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Irs 2012 Tax Forms 1040ez

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Irs 2012 Tax Forms 1040ez

Irs 2012 tax forms 1040ez Index A Active participation, Active participation. Irs 2012 tax forms 1040ez Activity Appropriate economic unit, Appropriate Economic Units Nonpassive, Activities That Are Not Passive Activities Trade or business, Passive Activities Amounts borrowed, Amounts borrowed. Irs 2012 tax forms 1040ez Amounts not at risk, Amounts Not At Risk, Other loss limiting arrangements. Irs 2012 tax forms 1040ez Appropriate economic unit, Appropriate Economic Units Assistance (see Tax help) At-risk activities Aggregation of, Aggregation of Activities Separation of, Separation of Activities At-risk amounts, At-Risk Amounts Government price support programs, Effect of government price support programs. Irs 2012 tax forms 1040ez Increasing amounts, Effect of increasing amounts at risk in subsequent years. Irs 2012 tax forms 1040ez Nonrecourse financing, Nonrecourse financing. Irs 2012 tax forms 1040ez At-risk limits, At-Risk Limits Closely held corporation, Closely held C corporation. Irs 2012 tax forms 1040ez Loss defined, Loss defined. Irs 2012 tax forms 1040ez Partners, Loss limits for partners and S corporation shareholders. Irs 2012 tax forms 1040ez S corporation shareholders, Loss limits for partners and S corporation shareholders. Irs 2012 tax forms 1040ez Who is affected, Who Is Affected? At-risk rules Activities covered by, Activities Covered by the At-Risk Rules Exceptions to, Exception for holding real property placed in service before 1987. Irs 2012 tax forms 1040ez Excluded business, Qualifying business. Irs 2012 tax forms 1040ez Qualified corporation, Qualified corporation. Irs 2012 tax forms 1040ez Qualifying business, Qualifying business. Irs 2012 tax forms 1040ez Recapture rule, Recapture Rule B Borrowed amounts, Amounts borrowed. Irs 2012 tax forms 1040ez C Closely held corporation, Closely held C corporation. Irs 2012 tax forms 1040ez Commercial revitalization deduction, Commercial revitalization deduction (CRD). Irs 2012 tax forms 1040ez Corporations Closely held, Corporations. Irs 2012 tax forms 1040ez , Corporations. Irs 2012 tax forms 1040ez Controlled group of, Controlled group of corporations. Irs 2012 tax forms 1040ez Personal service, Corporations. Irs 2012 tax forms 1040ez , Corporations. Irs 2012 tax forms 1040ez Qualified, Qualified corporation. Irs 2012 tax forms 1040ez CRD, Commercial revitalization deduction (CRD). Irs 2012 tax forms 1040ez D Deductions, passive activity, Passive Activity Deductions Disabled farmer, Retired or disabled farmer and surviving spouse of a farmer. Irs 2012 tax forms 1040ez Disclosure requirement, Appropriate Economic Units Dispositions Death, Dispositions by death. Irs 2012 tax forms 1040ez Gift, Dispositions by gift. Irs 2012 tax forms 1040ez Installment sale, Installment sale of an entire interest. Irs 2012 tax forms 1040ez Partial, Partial dispositions. Irs 2012 tax forms 1040ez E Excluded business, definition of, Qualifying business. Irs 2012 tax forms 1040ez F Farm loss, Excess Farm Loss Farmer, Retired or disabled farmer and surviving spouse of a farmer. Irs 2012 tax forms 1040ez Form 6198, Form 6198. Irs 2012 tax forms 1040ez 8582, Step Three—Completing Form 8582 8810, Who Must Use These Rules? Former passive activity, Treatment of former passive activities. Irs 2012 tax forms 1040ez Free tax services, Free help with your tax return. Irs 2012 tax forms 1040ez G Grouping passive activities, Grouping Your Activities H Help (see Tax help) I Income, passive activity, Passive Activity Income L Limited entrepreneur, Limited entrepreneur. Irs 2012 tax forms 1040ez Limited partners, Limited partners. Irs 2012 tax forms 1040ez M Material participation, Material Participation, Corporations. Irs 2012 tax forms 1040ez Modified adjusted gross income, Phaseout rule. Irs 2012 tax forms 1040ez N Nonrecourse loan, Nonrecourse financing. Irs 2012 tax forms 1040ez P Participation, Participation. Irs 2012 tax forms 1040ez Active, Active participation. Irs 2012 tax forms 1040ez Material, Material Participation Passive activity, Passive Activity Limits Comprehensive example, How To Report Your Passive Activity Loss Disposition, Dispositions