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

1040x Online

H&rblock TaxesNavy FederalFile Taxes Online FreeFile Income Tax OnlineForm 1040x 2009Turbo Tax 2009How To Amend A Tax ReturnTax Forms 2012EfileMail 1040ez1040 EsBlank Printable 1040ez FormHandr Block ComFile 2011 Taxes Late Free1040Free State File Tax OnlineH & R Block Free Online TaxesFile State TaxHow Do I Amend My TaxesForm1040xHow To Amend 10402012 Tax Forms 1040ezWhere Can I Find State Tax Forms1040 Ez InstructionsFillable State Tax Forms1040esState Tax Return FreeFile Amended ReturnIrs Gov Free File Federal State Taxes1040 NrezEftpsH & R Block FreeHow To Fill Out 1040x Step By StepUnited Way Free Tax PreparationHr Block Military2005 Tax SoftwareHow To Amend My Tax ReturnFree File 1040ezOnline Tax Forms 1040ezFill 1040x

1040x Online

1040x online Publication 929 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics This image is too large to be displayed in the current screen. 1040x online Please click the link to view the image. 1040x online Form 1040A, page 1, for Joshua A. 1040x online Blake This image is too large to be displayed in the current screen. 1040x online Please click the link to view the image. 1040x online Form 1040A, page 2, for Joshua A. 1040x online Blake This image is too large to be displayed in the current screen. 1040x online Please click the link to view the image. 1040x online Form 8615 for Joshua A. 1040x online Blake Filled-in Qualified Dividends and Capital Gain Tax Worksheet #1 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. 1040x online Enter the amount from Form 1040A, line 27 1. 1040x online 48,800*       2. 1040x online Enter the amount from Form 1040A, line 9b 2. 1040x online 300*           3. 1040x online Enter the amount from Form 1040A, line 10 3. 1040x online 200*           4. 1040x online Add lines 2 and 3 4. 1040x online 500       5. 1040x online Subtract line 4 from line 1. 1040x online If zero or less, enter -0- 5. 1040x online 48,300       6. 1040x online Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying widow(er),   or 6. 1040x online 48,800*         $48,600 if head of household. 1040x online                   7. 1040x online Enter the smaller of line 5 or line 6 7. 1040x online 48,300       8. 1040x online Subtract line 7 from line 6. 1040x online This amount is taxed at 0% 8. 1040x online   500       9. 1040x online Enter the smaller of line 1 or line 4 9. 1040x online 500       10. 1040x online Enter the amount from line 8 10. 1040x online   500       11. 1040x online Subtract line 10 from line 9 11. 1040x online  -0-       12. 1040x online Multiply line 11 by 15% (. 1040x online 15) 12. 1040x online -0-   13. 1040x online Use the Tax Table to figure the tax on the amount on line 5. 1040x online Enter the tax here 13. 1040x online 6,356   14. 1040x online Add lines 12 and 13 14. 1040x online 6,356   15. 1040x online Use the Tax Table to figure the tax on the amount on line 1. 1040x online Enter the tax here 15. 1040x online 6,431   16. 1040x online Tax on all taxable income. 1040x online Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. 1040x online 6,356       *See the instructions under Using the Qualified Dividends and Capital Gain Tax Worksheet for line 9 tax in the Form 8615 instructions. 1040x online Filled-in Qualified Dividends and Capital Gain Tax Worksheet #2 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. 1040x online Enter the amount from Form 1040A, line 27 1. 1040x online 1,650*       2. 1040x online Enter the amount from Form 1040A, line 9b 2. 1040x online 750*           3. 1040x online Enter the amount from Form 1040A, line 10 3. 1040x online 500*           4. 1040x online Add lines 2 and 3 4. 1040x online 1,250       5. 1040x online Subtract line 4 from line 1. 1040x online If zero or less, enter -0- 5. 1040x online  400       6. 1040x online Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying   widow(er), or 6. 1040x online 1,650*         $48,600 if head of household. 1040x online                   7. 1040x online Enter the smaller of line 5 or line 6 7. 1040x online   400       8. 1040x online Subtract line 7 from line 6. 1040x online This amount is taxed at 0% 8. 1040x online 1,250       9. 1040x online Enter the smaller of line 1 or line 4 9. 1040x online 1,250       10. 1040x online Enter the amount from line 8 10. 1040x online 1,250       11. 1040x online Subtract line 10 from line 9 11. 1040x online -0-       12. 1040x online Multiply line 11 by 15% (. 1040x online 15) 12. 1040x online -0-   13. 1040x online Use the Tax Table to figure the tax on the amount on line 5. 1040x online Enter the tax here 13. 1040x online 41*   14. 1040x online Add lines 12 and 13 14. 1040x online 41   15. 1040x online Use the Tax Table to figure the tax on the amount on line 1. 1040x online Enter the tax here 15. 1040x online 166*   16. 1040x online Tax on all taxable income. 1040x online Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. 1040x online 41       *See the instructions under Using the Qualified Dividends and Capital Gain Tax Worksheet for line 15 tax in the Form 8615 instructions. 1040x online Filled-in Qualified Dividends and Capital Gain Tax Worksheet #3 Before you begin: Be sure you do not have to file Form 1040 (see the instructions for Form 1040A, line 10) 1. 1040x online Enter the amount from Form 1040A, line 27 1. 1040x online 2,450       2. 1040x online Enter the amount from Form 1040A, line 9b 2. 