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Irs Gov 1040ez Form

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Irs Gov 1040ez Form

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Offshore Voluntary Disclosure Initiative: Passive Foreign Income Company Investment Computations

September 2010

A significant number of Offshore Voluntary Disclosure Practice (VDP) cases involve Passive Foreign Investment Company (PFIC) investments.  A lack of historical information on the cost basis and holding period of many PFIC investments makes it difficult for taxpayers to prepare statutory PFIC computations and for the Service to verify them.  As a result, resolution of many VDP cases is being unduly delayed.  Therefore, for purposes of this initiative, the Service is offering taxpayers an alternative to the statutory PFIC computation that will resolve PFIC issues on a basis that is consistent with the Mark to Market (MTM) methodology authorized in Internal Revenue Code section 1296 but will not require complete reconstruction of historical data.

The terms of this alternative resolution are as follows:

  • If elected, the alternative resolution will apply to all PFIC investments in cases that have been accepted into the VDP and that qualify for the special civil penalty framework announced by the IRS on March 23, 2009.  The initial MTM computation of gain or loss under this methodology will be for the first year of the VDP application but could be made after 2003 depending on when the first PFIC investment was made.  Generally, under the terms of the March 23, 2009 framework, the first year of the VDP application will be for the calendar year ending December 31, 2003.   This will require a determination of the basis for every PFIC investment, which should be agreed between the taxpayer and the Service based on the best available evidence. 


  • A tax rate of 20% will be applied to the MTM gain(s), MTM net gain(s) and gains from all PFIC dispositions during the VDP period, in lieu of the rate contained in section 1291(a)(1)(B) for the amount allocable to the current year and section 1291(c)(2) for the deferred tax amount(s) allocable to any other taxable year.

  • A rate of 7% of the tax computed for PFIC investments marked to market in the first year of the VDP application will be added to the tax for that year, in lieu of the interest charge mechanism described in sections 1291(c) and 1296(j).

  • MTM losses will be limited to unreversed inclusions (generally, previously reported MTM gains less allowed MTM losses) on an investment-by-investment basis in the same manner as section 1296. During the VDP period, these MTM losses will be treated as  ordinary losses (IRC 1296[c][1][B]) and the tax benefit is limited to the tax rate applicable to the MTM gains derived during the VDP period (20%).  This limitation is accomplished by multiplying the MTM loss by 20% and applying the result as a credit against the tax liability for the year.
     
  • Regular and Alternative Minimum Tax are both to be computed without the PFIC dispositions or MTM gains and losses.  The tax from the PFIC transactions (20% plus the 7% for 2003, if applicable) is added to (or subtracted from) the applicable total tax (either regular or AMT, whichever is higher).  The tax and interest (i.e., the 7% for the first year of the VDP) computed under the VDP alternative MTM can be added to the applicable total tax (either regular or AMT, whichever is higher) and placed on the amended return in the margin, with a supporting schedule.

  • Underpayment interest and penalties on the deficiency are computed in accordance with the Internal Revenue Code and the terms of the VDP.

  • For any PFIC investment retained beyond 12/31/2008, the taxpayer must continue using the MTM method, but will apply the normal statutory rules of section 1296 as well as the provisions of sections 1291-1298, as applicable.

Taxpayers should direct questions regarding PFICs and how the alternative resolution will affect their cases to the examiners assigned to their cases.  Before electing the alternative PFIC resolution, taxpayers with PFIC investments should consult their tax advisors to ensure that the issue is material in their cases and that the alternative is in fact preferable to the statutory computation in their situation.  If the taxpayer does not elect to use the alternative PFIC computation, then the PFIC provisions of section 1291-1298 apply. 

