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Irs Gov E File

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Irs Gov E File

Irs gov e file 4. Irs gov e file   Interest Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Allocation of InterestOrder of funds spent. Irs gov e file Payments from checking accounts. Irs gov e file Amounts paid within 30 days. Irs gov e file Optional method for determining date of reallocation. Irs gov e file Interest on a segregated account. Irs gov e file How to report. Irs gov e file Interest You Can DeductStatement. Irs gov e file Expenses paid to obtain a mortgage. Irs gov e file Prepayment penalty. Irs gov e file De minimis OID. Irs gov e file Constant-yield method. Irs gov e file Loan or mortgage ends. Irs gov e file Interest You Cannot DeductPenalties. Irs gov e file Who is a key person? Exceptions for pre-June 1997 contracts. Irs gov e file Interest allocated to unborrowed policy cash value. Irs gov e file Capitalization of Interest When To Deduct InterestPrepaid interest. Irs gov e file Discounted loan. Irs gov e file Refunds of interest. Irs gov e file Prepaid interest. Irs gov e file Discounted loan. Irs gov e file Tax deficiency. Irs gov e file Related person. Irs gov e file Below-Market LoansLimit on forgone interest for gift loans of $100,000 or less. Irs gov e file Introduction This chapter discusses the tax treatment of business interest expense. Irs gov e file Business interest expense is an amount charged for the use of money you borrowed for business activities. Irs gov e file Topics - This chapter discusses: Allocation of interest Interest you can deduct Interest you cannot deduct Capitalization of interest When to deduct interest Below-market loans Useful Items - You may want to see: Publication 537 Installment Sales 550 Investment Income and Expenses 936 Home Mortgage Interest Deduction Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch E (Form 1040) Supplemental Income and Loss Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Irs gov e file Sch K-1 (Form 1120S) Shareholder's Share of Income, Deductions, Credits, etc. Irs gov e file 1098 Mortgage Interest Statement 3115 Application for Change in Accounting Method 4952 Investment Interest Expense Deduction 8582 Passive Activity Loss Limitations See chapter 12 for information about getting publications and forms. Irs gov e file Allocation of Interest The rules for deducting interest vary, depending on whether the loan proceeds are used for business, personal, or investment activities. Irs gov e file If you use the proceeds of a loan for more than one type of expense, you must allocate the interest based on the use of the loan's proceeds. Irs gov e file Allocate your interest expense to the following categories. Irs gov e file Nonpassive trade or business activity interest Passive trade or business activity interest Investment interest Portfolio interest Personal interest In general, you allocate interest on a loan the same way you allocate the loan proceeds. Irs gov e file You allocate loan proceeds by tracing disbursements to specific uses. Irs gov e file The easiest way to trace disbursements to specific uses is to keep the proceeds of a particular loan separate from any other funds. Irs gov e file Secured loan. Irs gov e file   The allocation of loan proceeds and the related interest is not generally affected by the use of property that secures the loan. Irs gov e file Example. Irs gov e file You secure a loan with property used in your business. Irs gov e file You use the loan proceeds to buy an automobile for personal use. Irs gov e file You must allocate interest expense on the loan to personal use (purchase of the automobile) even though the loan is secured by business property. Irs gov e file    If the property that secures the loan is your home, you generally do not allocate the loan proceeds or the related interest. Irs gov e file The interest is usually deductible as qualified home mortgage interest, regardless of how the loan proceeds are used. Irs gov e file For more information, see Publication 936. Irs gov e file Allocation period. Irs gov e file   The period for which a loan is allocated to a particular use begins on the date the proceeds are used and ends on the earlier of the following dates. Irs gov e file The date the loan is repaid. Irs gov e file The date the loan is reallocated to another use. Irs gov e file Proceeds not disbursed to borrower. Irs gov e file   Even if the lender disburses the loan proceeds to a third party, the allocation of the loan is still based on your use of the funds. Irs gov e file This applies whether you pay for property, services, or anything else by incurring a loan, or you take property subject to a debt. Irs gov e file Proceeds deposited in borrower's account. Irs gov e file   Treat loan proceeds deposited in an account as property held for investment. Irs gov e file It does not matter whether the account pays interest. Irs gov e file Any interest you pay on the loan is investment interest expense. Irs gov e file If you withdraw the proceeds of the loan, you must reallocate the loan based on the use of the funds. Irs gov e file Example. Irs gov e file Celina, a calendar-year taxpayer, borrows $100,000 on January 4 and immediately uses the proceeds to open a checking account. Irs gov e file No other amounts are deposited in the account during the year and no part of the loan principal is repaid during the year. Irs gov e file On April 2, Celina uses $20,000 from the checking account for a passive activity expenditure. Irs gov e file On September 4, Celina uses an additional $40,000 from the account for personal purposes. Irs gov e file Under the interest allocation rules, the entire $100,000 loan is treated as property held for investment for the period from January 4 through April 1. Irs gov e file From April 2 through September 3, Celina must treat $20,000 of the loan as used in the passive activity and $80,000 of the loan as property held for investment. Irs gov e file From September 4 through December 31, she must treat $40,000 of the loan as used for personal purposes, $20,000 as used in the passive activity, and $40,000 as property held for investment. Irs gov e file Order of funds spent. Irs gov e file   Generally, you treat loan proceeds deposited in an account as used (spent) before either of the following amounts. Irs gov e file Any unborrowed amounts held in the same account. Irs gov e file Any amounts deposited after these loan proceeds. Irs gov e file Example. Irs gov e file On January 9, Olena opened a checking account, depositing $500 of the proceeds of Loan A and $1,000 of unborrowed funds. Irs gov e file The following table shows the transactions in her account during the tax year. Irs gov e file Date Transaction January 9 $500 proceeds of Loan A and $1,000 unborrowed funds deposited January 14 $500 proceeds of Loan B  deposited February 19 $800 used for personal purposes February 27 $700 used for passive activity June 19 $1,000 proceeds of Loan C  deposited November 20 $800 used for an investment December 18 $600 used for personal purposes Olena treats the $800 used for personal purposes as made from the $500 proceeds of Loan A and $300 of the proceeds of Loan B. Irs gov e file She treats the $700 used for a passive activity as made from the remaining $200 proceeds of Loan B and $500 of unborrowed funds. Irs gov e file She treats the $800 used for an investment as made entirely from the proceeds of Loan C. Irs gov e file She treats the $600 used for personal purposes as made from the remaining $200 proceeds of Loan C and $400 of unborrowed funds. Irs gov e file For the periods during which loan proceeds are held in the account, Olena treats them as property held for investment. Irs gov e file Payments from checking accounts. Irs gov e file   Generally, you treat a payment from a checking or similar account as made at the time the check is written if you mail or deliver it to the payee within a reasonable period after you write it. Irs gov e file You can treat checks written on the same day as written in any order. Irs gov e file Amounts paid within 30 days. Irs gov e file   If you receive loan proceeds in cash or if the loan proceeds are deposited in an account, you can treat any payment (up to the amount of the proceeds) made from any account you own, or from cash, as made from those proceeds. Irs gov e file This applies to any payment made within 30 days before or after the proceeds are received in cash or deposited in your account. Irs gov e file   If the loan proceeds are deposited in an account, you can apply this rule even if the rules stated earlier