1040x online 1,050           3. 1040x online Enter the amount from Form 1040A, line 10 3. 1040x online 700           4. 1040x online Add lines 2 and 3 4. 1040x online 1,750       5. 1040x online Subtract line 4 from line 1. 1040x online If zero or less, enter -0- 5. 1040x online    700       6. 1040x online Enter the smaller of:                 •The amount on line 1, or                   •$36,250 if single or married filing separately,                   $72,500 if married filing jointly or qualifying   widow(er), or 6. 1040x online 2,450         $48,600 if head of household. 1040x online                   7. 1040x online Enter the smaller of line 5 or line 6 7. 1040x online  700       8. 1040x online Subtract line 7 from line 6. 1040x online This amount is taxed at 0% 8. 1040x online 1,750       9. 1040x online Enter the smaller of line 1 or line 4 9. 1040x online 1,750       10. 1040x online Enter the amount from line 8 10. 1040x online 1,750       11. 1040x online Subtract line 10 from line 9 11. 1040x online -0-       12. 1040x online Multiply line 11 by 15% (. 1040x online 15) 12. 1040x online -0-   13. 1040x online Use the Tax Table to figure the tax on the amount on line 5. 1040x online Enter the tax here 13. 1040x online  71   14. 1040x online Add lines 12 and 13 14. 1040x online  71   15. 1040x online Use the Tax Table to figure the tax on the amount on line 1. 1040x online Enter the tax here 15. 1040x online 246   16. 1040x online Tax on all taxable income. 1040x online Enter the smaller of line 14 or line 15 here and on Form 1040A, line 28 16. 1040x online  71         How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 1040x online Free help with your tax return. 1040x online   You can get free help preparing your return nationwide from IRS-certified volunteers. 1040x online The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 1040x online The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040x online Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 1040x online In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 1040x online To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 1040x online gov, download the IRS2Go app, or call 1-800-906-9887. 1040x online   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040x online To find the nearest AARP Tax-Aide site, visit AARP's website at www. 1040x online aarp. 1040x online org/money/taxaide or call 1-888-227-7669. 1040x online For more information on these programs, go to IRS. 1040x online gov and enter “VITA” in the search box. 1040x online Internet. 1040x online    IRS. 1040x online gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 1040x online Download the free IRS2Go app from the iTunes app store or from Google Play. 1040x online Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 1040x online Check the status of your 2013 refund with the Where's My Refund? application on IRS. 1040x online gov or download the IRS2Go app and select the Refund Status option. 1040x online The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040x online Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 1040x online You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040x online The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040x online Use the Interactive Tax Assistant (ITA) to research your tax questions. 1040x online No need to wait on the phone or stand in line. 1040x online The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 1040x online When you reach the response screen, you can print the entire interview and the final response for your records. 1040x online New subject areas are added on a regular basis. 1040x online  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 1040x online gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 1040x online You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 1040x online The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 1040x online When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 1040x online Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 1040x online You can also ask the IRS to mail a return or an account transcript to you. 1040x online Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 1040x online gov or by calling 1-800-908-9946. 1040x online Tax return and tax account transcripts are generally available for the current year and the past three years. 1040x online Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 1040x online Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 1040x online If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 1040x online Check the status of your amended return using Where's My Amended Return? Go to IRS. 1040x online gov and enter Where's My Amended Return? in the search box. 1040x online You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040x online It can take up to 3 weeks from the date you mailed it to show up in our system. 1040x online Make a payment using one of several safe and convenient electronic payment options available on IRS. 1040x online gov. 1040x online Select the Payment tab on the front page of IRS. 1040x online gov for more information. 