Page Last Reviewed or Updated: 09-Jan-2014

The Irs Gov 1040ez Form

Irs gov 1040ez form Publication 4492 - Main Contents Table of Contents DefinitionsHurricane Katrina Disaster Area Katrina Covered Disaster Area Gulf Opportunity (GO) Zone (Core Disaster Area) Hurricane Rita Disaster Area (Rita Covered Disaster Area) Rita GO Zone Hurricane Wilma Disaster Area Wilma Covered Disaster Area Wilma GO Zone Extended Tax Deadlines Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Charitable Deduction for Contributions of Food Inventory Charitable Deduction for Contributions of Book Inventories to Public Schools Casualty and Theft LossesTime limit for making election. Irs gov 1040ez form Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Hurricane Distributions Repayment of Qualified Hurricane Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by Hurricane Katrina Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Work Opportunity Credit Employee Retention Credit Hurricane Katrina Housing Credit Reforestation Costs Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax Help Definitions The following definitions are used throughout this publication. Irs gov 1040ez form Hurricane Katrina Disaster Area The Hurricane Katrina disaster area covers the area for which the President declared a major disaster before September 14, 2005, because of Hurricane Katrina. Irs gov 1040ez form The Hurricane Katrina disaster area covers the entire states of Alabama, Florida, Louisiana, and Mississippi. Irs gov 1040ez form Katrina Covered Disaster Area A portion of the Hurricane Katrina disaster area has been designated by the IRS as a covered disaster area. Irs gov 1040ez form The Katrina covered disaster area covers the following areas in four states. Irs gov 1040ez form Alabama. Irs gov 1040ez form   The counties of Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox, and Winston. Irs gov 1040ez form Florida. Irs gov 1040ez form   The counties of Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa, and Walton. Irs gov 1040ez form Louisiana. Irs gov 1040ez form   All parishes. Irs gov 1040ez form Mississippi. Irs gov 1040ez form   All counties. Irs gov 1040ez form Gulf Opportunity (GO) Zone (Core Disaster Area) The GO Zone (also called the core disaster area) covers the portion of the Hurricane Katrina disaster area determined by the Federal Emergency Management Agency (FEMA) to be eligible for either individual only or both individual and public assistance from the Federal Government. Irs gov 1040ez form The GO Zone covers the following areas in three states. Irs gov 1040ez form Alabama. Irs gov 1040ez form   The counties of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington. Irs gov 1040ez form Louisiana. Irs gov 1040ez form   The parishes of Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Irs gov 1040ez form Bernard, St. Irs gov 1040ez form Charles, St. Irs gov 1040ez form Helena, St. Irs gov 1040ez form James, St. Irs gov 1040ez form John the Baptist, St. Irs gov 1040ez form Martin, St. Irs gov 1040ez form Mary, St. Irs gov 1040ez form Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West Feliciana. Irs gov 1040ez form Mississippi. Irs gov 1040ez form   The counties of Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo. Irs gov 1040ez form Hurricane Rita Disaster Area (Rita Covered Disaster Area) The Hurricane Rita disaster area (also designated by the IRS as the Rita covered disaster area) covers the area for which the President declared a major disaster before October 6, 2005, because of Hurricane Rita. Irs gov 1040ez form This area covers the entire states of Louisiana and Texas. Irs gov 1040ez form Rita GO Zone The Rita GO Zone covers the portion of the Hurricane Rita disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Irs gov 1040ez form The Rita GO Zone covers the following areas in two states. Irs gov 1040ez form Louisiana. Irs gov 1040ez form   The parishes of Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Plaquemines, Sabine, St. Irs gov 1040ez form Landry, St. Irs gov 1040ez form Martin, St. Irs gov 1040ez form Mary, St. Irs gov 1040ez form Tammany, Terrebonne, Vermilion, Vernon, and West Baton Rouge. Irs gov 1040ez form Texas. Irs gov 1040ez form   The counties of Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. Irs gov 1040ez form Hurricane Wilma Disaster Area The Hurricane Wilma disaster area covers the area for which the President declared a major disaster before November 14, 2005, because of Hurricane Wilma. Irs gov 1040ez form The Hurricane Wilma disaster area covers the entire state of Florida. Irs gov 1040ez form Wilma Covered Disaster Area A portion of the Hurricane Wilma disaster area has been designated by the IRS as a covered disaster area. Irs gov 1040ez form The Wilma covered disaster area covers the following counties. Irs gov 1040ez form Florida. Irs gov 1040ez form   Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. Irs gov 1040ez form Lucie, and Sarasota. Irs gov 1040ez form Wilma GO Zone The Wilma GO Zone covers the portion of the Hurricane Wilma disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Irs gov 1040ez form The Wilma GO Zone covers the following counties. Irs gov 1040ez form Florida. Irs gov 1040ez form   Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. Irs gov 1040ez form Lucie. Irs gov 1040ez form Extended Tax Deadlines The IRS has extended deadlines that apply to filing returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Katrina, Rita, or Wilma, until February 28, 2006. Irs gov 1040ez form The extension applies to deadlines (either an original or extended due date) that occur during the following periods. Irs gov 1040ez form After August 28, 2005 (August 23, 2005, for Florida affected taxpayers), and before February 28, 2006, for taxpayers affected by Hurricane Katrina. Irs gov 1040ez form After September 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Rita. Irs gov 1040ez form After October 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Wilma. Irs gov 1040ez form Affected taxpayer. Irs gov 1040ez form   The following taxpayers are eligible for the extension. Irs gov 1040ez form Any individual whose main home is located in a covered disaster area. Irs gov 1040ez form Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Irs gov 1040ez form Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained or whose tax professional's office is in a covered disaster area. Irs gov 1040ez form The main home or principal place of business does not have to be located in the covered area. Irs gov 1040ez form Any individual visiting a county or parish in the Hurricane Katrina or Hurricane Rita covered disaster area that was injured or killed (and the estate of an individual killed) as a result of the hurricane or its aftermath. Irs gov 1040ez form Any estate or trust whose tax records needed to meet a filing or payment deadline are maintained in a covered disaster area. Irs gov 1040ez form Generally, any individual who is a worker assisting in the relief activities in a covered disaster area. Irs gov 1040ez form However, a relief worker assisting in the Wilma covered disaster area is not an affected taxpayer unless the worker is affiliated with a recognized government or philanthropic organization assisting in the relief activities. Irs gov 1040ez form The spouse of an affected taxpayer, solely with regard to a joint income tax return with that taxpayer. Irs gov 1040ez form   To ensure correct processing, affected taxpayers should write the assigned disaster designation (for example, “Hurricane Katrina”) in red ink at the top of any forms or documents filed with the IRS. Irs gov 1040ez form Affected taxpayers can also identify themselves to the IRS or ask hurricane-related questions by calling the special IRS disaster hotline at 1-866-562-5227. Irs gov 1040ez form Acts extended. Irs gov 1040ez form   Deadlines for performing the following acts are extended. Irs gov 1040ez form Filing any return of income, estate, gift, generation-skipping transfer, excise, or employment tax. Irs gov 1040ez form Paying any income, estate, gift, generation-skipping transfer, excise, or employment tax. Irs gov 1040ez form This includes making estimated tax payments. Irs gov 1040ez form Making certain contributions, distributions, recharacterizing contributions, or making a rollover to or from a qualified retirement plan. Irs gov 1040ez form Filing certain petitions with the Tax Court. Irs gov 1040ez form Filing a claim for credit or refund of any tax. Irs gov 1040ez form Bringing suit upon a claim for credit or refund. Irs gov 1040ez form Certain