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Tax Planning Us 2006 Taxes

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Tax Planning Us 2006 Taxes

Tax planning us 2006 taxes Index A Assistance (see Tax help) F Free tax services, How To Get Tax Help H Help (see Tax help) P Publications (see Tax help) T Tax help, How To Get Tax Help TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications
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Contact My Local Office in Maryland

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Annapolis 190 Admiral Cochrane Dr.
Annapolis, MD 21401

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(301) 695-7615
Baltimore 31 Hopkins Plaza
Baltimore, MD 21201

Monday-Friday - 8:30 a.m.- 4:30 p.m.


Services Provided

(410) 962-7969 
Frederick  201 Thomas- Johnson Dr.
Frederick, MD 21702 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.) 

 

Services Provided

(301) 695-7615 
Hagerstown  1260 Maryland Ave.
Hagerstown, MD 21740 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.) 

 

Services Provided

(301) 797-6624 
Landover  8401 Corporate Dr.
Landover, MD 20785 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:30 p.m. - 1:30 p.m.)


Services Provided

(240) 613-7952 
LaVale  14701 National Highway 
LaVale, MD 21502 

Monday-Friday - 8:30 a.m.- 2:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)
 

Services Provided

(301) 729-6397 
Salisbury  212 West Main St.
Salisbury, MD 21801 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 


Services Provided

(410) 677-6718
Wheaton  11510 Georgia Ave.
Wheaton, MD 20902 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 

 

Services Provided

(240) 613-8976 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (443) 853-6000 in Baltimore or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
Fallon Federal Building
31 Hopkins Plaza, Room 1432
Baltimore, MD 21201