under Order of funds spent would otherwise require you to treat the proceeds as used for other purposes. Irs gov e file If you apply this rule to any payments, disregard those payments (and the proceeds from which they are made) when applying the rules stated under Order of funds spent. Irs gov e file   If you received the loan proceeds in cash, you can treat the payment as made on the date you received the cash instead of the date you actually made the payment. Irs gov e file Example. Irs gov e file Giovanni gets a loan of $1,000 on August 4 and receives the proceeds in cash. Irs gov e file Giovanni deposits $1,500 in an account on August 18 and on August 28 writes a check on the account for a passive activity expense. Irs gov e file Also, Giovanni deposits his paycheck, deposits other loan proceeds, and pays his bills during the same period. Irs gov e file Regardless of these other transactions, Giovanni can treat $1,000 of the deposit he made on August 18 as being paid on August 4 from the loan proceeds. Irs gov e file In addition, Giovanni can treat the passive activity expense he paid on August 28 as made from the $1,000 loan proceeds treated as deposited in the account. Irs gov e file Optional method for determining date of reallocation. Irs gov e file   You can use the following method to determine the date loan proceeds are reallocated to another use. Irs gov e file You can treat all payments from loan proceeds in the account during any month as taking place on the later of the following dates. Irs gov e file The first day of that month. Irs gov e file The date the loan proceeds are deposited in the account. Irs gov e file However, you can use this optional method only if you treat all payments from the account during the same calendar month in the same way. Irs gov e file Interest on a segregated account. Irs gov e file   If you have an account that contains only loan proceeds and interest earned on the account, you can treat any payment from that account as being made first from the interest. Irs gov e file When the interest earned is used up, any remaining payments are from loan proceeds. Irs gov e file Example. Irs gov e file You borrowed $20,000 and used the proceeds of this loan to open a new savings account. Irs gov e file When the account had earned interest of $867, you withdrew $20,000 for personal purposes. Irs gov e file You can treat the withdrawal as coming first from the interest earned on the account, $867, and then from the loan proceeds, $19,133 ($20,000 − $867). Irs gov e file All the interest charged on the loan from the time it was deposited in the account until the time of the withdrawal is investment interest expense. Irs gov e file The interest charged on the part of the proceeds used for personal purposes ($19,133) from the time you withdrew it until you either repay it or reallocate it to another use is personal interest expense. Irs gov e file The interest charged on the loan proceeds you left in the account ($867) continues to be investment interest expense until you either repay it or reallocate it to another use. Irs gov e file Loan repayment. Irs gov e file   When you repay any part of a loan allocated to more than one use, treat it as being repaid in the following order. Irs gov e file Personal use. Irs gov e file Investments and passive activities (other than those included in (3)). Irs gov e file Passive activities in connection with a rental real estate activity in which you actively participate. Irs gov e file Former passive activities. Irs gov e file Trade or business use and expenses for certain low-income housing projects. Irs gov e file Line of credit (continuous borrowings). Irs gov e file   The following rules apply if you have a line of credit or similar arrangement. Irs gov e file Treat all borrowed funds on which interest accrues at the same fixed or variable rate as a single loan. Irs gov e file Treat borrowed funds or parts of borrowed funds on which interest accrues at different fixed or variable rates as different loans. Irs gov e file Treat these loans as repaid in the order shown on the loan agreement. Irs gov e file Loan refinancing. Irs gov e file   Allocate the replacement loan to the same uses to which the repaid loan was allocated. Irs gov e file Make the allocation only to the extent you use the proceeds of the new loan to repay any part of the original loan. Irs gov e file Debt-financed distribution. Irs gov e file   A debt-financed distribution occurs when a partnership or S corporation borrows funds and allocates those funds to distributions made to partners or shareholders. Irs gov e file The manner in which you report the interest expense associated with the distributed debt proceeds depends on your use of those proceeds. Irs gov e file How to report. Irs gov e file   If the proceeds were used in a nonpassive trade or business activity, report the interest on Schedule E (Form 1040), line 28; enter “interest expense” and the name of the partnership or S corporation in column (a) and the amount in column (h). Irs gov e file If the proceeds were used in a passive activity, follow the Instructions for Form 8582, Passive Activity Loss Limitations, to determine the amount of interest expense that can be reported on Schedule E (Form 1040), line 28; enter “interest expense” and the name of the partnership in column (a) and the amount in column (f). Irs gov e file If the proceeds were used in an investment activity, enter the interest on Form 4952. Irs gov e file If the proceeds are used for personal purposes, the interest is generally not deductible. Irs gov e file Interest You Can Deduct You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your trade or business. Irs gov e file Interest relates to your trade or business if you use the proceeds of the loan for a trade or business expense. Irs gov e file It does not matter what type of property secures the loan. Irs gov e file You can deduct interest on a debt only if you meet all the following requirements. Irs gov e file You are legally liable for that debt. Irs gov e file Both you and the lender intend that the debt be repaid. Irs gov e file You and the lender have a true debtor-creditor relationship. Irs gov e file Partial liability. Irs gov e file   If you are liable for part of a business debt, you can deduct only your share of the total interest paid or accrued. Irs gov e file Example. Irs gov e file You and your brother borrow money. Irs gov e file You are liable for 50% of the note. Irs gov e file You use your half of the loan in your business, and you make one-half of the loan payments. Irs gov e file You can deduct your half of the total interest payments as a business deduction. Irs gov e file Mortgage. Irs gov e file   Generally, mortgage interest paid or accrued on real estate you own legally or equitably is deductible. Irs gov e file However, rather than deducting the interest currently, you may have to add it to the cost basis of the property as explained later under Capitalization of Interest. Irs gov e file Statement. Irs gov e file   If you paid $600 or more of mortgage interest (including certain points) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement. Irs gov e file You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. Irs gov e file A governmental unit is a person for purposes of furnishing the statement. Irs gov e file   If you receive a refund of interest you overpaid in an earlier year, this amount will be reported in box 3 of Form 1098. Irs gov e file You cannot deduct this amount. Irs gov e file For information on how to report this refund, see Refunds of interest, later in this chapter. Irs gov e file Expenses paid to obtain a mortgage. Irs gov e file   Certain expenses you pay to obtain a mortgage cannot be deducted as interest. Irs gov e file These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses. Irs gov e file If the property mortgaged is business or income-producing property, you can amortize the costs over the life of the mortgage. Irs gov e file Prepayment penalty. Irs gov e file   If you pay off your mortgage early and pay the lender a penalty for doing this, you can deduct the penalty as interest. Irs gov e file Interest on employment tax deficiency. Irs gov e file   Interest charged on employment taxes assessed on your business is deductible. Irs gov e file Original issue discount (OID). Irs gov e file   OID is a form of interest. Irs gov e file A loan (mortgage or other debt) generally has OID when its proceeds are less than its principal amount. Irs gov e file The OID is the difference between the stated redemption price at maturity and the issue price of the