other acts described in Revenue Procedure 2005-27. Irs gov 1040ez form You can find Revenue Procedure 2005-27 on page 1050 of Internal Revenue Bulletin 2005-20 at www. Irs gov 1040ez form irs. Irs gov 1040ez form gov/pub/irs-irbs/irb05-20. Irs gov 1040ez form pdf. Irs gov 1040ez form Forgiveness of interest and penalties. Irs gov 1040ez form   The IRS may forgive the interest and penalties on any underpaid income, estate, gift, employment, or excise tax for the length of any extension. Irs gov 1040ez form Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions Individuals. Irs gov 1040ez form   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% adjusted gross income (AGI) limit. Irs gov 1040ez form A qualified contribution is a charitable contribution paid in cash or by check after August 27, 2005, and before January 1, 2006, to a 50% limit organization (other than certain private foundations described in section 509(a)(3)) if you make an election to have the 50% limit not apply to these contributions. Irs gov 1040ez form   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Irs gov 1040ez form You can carry over any contributions you are not able to deduct for 2005 because of this limit. Irs gov 1040ez form In 2006, treat the carryover of your unused qualified contributions as a carryover of contributions subject to the 50% limit. Irs gov 1040ez form Exception. Irs gov 1040ez form   Qualified contributions do not include a contribution to a segregated fund or account for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or investments based on your contribution. Irs gov 1040ez form Corporations. Irs gov 1040ez form   A corporation may elect to deduct qualified cash contributions without regard to the 10% taxable income limit if the contributions were made after August 27, 2005, and before January 1, 2006, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3)), for Hurricane Katrina, Rita, or Wilma relief efforts. Irs gov 1040ez form The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Irs gov 1040ez form Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% limit. Irs gov 1040ez form Partners and shareholders. Irs gov 1040ez form   Each partner in a partnership and each shareholder in an S corporation makes a separate election to have the appropriate limit not apply. Irs gov 1040ez form More information. Irs gov 1040ez form   For more information, see Publication 526 or Publication 542, Corporations. Irs gov 1040ez form Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Irs gov 1040ez form Standard Mileage Rate for Charitable Use of Vehicles The following are special standard mileage rates in effect in 2005 and 2006 for the cost of operating your automobile for providing charitable services solely related to Hurricane Katrina. Irs gov 1040ez form 29 cents per mile for the period August 25 through August 31, 2005. Irs gov 1040ez form 34 cents per mile for the period September 1 through December 31, 2005. Irs gov 1040ez form 32 cents per mile for the period January 1 through December 31, 2006. Irs gov 1040ez form Mileage Reimbursements to Charitable Volunteers You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger automobile for the benefit of a qualified charitable organization in providing relief related to Hurricane Katrina during the period beginning on August 25, 2005, and ending on December 31, 2006. Irs gov 1040ez form You cannot claim a deduction or credit for amounts you receive as a mileage reimbursement. Irs gov 1040ez form You must keep records of miles driven, time, place (or use), and purpose of the mileage. Irs gov 1040ez form The amount you can exclude from income cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Irs gov 1040ez form 40. Irs gov 1040ez form 5 cents per mile for the period August 25 through August 31, 2005. Irs gov 1040ez form 48. Irs gov 1040ez form 5 cents per mile for the period September 1 through December 31, 2005. Irs gov 1040ez form 44. Irs gov 1040ez form 5 cents per mile for the period January 1 through December 31, 2006. Irs gov 1040ez form Charitable Deduction for Contributions of Food Inventory Any taxpayer engaged in a trade or business is eligible to claim a deduction for a contribution of “apparently wholesome food” inventory to a qualified charitable organization described in section 501(c)(3) (except for private nonoperating foundations) after August 27, 2005, and before January 1, 2006. Irs gov 1040ez form “Apparently wholesome food” is food that meets all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. Irs gov 1040ez form The deduction is equal to the lesser of: The basis of the donated food plus one-half of the gain that would have been realized if the donated food had been sold at fair market value on the date of the donation, or Two times the basis of the donated food. Irs gov 1040ez form The taxpayer must receive written certification from the donee stating: The donated food is related to the purpose or function of the donee's basis for exemption under section 501(c)(3) and is to be used solely for the care of the ill, the needy, or infants; and The food was not given in exchange for money, other property, or services. Irs gov 1040ez form For a taxpayer other than a C corporation, the deduction is limited to 10% of the taxpayer's total net income from all trades or businesses from which the food contributions were made (figured without regard to the deduction for charitable contributions). Irs gov 1040ez form For example, if a taxpayer is a sole proprietor, a shareholder in an S corporation, and a partner in a partnership, and each made a contribution of apparently wholesome food inventory, the taxpayer's deduction is limited to 10% of the taxpayer's total net income from the sole proprietorship, S corporation, and partnership (figured without regard to the deduction for charitable contributions). Irs gov 1040ez form Charitable Deduction for Contributions of Book Inventories to Public Schools A corporation (other than an S corporation) may be allowed a charitable deduction for a qualified book contribution made after August 27, 2005, and before January 1, 2006, to a public school that: Provides elementary or secondary education (kindergarten through grade 12), and Normally maintains a regular faculty and curriculum and has a regular enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Irs gov 1040ez form . Irs gov 1040ez form The deduction is equal to the lesser of: The basis of the donated books plus one-half of the gain that would have been realized if the donated books had been sold at fair market value on the date of the donation, or Two times the basis of the donated books. Irs gov 1040ez form The corporation must receive written certification from the school stating that the donated books are suitable for the organization's educational programs and will be used for such programs. Irs gov 1040ez form Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that were caused by Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form For more information, see Publication 547. Irs gov 1040ez form Limits on personal casualty or theft losses caused by Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form   The following losses to personal use property are not subject to the $100 or 10% of adjusted gross income limits. Irs gov 1040ez form Losses that arose in the Hurricane Katrina disaster area after August 24, 2005, and that were caused by Hurricane Katrina. Irs gov 1040ez form Losses that arose in the Hurricane Rita disaster area after September 22, 2005, and that were caused by Hurricane Rita. Irs gov 1040ez form Losses that arose in the Hurricane Wilma disaster area after October 22, 2005, and that were caused by Hurricane Wilma. Irs gov 1040ez form Qualifying losses include losses from flooding or other casualty, and from theft, that arose in the hurricane disaster area and that were caused by the hurricane. Irs gov 1040ez form Special instructions for individuals who elect to claim a Hurricane Katrina, Rita, or Wilma casualty or theft loss for 2004. Irs gov 1040ez form   Casualty and theft losses are generally deductible only in the year the casualty occurred or theft was discovered. Irs gov 1040ez form However, Hurricane Katrina, Rita, and Wilma are Presidentially declared disasters. Irs gov 1040ez form Therefore, you can elect to deduct losses from these hurricanes on your tax return for the previous year. Irs gov 1040ez form If you make this election, use the following additional instructions to complete your forms. Irs gov 1040ez form   Individuals filing or amending their 2004 tax return whose only casualty