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Tax Planning Us 2006 Taxes

Tax planning us 2006 taxes Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Tax planning us 2006 taxes Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Tax planning us 2006 taxes Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Tax planning us 2006 taxes Any forgiven tax liability owed to the IRS will not have to be paid. Tax planning us 2006 taxes Any forgiven tax liability that has already been paid will be refunded. Tax planning us 2006 taxes (See Refund of Taxes Paid, later. Tax planning us 2006 taxes ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Tax planning us 2006 taxes Then read Amount of Tax Forgiven. Tax planning us 2006 taxes Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Tax planning us 2006 taxes Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Tax planning us 2006 taxes See Minimum Amount of Relief later under Amount of Tax Forgiven. Tax planning us 2006 taxes Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Tax planning us 2006 taxes Oklahoma City attack. Tax planning us 2006 taxes   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Tax planning us 2006 taxes Example 1. Tax planning us 2006 taxes A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Tax planning us 2006 taxes His income tax is forgiven for 1994 and 1995. Tax planning us 2006 taxes Example 2. Tax planning us 2006 taxes A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Tax planning us 2006 taxes She subsequently died of her wounds in 1996. Tax planning us 2006 taxes Her income tax is forgiven for 1994, 1995, and 1996. Tax planning us 2006 taxes September 11 attacks and anthrax attacks. Tax planning us 2006 taxes   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Tax planning us 2006 taxes Example 1. Tax planning us 2006 taxes A Pentagon employee died in the September 11 attack. Tax planning us 2006 taxes Her income tax is forgiven for 2000 and 2001. Tax planning us 2006 taxes Example 2. Tax planning us 2006 taxes A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Tax planning us 2006 taxes His income tax liability is forgiven for 2000, 2001, and 2002. Tax planning us 2006 taxes Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Tax planning us 2006 taxes On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Tax planning us 2006 taxes To figure the tax to be forgiven, use the following worksheets. Tax planning us 2006 taxes Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Tax planning us 2006 taxes Use Worksheet B for any eligible year the decedent filed a joint return. Tax planning us 2006 taxes See the illustrated Worksheet B near the end of this publication. Tax planning us 2006 taxes Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Tax planning us 2006 taxes Instead, complete Worksheet C and file a return for the decedent's last tax year. Tax planning us 2006 taxes See Minimum Amount of Relief, later. Tax planning us 2006 taxes If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Tax planning us 2006 taxes In English–7 a. Tax planning us 2006 taxes m. Tax planning us 2006 taxes to 10 p. Tax planning us 2006 taxes m. Tax planning us 2006 taxes local time. Tax planning us 2006 taxes In Spanish–8 a. Tax planning us 2006 taxes m. Tax planning us 2006 taxes to 9:30 p. Tax planning us 2006 taxes m. Tax planning us 2006 taxes local time. Tax planning us 2006 taxes Both spouses died. Tax planning us 2006 taxes   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Tax planning us 2006 taxes Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Tax planning us 2006 taxes If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Tax planning us 2006 taxes However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Tax planning us 2006 taxes The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Tax planning us 2006 taxes Residents of community property states. Tax planning us 2006 taxes   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Tax planning us 2006 taxes Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Tax planning us 2006 taxes Worksheet B. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Tax planning us 2006 taxes 1       2 Enter the decedent's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 2       3 Enter the decedent's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 4       5 Subtract line 4 from line 3. Tax planning us 2006 taxes 5       6 Enter the surviving spouse's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 6       7 Enter the surviving spouse's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Tax planning us 2006 taxes 8       9 Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Add lines 5 and 9. Tax planning us 2006 taxes 10       11 Enter the total tax from the joint return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 11       12 Add lines 4 and 8. Tax planning us 2006 taxes 12       13 Subtract line 12 from line 11. Tax planning us 2006 taxes 13       14 Divide line 5 by line 10. Tax planning us 2006 taxes Enter the result as a decimal. Tax planning us 2006 taxes 14       15 Tax to be forgiven. Tax planning us 2006 taxes Multiply line 13 by line 14 and enter the result. Tax planning us 2006 taxes 15       Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Worksheet B. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Tax planning us 2006 taxes 1       2 Enter the decedent's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 2       3 Enter the decedent's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 4       5 Subtract line 4 from line 3. Tax planning us 2006 taxes 5       6 Enter the surviving spouse's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 6       7 Enter the surviving spouse's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Tax planning us 2006 taxes 8       9 Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Add lines 5 and 9. Tax planning us 2006 taxes 10       11 Enter the total tax from the joint return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 11       12 Add lines 4 and 8. Tax planning us 2006 taxes 12       13 Subtract line 12 from line 11. Tax planning us 2006 taxes 13       14 Divide line 5 by line 10. Tax planning us 2006 taxes Enter the result as a decimal. Tax planning us 2006 taxes 14       15 Tax to be forgiven. Tax planning us 2006 taxes Multiply line 13 by line 14 and enter the result. Tax planning us 2006 taxes 15       Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Instructions for Worksheet B Table 1. Tax planning us 2006 taxes Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Tax planning us 2006 taxes * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Tax planning us 2006 taxes ** File Form 4506 to get a transcript of the decedent's account. Tax planning us 2006 taxes Table 1. Tax planning us 2006 taxes Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Tax planning us 2006 taxes * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Tax planning us 2006 taxes ** File Form 4506 to get a transcript of the decedent's account. Tax planning us 2006 taxes Lines 2 and 6. Tax planning us 2006 taxes   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Tax planning us 2006 taxes   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Tax planning us 2006 taxes Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Tax planning us 2006 