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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Military Discounts

Irs Forms 2010 Form 1040H&r Block Amended Tax ReturnHow Can I Amend My 2010 Tax ReturnHrblock TaxcutWww Irs Gov 1040xIncome Tax Return 1040ezAmend 2012 Tax Return1040 Ez E FileHow To File A 2011 Tax Return For FreeNj 1040xHow To File 2010 TaxesIrs Amended ReturnHow Do I Amend My 2011 Tax ReturnIrs Amendment FormsAmend A Tax Return 2012File 2012 Taxes Tax PreparerMilitary Pay Scale1040 Ez IrsAmend 2008 Tax Return Free2009 Tax ReturnTurbotax Free EditionEz 1040 Tax FormIrs Extension Form 2011Search Freetaxusa Com1040ezformsIncome Tax Deductions 2012Amend 2011 Tax Return FormTax Return Form2010 Tax Preparation Software1040ez Amended FormFiling An Amended Tax ReturnH& R BlockAuto Fill 1040xAmend 2011 Tax ReturnHttps Efile State Tax FreeFree State FileH & R Block Free Tax FilingDownload 1040ez1040a 2012 Tax Form1040ez Taxes

Military Discounts

Military discounts 2. Military discounts   Ordinary or Capital Gain or Loss Table of Contents IntroductionSection 1231 transactions. Military discounts Topics - This chapter discusses: Useful Items - You may want to see: Capital Assets Noncapital AssetsCommodities derivative dealer. Military discounts Sales and Exchanges Between Related PersonsGain Is Ordinary Income Nondeductible Loss Other DispositionsSale of a Business Dispositions of Intangible Property Subdivision of Land Timber Precious Metals and Stones, Stamps, and Coins Coal and Iron Ore Conversion Transactions Introduction You must classify your gains and losses as either ordinary or capital (and your capital gains or losses as either short-term or long-term). Military discounts You must do this to figure your net capital gain or loss. Military discounts For individuals, a net capital gain may be taxed at a different tax rate than ordinary income. Military discounts See Capital Gains Tax Rates in chapter 4. Military discounts Your deduction for a net capital loss may be limited. Military discounts See Treatment of Capital Losses in chapter 4. Military discounts Capital gain or loss. Military discounts   Generally, you will have a capital gain or loss if you sell or exchange a capital asset. Military discounts You also may have a capital gain if your section 1231 transactions result in a net gain. Military discounts Section 1231 transactions. Military discounts   Section 1231 transactions are sales and exchanges of property held longer than 1 year and either used in a trade or business or held for the production of rents or royalties. Military discounts They also include certain involuntary conversions of business or investment property, including capital assets. Military discounts See Section 1231 Gains and Losses in chapter 3 for more information. Military discounts Topics - This chapter discusses: Capital assets Noncapital assets Sales and exchanges between  related persons Other dispositions Useful Items - You may want to see: Publication 550 Investment Income and Expenses Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 4797 Sales of Business Property 8594 Asset Acquisition Statement Under Section 1060 8949 Sales and Other Dispositions of Capital Assets See chapter 5 for information about getting publications and forms. Military discounts Capital Assets Almost everything you own and use for personal purposes, pleasure, or investment is a capital asset. Military discounts For exceptions, see Noncapital Assets, later. Military discounts The following items are examples of capital assets. Military discounts Stocks and bonds. Military discounts A home owned and occupied by you and your family. Military discounts Timber grown on your home property or investment property, even if you make casual sales of the timber. Military discounts Household furnishings. Military discounts A car used for pleasure or commuting. Military discounts Coin or stamp collections. Military discounts Gems and jewelry. Military discounts Gold, silver, and other metals. Military discounts Personal-use property. Military discounts   Generally, property held for personal use is a capital asset. Military discounts Gain from a sale or exchange of that property is a capital gain. Military discounts Loss from the sale or exchange of that property is not deductible. Military discounts You can deduct a loss relating to personal-use property only if it results from a casualty or theft. Military discounts Investment property. Military discounts   Investment property (such as stocks and bonds) is a capital asset, and a gain or loss from its sale or exchange is a capital gain or loss. Military discounts This treatment does not apply to property used to produce rental income. Military discounts See Business assets, later, under Noncapital Assets. Military discounts Release of restriction on land. Military discounts   Amounts you receive for the release of a restrictive covenant in a deed to land are treated as proceeds from the sale of a capital asset. Military discounts Noncapital Assets A noncapital asset is property that is not a capital asset. Military discounts The following kinds of property are not capital assets. Military discounts Stock in trade, inventory, and other property you hold mainly for sale to customers in your trade or business. Military discounts Inventories are discussed in Publication 538, Accounting Periods and Methods. Military discounts But, see the Tip below. Military discounts Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered or from the sale of any properties described in (1), above. Military discounts Depreciable property used in your trade or business or as rental property (including section 197 intangibles defined later), even if the property is fully depreciated (or amortized). Military discounts Sales of this type of property are discussed in chapter 3. Military discounts Real property used in your trade or business or as rental property, even if the property is fully depreciated. Military discounts A copyright; a literary, musical, or artistic composition; a letter; a memorandum; or similar property (such as drafts of speeches, recordings, transcripts, manuscripts, drawings, or photographs): Created by your personal efforts, Prepared or produced for you (in the case of a letter, memorandum, or similar property), or Received from a person who created the property or for whom the property was prepared under circumstances (for example, by gift) entitling you to the basis of the person who created the property, or for whom it was prepared or produced. Military discounts But, see the Tip below. Military discounts U. Military discounts S. Military discounts Government publications you got from the government for free or for less than the normal sales price or that you acquired under circumstances entitling you to the basis of someone who got the publications for free or for less than the normal sales price. Military discounts Any commodities derivative financial instrument (discussed later) held by a commodities derivatives dealer unless it meets both of the following requirements. Military discounts It is established to the satisfaction of the IRS that the instrument has no connection to the activities of the dealer as a dealer. Military discounts The instrument is clearly identified in the dealer's records as meeting (a) by the end of the day on which it was acquired, originated, or entered into. Military discounts Any hedging transaction (defined later) that is clearly identified as a hedging transaction by the end of the day on which it was acquired, originated, or entered into. Military discounts Supplies of a type you regularly use or consume in the ordinary course of your trade or business. Military discounts You can elect to treat as capital assets certain self-created musical compositions or copyrights you sold or exchanged. Military discounts See chapter 4 of Publication 550 for details. Military discounts Property held mainly for sale to customers. Military discounts   Stock in trade, inventory, and other property you hold mainly for sale to customers in your trade or business are not capital assets. Military discounts Inventories are discussed in Publication 538. Military discounts Business assets. Military discounts   Real property and depreciable property used in your trade or business or as rental property (including section 197 intangibles defined later under Dispositions of Intangible Property) are not capital assets. Military discounts The sale or disposition of business property is discussed in chapter 3. Military discounts Letters and memoranda. Military discounts   Letters, memoranda, and similar property (such as drafts of speeches, recordings, transcripts, manuscripts, drawings, or photographs) are not treated as capital assets (as discussed earlier) if your personal efforts created them or if they were prepared or produced for you. Military discounts Nor is this property a capital asset if your basis in it is determined by reference to the person who created it or the person for whom it was prepared. Military discounts For this purpose, letters and memoranda addressed to you are considered prepared for you. Military discounts If letters or memoranda are prepared by persons under your administrative control, they are considered prepared for you whether or not you review them. Military discounts Commodities derivative financial instrument. Military discounts   A commodities derivative financial instrument is a commodities contract or other financial instrument for commodities (other than a share of corporate stock, a beneficial interest in a partnership or trust, a note, bond, debenture, or other evidence of indebtedness, or a section 1256 contract) the value or settlement price of which is calculated or determined by reference to a specified index (as defined in section 1221(b) of the Internal Revenue Code). Military discounts Commodities derivative dealer. Military discounts   A commodities derivative dealer is a person who regularly offers to enter into, assume, offset, assign, or terminate positions in commodities derivative financial instruments with customers in the ordinary course of a trade or business. Military discounts Hedging transaction. Military discounts   A hedging transaction is any transaction you enter into in the normal course of your trade or business primarily to manage any of the following. Military discounts Risk of price changes or currency fluctuations involving ordinary property you hold or will hold. Military discounts Risk of interest rate or price changes or currency fluctuations for borrowings you make or will make, or ordinary obligations you incur or will incur. Military discounts Sales and Exchanges Between Related Persons This section discusses the rules that may apply to the sale or exchange of property between related persons. Military discounts If these rules apply, gains may be treated as ordinary income and losses may not be deductible. Military discounts See Transfers to Spouse in chapter 1 for rules that apply to spouses. Military discounts Gain Is Ordinary Income If a gain is recognized