Former, Treatment of former passive activities. Irs 2012 tax forms 1040ez Grouping, Grouping Your Activities Limits, Passive Activity Limits Material participation, Material Participation Rental, Rental Activities Rules, Passive Activities, Grouping Your Activities Who must use these rules, Who Must Use These Rules? Passive activity deductions, Passive Activity Deductions Passive activity income, Passive Activity Income Passive income, recharacterization of, Recharacterization of Passive Income Publications (see Tax help) Publicly traded partnership, Publicly Traded Partnership, Publicly traded partnership (PTP). Irs 2012 tax forms 1040ez Q Qualified person, nonrecourse financing, Qualified person. Irs 2012 tax forms 1040ez Qualifying business, at-risk rules, Qualifying business. Irs 2012 tax forms 1040ez R Real estate professional, Real Estate Professional Recapture rule under at-risk limits, Recapture Rule Recharacterization of passive income, Recharacterization of Passive Income Reductions of amounts at risk, Reductions of Amounts At Risk Related persons, Related persons. Irs 2012 tax forms 1040ez Rental activity $25,000 offset, Special $25,000 allowance. Irs 2012 tax forms 1040ez Active participation, Active participation. Irs 2012 tax forms 1040ez Exceptions, Exceptions. Irs 2012 tax forms 1040ez Phaseout rule, Phaseout rule. Irs 2012 tax forms 1040ez Real estate professional, Real Estate Professional Retired farmer, Retired or disabled farmer and surviving spouse of a farmer. Irs 2012 tax forms 1040ez S Section 1245 property, Section 1245 property. Irs 2012 tax forms 1040ez Self-charged interest, Self-charged interest. Irs 2012 tax forms 1040ez Separate activity, Separation of Activities Significant participation passive activities, Significant Participation Passive Activities Special $25,000 allowance, Special $25,000 allowance. Irs 2012 tax forms 1040ez Surviving spouse of farmer, Retired or disabled farmer and surviving spouse of a farmer. Irs 2012 tax forms 1040ez T Tax help, How To Get Tax Help Trade or business activities Definition of, Trade or Business Activities Real property, Real property trades or businesses. Irs 2012 tax forms 1040ez W Worksheet 1, Worksheet 1. Irs 2012 tax forms 1040ez Worksheet 3, Worksheet 3. Irs 2012 tax forms 1040ez Worksheet 4, Step Four—Completing Worksheet 4 Worksheet 5, Step Five—Completing Worksheet 5 Worksheet 6, Step Six—Using Worksheets 6 and 7 Worksheet 7, Step Six—Using Worksheets 6 and 7 Worksheet A, Worksheet A. Irs 2012 tax forms 1040ez , Worksheet A. Irs 2012 tax forms 1040ez Significant Participation Passive Activities Worksheet B, Worksheet B. Irs 2012 tax forms 1040ez , Worksheet B. Irs 2012 tax forms 1040ez Significant Participation Activities With Net Income Prev  Up     Home   More Online Publications
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The Irs 2012 Tax Forms 1040ez

Irs 2012 tax forms 1040ez 5. Irs 2012 tax forms 1040ez   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. Irs 2012 tax forms 1040ez Making the election. Irs 2012 tax forms 1040ez Form 3115. Irs 2012 tax forms 1040ez Income TaxesAccrual of contested income taxes. Irs 2012 tax forms 1040ez Employment Taxes Other TaxesAdditional Medicare Tax. Irs 2012 tax forms 1040ez What's New Additional Medicare Tax. Irs 2012 tax forms 1040ez  Beginning in 2013, you must withhold a 0. Irs 2012 tax forms 1040ez 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Irs 2012 tax forms 1040ez Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. Irs 2012 tax forms 1040ez See Employment Taxes , and Self-employment tax , later. Irs 2012 tax forms 1040ez Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. Irs 2012 tax forms 1040ez You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. Irs 2012 tax forms 1040ez Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. Irs 2012 tax forms 1040ez When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. Irs 2012 tax forms 1040ez This applies whether you use the cash method or an accrual method of accounting. Irs 2012 tax forms 1040ez Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. Irs 2012 tax forms 1040ez You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . Irs 2012 tax forms 1040ez Limit on accrual of taxes. Irs 2012 tax forms 1040ez   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. Irs 