taxes Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Tax planning us 2006 taxes   Allocate business deductions to the owner of the business. Tax planning us 2006 taxes Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Tax planning us 2006 taxes Lines 3 and 7. Tax planning us 2006 taxes   Figure the total tax as if a separate return had been filed. Tax planning us 2006 taxes The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Tax planning us 2006 taxes When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Tax planning us 2006 taxes   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Tax planning us 2006 taxes If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Tax planning us 2006 taxes Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Tax planning us 2006 taxes Line 4. Tax planning us 2006 taxes   Enter the total, if any, of the following taxes. Tax planning us 2006 taxes Self-employment tax. Tax planning us 2006 taxes Social security and Medicare tax on tip income not reported to employer. Tax planning us 2006 taxes Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Tax planning us 2006 taxes Tax on excess accumulation in qualified retirement plans. Tax planning us 2006 taxes Household employment taxes. Tax planning us 2006 taxes Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Tax planning us 2006 taxes Tax on golden parachute payments. Tax planning us 2006 taxes Minimum Amount of Relief The minimum amount of relief is $10,000. Tax planning us 2006 taxes If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Tax planning us 2006 taxes The IRS will refund the difference as explained under Refund of Taxes Paid. Tax planning us 2006 taxes Use Worksheet C to figure the additional tax payment. Tax planning us 2006 taxes But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Tax planning us 2006 taxes Example 1. Tax planning us 2006 taxes An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Tax planning us 2006 taxes The $6,400 is eligible for forgiveness. Tax planning us 2006 taxes The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Tax planning us 2006 taxes Example 2. Tax planning us 2006 taxes A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Tax planning us 2006 taxes The IRS will treat $10,000 as a tax payment for 2001. Tax planning us 2006 taxes Income received after date of death. Tax planning us 2006 taxes   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Tax planning us 2006 taxes Examples are the final paycheck or dividends on stock owned by the decedent. Tax planning us 2006 taxes However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Tax planning us 2006 taxes Nonqualifying income. Tax planning us 2006 taxes   The following income is not exempt from tax. Tax planning us 2006 taxes The tax on it is not eligible for forgiveness. Tax planning us 2006 taxes Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Tax planning us 2006 taxes Amounts that would not have been payable but for an action taken after September 11, 2001. Tax planning us 2006 taxes The following are examples of nonqualifying income. Tax planning us 2006 taxes Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Tax planning us 2006 taxes Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Tax planning us 2006 taxes Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Tax planning us 2006 taxes Interest on savings bonds cashed by the beneficiary of the decedent. Tax planning us 2006 taxes If you are responsible for the estate of a decedent, see Publication 559. Tax planning us 2006 taxes Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Tax planning us 2006 taxes Instructions for lines 2–9 of Worksheet C. Tax planning us 2006 taxes   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Tax planning us 2006 taxes To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Tax planning us 2006 taxes Or, if special requirements are met, you can use the alternative computation instead. Tax planning us 2006 taxes See Alternative computation, later. Tax planning us 2006 taxes   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Tax planning us 2006 taxes Use Form 1041 to figure what the taxable income would be without including the exempt income. Tax planning us 2006 taxes Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Tax planning us 2006 taxes Alternative computation. Tax planning us 2006 taxes   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Tax planning us 2006 taxes You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Tax planning us 2006 taxes The estate claimed an income distribution deduction on line 18 (Form 1041). Tax planning us 2006 taxes Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Tax planning us 2006 taxes If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Tax planning us 2006 taxes If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Tax planning us 2006 taxes Complete the rest of Worksheet C to determine the additional payment allowed. Tax planning us 2006 taxes Worksheet C. Tax planning us 2006 taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Tax planning us 2006 taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Tax planning us 2006 taxes 1 Minimum relief amount. Tax planning us 2006 taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Tax planning us 2006 taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Tax planning us 2006 taxes 3       4 Add lines 2 and 3. Tax planning us 2006 taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 5       6 Add lines 4 and 5. Tax planning us 2006 taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Tax planning us 2006 taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Tax planning us 2006 taxes 8       9 Tax on exempt income. Tax planning us 2006 taxes Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Tax planning us 2006 taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Tax planning us 2006 taxes 10       11 Add lines 9 and 10. Tax planning us 2006 taxes 11   12 Additional payment allowed. Tax planning us 2006 taxes If line 11 is $10,000 or more, enter -0- and stop here. Tax planning us 2006 taxes No additional amount is allowed as a tax payment. Tax planning us 2006 taxes Otherwise, subtract line 11 from line 1 and enter the result. Tax planning us 2006 taxes 12   Note. Tax planning us 2006 taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Tax planning us 2006 taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Tax planning us 2006 taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Tax planning us 2006 taxes Write "Sec. Tax planning us 2006 taxes 692(d)(2) Payment" and the amount to the right of the entry space. Tax planning us 2006 taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Tax planning us 2006 taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Tax planning us 2006 taxes Write “Sec. Tax planning us 2006 taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Tax planning us 2006 taxes Worksheet C. Tax planning us 2006 taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Tax planning us 2006 taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Tax planning us 2006 taxes 1 Minimum relief amount. Tax planning us 2006 taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Tax planning us 2006 taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Tax planning us 2006 taxes 3       4 Add lines 2 and 3. Tax planning us 2006 taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 5       6 Add lines 4 and 5. Tax planning us 2006 taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Tax planning us 2006 taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Tax planning us 2006 taxes 8       9 Tax on exempt income. Tax planning us 2006 taxes Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Tax planning us 2006 taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Tax planning us 2006 taxes 10       11 Add lines 9 and 10. Tax planning us 2006 taxes 11   12 Additional payment allowed. Tax planning us 2006 taxes If line 11 is $10,000 or more, enter -0- and stop here. Tax planning us 2006 taxes No additional amount is allowed as a tax payment. Tax planning us 2006 taxes Otherwise, subtract line 11 from line 1 and enter the result. Tax planning us 2006 taxes 12   Note. Tax planning us 2006 taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Tax planning us 2006 taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Tax planning us 2006 taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Tax planning us 2006 taxes Write "Sec. Tax planning us 2006 taxes 692(d)(2) Payment" and the amount to the right of the entry space. Tax planning us 2006 taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Tax planning us 2006 taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Tax planning us 2006 taxes Write “Sec. Tax planning us 2006 taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Tax planning us 2006 taxes Worksheet D. Tax planning us 2006 taxes Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Tax planning us 2006 taxes 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Tax planning us 2006 taxes 5   6 Estate's tax on exempt income. Tax planning us 2006 taxes Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Tax planning us 2006 taxes Figure the total tax that would have been payable by all beneficiaries. Tax planning us 2006 taxes Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Tax planning us 2006 taxes Add the amounts by which each beneficiary's income tax is increased. Tax planning us 2006 taxes 7   8 Add lines 6 and 7. Tax planning us 2006 taxes Enter this amount on line 9 of Worksheet C. Tax planning us 2006 taxes 8   Worksheet D. Tax planning us 2006 taxes Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Tax planning us 2006 taxes 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Tax planning us 2006 taxes 5   6 Estate's tax on exempt income. Tax planning us 2006 taxes Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Tax planning us 2006 taxes Figure the total tax that would have been payable by all beneficiaries. Tax planning us 2006 taxes Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Tax planning us 2006 taxes Add the amounts by which each beneficiary's income tax is increased. Tax planning us 2006 taxes 7   8 Add lines 6 and 7. Tax planning us 2006 taxes Enter this amount on line 9 of Worksheet C. Tax planning us 2006 taxes 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Tax planning us 2006 taxes Income tax liabilities that have been paid. Tax planning us 2006 taxes Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Tax planning us 2006 taxes See Minimum Amount of Relief, earlier. Tax planning us 2006 taxes Example 1. Tax planning us 2006 taxes A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Tax planning us 2006 taxes The total, $14,000, is eligible for tax forgiveness. Tax planning us 2006 taxes However, he paid only $13,000 of that amount. Tax planning us 2006 taxes The IRS will refund the $13,000 paid. Tax planning us 2006 taxes Example 2. Tax planning us 2006 taxes A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Tax planning us 2006 taxes The child qualifies for the minimum relief of $10,000. Tax planning us 2006 taxes The $10,000 is treated as a tax payment for 2001 and will be refunded. Tax planning us 2006 taxes Period for filing a claim for credit or refund. Tax planning us 2006 taxes   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Tax planning us 2006 taxes For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Tax planning us 2006 taxes To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Tax planning us 2006 taxes Extension of time for victims of Oklahoma City attack. Tax planning us 2006 taxes   The period described above has been extended for victims of the Oklahoma City attack. Tax planning us 2006 taxes Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Tax planning us 2006 taxes How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Tax planning us 2006 taxes Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Tax planning us 2006 taxes Return required but not yet filed. Tax planning us 2006 taxes   File Form 1040 if the decedent was a U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes citizen or resident. Tax planning us 2006 taxes File Form 1040NR if the decedent was a nonresident alien. Tax planning us 2006 taxes A nonresident alien is someone who is not a U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes citizen or resident. Tax planning us 2006 taxes Return required and already filed. Tax planning us 2006 taxes   File a separate Form 1040X for each year you are claiming tax relief. Tax planning us 2006 taxes Return not required and not filed. Tax planning us 2006 taxes   File Form 1040 only for the year of death if the decedent was a U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes citizen or resident. Tax planning us 2006 taxes File Form 1040NR if the decedent was a nonresident alien. Tax planning us 2006 taxes Return not required but already filed. Tax planning us 2006 taxes   File Form 1040X only for the year of death. Tax planning us 2006 taxes How to complete the returns. Tax planning us 2006 taxes   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Tax planning us 2006 taxes Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Tax planning us 2006 taxes If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Tax planning us 2006 taxes If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Tax planning us 2006 taxes Also, please write one of the following across the top of page 1 of each return. Tax planning us 2006 taxes KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Tax planning us 2006 taxes ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Tax planning us 2006 taxes If you need a copy, use Form 4506. Tax planning us 2006 taxes The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Tax planning us 2006 taxes Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Tax planning us 2006 taxes Send Form 4506 to the address shown in the form instructions. Tax planning us 2006 taxes Taxpayer identification number. Tax planning us 2006 taxes   A taxpayer identification number must be furnished on the decedent's returns. Tax planning us 2006 taxes This is usually the decedent's social security number (SSN). Tax planning us 2006 taxes However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Tax planning us 2006 taxes If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes income tax return for any tax year, do not apply for an ITIN. Tax planning us 2006 taxes You may claim a refund by filing Form 1040NR without an SSN or ITIN. Tax planning us 2006 taxes Necessary Documents Please attach the following documents to the return or amended return. Tax planning us 2006 taxes Proof of death. Tax planning us 2006 