loan. Irs gov e file   A loan's stated redemption price at maturity is the sum of all amounts (principal and interest) payable on it other than qualified stated interest. Irs gov e file Qualified stated interest is stated interest that is unconditionally payable in cash or property (other than another loan of the issuer) at least annually over the term of the loan at a single fixed rate. Irs gov e file You generally deduct OID over the term of the loan. Irs gov e file Figure the amount to deduct each year using the constant-yield method, unless the OID on the loan is de minimis. Irs gov e file De minimis OID. Irs gov e file   The OID is de minimis if it is less than one-fourth of 1% (. Irs gov e file 0025) of the stated redemption price of the loan at maturity multiplied by the number of full years from the date of original issue to maturity (the term of the loan). Irs gov e file   If the OID is de minimis, you can choose one of the following ways to figure the amount you can deduct each year. Irs gov e file On a constant-yield basis over the term of the loan. Irs gov e file On a straight-line basis over the term of the loan. Irs gov e file In proportion to stated interest payments. Irs gov e file In its entirety at maturity of the loan. Irs gov e file You make this choice by deducting the OID in a manner consistent with the method chosen on your timely filed tax return for the tax year in which the loan is issued. Irs gov e file Example. Irs gov e file On January 1, 2013, you took out a $100,000 discounted loan and received $98,500 in proceeds. Irs gov e file The loan will mature on January 1, 2023 (a 10-year term), and the $100,000 principal is payable on that date. Irs gov e file Interest of $10,000 is payable on January 1 of each year, beginning January 1, 2014. Irs gov e file The $1,500 OID on the loan is de minimis because it is less than $2,500 ($100,000 × . Irs gov e file 0025 × 10). Irs gov e file You choose to deduct the OID on a straight-line basis over the term of the loan. Irs gov e file Beginning in 2013, you can deduct $150 each year for 10 years. Irs gov e file Constant-yield method. Irs gov e file   If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct each year. Irs gov e file You figure your deduction for the first year using the following steps. Irs gov e file Determine the issue price of the loan. Irs gov e file Generally, this equals the proceeds of the loan. Irs gov e file If you paid points on the loan (as discussed later), the issue price generally is the difference between the proceeds and the points. Irs gov e file Multiply the result in (1) by the yield to maturity. Irs gov e file Subtract any qualified stated interest payments from the result in (2). Irs gov e file This is the OID you can deduct in the first year. Irs gov e file   To figure your deduction in any subsequent year, follow the above steps, except determine the adjusted issue price in step (1). Irs gov e file To get the adjusted issue price, add to the issue price any OID previously deducted. Irs gov e file Then follow steps (2) and (3) above. Irs gov e file   The yield to maturity is generally shown in the literature you receive from your lender. Irs gov e file If you do not have this information, consult your lender or tax advisor. Irs gov e file In general, the yield to maturity is the discount rate that, when used in computing the present value of all principal and interest payments, produces an amount equal to the principal amount of the loan. Irs gov e file Example. Irs gov e file The facts are the same as in the previous example, except that you deduct the OID on a constant yield basis over the term of the loan. Irs gov e file The yield to maturity on your loan is 10. Irs gov e file 2467%, compounded annually. Irs gov e file For 2013, you can deduct $93 [($98,500 × . Irs gov e file 102467) − $10,000]. Irs gov e file For 2014, you can deduct $103 [($98,593 × . Irs gov e file 102467) − $10,000]. Irs gov e file Loan or mortgage ends. Irs gov e file   If your loan or mortgage ends, you may be able to deduct any remaining OID in the tax year in which the loan or mortgage ends. Irs gov e file A loan or mortgage may end due to a refinancing, prepayment, foreclosure, or similar event. Irs gov e file If you refinance with the original lender, you generally cannot deduct the remaining OID in the year in which the refinancing occurs, but you may be able to deduct it over the term of the new mortgage or loan. Irs gov e file See Interest paid with funds borrowed from original lender under Interest You Cannot Deduct, later. Irs gov e file Points. Irs gov e file   The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a loan or a mortgage. Irs gov e file These charges are also called loan origination fees, maximum loan charges, discount points, or premium charges. Irs gov e file If any of these charges (points) are solely for the use of money, they are interest. Irs gov e file   Because points are prepaid interest, you generally cannot deduct the full amount in the year paid. Irs gov e file However, you can choose to fully deduct points in the year paid if you meet certain tests. Irs gov e file For exceptions to the general rule, see Publication 936. Irs gov e file The points reduce the issue price of the loan and result in original issue discount (OID), deductible as explained in the preceding discussion. Irs gov e file Partial payments on a nontax debt. Irs gov e file   If you make partial payments on a debt (other than a debt owed the IRS), the payments are applied, in general, first to interest and any remainder to principal. Irs gov e file You can deduct only the interest. Irs gov e file This rule does not apply when it can be inferred that the borrower and lender understood that a different allocation of the payments would be made. Irs gov e file Installment purchase. Irs gov e file   If you make an installment purchase of business property, the contract between you and the seller generally provides for the payment of interest. Irs gov e file If no interest or a low rate of interest is charged under the contract, a portion of the stated principal amount payable under the contract may be recharacterized as interest (unstated interest). Irs gov e file The amount recharacterized as interest reduces your basis in the property and increases your interest expense. Irs gov e file For more information on installment sales and unstated interest, see Publication 537. Irs gov e file Interest You Cannot Deduct Certain interest payments cannot be deducted. Irs gov e file In addition, certain other expenses that may seem to be interest but are not, cannot be deducted as interest. Irs gov e file You cannot currently deduct interest that must be capitalized, and you generally cannot deduct personal interest. Irs gov e file Interest paid with funds borrowed from original lender. Irs gov e file   If you use the cash method of accounting, you cannot deduct interest you pay with funds borrowed from the original lender through a second loan, an advance, or any other arrangement similar to a loan. Irs gov e file You can deduct the interest expense once you start making payments on the new loan. Irs gov e file   When you make a payment on the new loan, you first apply the payment to interest and then to the principal. Irs gov e file All amounts you apply to the interest on the first loan are deductible, along with any interest you pay on the second loan, subject to any limits that apply. Irs gov e file Capitalized interest. Irs gov e file   You cannot currently deduct interest you are required to capitalize under the uniform capitalization rules. Irs gov e file See Capitalization of Interest, later. Irs gov e file In addition, if you buy property and pay interest owed by the seller (for example, by assuming the debt and any interest accrued on the property), you cannot deduct the interest. Irs gov e file Add this interest to the basis of the property. Irs gov e file Commitment fees or standby charges. Irs gov e file   Fees you incur to have business funds available on a standby basis, but not for the actual use of the funds, are not deductible as interest payments. Irs gov e file You may be able to deduct them as business expenses. Irs gov e file   If the funds are for inventory or certain property used in your business, the fees are indirect costs and you generally must capitalize them under the uniform capitalization rules. Irs gov e file See Capitalization of Interest, later. Irs gov e file Interest on income tax. Irs gov e file   Interest charged on income tax assessed on your individual income tax return is not a business deduction even though the tax due is related to income from your trade or business. Irs gov e file Treat this interest as a business deduction only in figuring a net operating loss deduction. Irs gov e file Penalties. Irs gov e file   Penalties on underpaid deficiencies and underpaid estimated tax are not interest. Irs gov e file You cannot deduct them. Irs gov e file Generally, you cannot deduct any fines or penalties. Irs gov e file Interest on loans with respect to life insurance policies. Irs gov e file   You generally cannot deduct interest on a debt incurred with respect to any life insurance, annuity, or endowment contract that covers any individual unless that individual is a key person. Irs gov e file   If the policy or contract covers a key person, you can deduct the interest on up to $50,000 of debt for that person. Irs gov e file However, the deduction for any month cannot be more than the interest figured using Moody's Composite Yield on Seasoned Corporate Bonds (formerly known as Moody's Corporate Bond Yield Average-Monthly Average Corporates) (Moody's rate) for that month. Irs gov e file Who is a key person?   