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Irs Forms 1040

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Irs Forms 1040

Irs forms 1040 2. Irs forms 1040   Possession Source Income Table of Contents Types of IncomeCompensation for Labor or Personal Services Investment Income Sales or Other Dispositions of Property Scholarships, Fellowships, Grants, Prizes, and Awards Effectively Connected Income In order to determine where to file your return and which form(s) you need to complete, you must determine the source of each item of income you received during the tax year. Irs forms 1040 Income you received from sources within, or that was effectively connected with the conduct of a trade or business within, the relevant possession must be identified separately from U. Irs forms 1040 S. Irs forms 1040 or foreign source income. Irs forms 1040 This chapter discusses the rules for determining if the source of your income is from: American Samoa, The Commonwealth of the Northern Mariana Islands (CNMI), The Commonwealth of Puerto Rico (Puerto Rico), Guam, or The U. Irs forms 1040 S. Irs forms 1040 Virgin Islands (USVI). Irs forms 1040 Generally, the same rules that apply for determining U. Irs forms 1040 S. Irs forms 1040 source income also apply for determining possession source income. Irs forms 1040 However, there are some important exceptions to these rules. Irs forms 1040 Both the general rules and the exceptions are discussed in this chapter. Irs forms 1040 U. Irs forms 1040 S. Irs forms 1040 income rule. Irs forms 1040   This rule states that income is not possession source income if, under the rules of Internal Revenue Code sections 861–865, it is treated as income: From sources within the United States, or Effectively connected with the conduct of a trade or business within the United States. Irs forms 1040 Table 2-1 shows the general rules for determining whether income is from sources within the United States. Irs forms 1040 Table 2-1. Irs forms 1040 General Rules for Determining U. Irs forms 1040 S. Irs forms 1040 Source of Income Item of Income Factor Determining Source Salaries, wages, and other compensation for labor or personal services Where labor or services performed Pensions Contributions: Where services were performed that earned the pension Investment earnings: Where pension trust is located Interest Residence of payer Dividends Where corporation created or organized Rents Location of property Royalties:   Natural resources Location of property Patents, copyrights, etc. Irs forms 1040 Where property is used Sale of business inventory—purchased Where sold Sale of business inventory—produced Allocation if produced and sold in different locations Sale of real property Location of property Sale of personal property Seller's tax home (but see Special Rules for Gains From Dispositions of Certain Property , later, for exceptions) Sale of natural resources Allocation based on fair market value of product at export terminal. Irs forms 1040 For more information, see Regulations section 1. Irs forms 1040 863-1(b). Irs forms 1040 Types of Income This section looks at the most common types of income received by individuals, and the rules for determining the source of the income. Irs forms 1040 Generally, the same rules shown in Table 2-1 are used to determine if you have possession source income. Irs forms 1040 Compensation for Labor or Personal Services Income from labor or personal services includes wages, salaries, commissions, fees, per diem allowances, employee allowances and bonuses, and fringe benefits. Irs forms 1040 It also includes income earned by sole proprietors and general partners from providing personal services in the course of their trade or business. Irs forms 1040 Services performed wholly within a relevant possession. Irs forms 1040   Generally, all pay you receive for services performed in a relevant possession is considered to be from sources within that possession. Irs forms 1040 However, there is an exception for income earned as a member of the U. Irs forms 1040 S. Irs forms 1040 Armed Forces or a civilian spouse. Irs forms 1040 U. Irs forms 1040 S. Irs forms 1040 Armed Forces. Irs forms 1040   If you are a bona fide resident of a relevant possession, your military service pay will be sourced in that possession even if you perform the services in the United States or another possession. Irs forms 1040 However, if you are not a bona fide resident of a possession, your military service pay will be income from the  United States even if you perform services in a possession. Irs forms 1040 Civilian spouse of active duty member of the U. Irs forms 1040 S. Irs forms 1040 Armed Forces. Irs forms 1040   If you are a bona fide resident of a U. Irs forms 1040 S. Irs forms 1040 possession and choose to keep that possession as your tax residence under MSRRA when relocating with your servicemember spouse under military orders, the source of income for your labor or personal services is considered to be that possession. Irs forms 1040 Likewise, if your tax residence is in one of the 50 states or the District of Columbia before relocating and you choose to keep it as your tax residence, the source of income for services performed in any of the U. Irs forms 1040 S. Irs forms 1040 possessions is considered to be the United States and, specifically, your state of residence or the District of Columbia. Irs forms 1040 Services performed partly inside and partly outside a relevant possession. Irs forms 1040   If you are an employee and receive compensation for labor or personal services performed both inside and outside the relevant possession, special rules apply in determining the source of