on the sale or exchange of property to a related person, the gain may be ordinary income even if the property is a capital asset. Military discounts It is ordinary income if the sale or exchange is a depreciable property transaction or a controlled partnership transaction. Military discounts Depreciable property transaction. Military discounts   Gain on the sale or exchange of property, including a leasehold or a patent application, that is depreciable property in the hands of the person who receives it is ordinary income if the transaction is either directly or indirectly between any of the following pairs of entities. Military discounts A person and the person's controlled entity or entities. Military discounts A taxpayer and any trust in which the taxpayer (or his or her spouse) is a beneficiary unless the beneficiary's interest in the trust is a remote contingent interest; that is, the value of the interest computed actuarially is 5% or less of the value of the trust property. Military discounts An executor and a beneficiary of an estate unless the sale or exchange is in satisfaction of a pecuniary bequest (a bequest for a sum of money). Military discounts An employer (or any person related to the employer under rules (1), (2), or (3)) and a welfare benefit fund (within the meaning of section 419(e) of the Internal Revenue Code) that is controlled directly or indirectly by the employer (or any person related to the employer). Military discounts Controlled entity. Military discounts   A person's controlled entity is either of the following. Military discounts A corporation in which more than 50% of the value of all outstanding stock, or a partnership in which more than 50% of the capital interest or profits interest, is directly or indirectly owned by or for that person. Military discounts An entity whose relationship with that person is one of the following. Military discounts A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership. Military discounts Two corporations that are members of the same controlled group as defined in section 1563(a) of the Internal Revenue Code, except that “more than 50%” is substituted for “at least 80%” in that definition. Military discounts Two S corporations, if the same persons own more than 50% in value of the outstanding stock of each corporation. Military discounts Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Military discounts Controlled partnership transaction. Military discounts   A gain recognized in a controlled partnership transaction may be ordinary income. Military discounts The gain is ordinary income if it results from the sale or exchange of property that, in the hands of the party who receives it, is a noncapital asset such as trade accounts receivable, inventory, stock in trade, or depreciable or real property used in a trade or business. Military discounts   A controlled partnership transaction is a transaction directly or indirectly between either of the following pairs of entities. Military discounts A partnership and a person who directly or indirectly owns more than 50% of the capital interest or profits interest in the partnership. Military discounts Two partnerships, if the same persons directly or indirectly own more than 50% of the capital interests or profits interests in both partnerships. Military discounts Determining ownership. Military discounts   In the transactions under Depreciable property transaction and Controlled partnership transaction, earlier, use the following rules to determine the ownership of stock or a partnership interest. Military discounts Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Military discounts (However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more in value of the stock of the corporation. Military discounts ) An individual is considered as owning the stock or partnership interest directly or indirectly owned by or for his or her family. Military discounts Family includes only brothers, sisters, half-brothers, half-sisters, spouse, ancestors, and lineal descendants. Military discounts For purposes of applying (1) or (2), above, stock or a partnership interest constructively owned by a person under (1) is treated as actually owned by that person. Military discounts But stock or a partnership interest constructively owned by an individual under (2) is not treated as owned by the individual for reapplying (2) to make another person the constructive owner of that stock or partnership interest. Military discounts Nondeductible Loss A loss on the sale or exchange of property between related persons is not deductible. Military discounts This applies to both direct and indirect transactions, but not to distributions of property from a corporation in a complete liquidation. Military discounts For the list of related persons, see Related persons next. Military discounts If a sale or exchange is between any of these related persons and involves the lump-sum sale of a number of blocks of stock or pieces of property, the gain or loss must be figured separately for each block of stock or piece of property. Military discounts The gain on each item is taxable. Military discounts The loss on any item is nondeductible. Military discounts Gains from the sales of any of these items may not be offset by losses on the sales of any of the other items. Military discounts Related persons. Military discounts   The following is a list of related persons. Military discounts Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Military discounts ), and lineal descendants (children, grandchildren, etc. Military discounts ). Military discounts An individual and a corporation if the individual directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. Military discounts Two corporations that are members of the same controlled group as defined in section 267(f) of the Internal Revenue Code. Military discounts A trust fiduciary and a corporation if the trust or the grantor of the trust directly or indirectly owns more than 50% in value of the outstanding stock of the corporation. Military discounts A grantor and fiduciary, and the fiduciary and beneficiary, of any trust. Military discounts Fiduciaries of two different trusts, and the fiduciary and beneficiary of two different trusts, if the same person is the grantor of both trusts. Military discounts A tax-exempt educational or charitable organization and a person who directly or indirectly controls the organization, or a member of that person's family. Military discounts A corporation and a partnership if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital interest or profits interest in the partnership. Military discounts Two S corporations if the same persons own more than 50% in value of the outstanding stock of each corporation. Military discounts Two corporations, one of which is an S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. Military discounts An executor and a beneficiary of an estate unless the sale or exchange is in satisfaction of a pecuniary bequest. Military discounts Two partnerships if the same persons directly or indirectly own more than 50% of the capital interests or profits interests in both partnerships. Military discounts A person and a partnership if the person directly or indirectly owns more than 50% of the capital interest or profits interest in the partnership. Military discounts Partnership interests. Military discounts   The nondeductible loss rule does not apply to a sale or exchange of an interest in the partnership between the related persons described in (12) or (13) above. Military discounts Controlled groups. Military discounts   Losses on transactions between members of the same controlled group described in (3) earlier are deferred rather than denied. Military discounts   For more information, see section 267(f) of the Internal Revenue Code. Military discounts Ownership of stock or partnership interests. Military discounts   In determining whether an individual directly or indirectly owns any of the outstanding stock of a corporation or an interest in a partnership for a loss on a sale or exchange, the following rules apply. Military discounts Stock or a partnership interest directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. Military discounts (However, for a partnership interest owned by or for a C corporation, this applies only to shareholders who directly or indirectly own 5% or more in value of the stock of the corporation. Military discounts ) An individual is considered as owning the stock or partnership interest directly or indirectly owned by or for his or her family. Military discounts Family includes only brothers, sisters, half-brothers, half-sisters, spouse, ancestors, and lineal descendants. Military discounts An individual owning (other than by applying (2)) any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. Military discounts For purposes of applying (1), (2), or (3), stock or a partnership interest constructively owned by a person under (1) is treated as actually owned by that person. Military discounts But stock or a partnership interest constructively owned by an individual under (2) or (3) is not treated as owned by the individual for reapplying either (2) or (3) to make another person the constructive owner of that stock or partnership interest. Military discounts Indirect transactions. Military discounts   You cannot deduct your loss on the sale of stock through your broker if under a prearranged plan a related person or entity buys the same stock you had owned. Military discounts This does not apply to a cross-trade between related parties through an exchange that is purely coincidental and is not prearranged. Military discounts Property received from a related person. Military discounts   If, in a purchase or exchange, you received property from a related person who had a loss that was not allowable and you later sell or exchange the property at a gain, you recognize the gain only to the extent it is more than the loss previously disallowed to the related person. Military discounts This rule applies only to the original transferee. Military discounts Example 1. Military discounts Your brother sold stock to you for $7,600. Military discounts His cost basis was $10,000. Military discounts His loss of $2,400 was not deductible. Military discounts You later sell the same stock to an unrelated party for $10,500, realizing a gain of $2,900 ($10,500 − $7,600). Military discounts Your recognized gain is only $500, the gain that is more than the $2,400 loss not allowed to your brother. Military discounts Example 2. Military discounts Assume the same facts as in Example 1, except that you sell the stock for $6,900 instead of $10,500. Military discounts Your recognized loss is only $700 ($7,600 − $6,900). Military discounts You cannot deduct the loss not allowed to your brother. Military discounts Other Dispositions This section discusses rules for determining the treatment of gain or loss from various dispositions of property. Military discounts Sale of a Business The sale of a business usually is not a sale of one asset. Military discounts