1040x online Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 1040x online Figure your income tax withholding with the IRS Withholding Calculator on IRS. 1040x online gov. 1040x online Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 1040x online Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 1040x online gov. 1040x online Request an Electronic Filing PIN by going to IRS. 1040x online gov and entering Electronic Filing PIN in the search box. 1040x online Download forms, instructions and publications, including accessible versions for people with disabilities. 1040x online Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 1040x online gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 1040x online An employee can answer questions about your tax account or help you set up a payment plan. 1040x online Before you visit, check the Office Locator on IRS. 1040x online gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 1040x online If you have a special need, such as a disability, you can request an appointment. 1040x online Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 1040x online Apply for an Employer Identification Number (EIN). 1040x online Go to IRS. 1040x online gov and enter Apply for an EIN in the search box. 1040x online Read the Internal Revenue Code, regulations, or other official guidance. 1040x online Read Internal Revenue Bulletins. 1040x online Sign up to receive local and national tax news and more by email. 1040x online Just click on “subscriptions” above the search box on IRS. 1040x online gov and choose from a variety of options. 1040x online    Phone. 1040x online You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 1040x online Download the free IRS2Go app from the iTunes app store or from Google Play. 1040x online Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 1040x online gov, or download the IRS2Go app. 1040x online Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 1040x online The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040x online Most VITA and TCE sites offer free electronic filing. 1040x online Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 1040x online Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 1040x online Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 1040x online If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 1040x online The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040x online Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040x online Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 1040x online The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040x online Note, the above information is for our automated hotline. 1040x online Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 1040x online Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 1040x online You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040x online It can take up to 3 weeks from the date you mailed it to show up in our system. 1040x online Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 1040x online You should receive your order within 10 business days. 1040x online Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 1040x online If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 1040x online Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 1040x online The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 1040x online These individuals can also contact the IRS through relay services such as the Federal Relay Service. 1040x online    Walk-in. 1040x online You can find a selection of forms, publications and services — in-person. 1040x online Products. 1040x online You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040x online Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 1040x online Services. 1040x online You can walk in to your local TAC for face-to-face tax help. 1040x online An employee can answer questions about your tax account or help you set up a payment plan. 1040x online Before visiting, use the Office Locator tool on IRS. 1040x online gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 1040x online    Mail. 1040x online You can send your order for forms, instructions, and publications to the address below. 1040x online You should receive a response within 10 business days after your request is received. 1040x online Internal Revenue Service 1201 N. 1040x online Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 1040x online The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040x online Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 1040x online   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 1040x online We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 1040x online You face (or your business is facing) an immediate threat of adverse action. 1040x online You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 1040x online   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 1040x online Here's why we can help: TAS is an independent organization within the IRS. 1040x online Our advocates know how to work with the IRS. 1040x online Our services are free and tailored to meet your needs. 1040x online We have offices in every state, the District of Columbia, and Puerto Rico. 1040x online   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 1040x online   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 1040x online If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 1040x online Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 1040x online Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 1040x online Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. 1040x online Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams

IR-2011-73, July 11, 2011

IRS YouTube Videos:
Tax Refund Scams :
English | Spanish  |  ASL

WASHINGTON — The Internal Revenue Service today encouraged taxpayers to guard against being misled by unscrupulous individuals trying to persuade them to file false claims for tax credits or rebates.

The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers who normally do not have a filing requirement in the first place. These taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. Many of these recent scams have been targeted in the South and Midwest.

Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities.   Unscrupulous promoters deceive people into paying for advice on how to file false claims. Some promoters may charge unreasonable amounts for preparing legitimate returns that could have been prepared for free by the IRS or IRS sponsored Volunteer Income Tax Assistance partners. In other situations, identity theft is involved.

Taxpayers should be wary of any of the following:

  • Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.
  • Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS.
  • Unfamiliar for-profit tax services teaming up with local churches.
  • Home-made flyers and brochures implying credits or refunds are available without proof of eligibility.
  • Offers of free money with no documentation required.
  • Promises of refunds for “Low Income – No Documents Tax Returns.”
  • Claims for the expired Economic Recovery Credit Program or Recovery Rebate Credit. 
  • Advice on claiming the Earned Income Tax Credit based on exaggerated reports of self-employment income.

In some cases non-existent Social Security refunds or rebates have been the bait used by the con artists.  In other situations, taxpayers deserve the tax credits they are promised but the preparer uses fictitious or inflated information on the return which results in a fraudulent return.

Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file with little or no documentation, have been appearing in community churches around the country. Promoters are targeting church congregations, exploiting their good intentions and credibility. These schemes also often spread by word of mouth among unsuspecting and well-intentioned people telling their friends and relatives. 
Promoters of these scams often prey upon low income individuals and the elderly. 

They build false hopes and charge people good money for bad advice.  In the end, the victims discover their claims are rejected or the refund barely exceeds what they paid the promoter.  Meanwhile, their money and the promoters are long gone.

Unsuspecting individuals are most likely to get caught up in scams and the IRS is warning all taxpayers, and those that help others prepare returns, to remain vigilant. If it sounds too good to be true, it probably is.

Anyone with questions about a tax credit or program should visit www.IRS.gov, call the IRS toll-free number at 800-829-1040 or visit a local IRS Taxpayer Assistance Center.

For questions about rebates, credit and benefits from other federal agencies contact the relevant agency directly for accurate information. 