A key person is an officer or 20% owner. Irs gov e file However, the number of individuals you can treat as key persons is limited to the greater of the following. Irs gov e file Five individuals. Irs gov e file The lesser of 5% of the total officers and employees of the company or 20 individuals. Irs gov e file Exceptions for pre-June 1997 contracts. Irs gov e file   You can generally deduct the interest if the contract was issued before June 9, 1997, and the covered individual is someone other than an employee, officer, or someone financially interested in your business. Irs gov e file If the contract was purchased before June 21, 1986, you can generally deduct the interest no matter who is covered by the contract. Irs gov e file Interest allocated to unborrowed policy cash value. Irs gov e file   Corporations and partnerships generally cannot deduct any interest expense allocable to unborrowed cash values of life insurance, annuity, or endowment contracts. Irs gov e file This rule applies to contracts issued after June 8, 1997, that cover someone other than an officer, director, employee, or 20% owner. Irs gov e file For more information, see section 264(f) of the Internal Revenue Code. Irs gov e file Capitalization of Interest Under the uniform capitalization rules, you generally must capitalize interest on debt equal to your expenditures to produce real property or certain tangible personal property. Irs gov e file The property must be produced by you for use in your trade or business or for sale to customers. Irs gov e file You cannot capitalize interest related to property that you acquire in any other manner. Irs gov e file Interest you paid or incurred during the production period must be capitalized if the property produced is designated property. Irs gov e file Designated property is any of the following. Irs gov e file Real property. Irs gov e file Tangible personal property with a class life of 20 years or more. Irs gov e file Tangible personal property with an estimated production period of more than 2 years. Irs gov e file Tangible personal property with an estimated production period of more than 1 year if the estimated cost of production is more than $1 million. Irs gov e file Property you produce. Irs gov e file   You produce property if you construct, build, install, manufacture, develop, improve, create, raise, or grow it. Irs gov e file Treat property produced for you under a contract as produced by you up to the amount you pay or incur for the property. Irs gov e file Carrying charges. Irs gov e file   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. Irs gov e file You can choose to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. Irs gov e file For more information, see chapter 7. Irs gov e file Capitalized interest. Irs gov e file   Treat capitalized interest as a cost of the property produced. Irs gov e file You recover your interest when you sell or use the property. Irs gov e file If the property is inventory, recover capitalized interest through cost of goods sold. Irs gov e file If the property is used in your trade or business, recover capitalized interest through an adjustment to basis, depreciation, amortization, or other method. Irs gov e file Partnerships and S corporations. Irs gov e file   The interest capitalization rules are applied first at the partnership or S corporation level. Irs gov e file The rules are then applied at the partners' or shareholders' level to the extent the partnership or S corporation has insufficient debt to support the production or construction costs. Irs gov e file   If you are a partner or a shareholder, you may have to capitalize interest you incur during the tax year for the production costs of the partnership or S corporation. Irs gov e file You may also have to capitalize interest incurred by the partnership or S corporation for your own production costs. Irs gov e file To properly capitalize interest under these rules, you must be given the required information in an attachment to the Schedule K-1 you receive from the partnership or S corporation. Irs gov e file Additional information. Irs gov e file   The procedures for applying the uniform capitalization rules are beyond the scope of this publication. Irs gov e file For more information, see sections 1. Irs gov e file 263A-8 through 1. Irs gov e file 263A-15 of the regulations and Notice 88-99. Irs gov e file Notice 88-99 is in Cumulative Bulletin 1988-2. Irs gov e file When To Deduct Interest If the uniform capitalization rules, discussed under Capitalization of Interest, earlier, do not apply to you, deduct interest as follows. Irs gov e file Cash method. Irs gov e file   Under the cash method, you can generally deduct only the interest you actually paid during the tax year. Irs gov e file You cannot deduct a promissory note you gave as payment because it is a promise to pay and not an actual payment. Irs gov e file Prepaid interest. Irs gov e file   You generally cannot deduct any interest paid before the year it is due. Irs gov e file Interest paid in advance can be deducted only in the tax year in which it is due. Irs gov e file Discounted loan. Irs gov e file   If interest or a discount is subtracted from your loan proceeds, it is not a payment of interest and you cannot deduct it when you get the loan. Irs gov e file For more information, see Original issue discount (OID) under Interest You Can Deduct, earlier. Irs gov e file Refunds of interest. Irs gov e file   If you pay interest and then receive a refund in the same tax year of any part of the interest, reduce your interest deduction by the refund. Irs gov e file If you receive the refund in a later tax year, include the refund in your income to the extent the deduction for the interest reduced your tax. Irs gov e file Accrual method. Irs gov e file   Under an accrual method, you can deduct only interest that has accrued during the tax year. Irs gov e file Prepaid interest. Irs gov e file   See Prepaid interest, earlier. Irs gov e file Discounted loan. Irs gov e file   See Discounted loan, earlier. Irs gov e file Tax deficiency. Irs gov e file   If you contest a federal income tax deficiency, interest does not accrue until the tax year the final determination of liability is made. Irs gov e file If you do not contest the deficiency, then the interest accrues in the year the tax was asserted and agreed to by you. Irs gov e file   However, if you contest but pay the proposed tax deficiency and interest, and you do not designate the payment as a cash bond, then the interest is deductible in the year paid. Irs gov e file Related person. Irs gov e file   If you use an accrual method, you cannot deduct interest owed to a related person who uses the cash method until payment is made and the interest is includible in the gross income of that person. Irs gov e file The relationship is determined as of the end of the tax year for which the interest would otherwise be deductible. Irs gov e file See section 267 of the Internal Revenue Code for more information. Irs gov e file Below-Market Loans If you receive a below-market gift or demand loan and use the proceeds in your trade or business, you may be able to deduct the forgone interest. Irs gov e file See Treatment of gift and demand loans, later, in this discussion. Irs gov e file A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Irs gov e file A gift or demand loan that is a below-market loan generally is considered an arm's-length transaction in which you, the borrower, are considered as having received both the following. Irs