Instead, all the assets of the business are sold. Military discounts Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. Military discounts A business usually has many assets. Military discounts When sold, these assets must be classified as capital assets, depreciable property used in the business, real property used in the business, or property held for sale to customers, such as inventory or stock in trade. Military discounts The gain or loss on each asset is figured separately. Military discounts The sale of capital assets results in capital gain or loss. Military discounts The sale of real property or depreciable property used in the business and held longer than 1 year results in gain or loss from a section 1231 transaction (discussed in chapter 3). Military discounts The sale of inventory results in ordinary income or loss. Military discounts Partnership interests. Military discounts   An interest in a partnership or joint venture is treated as a capital asset when sold. Military discounts The part of any gain or loss from unrealized receivables or inventory items will be treated as ordinary gain or loss. Military discounts For more information, see Disposition of Partner's Interest in Publication 541. Military discounts Corporation interests. Military discounts   Your interest in a corporation is represented by stock certificates. Military discounts When you sell these certificates, you usually realize capital gain or loss. Military discounts For information on the sale of stock, see chapter 4 in Publication 550. Military discounts Corporate liquidations. Military discounts   Corporate liquidations of property generally are treated as a sale or exchange. Military discounts Gain or loss generally is recognized by the corporation on a liquidating sale of its assets. Military discounts Gain or loss generally is recognized also on a liquidating distribution of assets as if the corporation sold the assets to the distributee at fair market value. Military discounts   In certain cases in which the distributee is a corporation in control of the distributing corporation, the distribution may not be taxable. Military discounts For more information, see section 332 of the Internal Revenue Code and the related regulations. Military discounts Allocation of consideration paid for a business. Military discounts   The sale of a trade or business for a lump sum is considered a sale of each individual asset rather than of a single asset. Military discounts Except for assets exchanged under any nontaxable exchange rules, both the buyer and seller of a business must use the residual method (explained later) to allocate the consideration to each business asset transferred. Military discounts This method determines gain or loss from the transfer of each asset and how much of the consideration is for goodwill and certain other intangible property. Military discounts It also determines the buyer's basis in the business assets. Military discounts Consideration. Military discounts   The buyer's consideration is the cost of the assets acquired. Military discounts The seller's consideration is the amount realized (money plus the fair market value of property received) from the sale of assets. Military discounts Residual method. Military discounts   The residual method must be used for any transfer of a group of assets that constitutes a trade or business and for which the buyer's basis is determined only by the amount paid for the assets. Military discounts This applies to both direct and indirect transfers, such as the sale of a business or the sale of a partnership interest in which the basis of the buyer's share of the partnership assets is adjusted for the amount paid under section 743(b) of the Internal Revenue Code. Military discounts Section 743(b) applies if a partnership has an election in effect under section 754 of the Internal Revenue Code. Military discounts   A group of assets constitutes a trade or business if either of the following applies. Military discounts Goodwill or going concern value could, under any circumstances, attach to them. Military discounts The use of the assets would constitute an active trade or business under section 355 of the Internal Revenue Code. Military discounts   The residual method provides for the consideration to be reduced first by the amount of Class I assets (defined below). Military discounts The consideration remaining after this reduction must be allocated among the various business assets in a certain order. Military discounts See Classes of assets next for the complete order. Military discounts Classes of assets. Military discounts   The following definitions are the classifications for deemed or actual asset acquisitions. Military discounts Allocate the consideration among the assets in the following order. Military discounts The amount allocated to an asset, other than a Class VII asset, cannot exceed its fair market value on the purchase date. Military discounts The amount you can allocate to an asset also is subject to any applicable limits under the Internal Revenue Code or general principles of tax law. Military discounts Class I assets are cash and general deposit accounts (including checking and savings accounts but excluding certificates of deposit). Military discounts Class II assets are certificates of deposit, U. Military discounts S. Military discounts Government securities, foreign currency, and actively traded personal property, including stock and securities. Military discounts Class III assets are accounts receivable, other debt instruments, and assets that you mark to market at least annually for federal income tax purposes. Military discounts However, see section 1. Military discounts 338-6(b)(2)(iii) of the regulations for exceptions that apply to debt instruments issued by persons related to a target corporation, contingent debt instruments, and debt instruments convertible into stock or other property. Military discounts Class IV assets are property of a kind that would properly be included in inventory if on hand at the end of the tax year or property held by the taxpayer primarily for sale to customers in the ordinary course of business. Military discounts Class V assets are all assets other than Class I, II, III, IV, VI, and VII assets. Military discounts    Note. Military discounts Furniture and fixtures, buildings, land, vehicles, and equipment, which constitute all or part of a trade or business are generally Class V assets. Military discounts Class VI assets are section 197 intangibles (other than goodwill and going concern value). Military discounts Class VII assets are goodwill and going concern value (whether the goodwill or going concern value qualifies as a section 197 intangible). Military discounts   If an asset described in one of the classifications described above can be included in more than one class, include it in the lower numbered class. Military discounts For example, if an asset is described in both Class II and Class IV, choose Class II. Military discounts Example. Military discounts The total paid in the sale of the assets of Company SKB is $21,000. Military discounts No cash or deposit accounts or similar accounts were sold. Military discounts The company's U. Military discounts S. Military discounts Government securities sold had a fair market value of $3,200. Military discounts The only other asset transferred (other than goodwill and going concern value) was inventory with a fair market value of $15,000. Military discounts Of the $21,000 paid for the assets of Company SKB, $3,200 is allocated to U. Military discounts S. Military discounts Government securities, $15,000 to inventory assets, and the remaining $2,800 to goodwill and going concern value. Military discounts Agreement. Military discounts   The buyer and seller may enter into a written agreement as to the allocation of any consideration or the fair market value of any of the assets. Military discounts This agreement is binding on both parties unless the IRS determines the amounts are not appropriate. Military discounts Reporting requirement. Military discounts   Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. Military discounts Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. Military discounts Generally, the buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. Military discounts See the Instructions for Form 8594. Military discounts Dispositions of Intangible Property Intangible property is any personal property that has value but cannot be seen or touched. Military discounts It includes such items as patents, copyrights, and the goodwill value of a business. Military discounts Gain or loss on the sale or exchange of amortizable or depreciable intangible property held longer than 1 year (other than an amount recaptured as ordinary income) is a section 1231 gain or loss. Military discounts The treatment of section 1231 gain or loss and the recapture of amortization and depreciation as ordinary income are explained in chapter 3. Military discounts See chapter 8 of Publication 535, Business Expenses, for information on amortizable intangible property and chapter 1 of Publication 946, How To Depreciate Property, for information on intangible property that can and cannot be depreciated. Military discounts Gain or loss on dispositions of other intangible property is ordinary or capital depending on whether the property is a capital asset or a noncapital asset. Military discounts The following discussions explain special rules that apply to certain dispositions of intangible property. Military discounts Section 197 Intangibles Section 197 intangibles are certain intangible assets acquired after August 10, 1993 (after July 25, 1991, if chosen), and held in connection with the conduct of a trade or business or an activity entered into for profit whose costs are amortized over 15 years. Military discounts They include the following assets. Military discounts Goodwill. Military discounts Going concern value. Military discounts Workforce in place. Military discounts Business books and records, operating systems, and other information bases. Military discounts Patents, copyrights, formulas, processes, designs, patterns, know how, formats, and similar items. Military discounts Customer-based intangibles. Military discounts Supplier-based intangibles. Military discounts Licenses, permits, and other rights granted by a governmental unit. Military discounts Covenants not to compete entered into in connection with the acquisition of a business. Military discounts Franchises, trademarks, and trade names. Military discounts See chapter 8 of Publication 535 for a description of each intangible. Military discounts Dispositions. Military discounts   You cannot deduct a loss from the disposition or worthlessness of a section 197 intangible you acquired in the same transaction (or series of related transactions) as another section 197 intangible you still hold. Military discounts Instead, you must increase the adjusted basis of your retained section 197 intangible by the nondeductible loss. Military discounts If you retain more than one