the compensation. Irs forms 1040 Compensation (other than certain fringe benefits) is sourced on a time basis. Irs forms 1040 Certain fringe benefits (such as housing and education) are sourced on a geographical basis. Irs forms 1040   Or, you may be permitted to use an alternative basis to determine the source of compensation. Irs forms 1040 See Alternative basis , later. Irs forms 1040   If you are self-employed, determine the source of your income for labor or personal services from self-employment on the basis that most correctly reflects the proper source of that income under the facts and circumstances of your particular case. Irs forms 1040 In many cases, the facts and circumstances will call for an apportionment on a time basis as explained next. Irs forms 1040 Time basis. Irs forms 1040   Use a time basis to figure your compensation for labor or personal services from the relevant possession (other than the fringe benefits discussed later). Irs forms 1040 Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:   Number of days you performed  services in the relevant  possession during the year     Total number of days you  performed services during the year           You can use a unit of time less than a day in the above fraction, if appropriate. Irs forms 1040 The time period for which the income is made does not have to be a year. Irs forms 1040 Instead, you can use another distinct, separate, and continuous time period if you can establish to the satisfaction of the IRS that this other period is more appropriate. Irs forms 1040 Example. Irs forms 1040 In 2013, you worked in your employer's office in the United States for 60 days and in the Puerto Rico office for 180 days, earning a total of $80,000 for the year. Irs forms 1040 Your Puerto Rico source income is $60,000, figured as follows. Irs forms 1040       180 days 240 days × $80,000 = $60,000                 Multi-year compensation. Irs forms 1040   The source of multi-year compensation is generally determined on a time basis over the period to which the compensation is attributable. Irs forms 1040 Multi-year compensation is compensation that is included in your income in 1 tax year but is attributable to a period that includes 2 or more tax years. Irs forms 1040 You determine the period to which the income is attributable based on the facts and circumstances of your case. Irs forms 1040 For more information on multi-year compensation, see Treasury Decision (T. Irs forms 1040 D. Irs forms 1040 ) 9212 and Regulations section 1. Irs forms 1040 861-4, 2005-35 I. Irs forms 1040 R. Irs forms 1040 B. Irs forms 1040 429, available at www. Irs forms 1040 irs. Irs forms 1040 gov/irb/2005-35_IRB/ar14. Irs forms 1040 html. Irs forms 1040 Certain fringe benefits sourced on a geographical basis. Irs forms 1040   If you received any of the following fringe benefits as compensation for labor or services performed as an employee partly inside and partly outside a relevant possession, you must source that income on a geographical basis. Irs forms 1040 Housing. Irs forms 1040 Education. Irs forms 1040 Local transportation. Irs forms 1040 Tax reimbursement. Irs forms 1040 Hazardous or hardship duty pay. Irs forms 1040 Moving expense reimbursement. Irs forms 1040 For information on determining the source of the fringe benefits listed above, see Regulations section 1. Irs forms 1040 861-4. Irs forms 1040 Alternative basis. Irs forms 1040   You can determine the source of your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and circumstances of your case, the alternative basis more properly determines the source of your income than the time or geographical basis. Irs forms 1040 If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more properly determines the source of your income. Irs forms 1040 De minimis exception. Irs forms 1040   There is an exception to the rule for determining the source of income earned in a possession. Irs forms 1040 Generally, you will not have income from a possession if during a tax year you: Are a U. Irs forms 1040 S. Irs forms 1040 citizen or resident, Are not a bona fide resident of that possession, Are not employed by or under contract with an individual, partnership, or corporation that is engaged in a trade or business in that possession, Temporarily perform services in that possession for 90 days or less, and Earned $3,000 or less from such services. Irs forms 1040 This exception began with income earned during your 2008 tax year. Irs forms 1040 Pensions. Irs forms 1040   Generally, pension income has two components: contributions to the pension plan and the earnings accrued from investing those contributions. Irs forms 1040 The contribution portion is sourced according to where services were performed that earned the pension. Irs forms 1040 The investment earnings portion is sourced according to the location of the pension trust. Irs forms 1040 Example. Irs forms 1040 You are a U. Irs forms 1040 S. Irs forms 1040 citizen who worked in Puerto Rico for a U. Irs forms 1040 S. Irs forms 1040 company. Irs forms 1040 All services were performed in Puerto Rico. Irs forms 1040 Upon retirement you remained in Puerto Rico and began receiving your pension from the U. Irs forms 1040 S. Irs forms 1040 pension trust of your employer. Irs forms 1040 Distributions from the U. Irs forms 1040 S. Irs forms 1040 pension trust must be allocated between (1) contributions, which are Puerto Rico source income, and (2) investment earnings, which are U. Irs forms 1040 S. Irs forms 1040 source income. Irs forms 1040 Investment Income This category includes such income as interest, dividends, rents, and royalties. Irs forms 1040 Interest income. Irs