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

2011 Tax Return Form 1040

Online 1040ezCan I Amend My Tax Return OnlineHow To Fill Out A 1040x Step By StepTurbotax Military Discount 2012How Much Does It Cost To EfileAmend Tax Return OnlineFree File State Tax2010 1040xFile Amended Tax Return 20092009 Tax FormsGeorgia State Income Tax Forms 2012Can I Refile My TaxesH & R BlockFree Federal And State Efile2010 1040 Tax FormsHow To File A 1040xTaxes 1040ez2011 Tax Form 1040H & R Block FreeHow To File My 2012 Taxes LateTaxact 2011How Do You Amend Your TaxesForm 1040x 20111040 Long FormArmy H&r BlockIrs.gov Forms 1040xFile 1040xE File Amended 1040xHrblock Free Tax ReturnFree Federal Tax ReturnIrs Gov Free State FileFile 1040Does H&r Block Do Taxes For FreeHelp Filing An Amended Tax ReturnFile 2012 TaxesIrs Gov Form 1040x1040ez For 2012Free State Filing Income TaxFree Tax Filing 2012File My State Taxes For Free Online

2011 Tax Return Form 1040

2011 tax return form 1040 2. 2011 tax return form 1040   Accounting Methods Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Accounting MethodsCash Method Accrual Method Farm Inventory Cash Versus Accrual Method Special Methods of Accounting Combination Method Changes in Methods of Accounting Introduction You must use an accounting method that clearly shows your income and expenses. 2011 tax return form 1040 You must also figure your taxable income and file an income tax return for an annual accounting period called a tax year. 2011 tax return form 1040 This chapter discusses accounting methods. 2011 tax return form 1040 For information on accounting periods, see Publication 538, Accounting Periods and Methods, and the Instructions for Form 1128, Application To Adopt, Change, or Retain a Tax Year. 2011 tax return form 1040 Topics - This chapter discusses: Cash method Accrual method Farm inventory Special methods of accounting Changes in methods of accounting Useful Items - You may want to see: Publication 538 Accounting Periods and Methods 535 Business Expenses Form (and Instructions) 1128 Application To Adopt, Change, or Retain a Tax Year 3115 Application for Change in Accounting Method See chapter 16 for information about getting publications and forms. 2011 tax return form 1040 Accounting Methods An accounting method is a set of rules used to determine when and how your income and expenses are reported on your tax return. 2011 tax return form 1040 Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. 2011 tax return form 1040 A material item is one that affects the proper time for inclusion of income or allowance of a deduction. 2011 tax return form 1040 An item considered material for financial statement purposes is generally also considered material for income tax purposes. 2011 tax return form 1040 See Publication 538 for more information. 2011 tax return form 1040 You generally choose an accounting method for your farm business when you file your first income tax return that includes a Schedule F (Form 1040), Profit or Loss From Farming. 2011 tax return form 1040 If you later want to change your accounting method, you generally must get IRS approval. 2011 tax return form 1040 How to obtain IRS approval is discussed later under Changes in Methods of Accounting . 2011 tax return form 1040 Types of accounting methods. 2011 tax return form 1040   Generally, you can use any of the following accounting methods. 2011 tax return form 1040 Each method is discussed in detail below. 2011 tax return form 1040 Cash method. 2011 tax return form 1040 Accrual method. 2011 tax return form 1040 Special methods of accounting for certain items of income and expenses. 2011 tax return form 1040 Combination (hybrid) method using elements of two or more of the above. 2011 tax return form 1040 Business and other items. 2011 tax return form 1040   You can account for business and personal items using different accounting methods. 2011 tax return form 1040 For example, you can figure your business income under an accrual method, even if you use the cash method to figure personal items. 2011 tax return form 1040 Two or more businesses. 2011 tax return form 1040   If you operate two or more separate and distinct businesses, you can use a different accounting method for each business. 2011 tax return form 1040 Generally, no business is separate and distinct unless a complete and separate set of books and records is maintained for each business. 2011 tax return form 1040 Cash Method Most farmers use the cash method because they find it easier to keep records using the cash method. 2011 tax return form 1040 However, certain farm corporations and partnerships and all tax shelters must use an accrual method of accounting. 2011 tax return form 1040 See Accrual Method Required , later. 2011 tax return form 1040 Income Under the cash method, include in your gross income all items of income you actually or constructively received during the tax year. 2011 tax return form 1040 Items of income include money received as well as property or services received. 2011 tax return form 1040 If you receive property or services, you must include the fair market value (FMV) of the property or services in income. 