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

2012 Tax Return Form 1040

Online Ez FormTax Amendment FormAmend 2012 Tax ReturnTaxslayer LoginFile Taxes 2010How To File Ez Tax FormIrs Tax Forms 1040ezFree Tax Prep2011 Income Tax Form1040ez Form For 2012Free Downloadable Irs Tax FormsWww Irs Gov EfileNew York State Unemployment Tax FormsHrblock FreeFederal Tax Forms 1040xFree Online Tax Extension FormFile 1040ez OnlineMypay Com1040nr Form 2011File 2010 TaxIncome Tax Form 1040ezForm 1040ez 2013Turbo Tax Self EmployedTurbotax Military Discount 20111040ez Form PrintableComplete 1040x Online2012 Irs Forms 1040H&r Block At HomeFile State Income Tax For FreeFile Your State Taxes Free2011 Irs Forms 10401040 Ez Tax Form 2012Www Taxslayer Com MilitaryE-file State Tax OnlyIrs Tax Forms 2011Can You E File 2012 Taxes NowAmend My 2012 Tax ReturnHow Can I File My 2010 TaxesEftpsFree Tax Estimator

2012 Tax Return Form 1040

2012 tax return form 1040 Publication 542 - Main Content Table of Contents Businesses Taxed as CorporationsPersonal services. 2012 tax return form 1040 Employee-owners. 2012 tax return form 1040 Other rules. 2012 tax return form 1040 Other rules. 2012 tax return form 1040 Property Exchanged for StockNonqualified preferred stock. 2012 tax return form 1040 Liabilities. 2012 tax return form 1040 Election to reduce basis. 2012 tax return form 1040 Capital Contributions Filing and Paying Income TaxesIncome Tax Return Penalties Estimated Tax U. 2012 tax return form 1040 S. 2012 tax return form 1040 Real Property Interest Accounting MethodsSection 481(a) adjustment. 2012 tax return form 1040 Accounting Periods Recordkeeping Income, Deductions, and Special ProvisionsCosts of Going Into Business Related Persons Income From Qualifying Shipping Activities Election to Expense Qualified Refinery Property Deduction to Comply With EPA Sulfur Regulations Energy-Efficient Commercial Building Property Deduction Corporate Preference Items Dividends-Received Deduction Extraordinary Dividends Below-Market Loans Charitable Contributions Capital Losses Net Operating Losses At-Risk Limits Passive Activity Limits Figuring TaxTax Rate Schedule Alternative Minimum Tax (AMT) Credits Recapture Taxes Accumulated Earnings Tax Distributions to ShareholdersMoney or Property Distributions Distributions of Stock or Stock Rights Constructive Distributions Reporting Dividends and Other Distributions How To Get Tax Help Businesses Taxed as Corporations The rules you must use to determine whether a business is taxed as a corporation changed for businesses formed after 1996. 2012 tax return form 1040 Business formed before 1997. 2012 tax return form 1040   A business formed before 1997 and taxed as a corporation under the old rules will generally continue to be taxed as a corporation. 2012 tax return form 1040 Business formed after 1996. 2012 tax return form 1040   The following businesses formed after 1996 are taxed as corporations. 2012 tax return form 1040 A business formed under a federal or state law that refers to it as a corporation, body corporate, or body politic. 2012 tax return form 1040 A business formed under a state law that refers to it as a joint-stock company or joint-stock association. 2012 tax return form 1040 An insurance company. 2012 tax return form 1040 Certain banks. 2012 tax return form 1040 A business wholly owned by a state or local government. 2012 tax return form 1040 A business specifically required to be taxed as a corporation by the Internal Revenue Code (for example, certain publicly traded partnerships). 2012 tax return form 1040 Certain foreign businesses. 2012 tax return form 1040 Any other business that elects to be taxed as a corporation. 2012 tax return form 1040 For example, a limited liability company (LLC) can elect to be treated as an association taxable as a corporation by filing Form 8832, Entity Classification Election. 2012 tax return form 1040 For more information about LLCs, see Publication 3402, Taxation of Limited Liability Companies. 2012 tax return form 1040 S corporations. 2012 tax return form 1040   Some corporations may meet the qualifications for electing to be S corporations. 2012 tax return form 1040 For information on S corporations, see the instructions for Form 1120S, U. 2012 tax return form 1040 S. 2012 tax return form 1040 Income Tax Return for an S Corporation. 2012 tax return form 1040 Personal service corporations. 2012 tax return form 1040   A corporation is a personal service corporation if it meets all of the following requirements. 2012 tax return form 1040 Its principal activity during the “testing period” is performing personal services (defined later). 2012 tax return form 1040 Generally, the testing period for any tax year is the prior tax year. 2012 tax return form 1040 If the corporation has just been formed, the testing period begins on the first day of its tax year and ends on the earlier of: The last day of its tax year, or The last day of the calendar year in which its tax year begins. 2012 tax return form 1040 Its employee-owners substantially perform the services in (1), above. 2012 tax return form 1040 This requirement is met if more than 20% of the corporation's compensation cost for its activities of performing personal services during the testing period is for personal services performed by employee-owners. 2012 tax return form 1040 Its employee-owners own more than 10% of the fair market value of its outstanding stock on the last day of the testing period. 2012 tax return form 1040 Personal services. 2012 tax return form 1040   Personal services include any activity performed in the fields of accounting, actuarial science, architecture, consulting, engineering, health (including veterinary services), law, and the performing arts. 2012 tax return form 1040 Employee-owners. 2012 tax return form 1040   A person is an employee-owner of a personal service corporation if both of the following apply. 2012 tax return form 1040 He or she is an employee of the corporation or performs personal services for, or on behalf of, the corporation (even if he or she is an independent contractor for other purposes) on any day of the testing period. 2012 tax return form 1040 He or she owns any stock in the corporation at any time during the testing period. 2012 tax return form 1040 Other rules. 2012 tax return form 1040   For other rules that apply to personal service corporations see Accounting Periods, later. 2012 tax return form 1040 Closely held corporations. 2012 tax return form 1040   A corporation is closely held if all of the following apply. 2012 tax return form 1040 It is not a personal service corporation. 2012 tax return form 1040 At any time during the last half of the tax year, more than 50% of the value of its outstanding stock is, directly or indirectly, owned by or for five or fewer individuals. 2012 tax return form 1040 “Individual” includes certain trusts and private foundations. 2012 tax return form 1040 Other rules. 2012 tax return form 1040   For the at-risk rules that apply to closely held corporations, seeAt-Risk Limits, later. 2012 tax return form 1040 Property Exchanged for Stock If you transfer property (or money and property) to a corporation in exchange for stock in that corporation (other than nonqualified preferred stock, described later), and immediately afterward you are in control of the corporation, the exchange is usually not taxable. 2012 tax return form 1040 This rule applies both to individuals and to groups who transfer property to a corporation. 2012 tax return form 1040 It also applies whether the corporation is being formed or is already operating. 2012 tax return form 1040 It does not apply in the following situations. 2012 tax return form 1040 The corporation is an investment company. 2012 tax return form 1040 You transfer the property in a bankruptcy or similar proceeding in exchange for stock used to pay creditors. 2012 tax return form 1040 The stock is received in exchange for the corporation's debt (other than a security) or for interest on the corporation's debt (including a security) that accrued while you held the debt. 2012 tax return form 1040 Both the corporation and any person involved in a nontaxable exchange of property for stock must attach to their income tax returns a complete statement of all facts pertinent to the exchange. 2012 tax return form 1040 For more information, see section 1. 2012 tax return form 1040 351-3 of the Regulations. 2012 tax return form 1040 Control of a corporation. 2012 tax return form 1040   To be in control of a corporation, you or your group of transferors must own, immediately after the exchange, at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the outstanding shares of each class of nonvoting stock. 2012 tax return form 1040 Example 1. 2012 tax return form 1040 You and Bill Jones buy property for $100,000. 2012 tax return form 1040 You both organize a corporation when the property has a fair market value of $300,000. 2012 tax return form 1040 You transfer the property to the corporation for all its authorized capital stock, which has a par value of $300,000. 2012 tax return form 1040 No gain is recognized by you, Bill, or the corporation. 2012 tax return form 1040 Example 2. 2012 tax return form 1040 You and Bill transfer the property with a basis of $100,000 to a corporation in exchange for stock with a fair market value of $300,000. 2012 tax return form 1040 This represents only 75% of each class of stock of the corporation. 2012 tax return form 1040 The other 25% was already issued to someone else. 2012 tax return form 1040 You and Bill recognize a taxable gain of $200,000 on the transaction. 2012 tax return form 1040 Services rendered. 