forms 1040   The source of interest income is generally determined by the residence of the payer. Irs forms 1040 Interest paid by corporations created or organized in a relevant possession (possession corporation) or by individuals who are bona fide residents of a relevant possession is considered income from sources within that possession. Irs forms 1040   However, there is an exception to this rule if you are a bona fide resident of a relevant possession, receive interest from a corporation created or organized in that possession, and are a shareholder of that corporation who owns, directly or indirectly, at least 10% of the total voting stock of the corporation. Irs forms 1040 See Regulations section 1. Irs forms 1040 937-2(i) for more information. Irs forms 1040 Dividends. Irs forms 1040   Generally, dividends paid by a corporation created or organized in a relevant possession will be considered income from sources within that possession. Irs forms 1040 There are additional rules for bona fide residents of a relevant possession who receive dividend income from possession corporations, and who own, directly or indirectly, at least 10% of the voting stock of the corporation. Irs forms 1040 For more information, see Regulations section 1. Irs forms 1040 937-2(g). Irs forms 1040 Rental income. Irs forms 1040   Rents from property located in a relevant possession are treated as income from sources within that possession. Irs forms 1040 Royalties. Irs forms 1040   Royalties from natural resources located in a relevant possession are considered income from sources within that possession. Irs forms 1040   Also considered possession source income are royalties received for the use of, or for the privilege of using, in a relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property. Irs forms 1040 Sales or Other Dispositions of Property The source rules for sales or other dispositions of property are varied. Irs forms 1040 The most common situations are discussed below. Irs forms 1040 Real property. Irs forms 1040   Real property includes land and buildings, and generally anything built on, growing on, or attached to land. Irs forms 1040 The location of the property generally determines the source of income from the sale. Irs forms 1040 For example, if you are a bona fide resident of Guam and sell your home that is located in Guam, the gain on the sale is sourced in Guam. Irs forms 1040 If, however, the home you sold was located in the United States, the gain is U. Irs forms 1040 S. Irs forms 1040 source income. Irs forms 1040 Personal property. Irs forms 1040   The term “personal property” refers to property (such as machinery, equipment, or furniture) that is not real property. Irs forms 1040 Generally, gain (or loss) from the sale or other disposition is sourced according to the seller's tax home. Irs forms 1040 If personal property is sold by a bona fide resident of a relevant possession, the gain (or loss) from the sale is treated as sourced within that possession. Irs forms 1040   This rule does not apply to the sale of inventory, intangible property, depreciable personal property, or property sold through a foreign office or fixed place of business. Irs forms 1040 The rules applying to sales of inventory are discussed below. Irs forms 1040 For information on sales of the other types of property mentioned, see Internal Revenue Code section 865. Irs forms 1040 Inventory. Irs forms 1040   Your inventory is personal property that is stock in trade or that is held primarily for sale to customers in the ordinary course of your trade or business. Irs forms 1040 The source of income from the sale of inventory depends on whether the inventory was purchased or produced. Irs forms 1040 Purchased. Irs forms 1040   Income from the sale of inventory that you purchased is sourced where you sell the property. Irs forms 1040 Generally, this is where title to the property passes to the buyer. Irs forms 1040 Produced. Irs forms 1040   Income from the sale of inventory that you produced in a relevant possession and sold outside that possession (or vice versa) is sourced based on an allocation. Irs forms 1040 For information on making the allocation, see Regulations section 1. Irs forms 1040 863-3(f). Irs forms 1040 Special Rules for Gains From Dispositions of Certain Property There are special rules for gains from dispositions of certain investment property (for example, stocks, bonds, debt instruments, diamonds, and gold) owned by a U. Irs forms 1040 S. Irs forms 1040 citizen or resident alien prior to becoming a bona fide resident of a possession. Irs forms 1040 You are subject to these special rules if you meet both of the following conditions. Irs forms 1040 For the tax year for which the source of the gain must be determined, you are a bona fide resident of the relevant possession. Irs forms 1040 For any of the 10 years preceding that year, you were a citizen or resident alien of the United States (other than a bona fide resident of the relevant possession). Irs forms 1040 If you meet these conditions, gains from the disposition of this property will not be treated as income from sources within the relevant possession for purposes of the Internal Revenue Code. Irs forms 1040 Accordingly, bona fide residents of American Samoa and Puerto Rico, for example, may not exclude the gain on their U. Irs forms 1040 S. Irs forms 1040 tax return. Irs forms 1040 (See chapter 3 for additional filing information. Irs forms 1040 ) With respect to the CNMI, Guam, and the USVI, the gain from the disposition of this property will not meet the requirements for certain tax rules that may allow bona fide residents of those possessions to reduce