section 197 intangible, increase each intangible's adjusted basis. Military discounts Figure the increase by multiplying the nondeductible loss by a fraction, the numerator (top number) of which is the retained intangible's adjusted basis on the date of the loss and the denominator (bottom number) of which is the total adjusted basis of all retained intangibles on the date of the loss. Military discounts   In applying this rule, members of the same controlled group of corporations and commonly controlled businesses are treated as a single entity. Military discounts For example, a corporation cannot deduct a loss on the sale of a section 197 intangible if, after the sale, a member of the same controlled group retains other section 197 intangibles acquired in the same transaction as the intangible sold. Military discounts Covenant not to compete. Military discounts   A covenant not to compete (or similar arrangement) that is a section 197 intangible cannot be treated as disposed of or worthless before you have disposed of your entire interest in the trade or business for which the covenant was entered into. Military discounts Members of the same controlled group of corporations and commonly controlled businesses are treated as a single entity in determining whether a member has disposed of its entire interest in a trade or business. Military discounts Anti-churning rules. Military discounts   Anti-churning rules prevent a taxpayer from converting section 197 intangibles that do not qualify for amortization into property that would qualify for amortization. Military discounts However, these rules do not apply to part of the basis of property acquired by certain related persons if the transferor elects to do both the following. Military discounts Recognize gain on the transfer of the property. Military discounts Pay income tax on the gain at the highest tax rate. Military discounts   If the transferor is a partnership or S corporation, the partnership or S corporation (not the partners or shareholders) can make the election. Military discounts But each partner or shareholder must pay the tax on his or her share of gain. Military discounts   To make the election, you, as the transferor, must attach a statement containing certain information to your income tax return for the year of the transfer. Military discounts You must file the tax return by the due date (including extensions). Military discounts You must also notify the transferee of the election in writing by the due date of the return. Military discounts   If you timely filed your return without making the election, you can make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). Military discounts Attach the statement to the amended return and write “Filed pursuant to section 301. Military discounts 9100-2” at the top of the statement. Military discounts File the amended return at the same address the original return was filed. Military discounts For more information about making the election, see Regulations section 1. Military discounts 197-2(h)(9). Military discounts For information about reporting the tax on your income tax return, see the Instructions for Form 4797. Military discounts Patents The transfer of a patent by an individual is treated as a sale or exchange of a capital asset held longer than 1 year. Military discounts This applies even if the payments for the patent are made periodically during the transferee's use or are contingent on the productivity, use, or disposition of the patent. Military discounts For information on the treatment of gain or loss on the transfer of capital assets, see chapter 4. Military discounts This treatment applies to your transfer of a patent if you meet all the following conditions. Military discounts You are the holder of the patent. Military discounts You transfer the patent other than by gift, inheritance, or devise. Military discounts You transfer all substantial rights to the patent or an undivided interest in all such rights. Military discounts You do not transfer the patent to a related person. Military discounts Holder. Military discounts   You are the holder of a patent if you are either of the following. Military discounts The individual whose effort created the patent property and who qualifies as the original and first inventor. Military discounts The individual who bought an interest in the patent from the inventor before the invention was tested and operated successfully under operating conditions and who is neither related to, nor the employer of, the inventor. Military discounts All substantial rights. Military discounts   All substantial rights to patent property are all rights that have value when they are transferred. Military discounts A security interest (such as a lien), or a reservation calling for forfeiture for nonperformance, is not treated as a substantial right for these rules and may be kept by you as the holder of the patent. Military discounts   All substantial rights to a patent are not transferred if any of the following apply to the transfer. Military discounts The rights are limited geographically within a country. Military discounts The rights are limited to a period less than the remaining life of the patent. Military discounts The rights are limited to fields of use within trades or industries and are less than all the rights that exist and have value at the time of the transfer. Military discounts The rights are less than all the claims or inventions covered by the patent that exist and have value at the time of the transfer. Military discounts Related persons. Military discounts   This tax treatment does not apply if the transfer is directly or indirectly between you and a related person as defined earlier in the list under Nondeductible Loss, with the following changes. Military discounts Members of your family include your spouse, ancestors, and lineal descendants, but not your brothers, sisters, half-brothers, or half-sisters. Military discounts Substitute “25% or more” ownership for “more than 50%. Military discounts ”   If you fit within the definition of a related person independent of family status, the brother-sister exception in (1), earlier, does not apply. Military discounts For example, a transfer between a brother and a sister as beneficiary and fiduciary of the same trust is a transfer between related persons. Military discounts The brother-sister exception does not apply because the trust relationship is independent of family status. Military discounts Franchise, Trademark, or Trade Name If you transfer or renew a franchise, trademark, or trade name for a price contingent on its productivity, use, or disposition, the amount you receive generally is treated as an amount realized from the sale of a noncapital asset. Military discounts A franchise includes an agreement that gives one of the parties the right to distribute, sell, or provide goods, services, or facilities within a specified area. Military discounts Significant power, right, or continuing interest. Military discounts   If you keep any significant power, right, or continuing interest in the subject matter of a franchise, trademark, or trade name that you transfer or renew, the amount you receive is ordinary royalty income rather than an amount realized from a sale or exchange. Military discounts   A significant power, right, or continuing interest in a franchise, trademark, or trade name includes, but is not limited to, the following rights in the transferred interest. Military discounts A right to disapprove any assignment of the interest, or any part of it. Military discounts A right to end the agreement at will. Military discounts A right to set standards of quality for products used or sold, or for services provided, and for the equipment and facilities used to promote such products or services. Military discounts A right to make the recipient sell or advertise only your products or services. Military discounts A right to make the recipient buy most supplies and equipment from you. Military discounts A right to receive payments based on the productivity, use, or disposition of the transferred item of interest if those payments are a substantial part of the transfer agreement. Military discounts Subdivision of Land If you own a tract of land and, to sell or exchange it, you subdivide it into individual lots or parcels, the gain normally is ordinary income. Military discounts However, you may receive capital gain treatment on at least part of the proceeds provided you meet certain requirements. Military discounts See section 1237 of the Internal Revenue Code. Military discounts Timber Standing timber held as investment property is a capital asset. Military discounts Gain or loss from its sale is reported as a capital gain or loss on Form 8949, and Schedule D (Form 1040), as applicable. Military discounts If you held the timber primarily for sale to customers, it is not a capital asset. Military discounts Gain or loss on its sale is ordinary business income or loss. Military discounts It is reported in the gross receipts or sales and cost of goods sold items of your return. Military discounts Farmers who cut timber on their land and sell it as logs, firewood, or pulpwood usually have no cost or other basis for that timber. Military discounts These sales constitute a very minor part of their farm businesses. Military discounts In these cases, amounts realized from such sales, and the expenses of cutting, hauling, etc. Military discounts , are ordinary farm income and expenses reported on Schedule F (Form 1040), Profit or Loss From Farming. Military discounts Different rules apply if you owned the timber longer than 1 year and elect to either: Treat timber cutting as a sale or exchange, or Enter into a cutting contract. Military discounts Timber is considered cut on the date when, in the ordinary course of business, the quantity of felled timber is first definitely determined. Military discounts This is true whether the timber is cut under contract or whether you cut it yourself. Military discounts Under the rules discussed below, disposition of the timber is treated as a section 1231 transaction. Military discounts See chapter 3. Military discounts Gain or loss is reported on Form 4797. Military discounts Christmas trees. Military discounts   Evergreen trees, such as Christmas trees, that are more than 6 years old when severed from their roots and sold for ornamental purposes are included in the term timber. Military discounts They qualify for both rules discussed below. Military discounts Election to treat cutting as a sale or exchange. Military discounts   Under the general rule, the cutting of timber results in no gain or loss. Military discounts It is not until a sale or exchange occurs that gain or loss is realized. Military discounts But if you owned or had a contractual right to cut timber, you can elect to treat the cutting of timber as a section 1231 transaction in the year the timber is cut. Military discounts Even though the cut timber is not actually sold or exchanged, you report your gain or loss on the cutting for the year the timber is