gov e file A loan in exchange for a note that requires the payment of interest at the applicable federal rate. Irs gov e file An additional payment in an amount equal to the forgone interest. Irs gov e file The additional payment is treated as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. Irs gov e file Forgone interest. Irs gov e file   For any period, forgone interest is The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. Irs gov e file Applicable federal rates are published by the IRS each month in the Internal Revenue Bulletin. Irs gov e file Internal Revenue Bulletins are available on the IRS web site at www. Irs gov e file irs. Irs gov e file gov/irb. Irs gov e file You can also contact an IRS office to get these rates. Irs gov e file Loans subject to the rules. Irs gov e file   The rules for below-market loans apply to the following. Irs gov e file Gift loans (below-market loans where the forgone interest is in the nature of a gift). Irs gov e file Compensation-related loans (below-market loans between an employer and an employee or between an independent contractor and a person for whom the contractor provides services). Irs gov e file Corporation-shareholder loans. Irs gov e file Tax avoidance loans (below-market loans where the avoidance of federal tax is one of the main purposes of the interest arrangement). Irs gov e file Loans to qualified continuing care facilities under a continuing care contract (made after October 11, 1985). Irs gov e file   Except as noted in (5) above, these rules apply to demand loans (loans payable in full at any time upon the lender's demand) outstanding after June 6, 1984, and to term loans (loans that are not demand loans) made after that date. Irs gov e file Treatment of gift and demand loans. Irs gov e file   If you receive a below-market gift loan or demand loan, you are treated as receiving an additional payment (as a gift, dividend, etc. Irs gov e file ) equal to the forgone interest on the loan. Irs gov e file You are then treated as transferring this amount back to the lender as interest. Irs gov e file These transfers are considered to occur annually, generally on December 31. Irs gov e file If you use the loan proceeds in your trade or business, you can deduct the forgone interest each year as a business interest expense. Irs gov e file The lender must report it as interest income. Irs gov e file Limit on forgone interest for gift loans of $100,000 or less. Irs gov e file   For gift loans between individuals, forgone interest treated as transferred back to the lender is limited to the borrower's net investment income for the year. Irs gov e file This limit applies if the outstanding loans between the lender and borrower total $100,000 or less. Irs gov e file If the borrower's net investment income is $1,000 or less, it is treated as zero. Irs gov e file This limit does not apply to a loan if the avoidance of any federal tax is one of the main purposes of the interest arrangement. Irs gov e file Treatment of term loans. Irs gov e file   If you receive a below-market term loan other than a gift or demand loan, you are treated as receiving an additional cash payment (as a dividend, etc. Irs gov e file ) on the date the loan is made. Irs gov e file This payment is equal to the loan amount minus the present value, at the applicable federal rate, of all payments due under the loan. Irs gov e file The same amount is treated as original issue discount on the loan. Irs gov e file See Original issue discount (OID) under Interest You Can Deduct, earlier. Irs gov e file Exceptions for loans of $10,000 or less. Irs gov e file   The rules for below-market loans do not apply to any day on which the total outstanding loans between the borrower and lender is $10,000 or less. Irs gov e file This exception applies only to the following. Irs gov e file Gift loans between individuals if the loan is not directly used to buy or carry income-producing assets. Irs gov e file Compensation-related loans or corporation-shareholder loans if the avoidance of any federal tax is not a principal purpose of the interest arrangement. Irs gov e file This exception does not apply to a term loan described in (2) above that was previously subject to the below-market loan rules. Irs gov e file Those rules will continue to apply even if the outstanding balance is reduced to $10,000 or less. Irs gov e file Exceptions for loans without significant tax effect. Irs gov e file   The following loans are specifically exempted from the rules for below-market loans because their interest arrangements do not have a significant effect on the federal tax liability of the borrower or the lender. Irs gov e file Loans made available by lenders to the general public on the same terms and conditions that are consistent with the lender's customary business practices. Irs gov e file Loans subsidized by a federal, state, or municipal government that are made available under a program of general application to the public. Irs gov e file Certain employee-relocation loans. Irs gov e file Certain loans to or from a foreign person, unless the interest income would be effectively connected with the conduct of a U. Irs gov e file S. Irs gov e file trade or business and not exempt from U. Irs gov e file S. Irs gov e file tax under an income tax treaty. Irs gov e file Any other loan if the taxpayer can show that the interest arrangement has no significant effect on the federal tax liability of the lender or the borrower. Irs gov e file Whether an interest arrangement has a significant effect on the federal tax liability of the lender or the borrower will be determined by all the facts and circumstances. Irs gov e file Consider all the following factors. Irs gov e file Whether items of income and deduction generated by the loan offset each other. Irs gov e file The amount of the items. Irs gov e file The cost of complying with the below-market loan provisions if they were to apply. Irs gov e file Any reasons, other than taxes, for structuring the transaction as a below-market loan. Irs gov e file Exception for loans to qualified continuing care facilities. Irs gov e file   The below-market interest rules do not apply to a loan owed by a qualified continuing care facility under a continuing care contract if the lender or lender's spouse is age 62 or older by the end of the calendar year. Irs gov e file A qualified continuing care facility is one or more facilities (excluding nursing homes) meeting the requirements listed below. Irs gov e file Designed to provide services under continuing care contracts (defined below). Irs gov e file Includes an independent living unit, and either an assisted living or nursing facility, or both. Irs gov e file Substantially all of the independent living unit residents are covered by continuing care contracts. Irs gov e file A continuing care contract is a written contract between an individual and a qualified continuing care facility that includes all of the following conditions. Irs gov e file The individual or individual's spouse must be entitled to use the facility for the rest of their life or lives. Irs gov e file The individual or individual's spouse will be provided with housing, as appropriate for the health of the individual or individual's spouse in an: independent living unit (which has additional available facilities outside the unit for the provision of meals and other personal care), and assisted living or nursing facility available in the continuing care facility. Irs gov e file The individual or individual's spouse will be provided with assisted living or nursing care available in the continuing care facility, as required for the health of the individual or the individual's spouse. Irs gov e file For more information, see section 7872(h) of the Internal Revenue Code. Irs gov e file Sale or exchange of property. Irs gov e file   Different rules generally apply to a loan connected with the sale or exchange of property. Irs gov e file If the loan does not provide adequate stated interest, part of the principal payment may be considered interest. Irs gov e file However, there are exceptions that may require you to apply the below-market interest rate rules to these loans. Irs gov e file See Unstated Interest and Original Issue Discount (OID) in Publication 537. Irs gov e file More information. Irs gov e file   For more information on below-market loans, see section 7872 of the Internal Revenue Code and section 1. Irs gov e file 7872-5 of the regulations. Irs gov e file Prev  Up  Next   Home   More Online Publications
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Updated: Common Input Issues