Follow the IRS on new media

Subscribe to IRS Newswire

Page Last Reviewed or Updated: 19-Mar-2014

The 1040x Online

1040x online Internal Revenue Bulletin:  2009-17  April 27, 2009  Rev. 1040x online Proc. 1040x online 2009-24 Table of Contents SECTION 1. 1040x online PURPOSE SECTION 2. 1040x online BACKGROUND SECTION 3. 1040x online SCOPE SECTION 4. 1040x online APPLICATION. 1040x online 01 In General. 1040x online . 1040x online 02 Limitations on Depreciation Deductions for Certain Automobiles. 1040x online . 1040x online 03 Inclusions in Income of Lessees of Passenger Automobiles. 1040x online SECTION 5. 1040x online EFFECTIVE DATE SECTION 6. 1040x online DRAFTING INFORMATION SECTION 1. 1040x online PURPOSE . 1040x online 01 This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2009, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2009, including a separate table of inclusion amounts for lessees of trucks and vans. 1040x online . 1040x online 02 The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. 1040x online SECTION 2. 1040x online BACKGROUND . 1040x online 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year that the passenger automobile is placed in service by the taxpayer and each succeeding year. 1040x online Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. 1040x online The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. 1040x online This change reflects the higher rate of price inflation that trucks and vans have been subject to since 1988. 1040x online . 1040x online 02 Section 168(k)(1)(A) provides a 50 percent additional first year depreciation deduction for certain new property acquired by a taxpayer after December 31, 2007, and before January 1, 2010, if no written binding contract for the acquisition of the property existed before January 1, 2008. 1040x online Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A) by $8,000 for passenger automobiles to which the 50 percent additional first year depreciation deduction applies. 1040x online . 1040x online 03 Section 168(k)(2)(D)(i) provides that the 50 percent additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). 1040x online Section 168(k)(2)(D)(iii) permits a taxpayer to elect to not claim the 50 percent additional first year depreciation deduction for any class of property. 1040x online Section 168(k)(4) permits a corporation to elect to not claim the 50 percent additional first year depreciation deduction for all eligible qualified property (that is extension property or that is not extension property, as applicable) and instead to increase the business credit limitation under § 38(c) or the alternative minimum tax credit limitation under § 53(c). 1040x online Accordingly, this revenue procedure provides tables for passenger automobiles for which the 50 percent additional depreciation deduction applies and tables for passenger automobiles for which the 50 percent additional first year depreciation deduction does not apply, including passenger automobiles in a class of property for which the taxpayer “elects out” of the 50 percent additional first year depreciation deduction or passenger automobiles that are eligible qualified property to which the § 168(k)(4) election applies. 1040x online . 1040x online 04 For leased passenger automobiles, § 280F(c) requires a reduction in the deduction allowed to the lessee of the passenger automobile. 1040x online The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. 1040x online Under § 1. 1040x online 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. 1040x online One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. 1040x online Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. 1040x online SECTION 3. 1040x online SCOPE . 1040x online 01 The limitations on depreciation deductions in section 4. 1040x online 02(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2009, and continue to apply for each taxable year that the passenger automobile remains in service. 1040x online . 1040x online 02 The tables in section 4. 1040x online 03 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2009. 1040x online Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. 1040x online See Rev. 1040x online Proc. 1040x online 2002-14, 2002-1 C. 1040x online B. 1040x online 450, for passenger automobiles first leased before January 1, 2003, Rev. 1040x online Proc. 1040x online 2003-75, 2003-2 C. 1040x online B. 1040x online 1018, for passenger automobiles first leased during calendar year 2003, Rev. 1040x online Proc. 1040x online 2004-20, 2004-1 C. 1040x online B. 1040x online 642, for passenger automobiles first leased during calendar year 2004, Rev. 1040x online Proc. 1040x online 2005-13, 2005-1 C. 1040x online B. 1040x online 759, for passenger automobiles first leased during calendar year 2005, Rev. 1040x online Proc. 1040x online 2006-18, 2006-1 C. 1040x online B. 1040x online 645, for passenger automobiles first leased during calendar year 2006, Rev. 1040x online Proc. 1040x online 2007-30, 2007-1 C. 1040x online B. 1040x online 1104, for passenger automobiles first leased during calendar year 2007, and Rev. 1040x online Proc. 1040x online 2008-22, 2008-12 I. 1040x online R. 1040x online B. 1040x online 658, for passenger automobiles first leased during calendar year 2008. 1040x online SECTION 4. 1040x online APPLICATION . 1040x online 01 In General. 1040x online (1) Limitations on depreciation deductions for certain automobiles. 