or theft losses to personal use property claimed on that return were caused by Hurricane Katrina, Rita, or Wilma should write “Hurricane Katrina,” “Hurricane Rita,” or “Hurricane Wilma” at the top of Form 1040 or 1040X. Irs gov 1040ez form They must also complete and attach the 2004 Form 4684 and write “Hurricane Katrina,”“Hurricane Rita,” or “Hurricane Wilma” on the dotted line next to line 11 and enter -0- on lines 11 and 17. Irs gov 1040ez form   Individuals filing or amending their 2004 tax return who also have casualty or theft losses to personal use property not related to Hurricane Katrina, Rita, or Wilma should disregard the caution directing taxpayers to use only one Form 4684, located above line 13, and complete lines 13 through 18 on two Forms 4684. Irs gov 1040ez form The Form 1040 or 1040X and the first Form 4684 should be prepared as explained above for Hurricane Katrina, Rita, or Wilma losses only. Irs gov 1040ez form The second Form 4684 should be prepared in the normal manner for all gains and non-Hurricane Katrina, Rita or Wilma losses. Irs gov 1040ez form If both Forms 4684 have a loss on line 18, they should carry the combined losses from that line to Schedule A (Form 1040), line 19. Irs gov 1040ez form If there is a gain on line 15 of the second Form 4684, disregard the instruction to enter it on Schedule D (Form 1040), and instead enter on Schedule A (Form 1040), line 19, the excess of the loss from the first Form 4684 over the gain on line 15 of the second Form 4684. Irs gov 1040ez form , Time limit for making election. Irs gov 1040ez form   You must make this election to claim your casualty or theft loss in 2004 by the later of the following dates. Irs gov 1040ez form The due date (without extensions) for filing your 2005 income tax return. Irs gov 1040ez form The due date (with extensions) for filing your 2004 income tax return. Irs gov 1040ez form Example. Irs gov 1040ez form If you are a calendar year individual taxpayer, you have until April 17, 2006, to amend your 2004 tax return to claim a casualty or theft loss that occurred during 2005. Irs gov 1040ez form Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Irs gov 1040ez form Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). Irs gov 1040ez form However, for property that was involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Irs gov 1040ez form For more information, see the Instructions for Form 4684. Irs gov 1040ez form Net Operating Losses Qualified GO Zone loss. Irs gov 1040ez form   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Irs gov 1040ez form However, the portion of an NOL that is a qualified GO Zone loss can be carried back to the 5 tax years before the NOL year. Irs gov 1040ez form In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Irs gov 1040ez form   A qualified GO Zone loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified GO Zone casualty loss (as defined below), Moving expenses paid or incurred after August 27, 2005, and before January 1, 2008, for the employment of an individual whose main home was in the GO Zone before August 28, 2005, who was unable to remain in that home because of Hurricane Katrina, and whose main job location (after the move) is in the GO Zone, Temporary housing expenses paid or incurred after August 27, 2005, and before January 1, 2008, to house employees of the taxpayer whose main job location is in the GO Zone, Depreciation or amortization allowable for any qualified GO Zone property (even if you elected not to claim the special GO Zone depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after August 27, 2005, and before January 1, 2008, for any damage from Hurricane Katrina to property located in the GO Zone. Irs gov 1040ez form Qualified GO Zone casualty loss. Irs gov 1040ez form   A qualified GO Zone casualty loss is any deductible section 1231 loss of property located in the GO Zone if the loss was caused by Hurricane Katrina. Irs gov 1040ez form For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by Hurricane Katrina of property located in the GO Zone. Irs gov 1040ez form Any such loss taken into account in figuring your qualified GO Zone loss is not eligible for the election to be treated as having occurred in the previous tax year. Irs gov 1040ez form 5-year NOL carryback of certain timber losses. Irs gov 1040ez form   Generally, you can carry the portion of an NOL due to income and deductions attributable to a farming business back to the 5 tax years before the NOL year. Irs gov 1040ez form You can treat income and deductions attributable to qualified timber property as attributable to a farming business if any portion of the property is located in the GO Zone, Rita GO Zone, or Wilma GO Zone, and the income and deductions are allocable to the part of your tax year which is after the applicable date below. Irs gov 1040ez form August 27, 2005, if any portion of the property is located in the GO Zone. Irs gov 1040ez form September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Irs gov 1040ez form October 22, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the RITA GO Zone). Irs gov 1040ez form   These rules will not apply after 2006. Irs gov 1040ez form   However, these rules apply only to a timber producer who: Held qualified timber property (defined in Publication 535, Business Expenses) on the applicable date below: August 28, 2005, if any portion of the property is located in the GO Zone, September 23, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone), or October 23, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the Rita GO Zone); Is not a corporation with stock publicly traded on an established securities market; Is not a real estate investment trust; and Did not hold more than 500 acres of qualified timber property on the applicable date above. Irs gov 1040ez form More information. Irs gov 1040ez form   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Irs gov 1040ez form IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form Definitions Qualified hurricane distribution. Irs gov 1040ez form   A qualified hurricane distribution is any distribution you received from an eligible retirement plan if all of the following apply. Irs gov 1040ez form The distribution was made: After August 24, 2005, and before January 1, 2007, for Hurricane Katrina; After September 22, 2005, and before January 1, 2007, for Hurricane Rita; or After October 22, 2005, and before January 1, 2007, for Hurricane Wilma. Irs gov 1040ez form Your main home was located in a hurricane disaster area listed below on the date shown for that area. Irs gov 1040ez form August 28, 2005, for the Hurricane Katrina disaster area. Irs gov 1040ez form September 23, 2005, for the Hurricane Rita disaster area. Irs gov 1040ez form October 23, 2005, for the Hurricane Wilma disaster area. Irs gov 1040ez form You sustained an economic loss because of Hurricane Katrina, Rita, or Wilma and your main home was in that hurricane disaster area on the date shown in (2) above for that hurricane. Irs gov 1040ez form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs gov 1040ez form   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified hurricane distribution, regardless of whether the distribution was made on account of Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form Qualified hurricane distributions are permitted without regard to your need or the actual amount of your economic loss. Irs gov 1040ez form   The total of your qualified hurricane distributions from all plans is limited to $100,000. Irs gov 1040ez form If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. Irs gov 1040ez form   A reduction or offset (after August 24, 2005, for Katrina; after September 22, 2005, for Rita; or after October 22, 2005, for Wilma) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified hurricane distribution. Irs gov 1040ez form Eligible retirement plan. Irs gov 1040ez form   An eligible retirement plan can be any of the following. Irs gov 1040ez form A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Irs gov 1040ez form A qualified annuity plan. Irs gov 1040ez form A tax-sheltered annuity contract. Irs gov 1040ez form A governmental section 457 deferred compensation plan. Irs gov 1040ez form A traditional, SEP, SIMPLE, or Roth IRA. Irs gov 1040ez form Main home. Irs gov 1040ez form   Generally, your main home is the home where you live most of the time. Irs gov 1040ez form A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Irs gov 1040ez form Taxation of Qualified Hurricane Distributions Qualified hurricane distributions are included in