taxes   Attach a copy of the death certificate. Tax planning us 2006 taxes If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Tax planning us 2006 taxes Form 1310. Tax planning us 2006 taxes   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Tax planning us 2006 taxes You are a surviving spouse filing an original or amended joint return with the decedent. Tax planning us 2006 taxes You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Tax planning us 2006 taxes A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Tax planning us 2006 taxes A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Tax planning us 2006 taxes      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Tax planning us 2006 taxes Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Tax planning us 2006 taxes Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Tax planning us 2006 taxes Use one of the addresses shown below. Tax planning us 2006 taxes Where you file the returns or claims depends on whether you use the U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes Postal Service or a private delivery service. Tax planning us 2006 taxes Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Tax planning us 2006 taxes U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes Postal Service. Tax planning us 2006 taxes   If you use the U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes Postal Service, file these returns and claims at the following address. Tax planning us 2006 taxes Internal Revenue Service P. Tax planning us 2006 taxes O. Tax planning us 2006 taxes Box 4053 Woburn, MA 01888 Private delivery service. Tax planning us 2006 taxes   Private delivery services cannot deliver items to P. Tax planning us 2006 taxes O. Tax planning us 2006 taxes boxes. Tax planning us 2006 taxes If you use a private delivery service, file these returns and claims at the following address. Tax planning us 2006 taxes Internal Revenue Service Stop 661 310 Lowell St. Tax planning us 2006 taxes Andover, MA 01810 Designated private delivery services. Tax planning us 2006 taxes   You can use the following private delivery services to file these returns and claims. Tax planning us 2006 taxes Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Tax planning us 2006 taxes DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Tax planning us 2006 taxes Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Tax planning us 2006 taxes United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Tax planning us 2006 taxes M. Tax planning us 2006 taxes , UPS Worldwide Express Plus, and UPS Worldwide Express. Tax planning us 2006 taxes The private delivery service can tell you how to get written proof of the mailing date. Tax planning us 2006 taxes Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Tax planning us 2006 taxes September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Tax planning us 2006 taxes Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Tax planning us 2006 taxes These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Tax planning us 2006 taxes No withholding applies to these payments. Tax planning us 2006 taxes Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Tax planning us 2006 taxes Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Tax planning us 2006 taxes Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Tax planning us 2006 taxes (A personal residence can be a rented residence or one you own. Tax planning us 2006 taxes ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Tax planning us 2006 taxes Qualified disaster relief payments also include the following. Tax planning us 2006 taxes Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Tax planning us 2006 taxes Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Tax planning us 2006 taxes Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Tax planning us 2006 taxes Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Tax planning us 2006 taxes Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Tax planning us 2006 taxes Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Tax planning us 2006 taxes However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Tax planning us 2006 taxes If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Tax planning us 2006 taxes For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Tax planning us 2006 taxes If that period has expired, you are granted an extension. Tax planning us 2006 taxes You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Tax planning us 2006 taxes On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Tax planning us 2006 taxes 102(b)(2). Tax planning us 2006 taxes ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Tax planning us 2006 taxes The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Tax planning us 2006 taxes Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Tax planning us 2006 taxes Bureau of Justice Assistance payments. Tax planning us 2006 taxes   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Tax planning us 2006 taxes Government plan annuity. Tax planning us 2006 taxes   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Tax planning us 2006 taxes This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Tax planning us 2006 taxes For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Tax planning us 2006 taxes More information. Tax planning us 2006 taxes   For more information, see Publication 559. Tax planning us 2006 taxes Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Tax planning us 2006 taxes The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Tax planning us 2006 taxes If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Tax planning us 2006 taxes Affected taxpayers. Tax planning us 2006 taxes   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Tax planning us 2006 taxes Any individual whose main home is located in a covered area (defined later). Tax planning us 2006 taxes Any business entity or sole proprietor whose principal place of business is located in a covered area. Tax planning us 2006 taxes Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Tax planning us 2006 taxes The main home or principal place of business does not have to be located in the covered area. Tax planning us 2006 taxes Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Tax planning us 2006 taxes Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Tax planning us 2006 taxes The spouse on a joint return with a taxpayer who is eligible for postponements. Tax planning us 2006 taxes Any other person determined by the IRS to be affected by a terrorist attack. Tax planning us 2006 taxes Covered area. Tax planning us 2006 taxes   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Tax planning us 2006 taxes Abatement of interest. Tax planning us 2006 taxes   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Tax planning us 2006 taxes Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Tax planning us 2006 taxes You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Tax planning us 2006 taxes The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Tax planning us 2006 taxes The due date (with extensions) for the 2000 return. Tax planning us 2006 taxes For more information about disaster area losses, see Publication 547. Tax planning us 2006 taxes Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Tax planning us 2006 taxes