2011 tax return form 1040 See chapter 3 for information on how to report farm income on your income tax return. 2011 tax return form 1040 Constructive receipt. 2011 tax return form 1040   Income is constructively received when an amount is credited to your account or made available to you without restriction. 2011 tax return form 1040 You do not need to have possession of the income for it to be treated as income for the tax year. 2011 tax return form 1040 If you authorize someone to be your agent and receive income for you, you are considered to have received the income when your agent receives it. 2011 tax return form 1040 Income is not constructively received if your receipt of the income is subject to substantial restrictions or limitations. 2011 tax return form 1040 Direct payments and counter-cyclical payments. 2011 tax return form 1040   If you received direct payments or counter-cyclical payments under Subtitle A or C of the Farm Security and Rural Investment Act of 2002, you will not be considered to have constructively received a payment merely because you had the option to receive it in the year before it is required to be paid. 2011 tax return form 1040 Delaying receipt of income. 2011 tax return form 1040   You cannot hold checks or postpone taking possession of similar property from one tax year to another to avoid paying tax on the income. 2011 tax return form 1040 You must report the income in the year the money or property is received or made available to you without restriction. 2011 tax return form 1040 Example. 2011 tax return form 1040 Frances Jones, a farmer, was entitled to receive a $10,000 payment on a grain contract in December 2013. 2011 tax return form 1040 She was told in December that her payment was available. 2011 tax return form 1040 She requested not to be paid until January 2014. 2011 tax return form 1040 However, she must still include this payment in her 2013 income because it was made available to her in 2013. 2011 tax return form 1040 Debts paid by another person or canceled. 2011 tax return form 1040   If your debts are paid by another person or are canceled by your creditors, you may have to report part or all of this debt relief as income. 2011 tax return form 1040 If you receive income in this way, you constructively receive the income when the debt is canceled or paid. 2011 tax return form 1040 See Cancellation of Debt in chapter 3. 2011 tax return form 1040 Deferred payment contract. 2011 tax return form 1040   If you sell an item under a deferred payment contract that calls for payment in a future year, there is no constructive receipt in the year of sale. 2011 tax return form 1040 However, if the sales contract states that you have the right to the proceeds of the sale from the buyer at any time after delivery of the item, then you must include the sales price in income in the year of the sale, regardless of when you actually receive payment. 2011 tax return form 1040 Example. 2011 tax return form 1040 You are a farmer who uses the cash method and a calendar tax year. 2011 tax return form 1040 You sell grain in December 2013 under a bona fide arm's-length contract that calls for payment in 2014. 2011 tax return form 1040 You include the proceeds from the sale in your 2014 gross income since that is the year payment is received. 2011 tax return form 1040 However, if the contract states that you have the right to the proceeds from the buyer at any time after the grain is delivered, you must include the sales price in your 2013 income, regardless of when you actually receive payment. 2011 tax return form 1040 Repayment of income. 2011 tax return form 1040   If you include an amount in income and in a later year you have to repay all or part of it, then you can usually deduct the repayment in the year repaid. 2011 tax return form 1040 If the repayment is more than $3,000, a special rule applies. 2011 tax return form 1040 For details, see Repayments in chapter 11 of Publication 535, Business Expenses. 2011 tax return form 1040 Expenses Under the cash method, generally you deduct expenses in the tax year you pay them. 2011 tax return form 1040 This includes business expenses for which you contest liability. 2011 tax return form 1040 However, you may not be able to deduct an expense paid in advance or you may be required to capitalize certain costs, as explained under Uniform Capitalization Rules in chapter 6. 2011 tax return form 1040 See chapter 4 for information on how to deduct farm business expenses on your income tax return. 2011 tax return form 1040 Prepayment. 2011 tax return form 1040   Generally, you cannot deduct expenses paid in advance. 2011 tax return form 1040 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. 2011 tax return form 1040 Example. 2011 tax return form 1040 On November 1, 2013, you signed and paid $3,600 for a 3-year (36-month) insurance contract for equipment. 2011 tax return form 1040 In 2013, you are allowed to deduct only $200 (2/36 x $3,600) of the cost of the policy that is attributable to 2013. 