Many common issues are easy to resolve by following the instructions below. The most frequent issue involves data entry errors.  Please review your return closely before e-filing.  Because Free File Fillable Forms is basic, you must follow the instructions exactly and enter data only on the lines indicated.

Below you will find a few more general tips for successful e-filing and then some more specific issues currently trending for Free File Fillable Forms:

General Tips

  • Many issues can be resolved by simply using the “tab” key which ensures you will see all the data boxes. For example, when you use the tab key, you will see the MI box for your middle initial on the top of the Form 1040.
  • Use the state drop down box in the address field and enter zip code in appropriate box.
  • Check all your data entries before attempting to e-file.
  • Check your social security numbers for accuracy.  Is your dependent’s SSN correct? Is your SSN correct on the Form W2, Box A, Employee’s SSN?
  • Do not use zero “0” in any field unless instructed to do so.
  • If you’re getting a refund by direct deposit, double check your financial account and routing numbers; the routing number must be nine digits.  Be sure to select checking or savings. 
  • Check your withholdings; make sure your W-2 statement withholdings match the amount on your 1040.
  • Check the withholding amount entered Step 2, Section 1 and make sure it equals the amount in Step 2, Section 2, Box A.
  • Verify your identity. Do not guess at your prior year Adjusted Gross Income. This is the most common error we see. If you don’t remember your AGI, you must get an electronic filing PIN at IRS.gov or call 1-866-704-7388.
  • If your filing status is Married Filing Jointly, make sure to include all information for your spouse, especially Step 2 requirements for identify verification and signing the return electronically.
  •  Whenever you’re entering your information on a form or schedule in Free File Fillable Forms and you have a question, just select the button, "Instructions For This Form," at the bottom of the screen.