1040x online The limitations on depreciation deductions for passenger automobiles placed in service by the taxpayer for the first time during calendar year 2009 are in Tables 1 through 4 in section 4. 1040x online 02(2) of this revenue procedure. 1040x online (2) Inclusions in income of lessees of passenger automobiles. 1040x online A taxpayer first leasing a passenger automobile during calendar year 2009 must determine the inclusion amount that is added to gross income using Tables 5 and 6 in section 4. 1040x online 03 of this revenue procedure. 1040x online In addition, the taxpayer must follow the procedures of § 1. 1040x online 280F-7(a). 1040x online . 1040x online 02 Limitations on Depreciation Deductions for Certain Automobiles. 1040x online (1) Amount of the inflation adjustment. 1040x online (a) Passenger automobiles (other than trucks or vans). 1040x online Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. 1040x online The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. 1040x online The new car component of the CPI was 115. 1040x online 2 for October 1987 and 134. 1040x online 837 for October 2008. 1040x online The October 2008 index exceeded the October 1987 index by 19. 1040x online 637. 1040x online The Internal Revenue Service has, therefore, determined that the automobile price inflation adjustment for 2009 for passenger automobiles (other than trucks and vans) is 17. 1040x online 05 percent (19. 1040x online 637/115. 1040x online 2 x 100%). 1040x online This adjustment is applicable to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2009. 1040x online The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. 1040x online 1705, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2009. 1040x online (b) Trucks and vans. 1040x online To determine the dollar limitations applicable to trucks and vans first placed in service during calendar year 2009, the new truck component of the CPI is used instead of the new car component. 1040x online The new truck component of the CPI was 112. 1040x online 4 for October 1987 and 133. 1040x online 640 for October 2008. 1040x online The October 2008 index exceeded the October 1987 index by 21. 1040x online 24. 1040x online The Service has, therefore, determined that the automobile price inflation adjustment for 2009 for trucks and vans is 18. 1040x online 90 percent (21. 1040x online 24/112. 1040x online 4 x 100%). 1040x online This adjustment is applicable to all trucks and vans that are first placed in service in calendar year 2009. 1040x online The dollar limitations in § 280F(a) therefore must be multiplied by a factor of 0. 1040x online 1890, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to trucks and vans. 1040x online (2) Amount of the limitation. 1040x online For passenger automobiles placed in service by the taxpayer in calendar year 2009, Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year. 1040x online Use Table 1 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a passenger automobile (other than a truck or van) in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a passenger automobile that is eligible qualified property to which the § 168(k)(4) election applies. 1040x online Use Table 2 for a passenger automobile (other than a truck or van) placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. 1040x online Use Table 3 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction does not apply, including a truck or van in a class of property for which the taxpayer elects out of the 50 percent additional first year depreciation deduction or a truck or van that is eligible qualified property to which the § 168(k)(4) election applies. 1040x online Use Table 4 for a truck or van placed in service by the taxpayer in calendar year 2009, for which the 50 percent additional first year depreciation deduction applies. 1040x online REV. 1040x online PROC. 1040x online 2009-24 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $2,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. 1040x online PROC. 1040x online 2009-24 TABLE 2 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $10,960 2nd Tax Year $4,800 3rd Tax Year $2,850 Each Succeeding Year $1,775 REV. 1040x online PROC. 1040x online 2009-24 TABLE 3 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. 1040x online PROC. 1040x online 2009-24 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 . 1040x online 03 Inclusions in Income of Lessees of Passenger Automobiles. 1040x online The inclusion amounts for passenger automobiles first leased in calendar year 2009 are calculated under the procedures described in § 1. 1040x online 280F-7(a). 1040x online Lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure in applying these procedures, while lessees of trucks and vans should use Table 6 of this revenue procedure. 