2011 tax return form 1040 In 2014, you'll be able to deduct $1,200 (12/36 x $3,600); in 2015, you'll be able to deduct $1,200 (12/36 x $3,600); and in 2016 you'll be able to deduct the remaining balance of $1,000. 2011 tax return form 1040 An exception applies if the expense qualifies for the 12-month rule. 2011 tax return form 1040 See Publication 538 for more information and examples. 2011 tax return form 1040 See chapter 4 for special rules for prepaid farm supplies and prepaid livestock feed. 2011 tax return form 1040 Accrual Method Under an accrual method of accounting, you generally report income in the year earned and deduct or capitalize expenses in the year incurred. 2011 tax return form 1040 The purpose of an accrual method of accounting is to correctly match income and expenses. 2011 tax return form 1040 Certain businesses engaged in farming must use an accrual method of accounting for its farm business and for sales and purchases of inventory items. 2011 tax return form 1040 See Accrual Method Required and Farm Inventory , later. 2011 tax return form 1040 Income Generally, you include an amount in income for the tax year in which all events that fix your right to receive the income have occurred, and you can determine the amount with reasonable accuracy. 2011 tax return form 1040 Under this rule, include an amount in income on the earliest of the following dates. 2011 tax return form 1040 When you receive payment. 2011 tax return form 1040 When the income amount is due to you. 2011 tax return form 1040 When you earn the income. 2011 tax return form 1040 When title passes. 2011 tax return form 1040 If you use an accrual method of accounting, complete Part III of Schedule F (Form 1040) to report your income. 2011 tax return form 1040 Inventory. 2011 tax return form 1040   If you keep an inventory, generally you must use an accrual method of accounting to determine your gross income. 2011 tax return form 1040 An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. 2011 tax return form 1040 See Publication 538 for more information. 2011 tax return form 1040 Also see Farm Inventory , later, for more information on items that must be included in inventory by farmers and inventory valuation methods for farmers. 2011 tax return form 1040 Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both of the following apply. 2011 tax return form 1040 The all-events test has been met. 2011 tax return form 1040 This test is met when: All events have occurred that fix the fact that you have a liability, and The amount of the liability can be determined with reasonable accuracy. 2011 tax return form 1040 Economic performance has occurred. 2011 tax return form 1040 Economic performance. 2011 tax return form 1040   Generally, you cannot deduct or capitalize a business expense until economic performance occurs. 2011 tax return form 1040 If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or as the property is used. 2011 tax return form 1040 If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. 2011 tax return form 1040 Example. 2011 tax return form 1040 Jane, who is a farmer, uses a calendar tax year and an accrual method of accounting. 2011 tax return form 1040 She entered into a contract with ABC Farm Consulting in 2012. 2011 tax return form 1040 The contract stated that Jane pay ABC Farm Consulting $2,000 in December 2012. 2011 tax return form 1040 It further stipulates that ABC Farm Consulting will develop a plan for integrating her farm with a larger farm operation based in a neighboring state by March 1, 2013. 2011 tax return form 1040 Jane paid ABC Farm Consulting $2,000 in December 2012. 2011 tax return form 1040 Integration of operations according to the plan began in May 2013 and they completed the integration in December 2013. 2011 tax return form 1040 Economic performance for Jane's liability in the contract occurs as the services are provided. 2011 tax return form 1040 Jane incurs the $2,000 cost in 2013. 2011 tax return form 1040 An exception to the economic performance rule allows certain recurring items to be treated as incurred during a tax year even though economic performance has not occurred. 2011 tax return form 1040 For more information, see Economic Performance in Publication 538. 2011 tax return form 1040 Special rule for related persons. 2011 tax return form 1040   Business expenses and interest owed to a related person who uses the cash method of accounting are not deductible until you make the payment and the corresponding amount is includible in the related person's gross income. 2011 tax return form 1040 Determine the relationship for this rule as of the end of the tax year for which the expense or interest would otherwise be deductible. 2011 tax return form 1040 For more information, see Internal Revenue Code section 267. 2011 tax return form 1040 Accrual Method Required Generally, the following businesses, if engaged in farming, must use an accrual method of accounting. 2011 tax return form 1040 A corporation (other than a family corporation) that had gross receipts of more than $1,000,000 for any tax year beginning after 1975. 