Specific Issues

I didn’t get the email confirming that my Free File Fillable Forms return was accepted or rejected

  • First, check your email spam/junk folder. 
  • If it’s not there, take the following steps: Return to your Free File Fillable Forms account. (Either through IRS.gov/freefile or freefilefillableforms.com.) 
  • Select “Get E-File Status” from upper left column. If there is no status update, log-on to your account and review your return for accuracy  
  • CAUTION: Make sure to place the current date ("Today's Date") in Step 2, Section 4, Signing This Year's Return
  • Next, select  “E-File Now” button to resubmit.  
  • If your return was successfully e-filed, you will receive 2 emails: one from freefilefillableforms.com saying it was received and a second one from freefilefillableform.com saying it was accepted or rejected by the IRS. If you do not receive these two emails, you have not successfully transmitted your return.

I got this message: Business Rule X0000-005 - The XML data has failed schema validation

This currently is the second most common error we see, and it’s not as scary as it sounds. You will receive this message when there is a data entry error. This is a simple correction.

  • First, your message will identify the form and line number where the error occurred on your return.
  • Look for one of two key phrases in the error message.
  • If you see the phrase “is expected” that means you left blank a required field.
  • If you see the phrase “not facet-valid with” that means you made an entry in the wrong format, i.e. you used a number where it should be blank, or used a description not allowed in the field.
  • For more information, see our Rejected return help page.

“Do the Math” won’t work

Most often, your form is missing data that the program considers necessary to perform the calculation. Use the “tab” key and double check your entries.

Here's a list of some common problems taxpayers have encountered and possible solutions. 

  • 1040 (Form) Line 44 Tax - You must look up your tax in the tax tables and follow the IRS instructions to manually enter an amount on this line.  Don’t forget this step.
  • Schedule 8812 Additional Child Tax Credit, Lines 9, 11, 12 and 13 - You must complete all the prior required lines, including the buttons on line 6, before these lines will calculate.   Check your entries before you e-file.
  • Form 8863, Education Credits (Hope and Lifetime Learning Credits, Line 15 - You are required to complete Part 1. If instructed to put a zero on a line, you must put a zero on that line.
  • Schedule A, Itemized Deductions
    • Line 23 - The amount for this line is populated from the amount(s) you enter in the grey areas under the words, ‘list type and amount’. There are two lines under these words and two fields on each line. The first field is for a description of the ‘Other Expense’ deduction and the second field is for the amount. Enter the description and corresponding amount and ‘Do the math’ will calculate an amount for line 23.
    • Line 29 - Don't forget to manually enter the total amount for your Itemized Deductions on line 29 of the Schedule A.  Line 29 is not a Do the Math calculated field.  Select the “Yes” or “No” button for line 29 and follow the Schedule A instructions for entering an amount on the line 29.  If your answer is No,  Is Form 1040 line 38 over $150,000, then add up all the column amounts, lines 4 through 28, on the Sch A and enter the total amount on line 29.  Check your math.  If  your answer is Yes, line 38 of the Form 1040 is over $150,000 refer to the Itemized Deductions Worksheet for line 29 (page A-13) and then enter the amount you figured on line 29.  After you enter your amount on line 29, then select “Do the Math.”  The amount on line 29 will then transfer and update Line 40 of Form 1040.
  • Schedule C, Profit or Loss from Business Lines 3, 4, 5, and 7 - You must enter the business entity information (A-J) before the lines will calculate.
  • Schedule C-EZ Net Profit or Loss from Business Line 3 - You must enter the business entity information (A-G) before “Do the Math” will calculate.
  • Schedule E, Supplemental Income and Loss, Line 23a, b, etc. - Many lines will not calculate until Part 1 of the form is complete. 

I Can’t Find the Form I need

First, review the list of available Forms You Can Use. You can learn how to add some forms to your return by following the instructions below.

  • Form 4562, Depreciation and Amortization (Including Information on Listed Property -  You must Add the Form 4562 from the “add” button on your Schedule C and/or Schedule E.  You can NOT add the Form 4562 from the “add/view" button.  
  • Form 6198 At-Risk Limitations- Add this form from the “add” button on your Schedule C.
  • Form 8829 Expenses for Business Use of Your Home- Add this form from the “add” button on your line 30 of the Schedule C, Profit or Loss from Business
  • Form 8863, Education Credits (Hope and Lifetime Learning Credits) -
    1. Part III on page 2 for each student for whom you are claiming either credit must be completed before you complete Parts I and II on Page 1.  Some taxpayers can’t find the add button for page 2.  Just go to the top of page 1 of the Form 8863 and click on the add button next to the statement click to enter student information on page 2. 
    2. Make sure you use"Do the Math" for computing line 15 of page 1 of the Form 8863.
    3. Make sure you use the tab key for entering the student’s first name and the last name on line 20. Entered the first name in the first grey field and then use the tab key to enter the last name in the grey field to the right. 
  • Form 8949, Sales and other Dispositions of Capital Assets- Don’t forget to add Page 2 to complete this form.  Complete the Form 8949 before you complete your Schedule D. On the Schedule D, complete lines 1b, 2, 3, 8b, 9, and 10. You may add multiple copies of the Form 8949 if you need additional space to report sales and exchanges of your capital assets.
  • Add Forms W2, W2G and 1099-R in Step 2, Section 1.
  • All other Form 1099’s, including SSA 1099, 1099 INT, 1099 MISC etc. are not available as individual forms in Free File Fillable Forms because you do not have to e-file these statements to IRS.
  • BUT make sure to include all other income from Form 1099 including SSA 1099, 1099 INT, 1099 MISC etc. on your Form 1040. Don’t forget to include your federal withholding amounts from these other Form 1099s in Step 2 Section 2 Box B.

I Can’t Print My Return?

  • If you are having trouble printing and you are using Internet Explorer 8.0 you must upgrade your Internet browser or switch to another computer to print your information.  
  • If you can't print, search for 'print' in General FAQs (PDF) for additional information. Remember, always print your return for your records after you successfully e-file.