income in equal amounts over three years. Irs gov 1040ez form However, if you elect, you can include the entire distribution in your income in the year it was received. Irs gov 1040ez form Qualified hurricane distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Irs gov 1040ez form However, any distributions you receive in excess of the $100,000 qualified hurricane distribution limit may be subject to the additional tax on early distributions. Irs gov 1040ez form For more information, see Form 8915. Irs gov 1040ez form Repayment of Qualified Hurricane Distributions If you choose, you generally can repay any portion of a qualified hurricane distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Irs gov 1040ez form Also, you can repay a qualified hurricane distribution made on account of a hardship from a retirement plan. Irs gov 1040ez form However, see Exceptions below for qualified hurricane distributions you cannot repay. Irs gov 1040ez form You have three years from the day after the date you received the distribution to make a repayment. Irs gov 1040ez form Amounts that are repaid are treated as a qualified rollover and are not included in income. Irs gov 1040ez form Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Irs gov 1040ez form See Form 8915 for more information on how to report repayments. Irs gov 1040ez form Exceptions. Irs gov 1040ez form   You cannot repay the following types of distributions. Irs gov 1040ez form Qualified hurricane distributions received as a beneficiary (other than a surviving spouse). Irs gov 1040ez form Required minimum distributions. Irs gov 1040ez form Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Irs gov 1040ez form Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area, you can repay that distribution before March 1, 2006, to an eligible retirement plan after August 24, 2005 (Katrina); after September 22, 2005 (Rita); or after October 22, 2005 (Wilma). Irs gov 1040ez form For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Irs gov 1040ez form To be a qualified distribution, the distribution must meet all of the following requirements. Irs gov 1040ez form The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Irs gov 1040ez form The distribution was received in 2005 after February 28 and before: August 29 for Hurricane Katrina; September 24 for Hurricane Rita; or October 24 for Hurricane Wilma. Irs gov 1040ez form The distribution was to be used to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area that was not purchased or constructed because of Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form Amounts that are repaid before March 1, 2006, are treated as a qualified rollover and are not included in income. Irs gov 1040ez form Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Irs gov 1040ez form A qualified distribution not repaid before March 1, 2006, may be taxable for 2005 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Irs gov 1040ez form You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before March 1, 2006. Irs gov 1040ez form Loans From Qualified Plans The following benefits are available to qualified individuals. Irs gov 1040ez form Increases to the limits for distributions treated as loans from employer plans. Irs gov 1040ez form A 1-year suspension for payments due on plan loans. Irs gov 1040ez form Qualified individual. Irs gov 1040ez form   You are a qualified individual if any of the following apply. Irs gov 1040ez form Your main home on August 28, 2005, was located in the Hurricane Katrina disaster area and you had an economic loss because of Hurricane Katrina. Irs gov 1040ez form Your main home on September 23, 2005, was located in the Hurricane Rita disaster area and you had an economic loss because of Hurricane Rita. Irs gov 1040ez form Your main home on October 23, 2005, was located in the Hurricane Wilma disaster area and you had an economic loss because of Hurricane Wilma. Irs gov 1040ez form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs gov 1040ez form Limits on plan loans. Irs gov 1040ez form   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Irs gov 1040ez form In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Irs gov 1040ez form The higher limits apply only to loans received during the following period. Irs gov 1040ez form If your main home was located in the Hurricane Katrina disaster area, the period began on September 24, 2005, and ends on December 31, 2006. Irs gov 1040ez form If your main home was located in the Hurricane Rita or Wilma disaster area, the period began on December 21, 2005, and ends on December 31, 2006. Irs gov 1040ez form If you are a qualified individual based on Hurricane Katrina and another hurricane, use the period based on Hurricane Katrina. Irs gov 1040ez form One-year suspension of loan payments. Irs gov 1040ez form   Payments on plan loans due before 2007 may be suspended for 1 year by the plan administrator. Irs gov 1040ez form To qualify for the suspension, the due date for any loan payment must occur during the period beginning on: August 28, 2005, if your main home was located in the Hurricane Katrina disaster area. Irs gov 1040ez form September 23, 2005, if your main home was located in the Hurricane Rita disaster area. Irs gov 1040ez form October 23, 2005, if your main home was located in the Hurricane Wilma disaster area. Irs gov 1040ez form If you are a qualified individual based on more than one hurricane, use the period with the earliest beginning date. Irs gov 1040ez form Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit You can elect to use your 2004 earned income to figure your earned income credit (EIC) and additional child tax credit for 2005 if: Your 2005 earned income is less than your 2004 earned income, and At least one of the following statements is true. Irs gov 1040ez form Your main home on August 25, 2005, was in the Gulf Opportunity (GO) Zone. Irs gov 1040ez form Your main home on August 25, 2005, was in the Hurricane Katrina disaster area and you were displaced from that home because of Hurricane Katrina. Irs gov 1040ez form Your main home on September 23, 2005, was in the Rita GO Zone. Irs gov 1040ez form Your main home on September 23, 2005, was in the Hurricane Rita disaster area and you were displaced from that home because of Hurricane Rita. Irs gov 1040ez form Your main home on October 23, 2005, was in the Wilma GO Zone. Irs gov 1040ez form Your main home on October 23, 2005, was in the Hurricane Wilma disaster area and you were displaced from that home because of Hurricane Wilma. Irs gov 1040ez form Earned income. Irs gov 1040ez form    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Irs gov 1040ez form If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Irs gov 1040ez form Joint returns. Irs gov 1040ez form   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Irs gov 1040ez form If you make the election, your 2004 earned income is the sum of your 2004 earned income and your spouse's 2004 earned income. Irs gov 1040ez form Making the election. Irs gov 1040ez form   If you make the election to use your 2004 earned income, the election applies for figuring both the EIC and the additional child tax credit. Irs gov 1040ez form However, you can make the election for the additional child tax credit even if you do not take the EIC. Irs gov 1040ez form   Electing to use your 2004 earned income may increase or decrease your EIC. Irs gov 1040ez form Take the following steps to decide whether to make the election. Irs gov 1040ez form Figure your 2005 EIC using your 2004 earned income. Irs gov 1040ez form Figure your 2005 additional child tax credit using your 2004 earned income for EIC purposes. Irs gov 1040ez form Add the results of (1) and (2). Irs gov 1040ez form Figure your 2005 EIC using your 2005 earned income. Irs gov 1040ez form Figure your 2005 additional child tax credit using your 2005 earned income for additional child tax credit purposes. Irs gov 1040ez form Add the results of (4) and (5). Irs gov 1040ez form Compare the results of (3) and (6). Irs gov 1040ez form If (3) is larger than (6), it is to your benefit to make the election. Irs gov 1040ez form If (3) is equal to or smaller than (6), making the election will not help you. Irs gov 1040ez form   If you elect to use your 2004 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2004 earned income on the dotted line next to line 66a of Form 1040, on the line next to line 41a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Irs gov 1040ez form   If you elect to use your 2004 earned income and you are claiming the additional child tax