2011 tax return form 1040 A family corporation that had gross receipts of more than $25,000,000 for any tax year beginning after 1985. 2011 tax return form 1040 A partnership with a corporation as a partner, if that corporation meets the requirements of (1) or (2) above. 2011 tax return form 1040 A tax shelter. 2011 tax return form 1040 Note. 2011 tax return form 1040 Items (1), (2), and (3) above do not apply to an S corporation or a business operating a nursery or sod farm, or the raising or harvesting of trees (other than fruit and nut trees). 2011 tax return form 1040 Family corporation. 2011 tax return form 1040   A family corporation is generally a corporation that meets one of the following ownership requirements. 2011 tax return form 1040 Members of the same family own at least 50% of the total combined voting power of all classes of stock entitled to vote and at least 50% of the total shares of all other classes of stock of the corporation. 2011 tax return form 1040 Members of two families have owned, directly or indirectly, since October 4, 1976, at least 65% of the total combined voting power of all classes of voting stock and at least 65% of the total shares of all other classes of the corporation's stock. 2011 tax return form 1040 Members of three families have owned, directly or indirectly, since October 4, 1976, at least 50% of the total combined voting power of all classes of voting stock and at least 50% of the total shares of all other classes of the corporation's stock. 2011 tax return form 1040 For more information on family corporations, see Internal Revenue Code section 447. 2011 tax return form 1040 Tax shelter. 2011 tax return form 1040   A tax shelter is a partnership, noncorporate enterprise, or S corporation that meets either of the following tests. 2011 tax return form 1040 Its principal purpose is the avoidance or evasion of federal income tax. 2011 tax return form 1040 It is a farming syndicate. 2011 tax return form 1040 A farming syndicate is an entity that meets either of the following tests. 2011 tax return form 1040 Interests in the activity have been offered for sale in an offering required to be registered with a federal or state agency with the authority to regulate the offering of securities for sale. 2011 tax return form 1040 More than 35% of the losses during the tax year are allocable to limited partners or limited entrepreneurs. 2011 tax return form 1040   A “limited partner” is one whose personal liability for partnership debts is limited to the money or other property the partner contributed or is required to contribute to the partnership. 2011 tax return form 1040   A “limited entrepreneur” is one who has an interest in an enterprise other than as a limited partner and does not actively participate in the management of the enterprise. 2011 tax return form 1040 Farm Inventory If you are required to keep an inventory, you should keep a complete record of your inventory as part of your farm records. 2011 tax return form 1040 This record should show the actual count or measurement of the inventory. 2011 tax return form 1040 It should also show all factors that enter into its valuation, including quality and weight, if applicable. 2011 tax return form 1040 Hatchery business. 2011 tax return form 1040   If you are in the hatchery business, and use an accrual method of accounting, you must include in inventory eggs in the process of incubation. 2011 tax return form 1040 Products held for sale. 2011 tax return form 1040   All harvested and purchased farm products held for sale or for feed or seed, such as grain, hay, silage, concentrates, cotton, tobacco, etc. 2011 tax return form 1040 , must be included in inventory. 2011 tax return form 1040 Supplies. 2011 tax return form 1040   Supplies acquired for sale or that become a physical part of items held for sale must be included in inventory. 2011 tax return form 1040 Deduct the cost of supplies in the year used or consumed in operations. 2011 tax return form 1040 Do not include incidental supplies in inventory as these are deductible in the year of purchase. 2011 tax return form 1040 Livestock. 2011 tax return form 1040   Livestock held primarily for sale must be included in inventory. 2011 tax return form 1040 Livestock held for draft, breeding, or dairy purposes can either be depreciated or included in inventory. 2011 tax return form 1040 See also Unit-livestock-price method , later. 2011 tax return form 1040 If you are in the business of breeding and raising chinchillas, mink, foxes, or other fur-bearing animals, these animals are livestock for inventory purposes. 2011 tax return form 1040 Growing crops. 2011 tax return form 1040   Generally, growing crops are not required to be included in inventory. 2011 tax return form 1040 However, if the crop has a preproductive period of more than 2 years, you may have to capitalize (or include in inventory) costs associated with the crop. 2011 tax return form 1040 See Uniform capitalization rules below. 2011 tax return form 1040 Also see Uniform Capitalization Rules in  chapter 6. 