2012 tax return form 1040   The term property does not include services rendered or to be rendered to the issuing corporation. 2012 tax return form 1040 The value of stock received for services is income to the recipient. 2012 tax return form 1040 Example. 2012 tax return form 1040 You transfer property worth $35,000 and render services valued at $3,000 to a corporation in exchange for stock valued at $38,000. 2012 tax return form 1040 Right after the exchange, you own 85% of the outstanding stock. 2012 tax return form 1040 No gain is recognized on the exchange of property. 2012 tax return form 1040 However, you recognize ordinary income of $3,000 as payment for services you rendered to the corporation. 2012 tax return form 1040 Property of relatively small value. 2012 tax return form 1040   The term property does not include property of a relatively small value when it is compared to the value of stock and securities already owned or to be received for services by the transferor if the main purpose of the transfer is to qualify for the nonrecognition of gain or loss by other transferors. 2012 tax return form 1040   Property transferred will not be considered to be of relatively small value if its fair market value is at least 10% of the fair market value of the stock and securities already owned or to be received for services by the transferor. 2012 tax return form 1040 Stock received in disproportion to property transferred. 2012 tax return form 1040   If a group of transferors exchange property for corporate stock, each transferor does not have to receive stock in proportion to his or her interest in the property transferred. 2012 tax return form 1040 If a disproportionate transfer takes place, it will be treated for tax purposes in accordance with its true nature. 2012 tax return form 1040 It may be treated as if the stock were first received in proportion and then some of it used to make gifts, pay compensation for services, or satisfy the transferor's obligations. 2012 tax return form 1040 Money or other property received. 2012 tax return form 1040   If, in an otherwise nontaxable exchange of property for corporate stock, you also receive money or property other than stock, you may have to recognize gain. 2012 tax return form 1040 You must recognize gain only up to the amount of money plus the fair market value of the other property you receive. 2012 tax return form 1040 The rules for figuring the recognized gain in this situation generally follow those for a partially nontaxable exchange discussed in Publication 544 under Like-Kind Exchanges. 2012 tax return form 1040 If the property you give up includes depreciable property, the recognized gain may have to be reported as ordinary income from depreciation. 2012 tax return form 1040 See chapter 3 of Publication 544. 2012 tax return form 1040 No loss is recognized. 2012 tax return form 1040 Nonqualified preferred stock. 2012 tax return form 1040   Nonqualified preferred stock is treated as property other than stock. 2012 tax return form 1040 Generally, it is preferred stock with any of the following features. 2012 tax return form 1040 The holder has the right to require the issuer or a related person to redeem or buy the stock. 2012 tax return form 1040 The issuer or a related person is required to redeem or buy the stock. 2012 tax return form 1040 The issuer or a related person has the right to redeem or buy the stock and, on the issue date, it is more likely than not that the right will be exercised. 2012 tax return form 1040 The dividend rate on the stock varies with reference to interest rates, commodity prices, or similar indices. 2012 tax return form 1040 For a detailed definition of nonqualified preferred stock, see section 351(g)(2) of the Internal Revenue Code. 2012 tax return form 1040 Liabilities. 2012 tax return form 1040   If the corporation assumes your liabilities, the exchange generally is not treated as if you received money or other property. 2012 tax return form 1040 There are two exceptions to this treatment. 2012 tax return form 1040 If the liabilities the corporation assumes are more than your adjusted basis in the property you transfer, gain is recognized up to the difference. 2012 tax return form 1040 However, if the liabilities assumed give rise to a deduction when paid, such as a trade account payable or interest, no gain is recognized. 2012 tax return form 1040 If there is no good business reason for the corporation to assume your liabilities, or if your main purpose in the exchange is to avoid federal income tax, the assumption is treated as if you received money in the amount of the liabilities. 2012 tax return form 1040 For more information on the assumption of liabilities, see section 357(d) of the Internal Revenue Code. 2012 tax return form 1040 Example. 2012 tax return form 1040 You transfer property to a corporation for stock. 2012 tax return form 1040 Immediately after the transfer, you control the corporation. 2012 tax return form 1040 You also receive $10,000 in the exchange. 2012 tax return form 1040 Your adjusted basis in the transferred property is $20,000. 2012 tax return form 1040 The stock you receive has a fair market value (FMV) of $16,000. 2012 tax return form 1040 The corporation also assumes a $5,000 mortgage on the property for which you are personally liable. 2012 tax return form 1040 Gain is realized as follows. 2012 tax return form 1040 FMV of stock received $16,000 Cash received 10,000 Liability assumed by corporation 5,000 Total received $31,000 Minus: Adjusted basis of property transferred 20,000 Realized gain $11,000   The liability assumed is not treated as money or other property. 2012 tax return form 1040 The recognized gain is limited to $10,000, the cash received. 2012 tax return form 1040 Loss on exchange. 2012 tax return form 1040   If you have a loss from an exchange and own, directly or indirectly, more than 50% of the corporation's stock, you cannot deduct the loss. 2012 tax return form 1040 For more information, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. 2012 tax return form 1040 Basis of stock or other property received. 2012 tax return form 1040   The basis of the stock you receive is generally the adjusted basis of the property you transfer. 2012 tax return form 1040 Increase this amount by any amount treated as a dividend, plus any gain recognized on the exchange. 2012 tax return form 1040 Decrease this amount by any cash you received, the fair market value of any other property you received, and any loss recognized on the exchange. 2012 tax return form 1040 Also decrease this amount by the amount of any liability the corporation or another party to the exchange assumed from you, unless payment of the liability gives rise to a deduction when paid. 2012 tax return form 1040    Further decreases may be required when the corporation or another party to the exchange assumes from you a liability that gives rise to a deduction when paid, if the basis of the stock would otherwise be higher than its fair market value on the date of the exchange. 2012 tax return form 1040 This rule does not apply if the entity assuming the liability acquired either substantially all of the assets or the trade or business with which the liability is associated. 2012 tax return form 1040 The basis of any other property you receive is its fair market value on the date of the trade. 2012 tax return form 1040 Basis of property transferred. 2012 tax return form 1040   A corporation that receives property from you in exchange for its stock generally has the same basis you had in the property, increased by any gain you recognized on the exchange. 2012 tax return form 1040 However, the increase for the gain recognized may be limited. 2012 tax return form 1040 For more information, see section 362 of the Internal Revenue Code. 2012 tax return form 1040 Election to reduce basis. 2012 tax return form 1040   In a section 351 transaction, if the adjusted basis of the property transferred exceeds the property's fair market value, the transferor and transferee may make an irrevocable election to treat the basis of the stock received by the transferor as having a basis equal to the fair market value of the property transferred. 2012 tax return form 1040 The transferor and transferee make this election by attaching a statement to their tax returns filed by the due date (including extensions) for the tax year in which the transaction occurred. 2012 tax return form 1040 However, if the transferor makes the election by including the certification provided in Notice 2005-70, 2005-41, I. 2012 tax return form 1040 R. 2012 tax return form 1040 B. 2012 tax return form 1040 694, on or with its tax return filed by the due date (including extensions), then no election need be made by the transferee. 2012 tax return form 1040    For more information on making this election, see section 362(e)(2)(C) of the Internal Revenue Code, and Notice 2005-70. 2012 tax return form 1040 Capital Contributions This section explains the tax treatment of contributions from shareholders and nonshareholders. 2012 tax return form 1040 Paid-in capital. 2012 tax return form 1040   Contributions to the capital of a corporation, whether or not by shareholders, are paid-in capital. 2012 tax return form 1040 These contributions are not taxable to the corporation. 2012 tax return form 1040 Basis. 2012 tax return form 1040   The corporation's basis of property contributed to capital by a shareholder is the same as the basis the shareholder had in the property, increased by any gain the shareholder recognized on the exchange. 2012 tax return form 1040 However, the increase for the gain recognized may be limited. 