2012 tax forms 1040ez However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. Irs 2012 tax forms 1040ez Example. Irs 2012 tax forms 1040ez Your state imposes a tax on personal property used in a trade or business conducted in the state. Irs 2012 tax forms 1040ez This tax is assessed and becomes a lien as of July 1 (accrual date). Irs 2012 tax forms 1040ez In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. Irs 2012 tax forms 1040ez Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. Irs 2012 tax forms 1040ez You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. Irs 2012 tax forms 1040ez Uniform capitalization rules. Irs 2012 tax forms 1040ez   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. Irs 2012 tax forms 1040ez They also apply to certain taxpayers who acquire property for resale. Irs 2012 tax forms 1040ez Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. Irs 2012 tax forms 1040ez For more information, see chapter 1. Irs 2012 tax forms 1040ez Carrying charges. Irs 2012 tax forms 1040ez   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. Irs 2012 tax forms 1040ez You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. Irs 2012 tax forms 1040ez For more information, see chapter 7. Irs 2012 tax forms 1040ez Refunds of taxes. Irs 2012 tax forms 1040ez   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. Irs 2012 tax forms 1040ez For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. Irs 2012 tax forms 1040ez    You must include in income any interest you receive on tax refunds. Irs 2012 tax forms 1040ez Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Irs 2012 tax forms 1040ez The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Irs 2012 tax forms 1040ez Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Irs 2012 tax forms 1040ez See Taxes for local benefits , later. Irs 2012 tax forms 1040ez If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. Irs 2012 tax forms 1040ez However, you can elect to ratably accrue the taxes during the year. Irs 2012 tax forms 1040ez See Electing to ratably accrue , later. Irs 2012 tax forms 1040ez Taxes for local benefits. Irs 2012 tax forms 1040ez   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. Irs 2012 tax forms 1040ez These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. Irs 2012 tax forms 1040ez You should increase the basis of your property by the amount of the assessment. Irs 2012 tax forms 1040ez   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. Irs 2012 tax forms 1040ez If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. Irs 2012 tax forms 1040ez Example. Irs 2012 tax forms 1040ez To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. Irs 2012 tax forms 1040ez The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. Irs 2012 tax forms 1040ez The city is paying the principal and interest with the annual payments made by the property owners. Irs 2012 tax forms 1040ez The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. Irs 2012 tax forms 1040ez The part of the payments used to pay the interest charges on the bonds is deductible as taxes. Irs 2012 tax forms 1040ez Charges for services. Irs 2012 tax forms 1040ez   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. Irs 2012 tax forms 1040ez Purchase or sale of real estate. Irs 2012 tax forms 1040ez   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. Irs 2012 tax forms 1040ez   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. Irs 2012 tax forms 1040ez Treat the seller as paying the taxes up to but not including the date of sale. Irs 2012 tax forms 1040ez Treat the buyer as paying the taxes beginning with the date of sale. Irs 2012 tax forms 1040ez You can usually find this information on the settlement statement you received at closing. Irs 2012 tax forms 1040ez   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. Irs 2012 tax forms 1040ez Example. Irs 2012 tax forms 1040ez Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. Irs 2012 tax forms 1040ez He has not elected to ratably accrue property taxes. Irs 2012 tax forms 1040ez November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. Irs 2012 tax forms 1040ez He sold the property on June 30, 2013. Irs 2012 tax forms 1040ez Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. Irs 