credit, enter your 2004 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Irs gov 1040ez form   Because Form 8812 was released before the GO Zone legislation was enacted, the instructions refer only to individuals whose main home was in the Hurricane Katrina disaster area. Irs gov 1040ez form When completing Form 8812, line 4a, use the above rules to determine your eligibility to make the election (instead of the Form 8812 instructions). Irs gov 1040ez form Getting your 2004 tax return information. Irs gov 1040ez form   If you do not have your 2004 tax records, you can get the amount of earned income used to figure your 2004 EIC by calling 1-866-562-5227. Irs gov 1040ez form You can also get this information by visiting the IRS website at www. Irs gov 1040ez form irs. Irs gov 1040ez form gov. Irs gov 1040ez form   If you prefer to figure your 2004 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Irs gov 1040ez form See Request for Copy or Transcript of Tax Return on page 16. Irs gov 1040ez form Additional Exemption for Housing Individuals Displaced by Hurricane Katrina You may be able to claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by Hurricane Katrina. Irs gov 1040ez form The additional exemption amount is claimed on new Form 8914. Irs gov 1040ez form The additional exemption amount is allowable once per taxpayer for a specific individual in 2005 or 2006, but not in both years. Irs gov 1040ez form The maximum additional exemption amount you can claim for all displaced individuals is $2,000 ($1,000 if married filing separately). Irs gov 1040ez form The additional exemption amount you claim for displaced individuals in 2005 will reduce the $2,000 maximum for 2006. Irs gov 1040ez form If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Irs gov 1040ez form If married filing separately, only one spouse may claim the additional exemption amount for a specific displaced individual. Irs gov 1040ez form In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Irs gov 1040ez form To qualify as a displaced individual, the individual: Must have had his or her main home in the Hurricane Katrina disaster area on August 28, 2005, and he or she must have been displaced from that home. Irs gov 1040ez form If the individual's main home was located outside the core disaster area, that home must have been damaged by Hurricane Katrina or the individual must have been evacuated from that home because of Hurricane Katrina, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Irs gov 1040ez form You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Irs gov 1040ez form You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Irs gov 1040ez form Food, clothing, or personal items consumed or used by the displaced individual. Irs gov 1040ez form Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Irs gov 1040ez form Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Irs gov 1040ez form However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Irs gov 1040ez form Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Irs gov 1040ez form For more information, see Form 8914. Irs gov 1040ez form Education Credits The education credits have been expanded for students attending an eligible educational institution located in the Gulf Opportunity Zone (GOZ students) for any tax year beginning in 2005 or 2006. Irs gov 1040ez form The Hope credit for a GOZ student is increased to 100% of the first $2,000 in qualified education expenses and 50% of the next $2,000 of qualified education expenses for a maximum credit of $3,000 per student. Irs gov 1040ez form The lifetime learning credit rate for a GOZ student is increased from 20% to 40%. Irs gov 1040ez form The definition of qualified education expenses for a GOZ student also has been expanded. Irs gov 1040ez form In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a GOZ student include the following. Irs gov 1040ez form Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Irs gov 1040ez form For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Irs gov 1040ez form For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Irs gov 1040ez form The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Irs gov 1040ez form The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Irs gov 1040ez form You will need to contact the eligible educational institution for qualified room and board costs. Irs gov 1040ez form For more information, see Form 8863. Irs gov 1040ez form Recapture of Federal Mortgage Subsidy Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Irs gov 1040ez form However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Irs gov 1040ez form This amount is increased to $150,000 if the loan was provided before 2011 and was used to: Repair damage caused by Hurricane Katrina to a residence in the Hurricane Katrina disaster area, or Alter, repair, or improve an existing owner-occupied residence in the GO Zone, Rita GO Zone, or Wilma GO Zone. Irs gov 1040ez form Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Generally, discharges of nonbusiness debts (such as mortgages) made after August 24, 2005, and before January 1, 2007, are excluded from income for individuals whose main home was in the Hurricane Katrina disaster area on August 25, 2005. Irs gov 1040ez form If the individual's main home was located outside the core disaster area, the individual also must have had an economic loss because of Hurricane Katrina. Irs gov 1040ez form Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs gov 1040ez form This relief does not apply to any debt secured by real property located outside the Hurricane Katrina disaster area. Irs gov 1040ez form You may also have to reduce certain tax attributes by the amount excluded. Irs gov 1040ez form For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Irs gov 1040ez form Tax Relief for Temporary Relocation Under the Gulf Opportunity Zone Act of 2005, the IRS may adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2005 or 2006 as a result of a temporary relocation caused by Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Irs gov 1040ez form The IRS has exercised this authority as follows. Irs gov 1040ez form In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Irs gov 1040ez form You can treat as a student an individual who enrolled in school before August 25, 2005, and who is unable to attend classes because of Hurricane Katrina, for each month of the enrollment period that individual is prevented by Hurricane Katrina from attending school as planned. Irs gov 1040ez form You can treat as a student an individual who enrolled in school before September 23, 2005, and who is unable to attend classes because of Hurricane Rita, for each month of the enrollment period that individual is prevented by Hurricane Rita from attending school as planned. Irs gov 1040ez form You can treat as a student an individual who enrolled in school before October 23, 2005, and who is unable to attend classes because of Hurricane Wilma, for each month of the enrollment period that individual is prevented by Hurricane Wilma from attending school as planned. Irs gov 1040ez form Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified Gulf Opportunity (GO) Zone property (as defined below) you place in service after August 27, 2005. Irs gov 1040ez form The allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). Irs gov 1040ez form The special allowance applies only for the first year the property is placed in service. Irs gov 1040ez form The allowance is deductible for both the regular tax and the alternative minimum tax (AMT). Irs gov 1040ez form There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Irs gov 1040ez form You can elect not to deduct the special GO Zone depreciation allowance for qualified property. Irs gov 1040ez form If you make this election for any property, it applies to all property in the same class placed in service during the year. Irs gov 1040ez form Qualified GO Zone property. Irs gov 1040ez form   Property that qualifies for the special GO Zone depreciation allowance includes the following. Irs gov 1040ez form Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Irs gov 1040ez form Water utility property. Irs gov 1040ez form Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Irs gov 1040ez form (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Irs gov 1040ez form ) Qualified leasehold improvement property. Irs gov 1040ez form Nonresidential real property and residential rental property. Irs gov 1040ez form   For more information on this property, see Publication 946. Irs gov 1040ez form Other tests to be met. Irs