2012 tax return form 1040 For more information, see Basis of property transferred, above, and section 362 of the Internal Revenue Code. 2012 tax return form 1040   The basis of property contributed to capital by a person other than a shareholder is zero. 2012 tax return form 1040   If a corporation receives a cash contribution from a person other than a shareholder, the corporation must reduce the basis of any property acquired with the contribution during the 12-month period beginning on the day it received the contribution by the amount of the contribution. 2012 tax return form 1040 If the amount contributed is more than the cost of the property acquired, then reduce, but not below zero, the basis of the other properties held by the corporation on the last day of the 12-month period in the following order. 2012 tax return form 1040 Depreciable property. 2012 tax return form 1040 Amortizable property. 2012 tax return form 1040 Property subject to cost depletion but not to percentage depletion. 2012 tax return form 1040 All other remaining properties. 2012 tax return form 1040   Reduce the basis of property in each category to zero before going on to the next category. 2012 tax return form 1040   There may be more than one piece of property in each category. 2012 tax return form 1040 Base the reduction of the basis of each property on the following ratio:   Basis of each piece of property   Bases of all properties (within that category) If the corporation wishes to make this adjustment in some other way, it must get IRS approval. 2012 tax return form 1040 The corporation files a request for approval with its income tax return for the tax year in which it receives the contribution. 2012 tax return form 1040 Filing and Paying Income Taxes The federal income tax is a pay-as-you-go tax. 2012 tax return form 1040 A corporation generally must make estimated tax payments as it earns or receives income during its tax year. 2012 tax return form 1040 After the end of the year, the corporation must file an income tax return. 2012 tax return form 1040 This section will help you determine when and how to pay and file corporate income taxes. 2012 tax return form 1040 For certain corporations affected by Presidentially declared disasters such as hurricanes, the due dates for filing returns, paying taxes, and performing other time-sensitive acts may be extended. 2012 tax return form 1040 The IRS may also forgive the interest and penalties on any underpaid tax for the length of any extension. 2012 tax return form 1040 For more information, visit www. 2012 tax return form 1040 irs. 2012 tax return form 1040 gov/newsroom/article/0,,id=108362. 2012 tax return form 1040 00. 2012 tax return form 1040 Income Tax Return This section will help you determine when and how to report a corporation's income tax. 2012 tax return form 1040 Who must file. 2012 tax return form 1040   Unless exempt under section 501 of the Internal Revenue Code, all domestic corporations in existence for any part of a tax year (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. 2012 tax return form 1040 Which form to file. 2012 tax return form 1040   A corporation generally must file Form 1120, U. 2012 tax return form 1040 S. 2012 tax return form 1040 Corporation Income Tax Return, to report its income, gains, losses, deductions, credits, and to figure its income tax liability. 2012 tax return form 1040 Certain organizations and entities must file special returns. 2012 tax return form 1040 For more information, see Special Returns for Certain Organizations, in the Instructions for Form 1120. 2012 tax return form 1040 Electronic filing. 2012 tax return form 1040   Corporations can generally electronically file (e-file) Form 1120 and certain related forms, schedules, and attachments. 2012 tax return form 1040 Certain corporations with total assets of $10 million or more, that file at least 250 returns a year must e-file Form 1120. 2012 tax return form 1040 However, in certain instances, these corporations can request a waiver. 2012 tax return form 1040 For more information regarding electronic filing, visit www. 2012 tax return form 1040 irs. 2012 tax return form 1040 gov/efile. 2012 tax return form 1040 When to file. 2012 tax return form 1040   Generally, a corporation must file its income tax return by the 15th day of the 3rd month after the end of its tax year. 2012 tax return form 1040 A new corporation filing a short-period return must generally file by the 15th day of the 3rd month after the short period ends. 2012 tax return form 1040 A corporation that has dissolved must generally file by the 15th day of the 3rd month after the date it dissolved. 2012 tax return form 1040 Example 1. 2012 tax return form 1040 A corporation's tax year ends December 31. 2012 tax return form 1040 It must file its income tax return by March 15th. 2012 tax return form 1040 Example 2. 2012 tax return form 1040 A corporation's tax year ends June 30. 2012 tax return form 1040 It must file its income tax return by September 15th. 2012 tax return form 1040   If the due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next business day. 2012 tax return form 1040 Extension of time to file. 2012 tax return form 1040   File Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information and Other Returns, to request an extension of time to file a corporation income tax return. 2012 tax return form 1040 The IRS will grant the extension if you complete the form properly, file it, and pay any tax due by the original due date for the return. 2012 tax return form 1040   Form 7004 does not extend the time for paying the tax due on the return. 2012 tax return form 1040 Interest, and possibly penalties, will be charged on any part of the final tax due not shown as a balance due on Form 7004. 2012 tax return form 1040 The interest is figured from the original due date of the return to the date of payment. 2012 tax return form 1040   For more information, see the instructions for Form 7004. 2012 tax return form 1040 How to pay your taxes. 2012 tax return form 1040   A corporation must pay its tax due in full no later than the 15th day of the 3rd month after the end of its tax year. 2012 tax return form 1040 Electronic Federal Tax Payment System (EFTPS). 2012 tax return form 1040   Corporations generally must use EFTPS to make deposits of all tax liabilities (including social security, Medicare, withheld income, excise, and corporate income taxes). 2012 tax return form 1040 For more information on EFTPS and enrollment, visit www. 2012 tax return form 1040 eftps. 2012 tax return form 1040 gov or call 1-800-555-4477. 2012 tax return form 1040 Also see Publication 966, The Secure Way to Pay Your Federal Taxes. 2012 tax return form 1040 Note. 2012 tax return form 1040 Forms 8109 and 8109-B, Federal Tax Deposit Coupon, can no longer be used to make federal tax deposits. 2012 tax return form 1040 Penalties Generally, if the corporation receives a notice about interest and penalties after it files its return, send the IRS an explanation and we will determine if the corporation meets reasonable-cause criteria. 2012 tax return form 1040 Do not attach an explanation when the corporation's return is filed. 2012 tax return form 1040 See the instructions for your income tax return. 2012 tax return form 1040 Late filing of return. 2012 tax return form 1040    A corporation that does not file its tax return by the due date, including extensions, may be penalized 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax. 2012 tax return form 1040 If the corporation is charged a penalty for late payment of tax (discussed next) for the same period of time, the penalty for late filing is reduced by the amount of the penalty for late payment. 2012 tax return form 1040 The minimum penalty for a return that is over 60 days late is the smaller of the tax due or $100. 2012 tax return form 1040 The penalty will not be imposed if the corporation can show the failure to file on time was due to a reasonable cause. 2012 tax return form 1040 Late payment of tax. 2012 tax return form 1040    A corporation that does not pay the tax when due may be penalized ½ of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. 2012 tax return form 1040 The penalty will not be imposed if the corporation can show that the failure to pay on time was due to a reasonable cause. 2012 tax return form 1040 Trust fund recovery penalty. 2012 tax return form 1040   If income, social security, and Medicare taxes that a corporation must withhold from employee wages are not withheld or are not deposited or paid to the United States Treasury, the trust fund recovery penalty may apply. 2012 tax return form 1040 The penalty is the full amount of the unpaid trust fund tax. 2012 tax return form 1040 This penalty may apply to you if these unpaid taxes cannot be immediately collected from the business. 2012 tax return form 1040   The trust fund recovery penalty may be imposed on all persons who are determined by the IRS to be responsible for collecting, accounting for, and paying these taxes, and who acted willfully in not doing so. 2012 tax return form 1040   A responsible person can be an officer or employee of a corporation, an accountant, or a volunteer director/trustee. 2012 tax return form 1040 A responsible person also may include one who signs checks for the corporation or otherwise has authority to cause the spending of business funds. 2012 tax return form 1040   Willfully means voluntarily, consciously, and intentionally. 2012 tax return form 1040 A responsible person acts willfully if the person knows the required actions are not taking place. 2012 tax return form 1040   For more information on withholding and paying these taxes, see Publication 15 (Circular E), Employer's Tax Guide, and Publication 51, (Circular A), Agricultural Employer's Tax Guide. 