cut. Military discounts Any later sale results in ordinary business income or loss. Military discounts See Example, later. Military discounts   To elect this treatment, you must: Own or hold a contractual right to cut the timber for a period of more than 1 year before it is cut, and Cut the timber for sale or for use in your trade or business. Military discounts Making the election. Military discounts   You make the election on your return for the year the cutting takes place by including in income the gain or loss on the cutting and including a computation of the gain or loss. Military discounts You do not have to make the election in the first year you cut timber. Military discounts You can make it in any year to which the election would apply. Military discounts If the timber is partnership property, the election is made on the partnership return. Military discounts This election cannot be made on an amended return. Military discounts   Once you have made the election, it remains in effect for all later years unless you cancel it. Military discounts   If you previously elected to treat the cutting of timber as a sale or exchange, you may revoke this election without the consent of the IRS. Military discounts The prior election (and revocation) is disregarded for purposes of making a subsequent election. Military discounts See Form T (Timber), Forest Activities Schedule, for more information. Military discounts Gain or loss. Military discounts   Your gain or loss on the cutting of standing timber is the difference between its adjusted basis for depletion and its fair market value on the first day of your tax year in which it is cut. Military discounts   Your adjusted basis for depletion of cut timber is based on the number of units (feet board measure, log scale, or other units) of timber cut during the tax year and considered to be sold or exchanged. Military discounts Your adjusted basis for depletion is also based on the depletion unit of timber in the account used for the cut timber, and should be figured in the same manner as shown in section 611 of the Internal Revenue Code and the related regulations. Military discounts   Timber depletion is discussed in chapter 9 of Publication 535. Military discounts Example. Military discounts In April 2013, you had owned 4,000 MBF (1,000 board feet) of standing timber longer than 1 year. Military discounts It had an adjusted basis for depletion of $40 per MBF. Military discounts You are a calendar year taxpayer. Military discounts On January 1, 2013, the timber had a fair market value (FMV) of $350 per MBF. Military discounts It was cut in April for sale. Military discounts On your 2013 tax return, you elect to treat the cutting of the timber as a sale or exchange. Military discounts You report the difference between the fair market value and your adjusted basis for depletion as a gain. Military discounts This amount is reported on Form 4797 along with your other section 1231 gains and losses to figure whether it is treated as capital gain or as ordinary gain. Military discounts You figure your gain as follows. Military discounts FMV of timber January 1, 2013 $1,400,000 Minus: Adjusted basis for depletion 160,000 Section 1231 gain $1,240,000 The fair market value becomes your basis in the cut timber and a later sale of the cut timber including any by-product or tree tops will result in ordinary business income or loss. Military discounts Outright sales of timber. Military discounts   Outright sales of timber by landowners qualify for capital gains treatment using rules similar to the rules for certain disposal of timber under a contract with retained economic interest (defined below). Military discounts However, for outright sales, the date of disposal is not deemed to be the date the timber is cut because the landowner can elect to treat the payment date as the date of disposal (see below). Military discounts Cutting contract. Military discounts   You must treat the disposal of standing timber under a cutting contract as a section 1231 transaction if all the following apply to you. Military discounts You are the owner of the timber. Military discounts You held the timber longer than 1 year before its disposal. Military discounts You kept an economic interest in the timber. Military discounts   You have kept an economic interest in standing timber if, under the cutting contract, the expected return on your investment is conditioned on the cutting of the timber. Military discounts   The difference between the amount realized from the disposal of the timber and its adjusted basis for depletion is treated as gain or loss on its sale. Military discounts Include this amount on Form 4797 along with your other section 1231 gains or losses to figure whether it is treated as capital or ordinary gain or loss. Military discounts Date of disposal. Military discounts   The date of disposal is the date the timber is cut. Military discounts However, for outright sales by landowners or if you receive payment under the contract before the timber is cut, you can elect to treat the date of payment as the date of disposal. Military discounts   This election applies only to figure the holding period of the timber. Military discounts It has no effect on the time for reporting gain or loss (generally when the timber is sold or exchanged). Military discounts   To make this election, attach a statement to the tax return filed by the due date (including extensions) for the year payment is received. Military discounts The statement must identify the advance payments subject to the election and the contract under which they were made. Military discounts   If you timely filed your return for the year you received payment without making the election, you still can make the election by filing an amended return within 6 months after the due date for that year's return (excluding extensions). Military discounts Attach the statement to the amended return and write “Filed pursuant to section 301. Military discounts 9100-2” at the top of the statement. Military discounts File the amended return at the same address the original return was filed. Military discounts Owner. Military discounts   The owner of timber is any person who owns an interest in it, including a sublessor and the holder of a contract to cut the timber. Military discounts You own an interest in timber if you have the right to cut it for sale on your own account or for use in your business. Military discounts Tree stumps. Military discounts   Tree stumps are a capital asset if they are on land held by an investor who is not in the timber or stump business as a buyer, seller, or processor. Military discounts Gain from the sale of stumps sold in one lot by such a holder is taxed as a capital gain. Military discounts However, tree stumps held by timber operators after the saleable standing timber was cut and removed from the land are considered by-products. Military discounts Gain from the sale of stumps in lots or tonnage by such operators is taxed as ordinary income. Military discounts   See Form T (Timber) and its separate instructions for more information about dispositions of timber. Military discounts Precious Metals and Stones, Stamps, and Coins Gold, silver, gems, stamps, coins, etc. Military discounts , are capital assets except when they are held for sale by a dealer. Military discounts Any gain or loss from their sale or exchange generally is a capital gain or loss. Military discounts If you are a dealer, the amount received from the sale is ordinary business income. Military discounts Coal and Iron Ore You must treat the disposal of coal (including lignite) or iron ore mined in the United States as a section 1231 transaction if both the following apply to you. Military discounts You owned the coal or iron ore longer than 1 year before its disposal. Military discounts You kept an economic interest in the coal or iron ore. Military discounts For this rule, the date the coal or iron ore is mined is considered the date of its disposal. Military discounts Your gain or loss is the difference between the amount realized from disposal of the coal or iron ore and the adjusted basis you use to figure cost depletion (increased by certain expenses not allowed as deductions for the tax year). Military discounts This amount is included on Form 4797 along with your other section 1231 gains and losses. Military discounts You are considered an owner if you own or sublet an economic interest in the coal or iron ore in place. Military discounts If you own only an option to buy the coal in place, you do not qualify as an owner. Military discounts In addition, this gain or loss treatment does not apply to income realized by an owner who is a co-adventurer, partner, or principal in the mining of coal or iron ore. Military discounts The expenses of making and administering the contract under which the coal or iron ore was disposed of and the expenses of preserving the economic interest kept under the contract are not allowed as deductions in figuring taxable income. Military discounts Rather, their total, along with the adjusted depletion basis, is deducted from the amount received to determine gain. Military discounts If the total of these expenses plus the adjusted depletion basis is more than the amount received, the result is a loss. Military discounts Special rule. Military discounts   The above treatment does not apply if you directly or indirectly dispose of the iron ore or coal to any of the following persons. Military discounts A related person whose relationship to you would result in the disallowance of a loss (see Nondeductible Loss under Sales and Exchanges Between Related Persons, earlier). Military discounts An individual, trust, estate, partnership, association, company, or corporation owned or controlled directly or indirectly by the same interests that own or control your business. Military discounts Conversion Transactions Recognized gain on the disposition or termination of any position held as part of certain conversion transactions is treated as ordinary income. Military discounts This applies if substantially all your expected return is attributable to the time value of your net investment (like interest on a loan) and the transaction is any of the following. Military discounts An applicable straddle (generally, any set of offsetting positions with respect to personal property, including stock). Military discounts A transaction in which you acquire property and, at or about the same time, you contract to sell the same or substantially identical property at a specified price. Military discounts Any other transaction that is marketed and sold as producing capital gain from a transaction in which substantially all of your expected return is due to the time value of your net investment. Military discounts For more information, see chapter 4 of Publication 550. Military discounts Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP80 Notice

We credited payments and/or other credits to your tax account for the tax period shown on your notice. However, we haven't received your tax return.