or obtain a rebate of taxes on income from sources within the relevant possessions. Irs forms 1040 These rules apply to dispositions after April 11, 2005. Irs forms 1040 For details, see Regulations section 1. Irs forms 1040 937-2(f)(1) and Examples 1 and 2 of section 1. Irs forms 1040 937-2(k). Irs forms 1040 Example 1. Irs forms 1040 In 2007, Cheryl Jones, a U. Irs forms 1040 S. Irs forms 1040 citizen, lived in the United States and paid $1,000 for 100 shares of stock in the Rose Corporation, a U. Irs forms 1040 S. Irs forms 1040 corporation listed on the New York Stock Exchange. Irs forms 1040 On March 1, 2010, she moved to Puerto Rico and changed her tax home to Puerto Rico on the same date. Irs forms 1040 Cheryl satisfied the presence test in 2010 and, under the year-of-move exception, she was considered a bona fide resident of Puerto Rico for the rest of 2010. Irs forms 1040 On March 1, 2010, the closing value of Cheryl's stock in the Rose Corporation was $2,000. Irs forms 1040 On January 5, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold all her Rose Corporation stock for $7,000. Irs forms 1040 Under the earlier rules, none of Cheryl's $6,000 gain will be treated as income from sources within Puerto Rico. Irs forms 1040 The source rules discussed in the preceding paragraphs supplement, and may apply in conjunction with, an existing special rule. Irs forms 1040 This existing special rule applies if you are a U. Irs forms 1040 S. Irs forms 1040 citizen or resident alien who becomes a bona fide resident of American Samoa, the CNMI, or Guam, and who has gain from the disposition of certain U. Irs forms 1040 S. Irs forms 1040 assets during the 10-year period beginning when you became a bona fide resident. Irs forms 1040 The gain is U. Irs forms 1040 S. Irs forms 1040 source income that generally is subject to U. Irs forms 1040 S. Irs forms 1040 tax if the property is either (1) located in the United States; (2) stock issued by a U. Irs forms 1040 S. Irs forms 1040 corporation or a debt obligation of a U. Irs forms 1040 S. Irs forms 1040 person or of the United States, a state (or political subdivision), or the District of Columbia; or (3) property that has a basis in whole or in part by reference to property described in (1) or (2). Irs forms 1040 See chapter 3 for filing information. Irs forms 1040 Special election. Irs forms 1040   For dispositions after April 11, 2005, you can choose to treat the part of gain (or loss) attributable to the time you held the property while a bona fide resident of the relevant possession (the possession holding period) as gain (or loss) from sources within that possession. Irs forms 1040 Make the election by reporting the gain attributable to the possession holding period on your income tax return for the year of disposition. Irs forms 1040 This election overrides both of the special rules discussed earlier. Irs forms 1040   There are two methods for figuring the gain for the possession holding period, one for marketable securities and another for other types of investment property. Irs forms 1040 Marketable securities. Irs forms 1040   Marketable securities are those actively traded on an established financial market, such as stock in a publicly held corporation. Irs forms 1040 Under the special election, allocate the gain (or loss) by figuring the appreciation separately for your possession and U. Irs forms 1040 S. Irs forms 1040 holding periods. Irs forms 1040   Your possession holding period begins on the first day you do not have a tax home outside the relevant possession. Irs forms 1040 The gain (or loss) attributable to the possession holding period is the difference in fair market value of the security at the close of the market on the first and last days of this holding period. Irs forms 1040 This is your gain (or loss) that is treated as being from sources within the relevant possession. Irs forms 1040 If you were a bona fide resident of the relevant possession for more than one continuous period, combine the gains (or losses) from each possession holding period. Irs forms 1040 Example 2. Irs forms 1040 Assume the same facts as in Example 1, except that Cheryl makes the special election to allocate the gain between her U. Irs forms 1040 S. Irs forms 1040 and possession holding periods. Irs forms 1040 Cheryl's possession holding period began March 1, 2010, the date her tax home changed to Puerto Rico. Irs forms 1040 Therefore, the portion of gain attributable to her possession holding period is $5,000 ($7,000 sale price – $2,000 closing value on first day of the possession holding period). Irs forms 1040 By reporting $5,000 of her $6,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. Irs forms 1040 Other personal property. Irs forms 1040   For personal property other than marketable securities, use a time-based allocation. Irs forms 1040 Figure the gain (or loss) attributable to the possession holding period by multiplying your total gain (or loss) by the following fraction. Irs forms 1040      Number of days in the  possession holding period     Total number of days  in your holding period         The result is your gain (or loss) that is treated as being from sources within the relevant possession. Irs forms 1040 Example 3. Irs forms 1040 In addition to the stock in Rose Corporation, Cheryl acquired a 5% interest in the Alder Partnership on January 1, 2009. Irs forms 1040 On March 1, 2010, when she established bona fide residency in Puerto Rico, her partnership interest was not considered a marketable security. Irs forms 1040 On September 16, 2013, while still a bona fide resident of Puerto Rico, Cheryl sold her interest in Alder Partnership for a $100,000 