2012 tax return form 1040 Other penalties. 2012 tax return form 1040   Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, and fraud. 2012 tax return form 1040 See sections 6662, 6662A, and 6663 of the Internal Revenue Code. 2012 tax return form 1040 Estimated Tax Generally, a corporation must make installment payments if it expects its estimated tax for the year to be $500 or more. 2012 tax return form 1040 If the corporation does not pay the installments when they are due, it could be subject to an underpayment penalty. 2012 tax return form 1040 This section will explain how to avoid this penalty. 2012 tax return form 1040 When to pay estimated tax. 2012 tax return form 1040   Installment payments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year. 2012 tax return form 1040 Example 1. 2012 tax return form 1040 Your corporation's tax year ends December 31. 2012 tax return form 1040 Installment payments are due on April 15, June 15, September 15, and December 15. 2012 tax return form 1040 Example 2. 2012 tax return form 1040 Your corporation's tax year ends June 30. 2012 tax return form 1040 Installment payments are due on October 15, December 15, March 15, and June 15. 2012 tax return form 1040   If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next business day. 2012 tax return form 1040 How to figure each required installment. 2012 tax return form 1040   Use Form 1120-W, Estimated Tax for Corporations, as a worksheet to figure each required installment of estimated tax. 2012 tax return form 1040 You will generally use one of the following two methods to figure each required installment. 2012 tax return form 1040 You should use the method that yields the smallest installment payments. 2012 tax return form 1040 Note. 2012 tax return form 1040 In these discussions, “return” generally refers to the corporation's original return. 2012 tax return form 1040 However, an amended return is considered the original return if it is filed by the due date (including extensions) of the original return. 2012 tax return form 1040 Method 1. 2012 tax return form 1040   Each required installment is 25% of the income tax the corporation will show on its return for the current year. 2012 tax return form 1040 Method 2. 2012 tax return form 1040   Each required installment is 25% of the income tax shown on the corporation's return for the previous year. 2012 tax return form 1040   To use Method 2: The corporation must have filed a return for the previous year, The return must have been for a full 12 months, and The return must have shown a positive tax liability (not zero). 2012 tax return form 1040 Also, if the corporation is a large corporation, it can use Method 2 to figure the first installment only. 2012 tax return form 1040   See the Instructions for Form 1120-W, for the definition of a large corporation and other special rules for large corporations. 2012 tax return form 1040 Other methods. 2012 tax return form 1040   If a corporation's income is expected to vary during the year because, for example, its business is seasonal, it may be able to lower the amount of one or more required installments by using one or both of the following methods. 2012 tax return form 1040 The annualized income installment method. 2012 tax return form 1040 The adjusted seasonal installment method. 2012 tax return form 1040 Use Schedule A of Form 1120-W to determine if using one or both of these methods will lower the amount of any required installments. 2012 tax return form 1040 Refiguring required installments. 2012 tax return form 1040   If after the corporation figures and deposits its estimated tax it finds that its tax liability for the year will be more or less than originally estimated, it may have to refigure its required installments to see if an underpayment penalty may apply. 2012 tax return form 1040 An immediate catchup payment should be made to reduce any penalty resulting from the underpayment of any earlier installments. 2012 tax return form 1040 Underpayment penalty. 2012 tax return form 1040   If the corporation does not pay a required installment of estimated tax by its due date, it may be subject to a penalty. 2012 tax return form 1040 The penalty is figured separately for each installment due date. 2012 tax return form 1040 The corporation may owe a penalty for an earlier due date, even if it paid enough tax later to make up the underpayment. 2012 tax return form 1040 This is true even if the corporation is due a refund when its return is filed. 2012 tax return form 1040 Form 2220. 2012 tax return form 1040   Use Form 2220, Underpayment of Estimated Tax by Corporations, to determine if a corporation is subject to the penalty for underpayment of estimated tax and to figure the amount of the penalty. 2012 tax return form 1040   If the corporation is charged a penalty, the amount of the penalty depends on the following three factors. 2012 tax return form 1040 The amount of the underpayment. 2012 tax return form 1040 The period during which the underpayment was due and unpaid. 2012 tax return form 1040 The interest rate for underpayments published quarterly by the IRS in the Internal Revenue Bulletin. 2012 tax return form 1040   A corporation generally does not have to file Form 2220 with its income tax return because the IRS will figure any penalty and bill the corporation. 2012 tax return form 1040 However, even if the corporation does not owe a penalty, complete and attach the form to the corporation's tax return if any of the following apply. 2012 tax return form 1040 The annualized income installment method was used to figure any required installment. 2012 tax return form 1040 The adjusted seasonal installment method was used to figure any required installment. 2012 tax return form 1040 The corporation is a large corporation figuring its first required installment based on the prior year's tax. 2012 tax return form 1040 How to pay estimated tax. 2012 tax return form 1040   A corporation is generally required to use EFTPS to pay its taxes. 2012 tax return form 1040 See Electronic Federal Tax Payment System (EFTPS), earlier. 2012 tax return form 1040 Also see the Instructions for Form 1120-W. 2012 tax return form 1040 Quick refund of overpayments. 2012 tax return form 1040   A corporation that has overpaid its estimated tax for the tax year may be able to apply for a quick refund. 2012 tax return form 1040 Use Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, to apply for a quick refund of an overpayment of estimated tax. 2012 tax return form 1040 A corporation can apply for a quick refund if the overpayment is: At least 10% of its expected tax liability, and At least $500. 2012 tax return form 1040 Use Form 4466 to figure the corporation's expected tax liability and the overpayment of estimated tax. 2012 tax return form 1040 File Form 4466 before the 16th day of the 3rd month after the end of the tax year, but before the corporation files its income tax return. 2012 tax return form 1040 Do not file Form 4466 before the end of the corporation's tax year. 2012 tax return form 1040 An extension of time to file the corporation's income tax return will not extend the time for filing Form 4466. 2012 tax return form 1040 The IRS will act on the form within 45 days from the date you file it. 2012 tax return form 1040 U. 2012 tax return form 1040 S. 2012 tax return form 1040 Real Property Interest If a domestic corporation acquires a U. 2012 tax return form 1040 S. 2012 tax return form 1040 real property interest from a foreign person or firm, the corporation may have to withhold tax on the amount it pays for the property. 2012 tax return form 1040 The amount paid includes cash, the fair market value of other property, and any assumed liability. 2012 tax return form 1040 If a domestic corporation distributes a U. 2012 tax return form 1040 S. 2012 tax return form 1040 real property interest to a foreign person or firm, it may have to withhold tax on the fair market value of the property. 2012 tax return form 1040 A corporation that fails to withhold may be liable for the tax, and any penalties and interest that apply. 2012 tax return form 1040 For more information, see section 1445 of the Internal Revenue Code; Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities; Form 8288, U. 2012 tax return form 1040 S. 2012 tax return form 1040 Withholding Tax Return for Dispositions by Foreign Persons of U. 2012 tax return form 1040 S. 2012 tax return form 1040 Real Property Interests; and Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. 2012 tax return form 1040 S. 2012 tax return form 1040 Real Property Interests. 2012 tax return form 1040 Accounting Methods An accounting method is a set of rules used to determine when and how income and expenses are reported. 2012 tax return form 1040 Taxable income should be determined using the method of accounting regularly used in keeping the corporation's books and records. 2012 tax return form 1040 In all cases, the method used must clearly show taxable income. 2012 tax return form 1040 Generally, permissible methods include: Cash, Accrual, or Any other method authorized by the Internal Revenue Code. 2012 tax return form 1040 Accrual method. 2012 tax return form 1040   Generally, a corporation (other than a qualified personal service corporation) must use the accrual method of accounting if its average annual gross receipts exceed $5 million. 2012 tax return form 1040 A corporation engaged in farming operations also must use the accrual method. 2012 tax return form 1040   If inventories are required, the accrual method generally must be used for sales and purchases of merchandise. 