2011 tax return form 1040 Items to include in inventory. 2011 tax return form 1040   Your inventory should include all items held for sale, or for use as feed, seed, etc. 2011 tax return form 1040 , whether raised or purchased, that are unsold at the end of the year. 2011 tax return form 1040 Uniform capitalization rules. 2011 tax return form 1040   The following applies if you are required to use an accrual method of accounting. 2011 tax return form 1040 The uniform capitalization rules apply to all costs of raising a plant, even if the preproductive period of raising a plant is 2 years or less. 2011 tax return form 1040 The costs of animals are subject to the uniform capitalization rules. 2011 tax return form 1040 Inventory valuation methods. 2011 tax return form 1040   The following methods, described below, are those generally available for valuing inventory. 2011 tax return form 1040 The method you use must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. 2011 tax return form 1040 Cost. 2011 tax return form 1040 Lower of cost or market. 2011 tax return form 1040 Farm-price method. 2011 tax return form 1040 Unit-livestock-price method. 2011 tax return form 1040 Cost and lower of cost or market methods. 2011 tax return form 1040   See Publication 538 for information on these valuation methods. 2011 tax return form 1040 If you value your livestock inventory at cost or the lower of cost or market, you do not need IRS approval to change to the unit-livestock-price method. 2011 tax return form 1040 However, if you value your livestock inventory using the farm-price method, then you must obtain permission from the IRS to change to the unit-livestock-price method. 2011 tax return form 1040 Farm-price method. 2011 tax return form 1040   Under this method, each item, whether raised or purchased, is valued at its market price less the direct cost of disposition. 2011 tax return form 1040 Market price is the current price at the nearest market in the quantities you usually sell. 2011 tax return form 1040 Cost of disposition includes broker's commissions, freight, hauling to market, and other marketing costs. 2011 tax return form 1040 If you use this method, you must use it for your entire inventory, except that livestock can be inventoried under the unit-livestock-price method. 2011 tax return form 1040 Unit-livestock-price method. 2011 tax return form 1040   This method recognizes the difficulty of establishing the exact costs of producing and raising each animal. 2011 tax return form 1040 You group or classify livestock according to type and age and use a standard unit price for each animal within a class or group. 2011 tax return form 1040 The unit price you assign should reasonably approximate the normal costs incurred in producing the animals in such classes. 2011 tax return form 1040 Unit prices and classifications are subject to approval by the IRS on examination of your return. 2011 tax return form 1040 You must annually reevaluate your unit livestock prices and adjust the prices upward or downward to reflect increases or decreases in the costs of raising livestock. 2011 tax return form 1040 IRS approval is not required for these adjustments. 2011 tax return form 1040 Any other changes in unit prices or classifications do require IRS approval. 2011 tax return form 1040   If you use this method, include all raised livestock in inventory, regardless of whether they are held for sale or for draft, breeding, sport, or dairy purposes. 2011 tax return form 1040 This method accounts only for the increase in cost of raising an animal to maturity. 2011 tax return form 1040 It does not provide for any decrease in the animal's market value after it reaches maturity. 2011 tax return form 1040 Also, if you raise cattle, you are not required to inventory hay you grow to feed your herd. 2011 tax return form 1040   Do not include sold or lost animals in the year-end inventory. 2011 tax return form 1040 If your records do not show which animals were sold or lost, treat the first animals acquired as sold or lost. 2011 tax return form 1040 The animals on hand at the end of the year are considered those most recently acquired. 2011 tax return form 1040   You must include in inventory all livestock purchased primarily for sale. 2011 tax return form 1040 You can choose either to include in inventory or depreciate livestock purchased for draft, breeding, sport or dairy purposes. 2011 tax return form 1040 However, you must be consistent from year to year, regardless of the method you have chosen. 2011 tax return form 1040 You cannot change your method without obtaining approval from the IRS. 2011 tax return form 1040   You must include in inventory animals purchased after maturity or capitalize them at their purchase price. 2011 tax return form 1040 If the animals are not mature at purchase, increase the cost at the end of each tax year according to the established unit price. 