What you need to do

If you are required to file this tax return:

  • Please file today. Send your signed tax return to the address shown on the top of your notice.

  • Answers to common questions

    What if I have already filed this return?
    Please send a newly-signed copy to the address shown on the top of your notice.

    What if I want the credit transferred to another tax form, tax period or tax identification number?
    Please call us at 1-800-829-8374 to give us details of the account to which the credit should be transferred.

Page Last Reviewed or Updated: 07-Mar-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Military Discounts

Military discounts Publication 972 - Main Content Table of Contents Child Tax CreditQualifying Child Limits on the Credit Claiming the Credit Earned Income Additional Child Tax Credit How To Get Tax HelpLow Income Taxpayer Clinics Child Tax Credit This credit is for people who have a qualifying child as defined later. Military discounts It is in addition to the credit for child and dependent care expenses (on Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46) and the earned income credit (on Form 1040, line 64a; or Form 1040A, line 38a). Military discounts The maximum amount you can claim for the credit is $1,000 for each qualifying child. Military discounts Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you , later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. Military discounts S. Military discounts citizen, a U. Military discounts S. Military discounts national, or a U. Military discounts S. Military discounts resident alien. Military discounts For more information, see Publication 519, U. Military discounts S. Military discounts Tax Guide for Aliens. Military discounts If the child was adopted, see Adopted child , later. Military discounts For each qualifying child, you must either check the box on Form 1040 or Form 1040A, line 6c, column (4); or Form 1040NR, line 7c, column (4). Military discounts Example. Military discounts Your 10-year-old nephew lives in Mexico and qualifies as your dependent. Military discounts Because he is not a U. Military discounts S. Military discounts citizen, U. Military discounts S. Military discounts national, or U. Military discounts S. Military discounts resident alien, he is not a qualifying child for the child tax credit. Military discounts Filers who have certain child dependents with an IRS Individual Taxpayer Identification Number (ITIN). Military discounts   If you are claiming a child tax credit or additional child tax credit for a child identified on your tax return with an ITIN, you must complete Part I of Schedule 8812 (Form 1040A or 1040). Military discounts   Although a child may be your dependent, you may only claim a child tax credit or additional child tax credit for a dependent who is a citizen, national, or resident of the United States. Military discounts To be treated as a resident of the United States, a child generally will need to meet the requirements of the substantial presence test. Military discounts For more information about the substantial presence test, see Publication 519, U. Military discounts S. Military discounts Tax Guide for Aliens. Military discounts Adopted child. Military discounts   An adopted child is always treated as your own child. Military discounts An adopted child includes a child lawfully placed with you for legal adoption. Military discounts   If you are a U. Military discounts S. Military discounts citizen or U. Military discounts S. Military discounts national and your adopted child lived with you all year as a member of your household in 2013, that child meets condition (7) above to be a qualifying child for the child tax credit. Military discounts Exceptions to time lived with you. Military discounts    A child is considered to have lived with you for more than half of 2013 if the child was born or died in 2013 and your home was this child's home for more than half the time he or she was alive. Military discounts Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. Military discounts   There are also exceptions for kidnapped children and children of divorced or separated parents. Military discounts For details, see the instructions for line 6c in either the Form 1040 or Form 1040A instructions. Military discounts Qualifying child of more than one person. Military discounts   A special rule applies if your qualifying child is the qualifying child of more than one person. Military discounts For details, see the instructions for line 6c in either the Form 1040 or Form 1040A instructions. Military discounts Limits on the Credit You must reduce your child tax credit if either (1) or (2) applies. Military discounts The amount on Form 1040, line 46; Form 1040A, line 28; or Form 1040NR, line 44, is less than the credit. Military discounts If this amount is zero, you cannot take this credit because there is no tax to reduce. Military discounts But you may be able to take the additional child tax credit. Military discounts See Additional Child Tax Credit, later. Military discounts Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. Military discounts Married filing jointly – $110,000. Military discounts Single, head of household, or qualifying widow(er) – $75,000. Military discounts Married filing separately – $55,000. Military discounts Modified AGI. Military discounts   For purposes of the child tax credit, your modified AGI is your AGI plus the following amounts that may apply to you. Military discounts Any amount excluded from income because of the exclusion of income from Puerto Rico. Military discounts On the dotted line next to Form 1040, line 38, enter the amount excluded and identify it as “EPRI. Military discounts ” Also attach a copy of any Form(s) 499R-2/W-2PR to your return. Military discounts Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. Military discounts Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. Military discounts Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. Military discounts   If you do not have any of the above, your modified AGI is the same as your AGI. Military discounts AGI. Military discounts   Your AGI is the amount on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Military discounts Claiming the Credit To claim the child tax credit, you must file Form 1040, Form 1040A, or Form 1040NR. Military discounts You cannot claim the child tax credit on Form 1040EZ or Form 1040NR-EZ. Military discounts You must provide the name and identification number (usually a social security number) on your tax return for each qualifying child. Military discounts Earned Income You will need to figure your earned income using one of the worksheets that appear later in this publication if you are completing the Line 11 Worksheet , later, or Schedule 8812. Military discounts Form 1040 or Form 1040NR filers, use the 1040 and 1040NR Filers — Earned Income Worksheet , later, to figure your earned income. Military discounts Form 1040A filers, use the 1040A Filers —- Earned Income Worksheet , later. Military discounts For this purpose, earned income includes only: Taxable earned income, and Nontaxable combat pay. Military discounts Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. Military discounts The additional child tax credit may give you a refund even if you do not owe any tax. Military discounts How to claim the additional child tax credit. Military discounts   To claim the additional child tax credit, follow the steps below. Military discounts Make sure you figured the amount, if any, of your child tax credit. Military discounts If you answered “Yes” on line 9 or line 10 of the Child Tax Credit Worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions (or on line 13 of the Child Tax Credit Worksheet in this publication), use Parts II through IV of Schedule 8812 to see if you can take the additional child tax credit. Military discounts If you have an additional child tax credit on line 13 of Schedule 8812, carry it to Form 1040, line 65; Form 1040A, line 39; or Form 1040NR, line 63. Military discounts Child Tax Credit Worksheet This image is too large to be displayed in the current screen. Military discounts Please click the link to view the image. Military discounts Child tax worksheet - page 1. Military discounts Child Tax Credit Worksheet—Continued This image is too large to be displayed in the current screen. Military discounts Please click the link to view the image. Military discounts Child tax worksheet - page 2. Military discounts Line 11 Worksheet This image is too large to be displayed in the current screen. Military discounts Please click the link to view the image. Military discounts Line 11 worksheet - page 1. Military discounts Line 11 Worksheet—Continued This image is too large to be displayed in the current screen. Military discounts Please click the link to view the image. Military discounts Line 11 worksheet - page 2. Military discounts 1040 and 1040NR Filers — Earned Income Worksheet (for line 2 of the Line 11 Worksheet or line 4a of Schedule 8812, Child Tax Credit) Before you begin:    ✓Use this worksheet only if you were sent here from the Line 11 Worksheet earlier in this publication or line  4a of Schedule 8812, Child Tax Credit. Military discounts  ✓Disregard community property laws when figuring the amounts to enter on this worksheet. Military discounts  ✓If married filing jointly, include your spouse's amounts with yours when completing this worksheet. Military discounts     1. Military discounts a. Military discounts Enter the amount from Form 1040, line 7, or Form 1040NR, line 8 1a. Military discounts     b. Military discounts Enter the amount of any nontaxable combat pay received. Military discounts Also enter this amount on Schedule 8812, line 4b. Military discounts This amount should be shown in Form(s) W-2, box 12, with code Q. Military discounts 1b. Military discounts       Next, if you are filing Schedule C, C-EZ, F, or SE, or you received a Schedule K-1 (Form 