gov 1040ez form   To be qualified GO Zone property, the property must also meet all of the following tests. Irs gov 1040ez form You must have acquired the property, by purchase, after August 27, 2005, but only if no binding written contract for the acquisition was in effect before August 28, 2005. Irs gov 1040ez form The property must be placed in service before 2008 (2009 in the case of nonresidential real property and residential rental property). Irs gov 1040ez form Substantially all of the use of the property must be in the GO Zone and in the active conduct of your trade or business in the GO Zone. Irs gov 1040ez form The original use of the property in the GO Zone must begin with you after August 27, 2005. Irs gov 1040ez form Used property can be qualified GO Zone property if it has not previously been used within the GO Zone. Irs gov 1040ez form Also, additional capital expenditures you incurred after August 27, 2005, to recondition or rebuild your property meet the original use test if the original use of the property in the GO Zone began with you. Irs gov 1040ez form Excepted property. Irs gov 1040ez form   Qualified GO Zone property does not include any of the following. Irs gov 1040ez form Property required to be depreciated using the Alternative Depreciation System (ADS). Irs gov 1040ez form Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. Irs gov 1040ez form Property for which you are claiming a commercial revitalization deduction. Irs gov 1040ez form Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. Irs gov 1040ez form Any gambling or animal racing property (as defined below). Irs gov 1040ez form Property in the same class as that for which you elected not to claim the special GO Zone depreciation allowance. Irs gov 1040ez form   Gambling or animal racing property is: Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and The portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. Irs gov 1040ez form Recapture of special allowance. Irs gov 1040ez form   If, in any year after the year you claim the special allowance, the property ceases to be qualified GO Zone property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. Irs gov 1040ez form Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 Gulf Opportunity (GO) Zone property (as defined later) placed in service in the GO Zone. Irs gov 1040ez form Increased dollar limit. Irs gov 1040ez form   The limit on the section 179 deduction ($105,000 for 2005, $108,000 for 2006) for qualified section 179 GO Zone property acquired after August 27, 2005, is increased by the smaller of: $100,000, or The cost of qualified section 179 GO Zone property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). Irs gov 1040ez form   The amount for which you can make the election is reduced if the cost of all qualified section 179 GO Zone property you placed in service during the year exceeds $420,000 for 2005 ($430,000 for 2006) increased by the smaller of: $600,000, or The cost of qualified section 179 GO Zone property placed in service during the year. Irs gov 1040ez form Qualified section 179 GO Zone property. Irs gov 1040ez form   Qualified section 179 GO Zone property is section 179 property that is qualified GO Zone property (explained earlier under Special Depreciation Allowance). Irs gov 1040ez form Section 179 property does not include nonresidential real property or residential rental property. Irs gov 1040ez form For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. Irs gov 1040ez form Work Opportunity Credit For the work opportunity credit, the definition of “targeted group employee” has been expanded to include a Hurricane Katrina employee. Irs gov 1040ez form Hurricane Katrina employee. Irs gov 1040ez form   A Hurricane Katrina employee is: A person who, on August 28, 2005, had a main home in the core disaster area and, within a two-year period beginning on that date, is hired to perform services principally in the core disaster area; or A person who, on August 28, 2005, had a main home in the core disaster area, was displaced from that main home as a result of Hurricane Katrina, and was hired during the period beginning on August 28, 2005, and ending on December 31, 2005. Irs gov 1040ez form Qualified wages. Irs gov 1040ez form   Generally, qualified wages do not include wages you paid to a targeted group employee who worked for you previously. Irs gov 1040ez form However, wages will qualify if: You paid them to an employee who is a Hurricane Katrina employee, The employee was not in your employment on August 28, 2005, and This is your first hire of the employee as a Hurricane Katrina employee after August 28, 2005. Irs gov 1040ez form   For more information, see Form 5884. Irs gov 1040ez form Certification requirements. Irs gov 1040ez form   An employee must provide to the employer reasonable evidence that he or she is a Hurricane Katrina employee. Irs gov 1040ez form An employer may accept a completed Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, as such evidence. Irs gov 1040ez form The certification requirements described in Form 8850 do not apply to a Hurricane Katrina employee. Irs gov 1040ez form Do not send any Forms 8850 that have only box 1 checked to the state employment security agency. Irs gov 1040ez form Instead, the employer should keep these Forms 8850 with the employer's other records. Irs gov 1040ez form For more information, see Form 8850 and its instructions. Irs gov 1040ez form Employee Retention Credit An eligible employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone, the Rita GO Zone, or the Wilma GO Zone can claim the employee retention credit. Irs gov 1040ez form The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Irs gov 1040ez form Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Irs gov 1040ez form Use Form 5884-A to claim the credit. Irs gov 1040ez form See the following rules and definitions for each hurricane. Irs gov 1040ez form Employers affected by Hurricane Katrina. Irs gov 1040ez form   The following definitions apply to employers affected by Hurricane Katrina. Irs gov 1040ez form Eligible employer. Irs gov 1040ez form   For this purpose, an eligible employer is any employer who conducted an active trade or business on August 28, 2005, in the GO Zone and whose trade or business was inoperable on any day after August 28, 2005, and before January 1, 2006, because of damage caused by Hurricane Katrina. Irs gov 1040ez form Eligible employee. Irs gov 1040ez form   For this purpose, an eligible employee is an employee whose principal place of employment on August 28, 2005, with such eligible employer was in the GO Zone. Irs gov 1040ez form An employee is not an eligible employee for purposes of Hurricane Katrina if the employee is treated as an eligible employee for the work opportunity credit. Irs gov 1040ez form Employers affected by Hurricane Rita. Irs gov 1040ez form   The following definitions apply to employers affected by Hurricane Rita. Irs gov 1040ez form Eligible employer. Irs gov 1040ez form   For this purpose, an eligible employer is any employer who conducted an active trade or business on September 23, 2005, in the Rita GO Zone and whose trade or business was inoperable on any day after September 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Rita. Irs gov 1040ez form Eligible employee. Irs gov 1040ez form   For this purpose, an eligible employee is an employee whose principal place of employment on September 23, 2005, with such eligible employer was in the Rita GO Zone. Irs gov 1040ez form An employee is not an eligible employee for purposes of Hurricane Rita if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina employee retention credit. Irs gov 1040ez form Employers affected by Hurricane Wilma. Irs gov 1040ez form   The following definitions apply to employers affected by Hurricane Wilma. Irs gov 1040ez form Eligible employer. Irs gov 1040ez form   For this purpose, an eligible employer is any employer who conducted an active trade or business on October 23, 2005, in the Wilma GO Zone and whose trade or business was inoperable on any day after October 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Wilma. Irs gov 1040ez form Eligible employee. Irs gov 1040ez form   For this purpose, an eligible employee is an employee whose principal place of employment on October 23, 2005, with such eligible employer was in the Wilma GO Zone. Irs gov 1040ez form An employee is not an eligible employee for purposes of Hurricane Wilma if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina or Rita employee retention credit. Irs gov 1040ez form Qualified