gain. Irs forms 1040 She had owned the interest for a total of 1,720 days. Irs forms 1040 Cheryl's possession holding period (from March 1, 2010, through September 16, 2013) is 1,296 days. Irs forms 1040 The portion of her gain attributable to Puerto Rico is $75,349 ($100,000 x (1,296 Puerto Rico days ÷ 1,720 total days)). Irs forms 1040 By reporting $75,349 of her $100,000 gain as Puerto Rico source income on her 2013 Puerto Rico tax return (and the remainder as non-Puerto Rico source income), Cheryl elects to treat that amount as Puerto Rico source income. Irs forms 1040 Scholarships, Fellowships, Grants, Prizes, and Awards The source of these types of income is generally the residence of the payer, regardless of who actually disburses the funds. Irs forms 1040 Therefore, in order to be possession source income, the payer must be a resident of the relevant possession, such as an individual who is a bona fide resident or a corporation created or organized in that possession. Irs forms 1040 These rules do not apply to amounts paid as salary or other compensation for services. Irs forms 1040 See Compensation for Labor or Personal Services, earlier in this chapter, for the source rules that apply. Irs forms 1040 Effectively Connected Income In limited circumstances, some kinds of income from sources outside the relevant possession must be treated as effectively connected with a trade or business in that possession. Irs forms 1040 These circumstances are listed below. Irs forms 1040 You have an office or other fixed place of business in the relevant possession to which the income can be attributed. Irs forms 1040 That office or place of business is a material factor in producing the income. Irs forms 1040 The income is produced in the ordinary course of the trade or business carried on through that office or other fixed place of business. Irs forms 1040 An office or other fixed place of business is a material factor if it significantly contributes to, and is an essential economic element in, the earning of the income. Irs forms 1040 The three kinds of income from sources outside the relevant possession to which these rules apply are the following. Irs forms 1040 Rents and royalties for the use of, or for the privilege of using, intangible personal property located outside the relevant possession or from any interest in such property. Irs forms 1040 Included are rents or royalties for the use of, or for the privilege of using, outside the relevant possession, patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and similar properties if the rents or royalties are from the active conduct of a trade or business in the relevant possession. Irs forms 1040 Dividends or interest from the active conduct of a banking, financing, or similar business in the relevant possession. Irs forms 1040 Income, gain, or loss from the sale or exchange outside the relevant possession, through the office or other fixed place of business in the relevant possession, of: Stock in trade, Property that would be included in inventory if on hand at the end of the tax year, or Property held primarily for sale to customers in the ordinary course of business. Irs forms 1040 Item (3) will not apply if you sold the property for use, consumption, or disposition outside the relevant possession and an office or other fixed place of business in a foreign country was a material factor in the sale. Irs forms 1040 Example. Irs forms 1040 Marcy Jackson is a bona fide resident of American Samoa. Irs forms 1040 Her business, which she conducts from an office in American Samoa, is developing and selling specialized computer software. Irs forms 1040 A software purchaser will frequently pay Marcy an additional amount to install the software on the purchaser's operating system and to ensure that the software is functioning properly. Irs forms 1040 Marcy installs the software at the purchaser's place of business, which may be in American Samoa, in the United States, or in another country. Irs forms 1040 The income from selling the software is effectively connected with the conduct of Marcy's business in American Samoa, even though the product's destination may be outside the possession. Irs forms 1040 However, the compensation she receives for installing the software (personal services) outside of American Samoa is not effectively connected with the conduct of her business in the possession—the income is sourced where she performs the services. Irs forms 1040 Prev  Up  Next   Home   More Online Publications
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The Irs Forms 1040

Irs forms 1040 Publication 971 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Irs forms 1040 Questions & AnswersThis section answers questions commonly asked by taxpayers about innocent spouse relief. Irs forms 1040 . Irs forms 1040 What is joint and several liability? . Irs forms 1040 How can I get relief from joint and several liability? . Irs forms 1040 What are the rules for innocent spouse relief? . Irs forms 1040 What are erroneous items? . Irs forms 1040 What is an understated tax? . Irs forms 1040 Will I qualify for innocent spouse relief in any situation where there is an understated tax? . Irs forms 1040 What are the rules for separation of liability relief? . Irs forms 1040 Why would a request for separation of liability relief be denied? . Irs forms 1040 What are the rules for equitable relief? . Irs forms 1040 How do state community property laws affect my ability to qualify for relief? . Irs forms 1040 How do I request relief? . Irs forms 1040 When should I file Form 8857? . Irs forms 1040 Where should I file Form 8857? . Irs forms 1040 I am currently undergoing an