2011 tax return form 1040 However, in the year of purchase, do not increase the cost of any animal purchased during the last 6 months of the year. 2011 tax return form 1040 This “no increase” rule does not apply to tax shelters which must make an adjustment for any animal purchased during the year. 2011 tax return form 1040 It also does not apply to taxpayers that must make an adjustment to reasonably reflect the particular period in the year in which animals are purchased, if necessary to avoid significant distortions in income. 2011 tax return form 1040 Uniform capitalization rules. 2011 tax return form 1040   A farmer can determine costs required to be allocated under the uniform capitalization rules by using the farm-price or unit-livestock-price inventory method. 2011 tax return form 1040 This applies to any plant or animal, even if the farmer does not hold or treat the plant or animal as inventory property. 2011 tax return form 1040 Cash Versus Accrual Method The following examples compare the cash and accrual methods of accounting. 2011 tax return form 1040 Example 1. 2011 tax return form 1040 You are a farmer who uses an accrual method of accounting. 2011 tax return form 1040 You keep your books on the calendar year basis. 2011 tax return form 1040 You sell grain in December 2013 but you are not paid until January 2014. 2011 tax return form 1040 Because the accrual method was used and 2013 was the tax year in which the grain was sold, you must both include the sales proceeds and deduct the costs incurred in producing the grain on your 2013 tax return. 2011 tax return form 1040 Example 2. 2011 tax return form 1040 Assume the same facts as in Example 1 except that you use the cash method and there was no constructive receipt of the sales proceeds in 2013. 2011 tax return form 1040 Under this method, you include the sales proceeds in income for 2014, the year you receive payment. 2011 tax return form 1040 Deduct the costs of producing the grain in the year you pay for them. 2011 tax return form 1040 Special Methods of Accounting There are special methods of accounting for certain items of income and expense. 2011 tax return form 1040 Crop method. 2011 tax return form 1040   If you do not harvest and dispose of your crop in the same tax year that you plant it, you can, with IRS approval, use the crop method of accounting. 2011 tax return form 1040 You cannot use the crop method for any tax return, including your first tax return, unless you receive approval from the IRS. 2011 tax return form 1040 Under this method, you deduct the entire cost of producing the crop, including the expense of seed or young plants, in the year you realize income from the crop. 2011 tax return form 1040    See chapter 4 for details on deducting the costs of operating a farm. 2011 tax return form 1040 Also see Regulations section 1. 2011 tax return form 1040 162-12. 2011 tax return form 1040 Other special methods. 2011 tax return form 1040   Other special methods of accounting apply to the following items. 2011 tax return form 1040 Amortization, see chapter 7. 2011 tax return form 1040 Casualties, see chapter 11. 2011 tax return form 1040 Condemnations, see chapter 11. 2011 tax return form 1040 Depletion, see chapter 7. 2011 tax return form 1040 Depreciation, see chapter 7. 2011 tax return form 1040 Farm business expenses, see chapter 4. 2011 tax return form 1040 Farm income, see chapter 3. 2011 tax return form 1040 Installment sales, see chapter 10. 2011 tax return form 1040 Soil and water conservation expenses, see chapter 5. 2011 tax return form 1040 Thefts, see chapter 11. 2011 tax return form 1040 Combination Method Generally, you can use any combination of cash, accrual, and special methods of accounting if the combination clearly shows your income and expenses and you use it consistently. 2011 tax return form 1040 However, the following restrictions apply. 2011 tax return form 1040 If you use the cash method for figuring your income, you must use the cash method for reporting your expenses. 2011 tax return form 1040 If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. 2011 tax return form 1040 Changes in Methods of Accounting A change in your method of accounting includes a change in: Your overall method, such as from the cash method to an accrual method, and Your treatment of any material item, such as a change in your method of valuing inventory (for example, a change from the farm-price method to the unit-livestock-price method, discussed earlier). 2011 tax return form 1040 Generally, once you have set up your accounting method, you must receive approval from the IRS before you can change to another method of accounting. 2011 tax return form 1040 You may also have to pay a fee. 2011 tax return form 1040 To obtain approval, you must generally file Form 3115. 2011 tax return form 1040 There are instances when you can obtain automatic consent to change certain methods of accounting. 2011 tax return form 1040 See the List of Automatic Accounting Method Changes located in the Instructions for Form 3115. 2011 tax return form 1040 For more information on changes in methods of accounting, see Form 3115 and the Instructions for Form 3115. 2011 tax return form 1040 Also see Publication 538. 2011 tax return form 1040 Prev  Up  Next   Home   More Online Publications
Español

