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

Tax Exemptions For Disabled Veterans

File My State Taxes FreeState Tax Forms Need Fill1040ez Fillable FormHow To Efile 2011 TaxesAmended 1040ezNeed To File 2011 TaxesState Tax Filing OnlineFiling A Amended Tax ReturnWhere To File Free State Tax ReturnFile TaxFile 2008 TaxesRevised Tax ReturnRee 1040 Ez Tax Filing OnlineFree H & R Block Tax FilingAmend Tax FormTaxact2012How To File State And Federal Taxes For Free Online1040ez FormIrs 1040ezFillable 1040ez Form 2012Irs 1040ez FormFile Taxes If UnemployedFree Tax Filing For Low IncomeFile Only State Taxes Online FreeH&r FreeAmend My 2012 Tax Return2012 Tax Filing OnlineHow Do I File My State Taxes For FreeFiling Back State TaxesHow To File State Taxes Only For FreeMilitary Tax DeductionsFile Your State Taxes Online For FreeHr Block Tax PreparationMinimum Earnings For Filing TaxesHr Block 1040xFree Tax AmendmentIncome Tax Software 2012Free Tax EfileH&r Block At HomeSnaptax

Tax Exemptions For Disabled Veterans

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

U.S. Government Telephone and E-mail Directories

Contact directories for government agencies and officials.