examination of my return. Irs forms 1040 How do I request innocent spouse relief? . Irs forms 1040 What if the IRS has given me notice that it will levy my account for the tax liability and I decide to request relief? . Irs forms 1040 What is injured spouse relief? . Irs forms 1040 What is joint and several liability? When you file a joint income tax return, the law makes both you and your spouse responsible for the entire tax liability. Irs forms 1040 This is called joint and several liability. Irs forms 1040 Joint and several liability applies not only to the tax liability you show on the return but also to any additional tax liability the IRS determines to be due, even if the additional tax is due to the income, deductions, or credits of your spouse or former spouse. Irs forms 1040 You remain jointly and severally liable for taxes, and the IRS still can collect from you, even if you later divorce and the divorce decree states that your former spouse will be solely responsible for the tax. Irs forms 1040 There are three types of relief for filers of joint returns: “innocent spouse relief,” “separation of liability relief,” and “equitable relief. Irs forms 1040 ” Each type has different requirements. Irs forms 1040 They are explained separately below. Irs forms 1040 To qualify for innocent spouse relief, you must meet all of the following conditions. Irs forms 1040 You must have filed a joint return which has an understated tax. Irs forms 1040 The understated tax must be due to erroneous items of your spouse (or former spouse). Irs forms 1040 You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. Irs forms 1040 Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. Irs forms 1040 You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs forms 1040 You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs forms 1040 For example, you reported total tax on your 2008 return of $2,500. Irs forms 1040 IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs forms 1040 You have a $500 understated tax. Irs forms 1040 No. Irs forms 1040 There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs forms 1040 For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs forms 1040 You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs forms 1040 Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs forms 1040 The understated tax allocated to you is generally the amount you are responsible for. Irs forms 1040 To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs forms 1040 You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs forms 1040 (Under this rule, you are no longer married if you are widowed. Irs forms 1040 ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs forms 1040 In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 How can I get relief from joint and several liability? There are three types of relief for filers of joint returns: “innocent spouse relief,” “separation of liability relief,” and “equitable relief. Irs forms 1040 ” Each type has different requirements. Irs forms 1040 They are explained separately below. Irs forms 1040 To qualify for innocent spouse relief, you must meet all of the following conditions. Irs forms 1040 You must have filed a joint return which has an understated tax. Irs forms 1040 The understated tax must be due to erroneous items of your spouse (or former spouse). Irs forms 1040 You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. Irs forms 1040 Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. Irs forms 1040 You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs forms 1040 You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs forms 1040 For example, you reported total tax on your 2008 return of $2,500. Irs forms 1040 IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs forms 1040 You have a $500 understated tax. Irs forms 1040 No. Irs forms 1040 There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs forms 1040 For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs forms 1040 You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs forms 1040 Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs forms 1040 The understated tax allocated to you is generally the amount you are responsible for. Irs forms 1040 To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs forms 1040 You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs forms 1040 (Under this rule, you are no longer married if you are widowed. Irs forms 1040 ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs forms 1040 In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 What are the rules for innocent spouse relief? To qualify for innocent spouse relief, you must meet all of the following conditions. Irs forms 1040 You must have filed a joint return which has an understated tax. Irs forms 1040 The understated tax must be due to erroneous items of your spouse (or former spouse). Irs forms 1040 You must establish that at the time you signed the joint return, you did not know, and had no reason to know, that there was an understated tax. Irs forms 1040 Taking into account all of the facts and circumstances, it would be unfair to hold you liable for the understated tax. Irs forms 1040 You must request relief within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs forms 1040 You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs forms 1040 For example, you reported total tax on your 2008 return of $2,500. Irs forms 1040 IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs forms 1040 You have a $500 understated tax. Irs forms 1040 No. Irs forms 1040 There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs forms 1040 For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs forms 1040 You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs forms 1040 Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs forms 1040 The understated tax allocated to you is generally the amount you are responsible for. Irs forms 1040 To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs forms 1040 You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs forms 1040 (Under this rule, you are no longer married if you are widowed. Irs forms 1040 ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs forms 1040 In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 What are “erroneous items”? Erroneous items are any deductions, credits, or bases that are incorrectly stated on the return, and any income that is not properly reported on the return. Irs forms 1040 You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs forms 1040 For example, you reported total tax on your 2008 return of $2,500. Irs forms 1040 IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs forms 1040 You have a $500 understated tax. Irs forms 1040 No. Irs forms 1040 There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs forms 1040 For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs forms 1040 You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs forms 1040 Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs forms 1040 The understated tax allocated to you is generally the amount you are responsible for. Irs forms 1040 To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs forms 1040 You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs forms 1040 (Under this rule, you are no longer married if you are widowed. Irs forms 1040 ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs forms 1040 In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 What is an “understated tax”? You have an understated tax if the IRS determined that your total tax should be more than the amount actually shown on your return. Irs forms 1040 For example, you reported total tax on your 2008 return of $2,500. Irs forms 1040 IRS determined in an audit of your 2008 return that the total tax should be $3,000. Irs forms 1040 You have a $500 understated tax. Irs forms 1040 No. Irs forms 1040 There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs forms 1040 For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs forms 1040 You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs forms 1040 Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs forms 1040 The understated tax allocated to you is generally the amount you are responsible for. Irs forms 1040 To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs forms 1040 You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs forms 1040 (Under this rule, you are no longer married if you are widowed. Irs forms 1040 ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs forms 1040 In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 Will I qualify for innocent spouse relief in any situation where there is an understated tax? No. Irs forms 1040 There are many situations in which you may owe tax that is related to your spouse (or former spouse), but not be eligible for innocent spouse relief. Irs forms 1040 For example, you and your spouse file a joint return on which you report $10,000 of income and deductions, but you knew that your spouse was not reporting $5,000 of dividends. Irs forms 1040 You are not eligible for innocent spouse relief because you have knowledge of the understated tax. Irs forms 1040 Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs forms 1040 The understated tax allocated to you is generally the amount you are responsible for. Irs forms 1040 To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs forms 1040 You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs forms 1040 (Under this rule, you are no longer married if you are widowed. Irs forms 1040 ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs forms 1040 In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 What are the rules for separation of liability relief? Under this type of relief, you allocate (separate) the understated tax (plus interest and penalties) on your joint return between you and your spouse (or former spouse). Irs forms 1040 The understated tax allocated to you is generally the amount you are responsible for. Irs forms 1040 To qualify for separation of liability relief, you must have filed a joint return and meet either of the following requirements at the time you file Form 8857. Irs forms 1040 You are no longer married to, or are legally separated from, the spouse with whom you filed the joint return for which you are requesting relief. Irs forms 1040 (Under this rule, you are no longer married if you are widowed. Irs forms 1040 ) You were not a member of the same household as the spouse with whom you filed the joint return at any time during the 12-month period ending on the date you file Form 8857. Irs forms 1040 In addition to the above requirements, you must file a Form 8857 within 2 years after the date on which the IRS first began collection activity against you after July 22, 1998. Irs forms 1040 Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 Why would a request for separation of liability relief be denied? Even if you meet the requirements listed earlier, a request for separation of liability relief will not be granted in the following situations. Irs forms 1040 The IRS proves that you and your spouse (or former spouse) transferred assets to one another as part of a fraudulent scheme. Irs forms 1040 The IRS proves that at the time you signed your joint return, you had actual knowledge of any erroneous items giving rise to the deficiency