1040x online REV. 1040x online PROC. 1040x online 2009-24 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 9 19 28 34 38 19,000 19,500 10 21 32 38 43 19,500 20,000 11 24 36 42 48 20,000 20,500 12 27 39 46 54 20,500 21,000 13 29 43 51 58 21,000 21,500 15 31 47 55 64 21,500 22,000 16 34 50 60 68 22,000 23,000 17 38 56 66 76 23,000 24,000 20 42 64 75 86 24,000 25,000 22 47 71 84 96 25,000 26,000 24 52 78 93 107 26,000 27,000 26 58 85 101 117 27,000 28,000 29 62 93 110 127 28,000 29,000 31 67 100 119 138 29,000 30,000 33 72 108 128 147 30,000 31,000 35 77 115 137 157 31,000 32,000 38 82 122 146 167 32,000 33,000 40 87 129 155 178 33,000 34,000 42 92 137 163 188 34,000 35,000 44 97 144 172 199 35,000 36,000 47 102 151 181 208 36,000 37,000 49 107 159 189 219 37,000 38,000 51 112 166 199 228 38,000 39,000 53 117 173 208 239 39,000 40,000 56 122 180 216 250 40,000 41,000 58 127 188 225 259 41,000 42,000 60 132 195 234 269 42,000 43,000 62 137 203 242 280 43,000 44,000 65 141 210 252 290 44,000 45,000 67 146 218 260 300 45,000 46,000 69 151 225 269 311 46,000 47,000 71 157 232 278 320 47,000 48,000 74 161 240 286 331 48,000 49,000 76 166 247 296 340 49,000 50,000 78 171 255 304 351 50,000 51,000 80 176 262 313 361 51,000 52,000 83 181 269 322 371 52,000 53,000 85 186 276 331 381 53,000 54,000 87 191 284 339 392 54,000 55,000 89 196 291 349 401 55,000 56,000 92 201 298 357 412 56,000 57,000 94 206 306 365 423 57,000 58,000 96 211 313 375 432 58,000 59,000 98 216 320 384 442 59,000 60,000 101 221 327 393 452 60,000 62,000 104 228 339 406 467 62,000 64,000 109 238 353 424 488 64,000 66,000 113 248 368 441 509 66,000 68,000 118 258 382 459 529 68,000 70,000 122 268 397 476 550 70,000 72,000 127 277 413 493 570 72,000 74,000 131 288 427 511 590 74,000 76,000 136 297 442 529 610 76,000 78,000 140 307 457 546 631 78,000 80,000 145 317 471 564 651 80,000 85,000 152 335 497 595 686 85,000 90,000 164 359 534 639 737 90,000 95,000 175 384 570 683 789 95,000 100,000 186 409 607 727 839 100,000 110,000 203 446 662 793 916 110,000 120,000 226 495 736 881 1,018 120,000 130,000 248 545 809 970 1,119 130,000 140,000 271 594 883 1,058 1,220 140,000 150,000 293 644 956 1,146 1,322 150,000 160,000 316 693 1,030 1,234 1,424 160,000 170,000 338 743 1,103 1,322 1,526 170,000 180,000 361 792 1,177 1,410 1,628 180,000 190,000 383 842 1,250 1,498 1,730 190,000 200,000 406 891 1,324 1,586 1,831 200,000 210,000 428 941 1,397 1,675 1,932 210,000 220,000 451 990 1,471 1,762 2,035 220,000 230,000 473 1,040 1,544 1,851 2,136 230,000 240,000 496 1,089 1,618 1,939 2,238 240,000 And up 518 1,139 1,691 2,027 2,340 REV. 1040x online PROC. 1040x online 2009-24 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009 Fair Market Value of Electric Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th and Later $18,500 $19,000 8 17 25 30 35 19,000 19,500 9 19 29 35 40 19,500 20,000 10 22 33 38 45 20,000 20,500 11 25 36 43 50 20,500 21,000 12 27 40 48 55 21,000 21,500 13 30 43 52 60 21,500 22,000 15 32 47 56 66 22,000 23,000 16 36 52 64 72 23,000 24,000 18 41 60 72 83 24,000 25,000 21 45 68 81 93 25,000 26,000 23 50 75 90 103 26,000 27,000 25 56 82 98 114 27,000 28,000 27 61 89 107 124 28,000 29,000 30 65 97 116 134 29,000 30,000 32 70 104 125 144 30,000 31,000 34 75 112 134 154 31,000 32,000 36 80 119 143 164 32,000 33,000 39 85 126 151 175 33,000 34,000 41 90 134 160 184 34,000 35,000 43 95 141 169 195 35,000 36,000 45 100 148 178 205 36,000 37,000 48 105 155 187 215 37,000 38,000 50 110 163 195 226 38,000 39,000 52 115 170 204 236 39,000 40,000 55 120 177 213 246 40,000 41,000 57 125 185 221 256 41,000 42,000 59 130 192 231 266 42,000 43,000 61 135 199 240 276 43,000 44,000 64 139 207 249 286 44,000 45,000 66 144 215 257 296 45,000 46,000 68 149 222 266 307 46,000 47,000 70 155 229 274 317 47,000 48,000 73 159 237 283 327 48,000 49,000 75 164 244 292 338 49,000 50,000 77 169 251 301 348 50,000 51,000 79 174 259 310 357 51,000 52,000 82 179 266 318 368 52,000 53,000 84 184 273 328 378 53,000 54,000 86 189 281 336 388 54,000 55,000 88 194 288 345 399 55,000 56,000 91 199 295 354 408 56,000 57,000 93 204 302 363 419 57,000 58,000 95 209 310 371 429 58,000 59,000 97 214 317 381 439 59,000 60,000 100 219 324 389 450 60,000 62,000 103 226 336 402 465 62,000 64,000 107 236 351 420 485 64,000 66,000 112 246 365 438 505 66,000 68,000 116 256 380 455 526 68,000 70,000 121 266 394 473 546 70,000 72,000 125 276 409 491 566 72,000 74,000 130 286 423 509 586 74,000 76,000 134 296 438 526 607 76,000 78,000 139 305 454 543 627 78,000 80,000 143 316 467 561 648 80,000 85,000 151 333 493 592 684 85,000 90,000 163 357 531 635 735 90,000 95,000 174 382 567 680 785 95,000 100,000 185 407 604 724 836 100,000 110,000 202 444 659 790 912 110,000 120,000 225 493 733 878 1,014 120,000 130,000 247 543 806 966 1,116 130,000 140,000 270 592 880 1,054 1,218 140,000 150,000 292 642 953 1,143 1,319 150,000 160,000 315 691 1,027 1,230 1,421 160,000 170,000 337 741 1,100 1,319 1,522 170,000 180,000 360 790 1,174 1,407 1,624 180,000 190,000 382 840 1,247 1,495 1,726 190,000 200,000 405 889 1,321 1,583 1,828 200,000 210,000 427 939 1,394 1,671 1,930 210,000 220,000 450 988 1,468 1,759 2,031 220,000 230,000 472 1,038 1,541 1,847 2,134 230,000 240,000 495 1,087 1,615 1,935 2,235 240,000 and up 517 1,137 1,688 2,024 2,336 SECTION 5. 1040x online EFFECTIVE DATE This revenue procedure applies to passenger automobiles (other than leased passenger automobiles) that are first placed in service by a taxpayer during calendar year 2009, and to leased passenger automobiles that are first leased by a taxpayer during calendar year 2009. 1040x online SECTION 6. 1040x online DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. 1040x online Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). 1040x online For further information regarding this revenue procedure, contact Mr. 1040x online Harvey at (202) 622-4930 (not a toll-free call). 1040x online Prev  Up  Next   Home   More Internal Revenue Bulletins