wages. Irs gov 1040ez form   Qualified wages are wages you paid or incurred before January 1, 2006, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable hurricane, and ending on the date your trade or business resumed significant operations at that place. Irs gov 1040ez form In addition, the wages must have been paid or incurred after the following date. Irs gov 1040ez form August 28, 2005, for Hurricane Katrina. Irs gov 1040ez form September 23, 2005, for Hurricane Rita. Irs gov 1040ez form October 23, 2005, for Hurricane Wilma. Irs gov 1040ez form    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Irs gov 1040ez form    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Irs gov 1040ez form Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Irs gov 1040ez form Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Irs gov 1040ez form   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Irs gov 1040ez form For a special rule that applies to railroad employees, see section 51(h)(1)(B). Irs gov 1040ez form   Qualified wages do not include the following. Irs gov 1040ez form Wages paid to your dependent or a related individual. Irs gov 1040ez form See section 51(i)(1). Irs gov 1040ez form Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Irs gov 1040ez form Wages for services of replacement workers during a strike or lockout. Irs gov 1040ez form   For more information, see Form 5884-A. Irs gov 1040ez form Hurricane Katrina Housing Credit An employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone can claim the Hurricane Katrina housing credit. Irs gov 1040ez form The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from January 1, 2006, through July 1, 2006. Irs gov 1040ez form The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Irs gov 1040ez form Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Irs gov 1040ez form The employer must use Form 5884-A to claim the credit. Irs gov 1040ez form A qualified employee is an individual who had a main home in the GO Zone on August 28, 2005, and who performs substantially all employment services in the GO Zone for the employer furnishing the lodging. Irs gov 1040ez form The employee cannot be your dependent or a related individual. Irs gov 1040ez form See section 51(i)(1). Irs gov 1040ez form For more information, see Form 5884-A. Irs gov 1040ez form Reforestation Costs You may be able to elect to deduct a limited amount of reforestation costs for each qualified timber property. Irs gov 1040ez form The deduction for any tax year generally is limited to $10,000 ($5,000 if married filing separately, $0 for a trust). Irs gov 1040ez form However, this limit is increased if you paid or incurred reforestation costs after the applicable date below and any portion of the qualified timber property is located in one of the following areas. Irs gov 1040ez form August 27, 2005, if any portion of the property is located in the GO Zone. Irs gov 1040ez form September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Irs gov 1040ez form October 22, 2005, if any portion of the property is located in the Wilma GO Zone. Irs gov 1040ez form The limit for each qualified timber property is increased by the smaller of: $10,000 ($5,000 if married filing separately, $0 for a trust), or The amount of reforestation costs you paid or incurred after the applicable date for the qualified timber property, any portion of which is located in the zone described above. Irs gov 1040ez form The increase in the limit applies only to costs paid or incurred before 2008. Irs gov 1040ez form However, these rules do not apply to any timber producer who: Held more than 500 acres of qualified timber property at any time during the tax year, Is a corporation with stock publicly traded on an established securities market, or Is a real estate investment trust. Irs gov 1040ez form For more information about the election to deduct reforestation costs, see chapter 8 in Publication 535, Business Expenses. Irs gov 1040ez form Demolition and Clean-up Costs You can elect to deduct 50% of any qualified GO Zone clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Irs gov 1040ez form Qualified GO Zone clean-up costs are any amounts paid or incurred after August 27, 2005, and before January 1, 2008, for the removal of debris from, or the demolition of structures on, real property located in the GO Zone that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Irs gov 1040ez form Increase in Rehabilitation Tax Credit The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred after August 27, 2005, and before January 1, 2009, on buildings located in the GO Zone as follows. Irs gov 1040ez form For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Irs gov 1040ez form For certified historic structures, the credit percentage is increased from 20% to 26%. Irs gov 1040ez form For more information, see Form 3468, Investment Credit. Irs gov 1040ez form Request for Copy or Transcript of Tax Return Request for copy of tax return. Irs gov 1040ez form   You can use Form 4506 to order a copy of your tax return. Irs gov 1040ez form Generally, there is a $39. Irs gov 1040ez form 00 fee for requesting each copy of a tax return. Irs gov 1040ez form If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Hurricane Katrina”) is written in red across the top of the form when filed. Irs gov 1040ez form Request for transcript of tax return. Irs gov 1040ez form   You can use Form 4506-T to order a free transcript of your tax return. Irs gov 1040ez form A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Irs gov 1040ez form You can also call 1-800-829-1040 to order a transcript. Irs gov 1040ez form How To Get Tax Help Special IRS assistance. Irs gov 1040ez form   The IRS is providing special help for those affected by Hurricane Katrina, Rita, or Wilma, as well as survivors and personal representatives of the victims. Irs gov 1040ez form We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by Hurricane Katrina, Rita, or Wilma, or who have other tax issues related to the hurricanes. Irs gov 1040ez form Call 1-866-562-5227 Monday through Friday In English-7 a. Irs gov 1040ez form m. Irs gov 1040ez form to 10 p. Irs gov 1040ez form m. Irs gov 1040ez form local time In Spanish-8 a. Irs gov 1040ez form m. Irs gov 1040ez form to 9:30 p. Irs gov 1040ez form m. Irs gov 1040ez form local time   The IRS website at www. Irs gov 1040ez form irs. Irs gov 1040ez form gov has notices and other tax relief information. Irs gov 1040ez form Check it periodically for any new guidance. Irs gov 1040ez form Other help from the IRS. Irs gov 1040ez form   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Irs gov 1040ez form By selecting the method that is best for you, you will have quick and easy access to tax help. Irs gov 1040ez form Contacting your Taxpayer Advocate. Irs gov 1040ez form   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Irs gov 1040ez form   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Irs gov 1040ez form While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Irs gov 1040ez form   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778. Irs gov 1040ez form Call, write, or fax the Taxpayer Advocate office in your area. Irs gov 1040ez form Call 1-800-829-4059 if you are a TTY/TDD user. Irs gov 1040ez form Visit www. Irs gov 1040ez form irs. Irs gov 1040ez form gov/advocate. Irs gov 1040ez form   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). Irs gov 1040ez form Free tax services. Irs gov 1040ez form   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Irs gov 1040ez form It contains a list of free tax publications and an index of tax topics. Irs gov 1040ez form It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Irs gov 1040ez form Internet. Irs gov 1040ez form You can access the IRS website 24 hours a day, 7 days a week, at www. Irs gov 1040ez form irs. Irs gov 1040ez form gov to: E-file your return. Irs gov 1040ez form Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Irs gov 1040ez form Check the status of your refund. Irs gov 1040ez form Click on Where's My Refund. Irs gov 1040ez form Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Irs gov 1040ez form Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Irs gov 1040ez form Download forms, instructions, and publications. Irs gov 1040ez form Order IRS products online. Irs gov 1040ez form Research your tax questions online. Irs gov 1040ez form Search publications online by topic or keyword. Irs gov 1040ez form View Internal Revenue Bulletins (IRBs) published in the last few years. Irs gov 1040ez form Figure your withholdin