2012 tax return form 1040 However, qualifying taxpayers and eligible businesses of qualifying small business taxpayers are excepted from using the accrual method for eligible trades or businesses and may account for inventoriable items as materials and supplies that are not incidental. 2012 tax return form 1040   Under the accrual method, an amount is includable in income when: All the events have occurred that fix the right to receive the income, which is the earliest of the date: The required performance takes place, Payment is due, or Payment is received; and The amount can be determined with reasonable accuracy. 2012 tax return form 1040   Generally, an accrual basis taxpayer can deduct accrued expenses in the tax year when: All events that determine the liability have occurred, The amount of the liability can be figured with reasonable accuracy, and Economic performance takes place with respect to the expense. 2012 tax return form 1040   There are exceptions to the economic performance rule for certain items, including recurring expenses. 2012 tax return form 1040 See section 461(h) of the Internal Revenue Code and the related regulations for the rules for determining when economic performance takes place. 2012 tax return form 1040 Nonaccrual experience method. 2012 tax return form 1040   Accrual method corporations are not required to maintain accruals for certain amounts from the performance of services that, on the basis of their experience, will not be collected, if: The services are in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting; or The corporation's average annual gross receipts for the 3 prior tax years does not exceed $5 million. 2012 tax return form 1040   This provision does not apply if interest is required to be paid on the amount or if there is any penalty for failure to pay the amount timely. 2012 tax return form 1040 Percentage of completion method. 2012 tax return form 1040   Long-term contracts (except for certain real property construction contracts) must generally be accounted for using the percentage of completion method described in section 460 of the Internal Revenue Code. 2012 tax return form 1040 Mark-to-market accounting method. 2012 tax return form 1040   Generally, dealers in securities must use the mark-to-market accounting method described in section 475 of the Internal Revenue Code. 2012 tax return form 1040 Under this method any security held by a dealer as inventory must be included in inventory at its FMV. 2012 tax return form 1040 Any security not held as inventory at the close of the tax year is treated as sold at its FMV on the last business day of the tax year. 2012 tax return form 1040 Any gain or loss must be taken into account in determining gross income. 2012 tax return form 1040 The gain or loss taken into account is treated as ordinary gain or loss. 2012 tax return form 1040   Dealers in commodities and traders in securities and commodities can elect to use the mark-to-market accounting method. 2012 tax return form 1040 Change in accounting method. 2012 tax return form 1040   A corporation can change its method of accounting used to report taxable income (for income as a whole or for the treatment of any material item). 2012 tax return form 1040 The corporation must file Form 3115, Application for Change in Accounting Method. 2012 tax return form 1040 For more information, see Form 3115 and Publication 538. 2012 tax return form 1040 Section 481(a) adjustment. 2012 tax return form 1040   The corporation may have to make an adjustment under section 481(a) of the Internal Revenue Code to prevent amounts of income or expense from being duplicated or omitted. 2012 tax return form 1040 The section 481(a) adjustment period is generally 1 year for a net negative adjustment and 4 years for a net positive adjustment. 2012 tax return form 1040 However, a corporation can elect to use a 1-year adjustment period if the net section 481(a) adjustment for the change is less than $25,000. 2012 tax return form 1040 The corporation must complete the appropriate lines of Form 3115 to make the election. 2012 tax return form 1040 See the Instructions for Form 3115. 2012 tax return form 1040 Accounting Periods A corporation must figure its taxable income on the basis of a tax year. 2012 tax return form 1040 A tax year is the annual accounting period a corporation uses to keep its records and report its income and expenses. 2012 tax return form 1040 Generally, corporations can use either a calendar year or a fiscal year as its tax year. 2012 tax return form 1040 Unless special rules apply, a corporation generally adopts a tax year by filing its first federal income tax return using that tax year. 2012 tax return form 1040 For more information, see Publication 538. 2012 tax return form 1040 Personal service corporation. 2012 tax return form 1040   A personal service corporation must use a calendar year as its tax year unless: It elects to use a 52–53 week tax year that ends with reference to the calendar year; It can establish a business purpose for a different tax year and obtains approval of the IRS. 2012 tax return form 1040 See Form 1128, Application To Adopt, Change, or Retain a Tax Year, and Publication 538; or It elects under section 444 of the Internal Revenue Code to have a tax year other than a calendar year. 2012 tax return form 1040 Use Form 8716, Election to Have a Tax Year Other Than a Required Tax Year, to make the election. 2012 tax return form 1040   If a personal service corporation makes a section 444 election, its deduction for certain amounts paid to employee-owners may be limited. 2012 tax return form 1040 See Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation (PSC), to figure the maximum deduction. 2012 tax return form 1040 Change of tax year. 2012 tax return form 1040   Generally, a corporation must get the consent of the IRS before changing its tax year by filing Form 1128. 2012 tax return form 1040 However, under certain conditions, a corporation can change its tax year without getting the consent. 2012 tax return form 1040 For more information, see Form 1128 and Publication 538. 2012 tax return form 1040 Recordkeeping A corporation should keep its records for as long as they may be needed for the administration of any provision of the Internal Revenue Code. 2012 tax return form 1040 Usually records that support items of income, deductions, or credits on the return must be kept for 3 years from the date the return is due or filed, whichever is later. 2012 tax return form 1040 Keep records that verify the corporation's basis in property for as long as they are needed to figure the basis of the original or replacement property. 2012 tax return form 1040 The corporation should keep copies of all filed returns. 2012 tax return form 1040 They help in preparing future and amended returns and in the calculation of earnings and profits. 2012 tax return form 1040 Income, Deductions, and Special Provisions Rules on income and deductions that apply to individuals also apply, for the most part, to corporations. 2012 tax return form 1040 However, the following special provisions apply only to corporations. 2012 tax return form 1040 Costs of Going Into Business When you go into business, treat all costs you incur to get your business started as capital expenses. 2012 tax return form 1040 However, a corporation can elect to deduct a limited amount of start-up or organizational costs. 2012 tax return form 1040 Any costs not deducted can be amortized. 2012 tax return form 1040 Start-up costs are costs for creating an active trade or business or investigating the creation or acquisition of an active trade or business. 2012 tax return form 1040 Organizational costs are the direct costs of creating the corporation. 2012 tax return form 1040 For more information on deducting or amortizing start-up and organizational costs, see the instructions for your income tax return. 2012 tax return form 1040 Also see, Publication 535, chapter 7, Costs You Can Deduct or Capitalize, and chapter 8, Amortization. 2012 tax return form 1040 Related Persons A corporation that uses an accrual method of accounting cannot deduct business expenses and interest owed to a related person who uses the cash method of accounting until the corporation makes the payment and the corresponding amount is includible in the related person's gross income. 2012 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. 2012 tax return form 1040 If a deduction is denied, the rule will continue to apply even if the corporation's relationship with the person ends before the expense or interest is includible in the gross income of that person. 2012 tax return form 1040 These rules also deny the deduction of losses on the sale or exchange of property between related persons. 2012 tax return form 1040 Related persons. 2012 tax return form 1040   For purposes of this rule, the following persons are related to a corporation. 2012 tax return form 1040 Another corporation, that is a member of the same controlled group (as defined in section 267(f) of the Internal Revenue Code). 2012 tax return form 1040 An individual who owns, directly or indirectly, more than 50% of the value of the outstanding stock of the corporation. 2012 tax return form 1040 A trust fiduciary, when the trust or the grantor of the trust owns, directly or indirectly, more than 50% in value of the outstanding stock of the corporation. 2012 tax return form 1040 An S corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation. 2012 tax return form 1040 A partnership, if the same persons own more than 50% in value of the outstanding stock of the corporation and more than 50% of the capital or profits interest in the partnership. 