2012 tax forms 1040ez He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. Irs 2012 tax forms 1040ez Electing to ratably accrue. Irs 2012 tax forms 1040ez   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. Irs 2012 tax forms 1040ez Example. Irs 2012 tax forms 1040ez Juan Sanchez is a calendar year taxpayer who uses an accrual method. Irs 2012 tax forms 1040ez His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. Irs 2012 tax forms 1040ez July 1 is the assessment and lien date. Irs 2012 tax forms 1040ez If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. Irs 2012 tax forms 1040ez Separate elections. Irs 2012 tax forms 1040ez   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. Irs 2012 tax forms 1040ez Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. Irs 2012 tax forms 1040ez See Form 3115 , later. Irs 2012 tax forms 1040ez Making the election. Irs 2012 tax forms 1040ez   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. Irs 2012 tax forms 1040ez The statement should show all the following items. Irs 2012 tax forms 1040ez The trades or businesses to which the election applies and the accounting method or methods used. Irs 2012 tax forms 1040ez The period to which the taxes relate. Irs 2012 tax forms 1040ez The computation of the real estate tax deduction for that first year. Irs 2012 tax forms 1040ez   Generally, you must file your return by the due date (including extensions). Irs 2012 tax forms 1040ez However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Irs 2012 tax forms 1040ez Attach the statement to the amended return and write “Filed pursuant to section 301. Irs 2012 tax forms 1040ez 9100-2” on the statement. Irs 2012 tax forms 1040ez File the amended return at the same address where you filed the original return. Irs 2012 tax forms 1040ez Form 3115. Irs 2012 tax forms 1040ez    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. Irs 2012 tax forms 1040ez For more information, including applicable time frames for filing, see the Instructions for Form 3115. Irs 2012 tax forms 1040ez Note. Irs 2012 tax forms 1040ez If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. Irs 2012 tax forms 1040ez R. Irs 2012 tax forms 1040ez B. Irs 2012 tax forms 1040ez 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. Irs 2012 tax forms 1040ez R. Irs 2012 tax forms 1040ez B. Irs 2012 tax forms 1040ez 689, and Revenue Procedure 2012-20, 2012-14 I. Irs 2012 tax forms 1040ez R. Irs 2012 tax forms 1040ez B. Irs 2012 tax forms 1040ez 700, or any successor. Irs 2012 tax forms 1040ez Revenue Procedure 2011-14 is available at  www. Irs 2012 tax forms 1040ez irs. Irs 2012 tax forms 1040ez gov/irb/2011-04IRB/ar08. Irs 2012 tax forms 1040ez html. Irs 2012 tax forms 1040ez Income Taxes This section discusses federal, state, local, and foreign income taxes. Irs 2012 tax forms 1040ez Federal income taxes. Irs 2012 tax forms 1040ez   You cannot deduct federal income taxes. Irs 2012 tax forms 1040ez State and local income taxes. Irs 2012 tax forms 1040ez   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. Irs 2012 tax forms 1040ez An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). Irs 2012 tax forms 1040ez   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. Irs 2012 tax forms 1040ez Accrual of contested income taxes. Irs 2012 tax forms 1040ez   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. Irs 2012 tax forms 1040ez   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. Irs 2012 tax forms 1040ez You cannot deduct them in the year in which the liability is finally determined. Irs 2012 tax forms 1040ez    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. Irs 2012 tax forms 1040ez Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. Irs 2012 tax forms 1040ez   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. Irs 2012 tax forms 1040ez You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. Irs 2012 tax forms 1040ez For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. Irs 2012 tax forms 1040ez Foreign income taxes. Irs 2012 tax forms 1040ez   Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Irs 2012 tax forms 1040ez S. Irs 2012 tax forms 1040ez possession. Irs 2012 tax forms 1040ez However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Irs 2012 tax forms 1040ez S. Irs 2012 tax