the following items you pay for either yourself, your spouse, or a dependent for whom you claim an exemption. Hr block 1040x Tuition and fees required to enroll at or attend an eligible educational institution. Hr block 1040x Qualified education expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Hr block 1040x Contributions to a qualified tuition program (QTP) (see How Much Can You Contribute in chapter 8, Qualified Tuition Program). Hr block 1040x Contributions to a Coverdell education savings account (ESA) (see Contributions in chapter 7, Coverdell Education Savings Account). Hr block 1040x Adjusted qualified education expenses. Hr block 1040x   You must reduce your qualified education expenses by all of the following tax-free benefits. Hr block 1040x Tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Hr block 1040x Expenses used to figure the tax-free portion of distributions from a Coverdell ESA (see Qualified Education Expenses in chapter 7, Coverdell Education Savings Account). Hr block 1040x Expenses used to figure the tax-free portion of distributions from a QTP (see Qualified education expenses in chapter 8, Qualified Tuition Program). Hr block 1040x Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Qualified tuition reductions (see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), or Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ). Hr block 1040x Any expenses used in figuring the American opportunity and lifetime learning credits. Hr block 1040x See What Expenses Qualify in chapter 2, American Opportunity Credit, and What Expenses Qualify in chapter 3, Lifetime Learning Credit, for more information. Hr block 1040x Eligible educational institution. Hr block 1040x   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Hr block 1040x S. Hr block 1040x Department of Education. Hr block 1040x It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Hr block 1040x The educational institution should be able to tell you if it is an eligible educational institution. Hr block 1040x   Certain educational institutions located outside the United States also participate in the U. Hr block 1040x S. Hr block 1040x Department of Education's Federal Student Aid (FSA) programs. Hr block 1040x Dependent for whom you claim an exemption. Hr block 1040x   You claim an exemption for a person if you list his or her name and other required information on Form 1040 (or Form 1040A), line 6c. Hr block 1040x Modified adjusted gross income (MAGI). Hr block 1040x   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return without taking into account this interest exclusion. Hr block 1040x However, as discussed below, there may be other modifications. Hr block 1040x MAGI when using Form 1040A. Hr block 1040x   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). Hr block 1040x MAGI when using Form 1040. Hr block 1040x   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Hr block 1040x    Use the worksheet in the instructions for line 9 of Form 8815 to figure your MAGI. Hr block 1040x If you claim any of the exclusion or deduction items (1)–(6) listed above, add the amount of the exclusion or deduction to the amount on line 5 of the worksheet. Hr block 1040x Do not add in the deduction for (7) student loan interest, and (8) tuition and fees, or (9) domestic production activities because line 4 of the worksheet already includes these amounts. Hr block 1040x Enter the total on Form 8815, line 9, as your modified adjusted gross income (MAGI). Hr block 1040x    Because the deduction for interest expenses attributable to royalties and other investments is limited to your net investment income, you cannot figure the deduction until you have figured this interest exclusion. Hr block 1040x Therefore, if you had interest expenses attributable to royalties and deductible on Schedule E (Form 1040), Supplemental Income and Loss, you must make a special computation of your deductible interest without regard to this exclusion to figure the net royalty income included in your MAGI. Hr block 1040x See Royalties included in MAGI under Education Savings Bond Program in Publication 550, chapter 1. Hr block 1040x Figuring the Tax-Free Amount If the total you receive when you cash in the bonds is not more than the adjusted qualified education expenses for the year, all of the interest on the bonds may be tax free. Hr block 1040x However, if the total you receive when you cash in the bonds is more than the adjusted expenses, only part of the interest may be tax free. Hr block 1040x To determine the tax-free amount, multiply the interest part of the proceeds by a fraction. Hr block 1040x The numerator (top part) of the fraction is the adjusted qualified education expenses (AQEE) you paid during the year. Hr block 1040x The denominator (bottom part) of the fraction is the total proceeds you received during the year. Hr block 1040x Example. Hr block 1040x In February 2013, Mark and Joan Washington, a married couple, cashed a qualified series EE U. Hr block 1040x S. Hr block 1040x savings bond. Hr block 1040x They received proceeds of $9,000, representing principal of $6,000 and interest of $3,000. Hr block 1040x In 2013, they paid $7,650 of their daughter's college tuition. Hr block 1040x They are not claiming an American opportunity or lifetime learning credit for those expenses, and their daughter does not have any tax-free educational assistance. Hr block 1040x Their MAGI for 2013 was $80,000. Hr block 1040x   $3,000 interest × $7,650 AQEE  $9,000 proceeds = $2,550 tax-free interest   They can exclude $2,550 of interest in 2013. Hr block 1040x They must pay tax on the remaining $450 ($3,000 − $2,550) interest. Hr block 1040x Effect of the Amount of Your Income on the Amount of Your Exclusion The amount of your interest exclusion is gradually reduced (phased out) based on your MAGI and filing status. Hr block 1040x Claiming the Exclusion Use Form 8815 to figure your education savings bond interest exclusion. Hr block 1040x Enter your exclusion on line 3 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends. Hr block 1040x Attach Form 8815 to your tax return. Hr block 1040x Prev  Up  Next   Home   More Online Publications