Government Benefits, Grants, and Financial Aid

Learn how to get benefits from the government and browse popular benefits by topic.

Free Money from the Government

Many people have heard that the government will give you money for almost any reason. This is not true.

You must complete an application and meet specific eligibility requirements in order to receive financial assistance from the government.

Benefits.gov can help you determine which types of government assistance you might qualify for and tell you where to apply.

Back to Top

Benefits.gov can help you identify grants, loans, financial aid, and other benefits from the federal government, determine if you are eligible, and then tell you how and where to apply.

When looking for financial assistance, remember that there are differences between grants and loans. You are required to pay back a loan, often with interest. You are not required to pay back a grant.

Your state's human service or social service agency might also be able to provide financial assistance or refer you to local community organizations for help.

Grants

There are very few grants available to individuals, sometimes called “personal grants.” The best place to find money to help you and your family is Benefits.gov.

Most grants are awarded to universities, researchers, cities, states, counties, and non-profit organizations. You can find grants for organizations at Grants.gov.

Loans

GovLoans.gov can help you find loans from the government including business and education loans. You are required to pay back loans, often with interest.

Back to Top

Most Popular Benefits by Topic

Especially for Specific Audiences

Agricultural and Rural Assistance

Back to Top

The 2011 Tax Return Form 1040

2011 tax return form 1040 13. 2011 tax return form 1040   Payment of Taxes Table of Contents How To Make Deposits When To Make Deposits Amount of DepositsSafe Harbor Rule Generally, semimonthly deposits of excise taxes are required. 2011 tax return form 1040 A semimonthly period is the first 15 days of a month (the first semimonthly period) or the 16th through the last day of a month (the second semimonthly period). 2011 tax return form 1040 However, no deposit is required for the situations listed below; the taxes are payable with Form 720. 2011 tax return form 1040 The net liability for taxes listed in Part I (Form 720) does not exceed $2,500 for the quarter. 2011 tax return form 1040 The gas guzzler tax is being paid on a one-time filing. 2011 tax return form 1040 The liability is for taxes listed in Part II (Form 720), except for the floor stocks tax which generally requires a single deposit. 2011 tax return form 1040 How To Make Deposits Electronic deposit requirement. 2011 tax return form 1040   You must use electronic funds transfer to make excise tax deposits. 2011 tax return form 1040 Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). 2011 tax return form 1040 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. 2011 tax return form 1040 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. 2011 tax return form 1040   EFTPS is a free service provided by the Department of Treasury. 2011 tax return form 1040 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. 2011 tax return form 1040 To get more information about EFTPS or to enroll in EFTPS, visit www. 2011 tax return form 1040 eftps. 2011 tax return form 1040 gov or call 1-800-555-4477. 2011 tax return form 1040 Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. 2011 tax return form 1040    Depositing on time. 2011 tax return form 1040 For EFTPS deposits to be on time, you must initiate the transaction at least 1 day before the date the deposit is due (before 8:00 p. 2011 tax return form 1040 m. 2011 tax return form 1040 Eastern time). 2011 tax return form 1040 You will automatically be enrolled in EFTPS when you apply for an EIN. 2011 tax return form 1040 You will receive a separate mailing containing instructions for activating your EFTPS enrollment after you receive your EIN. 2011 tax return form 1040 When To Make Deposits There are two methods for determining deposits: the regular method and the alternative method. 2011 tax return form 1040 The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits are based on amounts billed or tickets sold, rather than on amounts actually collected. 2011 tax return form 1040 See Alternative method below. 2011 tax return form 1040 If you are depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the semimonthly period. 2011 tax return form 1040 Regular method. 2011 tax return form 1040   The deposit of tax for a semimonthly period is due by the 14th day following that period. 2011 tax return form 1040 Generally, this is the 29th day of a month for the first semimonthly period and the 14th day of the following month for the second semimonthly period. 2011 tax return form 1040 If the 14th or the 29th day falls on a Saturday, Sunday, or legal holiday, you must make the deposit by the immediately preceding day that is not a Saturday, Sunday, or legal holiday. 2011 tax return form 1040 Alternative method (IRS Nos. 2011 tax return form 1040 22, 26, 27, and 28). 2011 tax return form 1040   Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets sold during a semimonthly period instead of on taxes actually collected during the period. 