forms 1040ez tax under the foreign earned income exclusion or the foreign housing exclusion. Irs 2012 tax forms 1040ez For information on these exclusions, see Publication 54, Tax Guide for U. Irs 2012 tax forms 1040ez S. Irs 2012 tax forms 1040ez Citizens and Resident Aliens Abroad. Irs 2012 tax forms 1040ez For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. Irs 2012 tax forms 1040ez Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. Irs 2012 tax forms 1040ez Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. Irs 2012 tax forms 1040ez You may also need to pay certain employment taxes from your own funds. Irs 2012 tax forms 1040ez These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. Irs 2012 tax forms 1040ez Note. Irs 2012 tax forms 1040ez Additional Medicare Tax is only imposed on the employee. Irs 2012 tax forms 1040ez There is no employer share of Additional Medicare Tax. Irs 2012 tax forms 1040ez Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. Irs 2012 tax forms 1040ez You can deduct the employment taxes you must pay from your own funds as taxes. Irs 2012 tax forms 1040ez Example. Irs 2012 tax forms 1040ez You pay your employee $18,000 a year. Irs 2012 tax forms 1040ez However, after you withhold various taxes, your employee receives $14,500. Irs 2012 tax forms 1040ez You also pay an additional $1,500 in employment taxes. Irs 2012 tax forms 1040ez You should deduct the full $18,000 as wages. Irs 2012 tax forms 1040ez You can deduct the $1,500 you pay from your own funds as taxes. Irs 2012 tax forms 1040ez For more information on employment taxes, see Publication 15 (Circular E). Irs 2012 tax forms 1040ez Unemployment fund taxes. Irs 2012 tax forms 1040ez   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. Irs 2012 tax forms 1040ez Deduct these payments as taxes. Irs 2012 tax forms 1040ez Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. Irs 2012 tax forms 1040ez Excise taxes. Irs 2012 tax forms 1040ez   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. Irs 2012 tax forms 1040ez However, see Fuel taxes , later. Irs 2012 tax forms 1040ez   For more information on excise taxes, see Publication 510. Irs 2012 tax forms 1040ez Franchise taxes. Irs 2012 tax forms 1040ez   You can deduct corporate franchise taxes as a business expense. Irs 2012 tax forms 1040ez Fuel taxes. Irs 2012 tax forms 1040ez   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. Irs 2012 tax forms 1040ez Do not deduct these taxes as a separate item. Irs 2012 tax forms 1040ez   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Irs 2012 tax forms 1040ez For more information, see Publication 510. Irs 2012 tax forms 1040ez Occupational taxes. Irs 2012 tax forms 1040ez   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Irs 2012 tax forms 1040ez Personal property tax. Irs 2012 tax forms 1040ez   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. Irs 2012 tax forms 1040ez Sales tax. Irs 2012 tax forms 1040ez   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Irs 2012 tax forms 1040ez If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Irs 2012 tax forms 1040ez If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Irs 2012 tax forms 1040ez If the property is depreciable, add the sales tax to the basis for depreciation. Irs 2012 tax forms 1040ez For more information on basis, see Publication 551. Irs 2012 tax forms 1040ez    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Irs 2012 tax forms 1040ez Also, do not include these taxes in gross receipts or sales. Irs 2012 tax forms 1040ez Self-employment tax. Irs 2012 tax forms 1040ez   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. Irs 2012 tax forms 1040ez This deduction only affects your income tax. Irs 2012 tax forms 1040ez It does not affect your net earnings from self-employment or your self-employment tax. Irs 2012 tax forms 1040ez   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). Irs 2012 tax forms 1040ez   For more information on self-employment tax, see Publication 334. Irs 2012 tax forms 1040ez Additional Medicare Tax. Irs 2012 tax forms 1040ez   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. Irs 2012 tax forms 1040ez See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. Irs 2012 tax forms 1040ez Prev  Up  Next   Home   More Online Publications