I am having problems with my 16a and 16b entries for pensions and annuities on the Form 1040

  • Find your total pension or annuity amount on your Form 1099-R and enter it on line 16a of your Form 1040.
  • Then, enter the taxable portion in 16b to the far right under the column of the Form 1040 where you are entering all of your amounts.
  • Do not enter your taxable amount after “b Taxable amount”.   This “b Taxable amount” field is only reserved for the text: “ROLLOVER”, “PSO”, and “ROLLOVER AND PSO” - Refer to the 1040 instructions to see if either of these 3 descriptions apply to you.
  • When your total pensions and annuities equal your taxable amount, “Do the Math” will automatically remove your amount on line 16a.
  • When your total pensions and annuities is greater than your taxable amount, “Do the Math” will display the total on line 16a and taxable amount you entered to the right of 16b.     

I am getting an error on Line 21, "Other income" on the Form 1040 - List type and amount

  • In certain situations, the form instructions may prompt you to enter information next to a line.   There are 2 parts for you to enter: 1) the description type in the first grey box and then 2) a corresponding amount in the second grey box.  Don’t enter descriptions or $ amounts in the grey fields unless the instructions tell you too.  Generally, leave these fields blank and don't enter a zero or '0" amount unless the instructions tell you too.
  •  Use line 21 of the Form 1040 to report any other taxable income not reported elsewhere on your return or on other schedules.  Make sure you enter the type and then the amount for the Other income to the left of the amount on line 21.  Enter the type of income in the first grey field and then enter the amount in the second grey field.   After you enter the amount in the second grey field, select "Do the Math" and the amount you entered to the left in the grey field will transfer to line 21.   Don't forget to enter the type of other income such as gambling winnings or jury duty pay in the first grey field to the left of the amount.  And if one of your other income description types is net operating loss (NOL), make sure you enter a negative sign "-" before the amount.  To view a list of description types for other income examples on line 21, refer to page 28 of the Form 1040 instructions.  Free File Fillable Forms will automatically display the description type in all upper case letters after selecting Do the Math.

Refer to the tutorial for basic tips before your start Free File Fillable Forms. These tips will improve your chances to successfully e-file without getting errors.

Page Last Reviewed or Updated: 26-Feb-2014

The Irs Gov E File

Irs gov e file Publication 535 - Introductory Material Table of Contents IntroductionOrdering forms and publications. Irs gov e file Tax questions. Irs gov e file Future Developments What's New for 2013 What's New for 2014 Reminders Introduction This publication discusses common business expenses and explains what is and is not deductible. Irs gov e file The general rules for deducting business expenses are discussed in the opening chapter. Irs gov e file The chapters that follow cover specific expenses and list other publications and forms you may need. Irs gov e file Comments and suggestions. Irs gov e file   We welcome your comments about this publication and your suggestions for future editions. Irs gov e file   You can send your comments to: Internal Revenue Service Tax Forms and Publications SE:W:CAR:MP:TFP 1111 Constitution Ave. Irs gov e file NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs gov e file Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs gov e file   You can send us comments from www. Irs gov e file irs. Irs gov e file gov/formspubs/. Irs gov e file Click on “More Information” and then on “Give us feedback. Irs gov e file ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax publications. Irs gov e file Ordering forms and publications. Irs gov e file   Visit www. Irs gov e file irs. Irs gov e file gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Irs gov e file Internal Revenue Service 1201 N. Irs gov e file Mitsubishi Motorway Bloomington, IL 61705-6613 We cannot answer tax questions sent to either the “Comments and suggestions” or “Ordering forms and publications” address. Irs gov e file Tax questions. Irs gov e file   If you have a tax-related question, please go to Help With Tax Questions on IRS. Irs gov e file gov. Irs gov e file If you've looked around our site and still didn't find the answer to your general tax question, please call our toll-free tax assistance line at 1-800-829-1040 for individual tax questions or 1-800-829-4933 for business tax questions. Irs gov e file Future Developments For the latest information about developments related to Publication 535, such as legislation enacted after it was published, go to www. Irs gov e file irs. Irs gov e file gov/pub535. Irs gov e file What's New for 2013 The following items highlight some changes in the tax law for 2013. Irs gov e file Optional safe harbor method to determine the business use of a home deduction. Irs gov e file  Beginning in 2013, you can use the optional safe harbor method to determine the deduction for the business use of your home. Irs gov e file For more information, see chapter 1. Irs gov e file Standard mileage rate. Irs gov e file  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. Irs gov e file 5 cents per mile. Irs gov e file For more information, see chapter 11. Irs gov e file Additional Medicare Tax. Irs gov e file  Beginning in 2013, a 0. Irs gov e file 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er) with dependent child. Irs gov e file Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. Irs gov e file RRTA compensation should be separately compared to the threshold. Irs gov e file For more information, see chapter 5 or visit www. Irs gov e file irs. Irs gov e file gov and enter the following words in the search box: Additional Medicare Tax. Irs gov e file Retiree drug subsidy. Irs gov e file  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). Irs gov e file For more information, visit www. Irs gov e file irs. Irs gov e file gov and enter the following words in the search box: Retiree drug subsidy. Irs gov e file What's New for 2014 The following item highlights a change in the tax law for 2014. Irs gov e file Standard mileage rate. Irs gov e file  Beginning in 2014, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56 cents per mile. Irs gov e file Film and television productions costs. Irs gov e file  The election to expense film and television production costs does not apply to productions that begin in 2014. Irs gov e file For more information, see chapter 7. Irs gov e file Reminders The following reminders and other items may help you file your tax return. Irs gov e file IRS e-file (Electronic Filing) You can file your tax returns electronically using an IRS e-file option. Irs gov e file The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. Irs gov e file You can use one of the following IRS e-file options. Irs gov e file Use an authorized IRS e-file provider. Irs gov e file Use a personal computer. Irs gov e file Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site. Irs gov e file For details on these fast filing methods, see your income tax package. Irs gov e file Form 1099 MISC. Irs gov e file  File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year in the course of your trade or business at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, and crop insurance proceeds. Irs gov e file See the Instructions for Form 1099-MISC for more information and additional reporting requirements. Irs gov e file Photographs of missing children. Irs gov e file  The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children. Irs gov e file Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs gov e file You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) (24-hours a day, 7 days a week) if you recognize a child. Irs gov e file Prev  Up  Next   Home   More Online Publications