that are allocable to your spouse (or former spouse). Irs forms 1040 Your spouse (or former spouse) transferred property to you to avoid tax or the payment of tax. Irs forms 1040 Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 What are the rules for equitable relief? Equitable relief is only available if you meet all of the following conditions. Irs forms 1040 You do not qualify for innocent spouse relief, separation of liability relief, or relief from liability arising from community property law. Irs forms 1040 You have an understated tax or underpaid tax. Irs forms 1040 See Note later. Irs forms 1040 You did not pay the tax. Irs forms 1040 However, see Refunds , earlier, for exceptions. Irs forms 1040 The IRS determines that it is unfair to hold you liable for the understated or underpaid tax taking into account all the facts and circumstances. Irs forms 1040 You and your spouse (or former spouse) did not transfer assets to one another as a part of a fraudulent scheme. Irs forms 1040 Your spouse (or former spouse) did not transfer property to you for the main purpose of avoiding tax or the payment of tax. Irs forms 1040 You did not file or fail to file your return with the intent to commit fraud. Irs forms 1040 The income tax liability for which you seek relief is attributable to your spouse (or former spouse) with whom you filed the joint return. Irs forms 1040 For exceptions to this condition, see item (8) under Conditions for Getting Equitable Relief , earlier. Irs forms 1040 You timely file Form 8857 as explained earlier in Exception for equitable relief under How To Request Relief. Irs forms 1040 Note. Irs forms 1040 Unlike innocent spouse relief or separation of liability relief, if you qualify for equitable relief, you can also get relief from an underpaid tax. Irs forms 1040 (An underpaid tax is tax that is properly shown on the return, but has not been paid. Irs forms 1040 ) Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or resume collecting from you. Irs forms 1040 The 10-year period will be increased by the amount of time your request for relief was pending plus 60 days. Irs forms 1040 See Publication 594 for more information. Irs forms 1040 Injured spouse relief is different from innocent spouse relief. Irs forms 1040 When a joint return is filed and the refund is used to pay one spouse's past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or federal non-tax debt, such as a student loan, the other spouse may be considered an injured spouse. Irs forms 1040 The injured spouse can get back his or her share of the joint overpayment using Form 8379, Injured Spouse Allocation. Irs forms 1040 You are considered an injured spouse if: You are not legally obligated to pay the past-due amount, and You meet any of the following conditions: You made and reported tax payments (such as federal income tax withholding or estimated tax payments). Irs forms 1040 You had earned income (such as wages, salaries, or self-employment income) and claimed the earned income credit or the additional child tax credit. Irs forms 1040 You claimed a refundable tax credit, such as the health coverage tax credit or the refundable credit for prior year minimum tax. Irs forms 1040 Note. Irs forms 1040 If your residence was in a community property state at any time during the year, you may file Form 8379 even if only item (1) above applies. Irs forms 1040 . Irs forms 1040 How do state community property laws affect my ability to qualify for relief? Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Irs forms 1040 Generally, community property laws require you to allocate community income and expenses equally between both spouses. Irs forms 1040 However, community property laws are not taken into account in determining whether an item belongs to you or to your spouse (or former spouse) for purposes of requesting any relief from liability. Irs forms 1040      File Form 8857, Request for Innocent Spouse Relief, to ask the IRS for relief. Irs forms 1040 You must file an additional Form 8857 if you are requesting relief for more than three years. Irs forms 1040 If you are requesting innocent spouse relief or separation of liability relief, file Form 8857 no later than two years after the date on which the IRS first began collection activities against you after July 22, 1998. Irs forms 1040 If you are requesting equitable relief, see Exception for equitable relief. Irs forms 1040 under How To Request Relief, earlier, for when to file Form 8857. Irs forms 1040 If you are requesting relief from liability arising from community property law, see How and When To Request Relief under Community Property Laws, earlier, for when to file Form 8857. Irs forms 1040 Use the address or fax number shown in the Instructions for Form 8857. Irs forms 1040 File Form 8857 at the address or send it to the fax number shown in the Instructions for Form 8857. Irs forms 1040 Do not file it with the employee assigned to examine your return. Irs forms 1040 Generally, the IRS has 10 years to collect an amount you owe. Irs forms 1040 This is the collection statute of limitations. Irs forms 1040 By law, the IRS is not allowed to collect from you after the 10-year period ends. Irs forms 1040 If you request relief for any tax year, the IRS cannot collect from you for that year while your request is pending. Irs forms 1040 But interest and penalties continue to accrue. Irs forms 1040 Your request is generally considered pending from the date the IRS receives your Form 8857 until the date your request is resolved. Irs forms 1040 This includes the time the Tax Court is considering your request. Irs forms 1040 After your case is resolved, the IRS can begin or