2012 tax return form 1040 Any employee-owner, if the corporation is a personal service corporation (see Personal service corporation, earlier), regardless of the amount of stock owned by the employee-owner. 2012 tax return form 1040 Ownership of stock. 2012 tax return form 1040   To determine whether an individual directly or indirectly owns any of the outstanding stock of a corporation, the following apply. 2012 tax return form 1040 Stock owned, directly or indirectly, by or for a corporation, partnership, estate, or trust, is treated as being owned proportionately by or for its shareholders, partners, or beneficiaries. 2012 tax return form 1040 An individual is treated as owning the stock owned, directly or indirectly, by or for the individual's family. 2012 tax return form 1040 Family includes only brothers and sisters (including half brothers and half sisters), a spouse, ancestors, and lineal descendants. 2012 tax return form 1040 Any individual owning (other than by applying (2), above) stock in a corporation, is treated as also owning the stock owned directly or indirectly by that individual's partner. 2012 tax return form 1040 To apply (1), (2), or (3), above, stock constructively owned by a person under (1) is treated as actually owned by that person. 2012 tax return form 1040 But stock constructively owned by an individual under (2) or (3) is not treated as actually owned by the individual for applying either (2) or (3) to make another person the constructive owner of that stock. 2012 tax return form 1040 Reallocation of income and deductions. 2012 tax return form 1040   Where it is necessary to clearly show income or prevent tax evasion, the IRS can reallocate gross income, deductions, credits, or allowances between two or more organizations, trades, or businesses owned or controlled directly, or indirectly, by the same interests. 2012 tax return form 1040 Complete liquidations. 2012 tax return form 1040   The disallowance of losses from the sale or exchange of property between related persons does not apply to liquidating distributions. 2012 tax return form 1040 More information. 2012 tax return form 1040   For more information about the related person rules, see Publication 544. 2012 tax return form 1040 Income From Qualifying Shipping Activities A corporation may make an election to be taxed on its notional shipping income at the highest corporate tax rate. 2012 tax return form 1040 If a corporation makes this election it may exclude income from qualifying shipping activities from gross income. 2012 tax return form 1040 Also if the election is made, the corporation generally may not claim any loss, deduction, or credit with respect to qualifying shipping activities. 2012 tax return form 1040 A corporation making this election may also elect to defer gain on the disposition of a qualifying vessel. 2012 tax return form 1040 A corporation uses Form 8902, Alternative Tax on Qualifying Shipping Activities, to make the election and figure the alternative tax. 2012 tax return form 1040 For more information regarding the election, see Form 8902. 2012 tax return form 1040 Election to Expense Qualified Refinery Property A corporation can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct 50% of the cost of qualified refinery property (defined in section 179C(c) of the Internal Revenue Code), placed in service before January 1, 2014. 2012 tax return form 1040 The deduction is allowed for the year in which the property is placed in service. 2012 tax return form 1040 A subchapter T cooperative can make an irrevocable election on its return by the due date (including extensions) to allocate this deduction to its owners based on their ownership interest. 2012 tax return form 1040 For more information, see section 179C of the Internal Revenue Code and the related Regulations. 2012 tax return form 1040 Deduction to Comply With EPA Sulfur Regulations A small business refiner can make an irrevocable election on its tax return filed by the due date (including extensions) to deduct up to 75% of qualified costs paid or incurred to comply with the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency (EPA). 2012 tax return form 1040 A subchapter T cooperative can make an irrevocable election on its return filed by the due date (including extensions) to allocate the deduction to its owners based on their ownership interest. 2012 tax return form 1040 For more information, see sections 45H and 179B of the Internal Revenue Code and the related Regulations. 2012 tax return form 1040 Energy-Efficient Commercial Building Property Deduction A corporation can claim a deduction for costs associated with energy-efficient commercial building property, placed in service before January 1, 2014. 2012 tax return form 1040 In order to qualify for the deduction: The costs must be associated with depreciable or amortizable property in a Standard 90. 2012 tax return form 1040 1-2001 domestic building; The property must be either a part of the interior lighting system, the heating, cooling, ventilation and hot water system, or the building envelope (defined in section 179D(c)(1)(C) of the Internal Revenue Code); and The property must be installed as part of a plan to reduce the total annual energy and power costs of the building by 50% or more. 2012 tax return form 1040 The deduction is limited to $1. 2012 tax return form 1040 80 per square foot of the building less the total amount of deductions taken for this property in prior tax years. 2012 tax return form 1040 Other rules and limitations apply. 2012 tax return form 1040 The corporation must reduce the basis of any property by any deduction taken. 2012 tax return form 1040 The deduction is subject to recapture if the corporation fails to fully implement an energy savings plan. 2012 tax return form 1040 For more information, see section 179D of the Internal Revenue Code. 2012 tax return form 1040 Also see Notice 2006-52, 2006-26 I. 2012 tax return form 1040 R. 2012 tax return form 1040 B. 2012 tax return form 1040 1175, clarified and amplified by Notice 2008-40, 2008-14 I. 2012 tax return form 1040 R. 2012 tax return form 1040 B. 2012 tax return form 1040 725, and any successor. 2012 tax return form 1040 Corporate Preference Items A corporation must make special adjustments to certain items before it takes them into account in determining its taxable income. 2012 tax return form 1040 These items are known as corporate preference items and they include the following. 2012 tax return form 1040 Gain on the disposition of section 1250 property. 2012 tax return form 1040 For more information, see section 1250 Property under Depreciation Recapture in chapter 3 of Publication 544. 2012 tax return form 1040 Percentage depletion for iron ore and coal (including lignite). 2012 tax return form 1040 For more information, see Mines and Geothermal Deposits under Mineral Property in chapter 9 of Publication 535. 2012 tax return form 1040 Amortization of pollution control facilities. 2012 tax return form 1040 For more information, see Pollution Control Facilities in chapter 8 of Publication 535 and section 291(a)(5) of the Internal Revenue Code. 2012 tax return form 1040 Mineral exploration and development costs. 2012 tax return form 1040 For more information, see Exploration Costs and Development Costs in chapter 7 of Publication 535. 2012 tax return form 1040 For more information on corporate preference items, see section 291 of the Internal Revenue Code. 2012 tax return form 1040 Dividends-Received Deduction A corporation can deduct a percentage of certain dividends received during its tax year. 2012 tax return form 1040 This section discusses the general rules that apply. 2012 tax return form 1040 The deduction is figured on Form 1120, Schedule C, or the applicable schedule of your income tax return. 2012 tax return form 1040 For more information, see the Instructions for Form 1120, or the instructions for your applicable income tax return. 2012 tax return form 1040 Dividends from domestic corporations. 2012 tax return form 1040   A corporation can deduct, within certain limits, 70% of the dividends received if the corporation receiving the dividend owns less than 20% of the corporation distributing the dividend. 2012 tax return form 1040 If the corporation owns 20% or more of the distributing corporation's stock, it can, subject to certain limits, deduct 80% of the dividends received. 2012 tax return form 1040 Ownership. 2012 tax return form 1040   Determine ownership, for these rules, by the amount of voting power and value of the paying corporation's stock (other than certain preferred stock) the receiving corporation owns. 2012 tax return form 1040 Small business investment companies. 2012 tax return form 1040   Small business investment companies can deduct 100% of the dividends received from taxable domestic corporations. 2012 tax return form 1040 Dividends from regulated investment companies. 2012 tax return form 1040   Regulated investment company dividends received are subject to certain limits. 2012 tax return form 1040 Capital gain dividends received from a regulated investment company do not qualify for the deduction. 2012 tax return form 1040 For more information, see section 854 of the Internal Revenue Code. 2012 tax return form 1040 No deduction allowed for certain dividends. 2012 tax return form 1040   Corporations cannot take a deduction for dividends received from the following entities. 2012 tax return form 1040 A real estate investment trust (REIT). 2012 tax return form 1040 A corporation exempt from tax under section 501 or 521 of the Internal Revenue Code either for the tax year of the distribution or the preceding tax year. 2012 tax return form 1040 A corporation whose stock was held less than 46 days during the 91-day period beginning 45 days before the stock became ex-dividend with respect to the dividend. 