The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Tax planning us 2006 taxes The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Tax planning us 2006 taxes These credits may reduce or eliminate the estate tax due. Tax planning us 2006 taxes A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Tax planning us 2006 taxes Recovery from the September 11th Victim Compensation Fund. Tax planning us 2006 taxes   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Tax planning us 2006 taxes However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Tax planning us 2006 taxes Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Tax planning us 2006 taxes Which estates must file a return. Tax planning us 2006 taxes   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Tax planning us 2006 taxes Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Tax planning us 2006 taxes Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Tax planning us 2006 taxes S. Tax planning us 2006 taxes Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Tax planning us 2006 taxes Where to file. Tax planning us 2006 taxes   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Tax planning us 2006 taxes Internal Revenue Service E & G Department/Stop 824T 201 W. Tax planning us 2006 taxes Rivercenter Blvd. Tax planning us 2006 taxes Covington, KY 41011 More information. Tax planning us 2006 taxes   For more information on the federal estate tax, see the instructions for Form 706. Tax planning us 2006 taxes Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Tax planning us 2006 taxes The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Tax planning us 2006 taxes However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Tax planning us 2006 taxes For information about these requirements, see Internal Revenue Code section 5891. Tax planning us 2006 taxes Worksheet B Illustrated. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Tax planning us 2006 taxes 1 2000 2001   2 Enter the decedent's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 2 $17,259 $14,295   3 Enter the decedent's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 4 3,532 3,109   5 Subtract line 4 from line 3. Tax planning us 2006 taxes 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions for line 2. Tax planning us 2006 taxes 6 29,025 29,850   7 Enter the surviving spouse's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Tax planning us 2006 taxes 8 0 0   9 Subtract line 8 from line 7. Tax planning us 2006 taxes 9 5,277 5,391   10 Add lines 5 and 9. Tax planning us 2006 taxes 10 7,868 7,532   11 Enter the total tax from the joint return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 11 10,789 9,728   12 Add lines 4 and 8. Tax planning us 2006 taxes 12 3,532 3,109   13 Subtract line 12 from line 11. Tax planning us 2006 taxes 13 7,257 6,619   14 Divide line 5 by line 10. Tax planning us 2006 taxes Enter the result as a decimal. Tax planning us 2006 taxes 14 . Tax planning us 2006 taxes 329 . Tax planning us 2006 taxes 284   15 Tax to be forgiven. Tax planning us 2006 taxes Multiply line 13 by line 14 and enter the result. Tax planning us 2006 taxes 15 $2,388 $1,880   Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Worksheet B Illustrated. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Tax planning us 2006 taxes 1 2000 2001   2 Enter the decedent's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 2 $17,259 $14,295   3 Enter the decedent's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 4 3,532 3,109   5 Subtract line 4 from line 3. Tax planning us 2006 taxes 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions for line 2. Tax planning us 2006 taxes 6 29,025 29,850   7 Enter the surviving spouse's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Tax planning us 2006 taxes 8 0 0   9 Subtract line 8 from line 7. Tax planning us 2006 taxes 9 5,277 5,391   10 Add lines 5 and 9. Tax planning us 2006 taxes 10 7,868 7,532   11 Enter the total tax from the joint return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 11 10,789 9,728   12 Add lines 4 and 8. Tax planning us 2006 taxes 12 3,532 3,109   13 Subtract line 12 from line 11. Tax planning us 2006 taxes 13 7,257 6,619   14 Divide line 5 by line 10. Tax planning us 2006 taxes Enter the result as a decimal. Tax planning us 2006 taxes 14 . Tax planning us 2006 taxes 329 . Tax planning us 2006 taxes 284   15 Tax to be forgiven. Tax planning us 2006 taxes Multiply line 13 by line 14 and enter the result. Tax planning us 2006 taxes 15 $2,388 $1,880   Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Tax planning us 2006 taxes They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Tax planning us 2006 taxes The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Tax planning us 2006 taxes After the husband died, his estate received income of $4,000. Tax planning us 2006 taxes Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Tax planning us 2006 taxes This net profit is exempt from income tax as explained earlier under Income received after date of death. Tax planning us 2006 taxes The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Tax planning us 2006 taxes To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Tax planning us 2006 taxes She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Tax planning us 2006 taxes To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Tax planning us 2006 taxes To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Tax planning us 2006 taxes   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Tax planning us 2006 taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Tax planning us 2006 taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Tax planning us 2006 taxes 1 Minimum relief amount. Tax planning us 2006 taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Tax planning us 2006 taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Tax planning us 2006 taxes 3 0     4 Add lines 2 and 3. Tax planning us 2006 taxes 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 5 1,000     6 Add lines 4 and 5. Tax planning us 2006 taxes 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Tax planning us 2006 taxes 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Tax planning us 2006 taxes 8 435     9 Tax on exempt income. Tax planning us 2006 taxes Subtract line 8 from line 7. Tax planning us 2006 taxes 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Tax planning us 2006 taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Tax planning us 2006 taxes 10 4,268     11 Add lines 9 and 10. Tax planning us 2006 taxes 11 $4,543 12 Additional payment allowed. Tax planning us 2006 taxes If line 11 is $10,000 or more, enter -0- and stop here. Tax planning us 2006 taxes No additional amount is allowed as a tax payment. Tax planning us 2006 taxes Otherwise, subtract line 11 from line 1 and enter the result. Tax planning us 2006 taxes 12 $5,457 Note. Tax planning us 2006 taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Tax planning us 2006 taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Tax planning us 2006 taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Tax planning us 2006 taxes Write "Sec. Tax planning us 2006 taxes 692(d)(2) Payment" and the amount to the right of the entry space. Tax planning us 2006 taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Tax planning us 2006 taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Tax planning us 2006 taxes Write “Sec. Tax planning us 2006 taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Tax planning us 2006 taxes Worksheet C Illustrated. Tax planning us 2006 taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Tax planning us 2006 taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Tax planning us 2006 taxes 1 Minimum relief amount. Tax planning us 2006 taxes Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Tax planning us 2006 taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Tax planning us 2006 taxes 3 0     4 Add lines 2 and 3. Tax planning us 2006 taxes 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 5 1,000     6 Add lines 4 and 5. Tax planning us 2006 taxes 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Tax planning us 2006 taxes 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Tax planning us 2006 taxes 8 435     9 Tax on exempt income. Tax planning us 2006 taxes Subtract line 8 from line 7. Tax planning us 2006 taxes 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Tax planning us 2006 taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Tax planning us 2006 taxes 10 4,268     11 Add lines 9 and 10. Tax planning us 2006 taxes 11 $4,543 12 Additional payment allowed. Tax planning us 2006 taxes If line 11 is $10,000 or more, enter -0- and stop here. Tax planning us 2006 taxes No additional amount is allowed as a tax payment. Tax planning us 2006 taxes Otherwise, subtract line 11 from line 1 and enter the result. Tax planning us 2006 taxes 12 $5,457 Note. Tax planning us 2006 taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Tax planning us 2006 taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Tax planning us 2006 taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Tax planning us 2006 taxes Write "Sec. Tax planning us 2006 taxes 692(d)(2) Payment" and the amount to the right of the entry space. Tax planning us 2006 taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Tax planning us 2006 taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Tax planning us 2006 taxes Write “Sec. Tax planning us 2006 taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Tax planning us 2006 taxes Additional Worksheets The following additional worksheets are provided for your convenience. Tax planning us 2006 taxes Worksheet A. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Tax planning us 2006 taxes 1       2 Enter the total tax from the decedent's income tax return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Tax planning us 2006 taxes (These taxes are not eligible for forgiveness. Tax planning us 2006 taxes )           a Self-employment tax. Tax planning us 2006 taxes 3a         b Social security and Medicare tax on tip income not reported to employer. Tax planning us 2006 taxes 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Tax planning us 2006 taxes 3c         d Tax on excess accumulation in qualified retirement plans. Tax planning us 2006 taxes 3d         e Household employment taxes. Tax planning us 2006 taxes 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Tax planning us 2006 taxes 3f         g Tax on golden parachute payments. Tax planning us 2006 taxes 3g       4 Add lines 3a through 3g. Tax planning us 2006 taxes 4       5 Tax to be forgiven. Tax planning us 2006 taxes Subtract line 4 from line 2. Tax planning us 2006 taxes 5       Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Worksheet A. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Tax planning us 2006 taxes 1       2 Enter the total tax from the decedent's income tax return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Tax planning us 2006 taxes (These taxes are not eligible for forgiveness. Tax planning us 2006 taxes )           a Self-employment tax. Tax planning us 2006 taxes 3a         b Social security and Medicare tax on tip income not reported to employer. Tax planning us 2006 taxes 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Tax planning us 2006 taxes 3c         d Tax on excess accumulation in qualified retirement plans. Tax planning us 2006 taxes 3d         e Household employment taxes. Tax planning us 2006 taxes 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Tax planning us 2006 taxes 3f         g Tax on golden parachute payments. Tax planning us 2006 taxes 3g       4 Add lines 3a through 3g. Tax planning us 2006 taxes 4       5 Tax to be forgiven. Tax planning us 2006 taxes Subtract line 4 from line 2. Tax planning us 2006 taxes 5       Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Worksheet B. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Tax planning us 2006 taxes 1       2 Enter the decedent's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 2       3 Enter the decedent's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 4       5 Subtract line 4 from line 3. Tax planning us 2006 taxes 5       6 Enter the surviving spouse's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 6       7 Enter the surviving spouse's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Tax planning us 2006 taxes 8       9 Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Add lines 5 and 9. Tax planning us 2006 taxes 10       11 Enter the total tax from the joint return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 11       12 Add lines 4 and 8. Tax planning us 2006 taxes 12       13 Subtract line 12 from line 11. Tax planning us 2006 taxes 13       14 Divide line 5 by line 10. Tax planning us 2006 taxes Enter the result as a decimal. Tax planning us 2006 taxes 14       15 Tax to be forgiven. Tax planning us 2006 taxes Multiply line 13 by line 14 and enter the result. Tax planning us 2006 taxes 15       Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Worksheet B. Tax planning us 2006 taxes Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Tax planning us 2006 taxes 1       2 Enter the decedent's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 2       3 Enter the decedent's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 4       5 Subtract line 4 from line 3. Tax planning us 2006 taxes 5       6 Enter the surviving spouse's taxable income. Tax planning us 2006 taxes Figure taxable income as if a separate return had been filed. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 6       7 Enter the surviving spouse's total tax. Tax planning us 2006 taxes See the instructions. Tax planning us 2006 taxes 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Tax planning us 2006 taxes 8       9 Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Add lines 5 and 9. Tax planning us 2006 taxes 10       11 Enter the total tax from the joint return. Tax planning us 2006 taxes See Table 1 on page 5 for the line number for years before 2002. Tax planning us 2006 taxes 11       12 Add lines 4 and 8. Tax planning us 2006 taxes 12       13 Subtract line 12 from line 11. Tax planning us 2006 taxes 13       14 Divide line 5 by line 10. Tax planning us 2006 taxes Enter the result as a decimal. Tax planning us 2006 taxes 14       15 Tax to be forgiven. Tax planning us 2006 taxes Multiply line 13 by line 14 and enter the result. Tax planning us 2006 taxes 15       Note. Tax planning us 2006 taxes If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Tax planning us 2006 taxes Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Tax planning us 2006 taxes If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Tax planning us 2006 taxes The IRS will determine the amount to be refunded. Tax planning us 2006 taxes Worksheet C. Tax planning us 2006 taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Tax planning us 2006 taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Tax planning us 2006 taxes 1 Minimum tax forgiveness. Tax planning us 2006 taxes Note. Tax planning us 2006 taxes Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Tax planning us 2006 taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Tax planning us 2006 taxes 3       4 Add lines 2 and 3. Tax planning us 2006 taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 5       6 Add lines 4 and 5. Tax planning us 2006 taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Tax planning us 2006 taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Tax planning us 2006 taxes 8       9 Tax on exempt income. Tax planning us 2006 taxes Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Tax planning us 2006 taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Tax planning us 2006 taxes 10       11 Add lines 9 and 10. Tax planning us 2006 taxes 11   12 Additional payment allowed. Tax planning us 2006 taxes If line 11 is $10,000 or more, enter -0- and stop here. Tax planning us 2006 taxes No additional amount is allowed as a tax payment. Tax planning us 2006 taxes Otherwise, subtract line 11 from line 1 and enter the result. Tax planning us 2006 taxes 12   Note. Tax planning us 2006 taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Tax planning us 2006 taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Tax planning us 2006 taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Tax planning us 2006 taxes Write "Sec. Tax planning us 2006 taxes 692(d)(2) Payment" and the amount to the right of the entry space. Tax planning us 2006 taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Tax planning us 2006 taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Tax planning us 2006 taxes Write “Sec. Tax planning us 2006 taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Tax planning us 2006 taxes Worksheet C. Tax planning us 2006 taxes Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Tax planning us 2006 taxes Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Tax planning us 2006 taxes 1 Minimum tax forgiveness. Tax planning us 2006 taxes Note. Tax planning us 2006 taxes Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Tax planning us 2006 taxes 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Tax planning us 2006 taxes 3       4 Add lines 2 and 3. Tax planning us 2006 taxes 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Tax planning us 2006 taxes (See Income received after date of death on page 5. Tax planning us 2006 taxes ) 5       6 Add lines 4 and 5. Tax planning us 2006 taxes 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Tax planning us 2006 taxes 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Tax planning us 2006 taxes 8       9 Tax on exempt income. Tax planning us 2006 taxes Subtract line 8 from line 7. Tax planning us 2006 taxes 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Tax planning us 2006 taxes If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Tax planning us 2006 taxes 10       11 Add lines 9 and 10. Tax planning us 2006 taxes 11   12 Additional payment allowed. Tax planning us 2006 taxes If line 11 is $10,000 or more, enter -0- and stop here. Tax planning us 2006 taxes No additional amount is allowed as a tax payment. Tax planning us 2006 taxes Otherwise, subtract line 11 from line 1 and enter the result. Tax planning us 2006 taxes 12   Note. Tax planning us 2006 taxes The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Tax planning us 2006 taxes Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Tax planning us 2006 taxes If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Tax planning us 2006 taxes Write "Sec. Tax planning us 2006 taxes 692(d)(2) Payment" and the amount to the right of the entry space. Tax planning us 2006 taxes Also indicate whether a Form 1041 is being filed for the decedent's estate. Tax planning us 2006 taxes If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Tax planning us 2006 taxes Write “Sec. Tax planning us 2006 taxes 692(d)(2) Payment” on the dotted line to the left of the entry space. Tax planning us 2006 taxes How To Get Tax Help Special IRS assistance. Tax planning us 2006 taxes   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Tax planning us 2006 taxes 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 the terrorist attacks, or who have other tax issues related to the attacks. Tax planning us 2006 taxes Call 1–866–562–5227 Monday through Friday In English–7 a. Tax planning us 2006 taxes m. Tax planning us 2006 taxes to 10 p. Tax planning us 2006 taxes m. Tax planning us 2006 taxes local time In Spanish–8 a. Tax planning us 2006 taxes m. Tax planning us 2006 taxes to 9:30 p. Tax planning us 2006 taxes m. Tax planning us 2006 taxes local time   The IRS web site at www. Tax planning us 2006 taxes irs. Tax planning us 2006 taxes gov has notices and other tax relief information. Tax planning us 2006 taxes Check it periodically for any new guidance or to see if Congress has enacted new legislation. Tax planning us 2006 taxes   Business taxpayers affected by the attacks can e-mail their questions to corp. Tax planning us 2006 taxes disaster. Tax planning us 2006 taxes relief@irs. Tax planning us 2006 taxes gov. Tax planning us 2006 taxes   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Tax planning us 2006 taxes fema. Tax planning us 2006 taxes gov. Tax planning us 2006 taxes Other help from the IRS. Tax planning us 2006 taxes   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 planning us 2006 taxes By selecting the method that is best for you, you will have quick and easy access to tax help. Tax planning us 2006 taxes Contacting your Taxpayer Advocate. Tax planning us 2006 taxes   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Tax planning us 2006 taxes   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Tax planning us 2006 taxes 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 planning us 2006 taxes   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Tax planning us 2006 taxes Call the IRS at 1–800–829–1040. Tax planning us 2006 taxes Call, write, or fax the Taxpayer Advocate office in your area. Tax planning us 2006 taxes Call 1–800–829–4059 if you are a TTY/TDD user. Tax planning us 2006 taxes   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Tax planning us 2006 taxes Free tax services. Tax planning us 2006 taxes   To find out what services are available, get Publication 910, Guide to Free Tax Services. Tax planning us 2006 taxes It contains a list of free tax publications and an index of tax topics. Tax planning us 2006 taxes It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Tax planning us 2006 taxes Personal computer. Tax planning us 2006 taxes With your personal computer and modem, you can access the IRS on the Internet at www. Tax planning us 2006 taxes irs. Tax planning us 2006 taxes gov. Tax planning us 2006 taxes While visiting our web site, you can: Find answers to questions you may have. Tax planning us 2006 taxes Download forms and publications or search for forms and pub