1065 or Form 1065-B), go to line 2a. Military discounts Otherwise, skip lines 2a through 2e and go to line 3. Military discounts     2. Military discounts a. Military discounts Enter any statutory employee income reported on line 1 of Schedule C or C-EZ 2a. Military discounts     b. Military discounts Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. Military discounts * Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Military discounts Do not include on this line any statutory employee income or any other amounts exempt from self-employment tax. Military discounts Options and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256 contracts or related property 2b. Military discounts     c. Military discounts Enter any net farm profit or (loss) from Schedule F, line 34, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A. Military discounts * Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Military discounts Do not include on this line any amounts exempt from self-employment tax 2c. Military discounts         d. Military discounts If you used the farm optional method to figure net earnings from self-employment, enter the amount from Schedule SE, Section B, line 15. Military discounts Otherwise, skip this line and enter on line 2e the amount from line 2c 2d. Military discounts         e. Military discounts If line 2c is a profit, enter the smaller of line 2c or line 2d. Military discounts If line 2c is a (loss), enter the (loss) from line 2c. Military discounts 2e. Military discounts   3. Military discounts Combine lines 1a, 1b, 2a, 2b, and 2e. Military discounts If zero or less, stop. Military discounts Do not complete the rest of this worksheet. Military discounts Instead, enter -0- on line 2 of the Line 11 Worksheet or line 4a of Schedule 8812, whichever applies 3. Military discounts   4. Military discounts Enter any amount included on line 1a that is:               a. Military discounts A scholarship or fellowship grant not reported on Form W-2 4a. Military discounts         b. Military discounts For work done while an inmate in a penal institution (enter “PRI” and this amount on the dotted line next to line 7 of Form 1040 or line 8 of Form 1040NR) 4b. Military discounts         c. Military discounts A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “DFC” and this amount on the dotted line next to line 7 of Form 1040 or line 8 of Form 1040NR). Military discounts This amount may be shown in box 11 of your Form W-2. Military discounts If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. Military discounts 4c. Military discounts       5. Military discounts a. Military discounts Enter any amount included on line 3 that is also included on Form 2555, line 43, or Form 2555-EZ, line 18. Military discounts Do not include any amount that is also included on line 4a, 4b, or 4c above 5a. Military discounts             b. Military discounts Enter the portion, if any, of the amount from Form 2555, line 44 that you also included on Schedule E in partnership net income or (loss) or deducted on Form 1040, line 27, or Form 1040NR, line 27; Schedule C; Schedule C-EZ; or Schedule F. Military discounts 5b. Military discounts             c. Military discounts Subtract line 5b from line 5a 5c. Military discounts       6. Military discounts Enter the amount from Form 1040, line 27, or Form 1040NR, line 27 6. Military discounts       7. Military discounts Add lines 4a through 4c, 5c, and 6 7. Military discounts   8. Military discounts Subtract line 7 from line 3 8. Military discounts       If you were sent here from the Line 11 Worksheet, enter this amount on line 2 of that worksheet. Military discounts If you were sent here from Schedule 8812, enter this amount on line 4a of that form. Military discounts     *If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate line(s) of Schedule SE, Section A. Military discounts Put your name and social security number on Schedule SE and attach it to your return. Military discounts                     1040A Filers — Earned Income Worksheet (for line 2 of the Line 11 Worksheet) Before you begin:   ✓Use this worksheet only if you were sent here from the Line 11 Worksheet earlier in this publication. Military discounts  ✓Disregard community property laws when figuring the amounts to enter on this worksheet. Military discounts               1. Military discounts a. Military discounts Enter the amount from Form 1040A, line 7 1a. Military discounts         b. Military discounts Enter the amount of any nontaxable combat pay received. Military discounts Also enter this amount on Schedule 8812, line 4b. Military discounts This amount should be shown in Form(s) W-2, box 12, with code Q. Military discounts 1b. Military discounts         c. Military discounts Add lines 1a and 1b. Military discounts     1c. Military discounts   2. Military discounts Enter any amount included on line 1a that is:           a. Military discounts A scholarship or fellowship grant not reported on Form W-2 2a. Military discounts         b. Military discounts For work done while an inmate in a penal institution (enter “PRI” and this amount next to line 7 of Form 1040A) 2b. Military discounts         c. Military discounts A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “DFC” and this amount next to line 7 of Form 1040A). Military discounts This amount may be shown in box 11 of your Form W-2. Military discounts If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity 2c. Military discounts       3. Military discounts Add lines 2a through 2c 3. Military discounts   4. Military discounts Subtract line 3 from line 1c. Military discounts Enter the result here and on line 2 of the Line 11 Worksheet 4. Military discounts                 Additional Medicare Tax and RRTA Tax Worksheet (for line 6 of the Line 11 Worksheet) If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use this worksheet to figure the amount to enter on line 6 of the Line 11 Worksheet. Military discounts Social security tax, Medicare tax, and Additional Medicare Tax on wages. Military discounts 1. Military discounts Enter the social security tax withheld (Form(s) W-2, box 4) 1. Military discounts   2. Military discounts Enter the Medicare tax withheld (Form(s) W-2, box 6). Military discounts Box 6 includes any Additional Medicare Tax 2. Military discounts   3. Military discounts Enter the Additional Medicare Tax, if any, on wages (Form 8959, line 7) 3. Military discounts   4. Military discounts Add lines 1, 2, and 3 4. Military discounts   5. Military discounts Enter the Additional Medicare Tax withheld (Form 8959, line 22) 5. Military discounts   6. Military discounts Subtract line 5 from line 4 6. Military discounts   Additional Medicare Tax on Self-Employment Income. Military discounts 7. Military discounts Enter one-half of the Additional Medicare Tax, if any, on self-employment income (one-half of Form 8959, line 13) 7. Military discounts   Tier 1 RRTA taxes as an employee of a railroad (enter amounts on lines 8, 9, 10, and 11) or employee representative (enter amounts on lines 12, 13, 14, and 15). Military discounts Do not include amounts in Form W-2, box 14, that are identified as Additional Medicare Tax or Tier 2 tax. Military discounts Do not include amounts shown on Form CT-2 on line 3 for Additional Medicare Tax or line 4 for Tier 2 tax. Military discounts 8. Military discounts Enter the Tier 1 tax (Form(s) W-2, box 14) 8. Military discounts   9. Military discounts Enter the Medicare tax (Form(s) W-2, box 14) 9. Military discounts   10. Military discounts Enter the Additional Medicare Tax, if any, on RRTA compensation as an employee (Form 8959, line 17). Military discounts Do not use the same amount from Form 8959, line 17, for both this line and line 14 10. Military discounts   11. Military discounts Add lines 8, 9, and 10 11. Military discounts   12. Military discounts Enter one-half of Tier 1 tax (one-half of Form(s) CT-2, line 1, for all 4 quarters of 2013) 12. Military discounts   13. Military discounts Enter one-half of Tier 1 Medicare tax (one-half of Form(s) CT-2, line 2, for all 4 quarters of 2013) 13. Military discounts   14. Military discounts Enter one-half of the Additional Medicare Tax, if any, on RRTA compensation as an employee representative (one-half of Form 8959, line 17). Military discounts Do not use the same amount from Form 8959, line 17, for both this line and line 10 14. Military discounts   15. Military discounts Add lines 12, 13, and 14 15. Military discounts   Line 6 amount 16. Military discounts Add lines 6, 7, 11, and 15. Military discounts Enter here and on line 6 of the Line 11 Worksheet. Military discounts 16. Military discounts   Paperwork Reduction Act Notice. Military discounts   We ask for the information on the worksheets in this publication to carry out the Internal Revenue laws of the United States. Military discounts You are required to give us the information if requested. Military discounts We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. Military discounts   You are not required to provide the information requested on a form (or worksheet in this publication) that is subject to the Paperwork Reduction Act unless the form (or publication) displays a valid OMB control number. Military discounts Books or records relating to a form, its instructions, or this publication must be retained as long as their contents may become material in the administration of any Internal Revenue law. Military discounts Generally, tax returns and return information are confidential, as required by section 6103. Military discounts   The average time and expenses required to complete these worksheets will vary depending on individual circumstances. Military discounts For the estimated averages, see the instructions for your income tax return. Military discounts   If you have suggestions for making these worksheets simpler, we would be happy to hear from you. Military discounts See Comments and suggestions , earlier. Military discounts How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Military