The Tax Exemptions For Disabled Veterans

Tax exemptions for disabled veterans 5. Tax exemptions for disabled veterans   Table and Worksheets for the Self-Employed Table of Contents Community property laws. Tax exemptions for disabled veterans As discussed in chapters 2 and 4, if you are self-employed, you must use the rate table or rate worksheet and deduction worksheet to figure your deduction for contributions you made for yourself to a SEP-IRA or qualified plan. Tax exemptions for disabled veterans First, use either the rate table or rate worksheet to find your reduced contribution rate. Tax exemptions for disabled veterans Then complete the deduction worksheet to figure your deduction for contributions. Tax exemptions for disabled veterans The table and the worksheets in chapter 5 apply only to self-employed individuals who have only one defined contribution plan, such as a profit-sharing plan. Tax exemptions for disabled veterans A SEP plan is treated as a profit-sharing plan. Tax exemptions for disabled veterans However, do not use this worksheet for SARSEPs. Tax exemptions for disabled veterans Rate table for self-employed. Tax exemptions for disabled veterans   If your plan's contribution rate is a whole percentage (for example, 12% rather than 12½%), you can use the table on the next page to find your reduced contribution rate. Tax exemptions for disabled veterans Otherwise, use the rate worksheet provided below. Tax exemptions for disabled veterans   First, find your plan contribution rate (the contribution rate stated in your plan) in Column A of the table. Tax exemptions for disabled veterans Then read across to the rate under Column B. Tax exemptions for disabled veterans Enter the rate from Column B in step 4 of the Deduction Worksheet for Self-Employed on this page. Tax exemptions for disabled veterans    Example. Tax exemptions for disabled veterans You are a sole proprietor with no employees. Tax exemptions for disabled veterans If your plan's contribution rate is 10% of a participant's compensation, your rate is 0. Tax exemptions for disabled veterans 090909. Tax exemptions for disabled veterans Enter this rate in step 4 of the Deduction Worksheet for Self-Employed on this page. Tax exemptions for disabled veterans Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. Tax exemptions for disabled veterans For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. Tax exemptions for disabled veterans       *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. Tax exemptions for disabled veterans       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. Tax exemptions for disabled veterans     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27             Step 3           Net earnings from self-employment. Tax exemptions for disabled veterans Subtract step 2 from step 1     Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed     Step 5           Multiply step 3 by step 4     Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate)     Step 7           Enter the smaller of step 5 or step 6     Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. Tax exemptions for disabled veterans         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. Tax exemptions for disabled veterans       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. Tax exemptions for disabled veterans Do not enter more than $17,500     Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. Tax exemptions for disabled veterans         • Otherwise, skip steps 16 through 18 and go to step 19. Tax exemptions for disabled veterans       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. Tax exemptions for disabled veterans Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. Tax exemptions for disabled veterans     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17. Tax exemptions for disabled veterans     Step 21           Subtract step 20 from step 19. Tax exemptions for disabled veterans This is your maximum deductible contribution. Tax exemptions for disabled veterans                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. Tax exemptions for disabled veterans   Rate worksheet for self-employed. Tax exemptions for disabled veterans   If your plan's contribution rate is not a whole percentage (for example, 10½%), you cannot use the Rate Table for Self-Employed. Tax exemptions for disabled veterans Use the following worksheet instead. Tax exemptions for disabled veterans Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. Tax exemptions for disabled veterans 105)   2) Rate in line 1 plus 1 (for example, 0. Tax exemptions for disabled veterans 105 + 1 = 1. Tax exemptions for disabled veterans 105)   3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. Tax exemptions for disabled veterans 105 ÷ 1. Tax exemptions for disabled veterans 105 = 0. Tax exemptions for disabled veterans 095)   Figuring your deduction. Tax exemptions for disabled veterans   Now that you have your self-employed rate from either the rate table or rate worksheet, you can figure your maximum deduction for contributions for yourself by completing the Deduction Worksheet for Self-Employed. Tax exemptions for disabled veterans Community property laws. Tax exemptions for disabled veterans   If you reside in a community property state and you are married and filing a separate return, disregard community property laws for step 1 of the Deduction Worksheet for Self-Employed. Tax exemptions for disabled veterans Enter on step 1 the total net profit you actually earned. Tax exemptions for disabled veterans Rate Table for Self-Employed Column A  If the plan contri- bution rate is: (shown as %) Column B  Your rate is: (shown as decimal) 1 . Tax exemptions for disabled veterans 009901 2 . Tax exemptions for disabled veterans 019608 3 . Tax exemptions for disabled veterans 029126 4 . Tax exemptions for disabled veterans 038462 5 . Tax exemptions for disabled veterans 047619 6 . Tax exemptions for disabled veterans 056604 7 . Tax exemptions for disabled veterans 065421 8 . Tax exemptions for disabled veterans 074074 9 . Tax exemptions for disabled veterans 082569 10 . Tax exemptions for disabled veterans 090909 11 . Tax exemptions for disabled veterans 099099 12 . Tax exemptions for disabled veterans 107143 13 . Tax exemptions for disabled veterans 115044 14 . Tax exemptions for disabled veterans 122807 15 . Tax exemptions for disabled veterans 130435 16 . Tax exemptions for disabled veterans 137931 17 . Tax exemptions for disabled veterans 145299 18 . Tax exemptions for disabled veterans 152542 19 . Tax exemptions for disabled veterans 159664 20 . Tax exemptions for disabled veterans 166667 21 . Tax exemptions for disabled veterans 173554 22 . Tax exemptions for disabled veterans 180328 23 . Tax exemptions for disabled veterans 186992 24 . Tax exemptions for disabled veterans 193548 25* . Tax exemptions for disabled veterans 200000* *The deduction for annual employer contributions (other than elective deferrals) to a SEP plan, a profit-sharing plan, or a money purchase plan cannot be more than 20% of your net earnings (figured without deducting contributions for yourself) from the business that has the plan. Tax exemptions for disabled veterans Example. Tax exemptions for disabled veterans You are a sole proprietor with no employees. Tax exemptions for disabled veterans The terms of your plan provide that you contribute 8½% (. Tax exemptions for disabled veterans 085) of your compensation to your plan. Tax exemptions for disabled veterans Your net profit from line 31, Schedule C (Form 1040) is $200,000. Tax exemptions for disabled veterans You have no elective deferrals or catch-up contributions. Tax exemptions for disabled veterans Your self-employment tax deduction on line 27 of Form 1040 is $9,728. Tax exemptions for disabled veterans See the filled-in portions of both Schedule SE (Form 1040), Self-Employment Income, and Form 1040, later. Tax exemptions for disabled veterans You figure your self-employed rate and maximum deduction for employer contributions you made for yourself as follows. Tax exemptions for disabled veterans Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. Tax exemptions for disabled veterans For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. Tax exemptions for disabled veterans $200,000     *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. Tax exemptions for disabled veterans       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. Tax exemptions for disabled veterans     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27 9,728           Step 3           Net earnings from self-employment. Tax exemptions for disabled veterans Subtract step 2 from step 1 190,272   Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed 0. Tax exemptions for disabled veterans 078   Step 5           Multiply step 3 by step 4 14,841   Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate) 21,675   Step 7           Enter the smaller of step 5 or step 6 14,841   Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. Tax exemptions for disabled veterans         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. Tax exemptions for disabled veterans       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. Tax exemptions for disabled veterans Do not enter more than $17,500 N/A   Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. Tax exemptions for disabled veterans         • Otherwise, skip steps 16 through 18 and go to step 19. Tax exemptions for disabled veterans       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. Tax exemptions for disabled veterans Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. Tax exemptions for disabled veterans     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17     Step 21           Subtract step 20 from step 19. Tax exemptions for disabled veterans This is your maximum deductible contribution $14,841                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. Tax exemptions for disabled veterans   See the filled-in Deduction Worksheet for Self-Employed on this page. Tax exemptions for disabled veterans Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. Tax exemptions for disabled veterans 105) 0. Tax exemptions for disabled veterans 085 2) Rate in line 1 plus 1 (for example, 0. Tax exemptions for disabled veterans 105 + 1 = 1. Tax exemptions for disabled veterans 105) 1. Tax exemptions for disabled veterans 085 3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. Tax exemptions for disabled veterans 105 ÷ 1. Tax exemptions for disabled veterans 105 = 0. Tax exemptions for disabled veterans 095) 0. Tax exemptions for disabled veterans 078 This image is too large to be displayed in the current screen. Tax exemptions for disabled veterans Please click the link to view the image. Tax exemptions for disabled veterans Portion of Form 1040 and Portion of Schedule SE Prev  Up  Next   Home   More Online Publications