2012 tax return form 1040 Ex-dividend means the holder has no rights to the dividend. 2012 tax return form 1040 A corporation whose preferred stock was held less than 91 days during the 181-day period beginning 90 days before the stock became ex-dividend with respect to the dividend if the dividends received are for a period or periods totaling more than 366 days. 2012 tax return form 1040 Any corporation, if your corporation is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. 2012 tax return form 1040 Dividends on deposits. 2012 tax return form 1040   Dividends on deposits or withdrawable accounts in domestic building and loan associations, mutual savings banks, cooperative banks, and similar organizations are interest, not dividends. 2012 tax return form 1040 They do not qualify for this deduction. 2012 tax return form 1040 Limit on deduction for dividends. 2012 tax return form 1040   The total deduction for dividends received or accrued is generally limited (in the following order) to: 80% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from 20%-owned corporations, then 70% of the difference between taxable income and the 100% deduction allowed for dividends received from affiliated corporations, or by a small business investment company, for dividends received or accrued from less-than-20%-owned corporations (reducing taxable income by the total dividends received from 20%-owned corporations). 2012 tax return form 1040 Figuring the limit. 2012 tax return form 1040   In figuring the limit, determine taxable income without the following items. 2012 tax return form 1040 The net operating loss deduction. 2012 tax return form 1040 The domestic production activities deduction. 2012 tax return form 1040 The deduction for dividends received. 2012 tax return form 1040 Any adjustment due to the nontaxable part of an extraordinary dividend (see Extraordinary Dividends, below). 2012 tax return form 1040 Any capital loss carryback to the tax year. 2012 tax return form 1040 Effect of net operating loss. 2012 tax return form 1040   If a corporation has a net operating loss (NOL) for a tax year, the limit of 80% (or 70%) of taxable income does not apply. 2012 tax return form 1040 To determine whether a corporation has an NOL, figure the dividends-received deduction without the 80% (or 70%) of taxable income limit. 2012 tax return form 1040 Example 1. 2012 tax return form 1040 A corporation loses $25,000 from operations. 2012 tax return form 1040 It receives $100,000 in dividends from a 20%-owned corporation. 2012 tax return form 1040 Its taxable income is $75,000 ($100,000 – $25,000) before the deduction for dividends received. 2012 tax return form 1040 If it claims the full dividends-received deduction of $80,000 ($100,000 × 80%) and combines it with an operations loss of $25,000, it will have an NOL of ($5,000). 2012 tax return form 1040 Therefore, the 80% of taxable income limit does not apply. 2012 tax return form 1040 The corporation can deduct the full $80,000. 2012 tax return form 1040 Example 2. 2012 tax return form 1040 Assume the same facts as in Example 1, except that the corporation only loses $15,000 from operations. 2012 tax return form 1040 Its taxable income is $85,000 before the deduction for dividends received. 2012 tax return form 1040 After claiming the dividends-received deduction of $80,000 ($100,000 × 80%), its taxable income is $5,000. 2012 tax return form 1040 Because the corporation will not have an NOL after applying a full dividends-received deduction, its allowable dividends-received deduction is limited to 80% of its taxable income, or $68,000 ($85,000 × 80%). 2012 tax return form 1040 Extraordinary Dividends If a corporation receives an extraordinary dividend on stock held 2 years or less before the dividend announcement date, it generally must reduce its basis in the stock by the nontaxed part of the dividend. 2012 tax return form 1040 The nontaxed part is any dividends-received deduction allowable for the dividends. 2012 tax return form 1040 Extraordinary dividend. 2012 tax return form 1040   An extraordinary dividend is any dividend on stock that equals or exceeds a certain percentage of the corporation's adjusted basis in the stock. 2012 tax return form 1040 The percentages are: 5% for stock preferred as to dividends, or 10% for other stock. 2012 tax return form 1040 Treat all dividends received that have ex-dividend dates within an 85-consecutive-day period as one dividend. 2012 tax return form 1040 Treat all dividends received that have ex-dividend dates within a 365-consecutive-day period as extraordinary dividends if the total of the dividends exceeds 20% of the corporation's adjusted basis in the stock. 2012 tax return form 1040 Disqualified preferred stock. 2012 tax return form 1040   Any dividend on disqualified preferred stock is treated as an extraordinary dividend regardless of the period of time the corporation held the stock. 2012 tax return form 1040   Disqualified preferred stock is any stock preferred as to dividends if any of the following apply. 2012 tax return form 1040 The stock when issued has a dividend rate that declines (or can reasonably be expected to decline) in the future. 2012 tax return form 1040 The issue price of the stock exceeds its liquidation rights or stated redemption price. 2012 tax return form 1040 The stock is otherwise structured to avoid the rules for extraordinary dividends and to enable corporate shareholders to reduce tax through a combination of dividends-received deductions and loss on the disposition of the stock. 2012 tax return form 1040   These rules apply to stock issued after July 10, 1989, unless it was issued under a written binding contract in effect on that date, and thereafter, before the issuance of the stock. 2012 tax return form 1040 More information. 2012 tax return form 1040   For more information on extraordinary dividends, see section 1059 of the Internal Revenue Code. 2012 tax return form 1040 Below-Market Loans If a corporation receives a below-market loan and uses the proceeds for its trade or business, it may be able to deduct the forgone interest. 2012 tax return form 1040 A below-market loan is a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. 2012 tax return form 1040 A below-market loan generally is treated as an arm's-length transaction in which the borrower is considered as having received both the following: A loan in exchange for a note that requires payment of interest at the applicable federal rate, and An additional payment in an amount equal to the forgone interest. 2012 tax return form 1040 Treat the additional payment as a gift, dividend, contribution to capital, payment of compensation, or other payment, depending on the substance of the transaction. 2012 tax return form 1040 Foregone interest. 2012 tax return form 1040   For any period, forgone interest is equal to: The interest that would be payable for that period if interest accrued on the loan at the applicable federal rate and was payable annually on December 31, minus Any interest actually payable on the loan for the period. 2012 tax return form 1040 See Below-market loans, in chapter 4 of Publication 535 for more information. 2012 tax return form 1040 Charitable Contributions A corporation can claim a limited deduction for charitable contributions made in cash or other property. 2012 tax return form 1040 The contribution is deductible if made to, or for the use of, a qualified organization. 2012 tax return form 1040 For more information on qualified organizations, see Publication 526, Charitable Contributions. 2012 tax return form 1040 Also see, Exempt Organizations Select Check (EO Select Check) at www. 2012 tax return form 1040 irs. 2012 tax return form 1040 gov/charities, the on-line search tool for finding information on organizations eligible to receive tax-deductible contributions. 2012 tax return form 1040 Note. 2012 tax return form 1040 You cannot take a deduction if any of the net earnings of an organization receiving contributions benefit any private shareholder or individual. 2012 tax return form 1040 Cash method corporation. 2012 tax return form 1040   A corporation using the cash method of accounting deducts contributions in the tax year paid. 2012 tax return form 1040 Accrual method corporation. 2012 tax return form 1040   A corporation using an accrual method of accounting can choose to deduct unpaid contributions for the tax year the board of directors authorizes them if it pays them by the 15th day of the 3rd month after the close of that tax year. 2012 tax return form 1040 Make the choice by reporting the contribution on the corporation's return for the tax year. 2012 tax return form 1040 A declaration stating that the board of directors adopted the resolution during the tax year must accompany the return. 2012 tax return form 1040 The declaration must include the date the resolution was adopted. 2012 tax return form 1040 Limitations on deduction. 2012 tax return form 1040   A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year. 2012 tax return form 1040 Figure taxable income for this purpose without the following. 2012 tax return form 1040 The deduction for charitable contributions. 2012 tax return form 1040 The dividends-received deduction. 2012 tax return form 1040 The deduction allowed under section 249 of the Internal Revenue Code. 2012 tax return form 1040 The domestic production activities deduction. 2012 tax return form 1040 Any net operating loss carryback to the tax year. 2012 tax return form 1040 Any capital loss carryback to the tax year. 2012 tax return form 1040 Farmers and ranchers. 