discounts Free help with your tax return. Military discounts   You can get free help preparing your return nationwide from IRS-certified volunteers. Military discounts The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Military discounts The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Military discounts Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Military discounts In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Military discounts To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Military discounts gov, download the IRS2Go app, or call 1-800-906-9887. Military discounts   As part of the TCE program, AARP offers the Tax-Aide counseling program. Military discounts To find the nearest AARP Tax-Aide site, visit AARP's website at www. Military discounts aarp. Military discounts org/money/taxaide or call 1-888-227-7669. Military discounts For more information on these programs, go to IRS. Military discounts gov and enter “VITA” in the search box. Military discounts Internet. Military discounts    IRS. Military discounts gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Military discounts Download the free IRS2Go app from the iTunes app store or from Google Play. Military discounts Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Military discounts Check the status of your 2013 refund with the Where's My Refund? application on IRS. Military discounts gov or download the IRS2Go app and select the Refund Status option. Military discounts The IRS issues more than 9 out of 10 refunds in less than 21 days. Military discounts Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Military discounts You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Military discounts The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Military discounts Use the Interactive Tax Assistant (ITA) to research your tax questions. Military discounts No need to wait on the phone or stand in line. Military discounts The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Military discounts When you reach the response screen, you can print the entire interview and the final response for your records. Military discounts New subject areas are added on a regular basis. Military discounts  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Military discounts gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Military discounts You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Military discounts The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Military discounts When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Military discounts Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Military discounts You can also ask the IRS to mail a return or an account transcript to you. Military discounts Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Military discounts gov or by calling 1-800-908-9946. Military discounts Tax return and tax account transcripts are generally available for the current year and the past three years. Military discounts Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Military discounts Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Military discounts If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Military discounts Check the status of your amended return using Where's My Amended Return? Go to IRS. Military discounts gov and enter Where's My Amended Return? in the search box. Military discounts You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Military discounts It can take up to 3 weeks from the date you mailed it to show up in our system. Military discounts Make a payment using one of several safe and convenient electronic payment options available on IRS. Military discounts gov. Military discounts Select the Payment tab on the front page of IRS. Military discounts gov for more information. Military discounts Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Military discounts Figure your income tax withholding with the IRS Withholding Calculator on IRS. Military discounts gov. Military discounts Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Military discounts Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Military discounts gov. Military discounts Request an Electronic Filing PIN by going to IRS. Military discounts gov and entering Electronic Filing PIN in the search box. Military discounts Download forms, instructions and publications, including accessible versions for people with disabilities. Military discounts Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Military discounts gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Military discounts An employee can answer questions about your tax account or help you set up a payment plan. Military discounts Before you visit, check the Office Locator on IRS. Military discounts gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Military discounts If you have a special need, such as a disability, you can request an appointment. Military discounts Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Military discounts Apply for an Employer Identification Number (EIN). Military discounts Go to IRS. Military discounts gov and enter Apply for an EIN in the search box. Military discounts Read the Internal Revenue Code, regulations, or other official guidance. Military discounts Read Internal Revenue Bulletins. Military discounts Sign up to receive local and national tax news and more by email. Military discounts Just click on “subscriptions” above the search box on IRS. Military discounts gov and choose from a variety of options. Military discounts    Phone. Military discounts You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Military discounts Download the free IRS2Go app from the iTunes app store or from Google Play. Military discounts Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Military discounts gov, or download the IRS2Go app. Military discounts Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Military discounts The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Military discounts Most VITA and TCE sites offer free electronic filing. Military discounts Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Military discounts Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Military discounts Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Military discounts If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Military discounts The IRS issues more than 9 out of 10 refunds in less than 21 days. Military discounts Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Military discounts Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Military discounts The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Military discounts Note, the above information is for our automated hotline. Military discounts Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Military discounts Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Military discounts You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Military discounts It can take up to 3 weeks from the date you mailed it to show up in our system. Military discounts Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Military discounts You should receive your order within 10 business days. Military discounts Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Military discounts If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Military discounts Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Military discounts The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Military discounts These individuals can also contact the IRS through relay services such as the Federal Relay Service. Military discounts    Walk-in. Military discounts You can find a selection of forms, publications and services — in-person. Military discounts Products. Military discounts You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Military discounts Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Military discounts Services. Military discounts You can walk in to your local TAC for face-to-face tax help. Military discounts An employee can answer questions about your tax account or help you set up a payment plan. Military discounts Before visiting, use the Office Locator tool on IRS. Military discounts gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Military discounts    Mail. Military discounts You can send your order for forms, instructions, and publications to the address below. Military discounts You should receive a response within 10 business days after your request is received. Military discounts Internal Revenue Service 1201 N. Military discounts Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Military discounts The Taxpayer Advocate Service (TAS) is your voice at the IRS. Military discounts Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Military discounts   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Military discounts We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Military discounts You face (or your business is facing) an immediate threat of adverse action. Military discounts You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Military discounts   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Military discounts Here's why we can help: TAS is an independent organization within the IRS. Military discounts Our advocates know how to work with the IRS. Military discounts Our services are free and tailored to meet your needs. Military discounts We have offices in every state, the District of Columbia, and Puerto Rico. Military discounts   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Military discounts   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Military discounts If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Military discounts Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Military discounts Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Military discounts Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Military discounts Prev  Up  Next   Home   More Online Publications