2011 tax return form 1040 Under the alternative method, the tax included in amounts billed or tickets sold during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. 2011 tax return form 1040 The deposit of tax is due by the 3rd banking day after the 7th day of that period. 2011 tax return form 1040   For an example of the alternative method, see the Instructions for Form 720. 2011 tax return form 1040 To use the alternative method, you must keep a separate account of the tax included in amounts billed or tickets sold during the month and report on Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. 2011 tax return form 1040 For example, amounts billed in December, January, and February are considered collected during January, February, and March and are reported on Form 720 as the tax for the 1st quarter of the calendar year. 2011 tax return form 1040 The separate account for each month must reflect: All items of tax included in amounts billed or tickets sold during the month, and Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds). 2011 tax return form 1040 The separate account for any month cannot include an adjustment resulting from a refusal to pay or inability to collect unless the refusal has been reported to the IRS. 2011 tax return form 1040 See Uncollected Tax Report in chapter 4. 2011 tax return form 1040 The net amount of tax that is considered collected during the semimonthly period must be either: The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or One-half of the net amount of tax reflected in the separate account for the preceding month. 2011 tax return form 1040 Special rule for deposits of taxes in September. 2011 tax return form 1040   See the Instructions for Form 720 for a special rule on deposits made in September. 2011 tax return form 1040 Amount of Deposits Deposits for a semimonthly period generally must be at least 95% of the net tax liability for that period unless the safe harbor rule (discussed later) applies. 2011 tax return form 1040 Generally, you do not have to make a deposit for a period in which you incurred no tax liability. 2011 tax return form 1040 Net tax liability. 2011 tax return form 1040   Your net tax liability is your tax liability for the period minus any claims on Schedule C (Form 720) for the period. 2011 tax return form 1040 You may figure your net tax liability for a semimonthly period by dividing your net liability incurred during the calendar month by two. 2011 tax return form 1040 If you use this method, you must use it for all semimonthly periods in the calendar quarter. 2011 tax return form 1040 Do not reduce your liability by any amounts from Form 720X. 2011 tax return form 1040 Safe Harbor Rule The safe harbor rule applies separately to deposits under the regular method and the alternative method. 2011 tax return form 1040 Persons who filed Form 720 for the look-back quarter (the 2nd calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit requirement if the deposit for each semimonthly period in the current quarter is at least 1/6 (16. 2011 tax return form 1040 67%) of the net tax liability reported for the look-back quarter. 2011 tax return form 1040 For the semimonthly period for which the additional deposit is required, the additional deposit must be at least 11/90 12. 2011 tax return form 1040 23%), 10/90 (11. 2011 tax return form 1040 12%) for non-EFTPS, of the net tax liability reported for the look-back quarter. 2011 tax return form 1040 Also, the total deposit for that semimonthly period must be at least 1/6 (16. 2011 tax return form 1040 67%) of the net tax liability reported for the look-back quarter. 2011 tax return form 1040 Exceptions. 2011 tax return form 1040   The safe harbor rule does not apply to: The 1st and 2nd quarters beginning on or after the effective date of an increase in the rate of tax unless the deposit of taxes for each semimonthly period in the calendar quarter is at least 1/6 (16. 2011 tax return form 1040 67%) of the tax liability you would have had for the look-back quarter if the increased rate of tax had been in effect for that look-back quarter, Any quarter if liability includes any tax not in effect throughout the look-back quarter, or For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the look-back quarter and the month preceding the look-back quarter. 2011 tax return form 1040 Requirements to be met. 2011 tax return form 1040   For the safe harbor rule to apply, you must: Make each deposit timely at an authorized financial institution, and Pay any underpayment for the current quarter by the due date of the return. 2011 tax return form 1040    The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these rules. 2011 tax return form 1040 Tax rate increases. 2011 tax return form 1040   You must modify the safe harbor rule if there has been an increase in the rate of tax. 2011 tax return form 1040 You must figure your tax liability in the look-back quarter as if the increased rate had been in effect. 2011 tax return form 1040 To qualify for the safe harbor rule, your deposits cannot be less than 1/6 of the refigured tax liability. 2011 tax return form 1040 Prev  Up  Next   Home   More Online Publications