2012 tax return form 1040    Corporations that are farmers and ranchers should see section 170(b)(2) of the Internal Revenue Code for special rules that may affect the deduction limit. 2012 tax return form 1040 Carryover of excess contributions. 2012 tax return form 1040   You can carry over, within certain limits, to each of the subsequent 5 years any charitable contributions made during the current year that exceed the 10% limit. 2012 tax return form 1040 You lose any excess not used within that period. 2012 tax return form 1040 For example, if a corporation has a carryover of excess contributions paid in 2010 and it does not use all the excess on its return for 2011, it can carry any excess over to 2012, 2013, 2014, and 2015, if applicable. 2012 tax return form 1040 Any excess not used in 2015 is lost. 2012 tax return form 1040 Do not deduct a carryover of excess contributions in the carryover year until after you deduct contributions made in that year (subject to the 10% limit). 2012 tax return form 1040 You cannot deduct a carryover of excess contributions to the extent it increases a net operating loss carryover. 2012 tax return form 1040 Cash contributions. 2012 tax return form 1040   A corporation must maintain a record of any contribution of cash, check, or other monetary contribution, regardless of the amount. 2012 tax return form 1040 The record can be a bank record, receipt, letter, or other written communication from the donee indicating the name of the organization, the date of the contribution, and the amount of the contribution. 2012 tax return form 1040 Keep the record of the contribution with the other corporate records. 2012 tax return form 1040 Do not attach the records to the corporation's return. 2012 tax return form 1040 For more information on cash contributions, see Publication 526. 2012 tax return form 1040 Gifts of $250 or more. 2012 tax return form 1040   Generally, no deduction is allowed for any contribution of $250 or more unless the corporation gets a written acknowledgement from the donee organization. 2012 tax return form 1040 The acknowledgement should show the amount of cash contributed, a description of the property contributed, and either gives a description and a good faith estimate of the value of any goods or services provided in return for the contribution or states that no goods or services were provided in return for the contribution. 2012 tax return form 1040 The acknowledgement should be received by the due date (including extensions) of the return, or, if earlier, the date the return was filed. 2012 tax return form 1040 Keep the acknowledgement with other corporate records. 2012 tax return form 1040 Do not attach the acknowledgement to the return. 2012 tax return form 1040 Contributions of property other than cash. 2012 tax return form 1040   If a corporation (other than a closely-held or a personal service corporation) claims a deduction of more than $500 for contributions of property other than cash, a schedule describing the property and the method used to determine its fair market value must be attached to the corporation's return. 2012 tax return form 1040 In addition the corporation should keep a record of: The approximate date and manner of acquisition of the donated property and The cost or other basis of the donated property held by the donor for less than 12 months prior to contribution. 2012 tax return form 1040   Closely held and personal service corporations must complete and attach Form 8283, Noncash Charitable Contributions, to their returns if they claim a deduction of more than $500 for non-cash contributions. 2012 tax return form 1040 For all other corporations, if the deduction claimed for donated property exceeds $5,000, complete Form 8283 and attach it to the corporation's return. 2012 tax return form 1040   A corporation must obtain a qualified appraisal for all deductions of property claimed in excess of $5,000. 2012 tax return form 1040 A qualified appraisal is not required for the donation of cash, publicly traded securities, inventory, and any qualified vehicles sold by a donee organization without any significant intervening use or material improvement. 2012 tax return form 1040 The appraisal should be maintained with other corporate records and only attached to the corporation's return when the deduction claimed exceeds $500,000; $20,000 for donated art work. 2012 tax return form 1040   See Form 8283 for more information. 2012 tax return form 1040 Qualified conservation contributions. 2012 tax return form 1040   If a corporation makes a qualified conservation contribution, the corporation must provide information regarding the legal interest being donated, the fair market value of the underlying property before and after the donation, and a description of the conservation purpose for which the property will be used. 2012 tax return form 1040 For more information, see section 170(h) of the Internal Revenue Code. 2012 tax return form 1040 Contributions of used vehicles. 2012 tax return form 1040   A corporation is allowed a deduction for the contribution of used motor vehicles, boats, and airplanes. 2012 tax return form 1040 The deduction is limited, and other special rules apply. 2012 tax return form 1040 For more information, see Publication 526. 2012 tax return form 1040 Reduction for contributions of certain property. 2012 tax return form 1040   For a charitable contribution of property, the corporation must reduce the contribution by the sum of: The ordinary income and short-term capital gain that would have resulted if the property were sold at its FMV and For certain contributions, the long-term capital gain that would have resulted if the property were sold at its FMV. 2012 tax return form 1040   The reduction for the long-term capital gain applies to: Contributions of tangible personal property for use by an exempt organization for a purpose or function unrelated to the basis for its exemption; Contributions of any property to or for the use of certain private foundations except for stock for which market quotations are readily available; and Contributions of any patent, certain copyrights, trademark, trade name, trade secret, know-how, software (that is a section 197 intangible), or similar property, or applications or registrations of such property. 2012 tax return form 1040 Larger deduction. 2012 tax return form 1040   A corporation (other than an S corporation) may be able to claim a deduction equal to the lesser of (a) the basis of the donated inventory or property plus one-half of the inventory or property's appreciation (gain if the donated inventory or property was sold at fair market value on the date of the donation), or (b) two times basis of the donated inventory or property. 2012 tax return form 1040 This deduction may be allowed for certain contributions of: Certain inventory and other property made to a donee organization and used solely for the care of the ill, the needy, and infants. 2012 tax return form 1040 Scientific property constructed by the corporation (other than an S corporation, personal holding company, or personal service corporation) and donated no later than 2 years after substantial completion of the construction. 2012 tax return form 1040 The property must be donated to a qualified organization and its original use must be by the donee for research, experimentation, or research training within the United States in the area of physical or biological science. 2012 tax return form 1040 Computer technology and equipment acquired or constructed and donated no later than 3 years after either acquisition or substantial completion of construction to an educational organization for educational purposes within the United States. 2012 tax return form 1040 Contributions to organizations conducting lobbying activities. 2012 tax return form 1040   Contributions made to an organization that conducts lobbying activities are not deductible if: The lobbying activities relate to matters of direct financial interest to the donor's trade or business and The principal purpose of the contribution was to avoid federal income tax by obtaining a deduction for activities that would have been nondeductible under the lobbying expense rules if conducted directly by the donor. 2012 tax return form 1040 More information. 2012 tax return form 1040   For more information on charitable contributions, including substantiation and recordkeeping requirements, see section 170 of the Internal Revenue Code, the related regulations, and Publication 526. 2012 tax return form 1040 Capital Losses A corporation can deduct capital losses only up to the amount of its capital gains. 2012 tax return form 1040 In other words, if a corporation has an excess capital loss, it cannot deduct the loss in the current tax year. 2012 tax return form 1040 Instead, it carries the loss to other tax years and deducts it from any net capital gains that occur in those years. 2012 tax return form 1040 A capital loss is carried to other years in the following order. 2012 tax return form 1040 3 years prior to the loss year. 2012 tax return form 1040 2 years prior to the loss year. 2012 tax return form 1040 1 year prior to the loss year. 2012 tax return form 1040 Any loss remaining is carried forward for 5 years. 2012 tax return form 1040 When you carry a net capital loss to another tax year, treat it as a short-term loss. 2012 tax return form 1040 It does not retain its original identity as long term or short term. 2012 tax return form 1040 Example. 2012 tax return form 1040 A calendar year corporation has a net short-term capital gain of $3,000 and a net long-term capital loss of $9,000. 2012 tax return form 1040 The short-term gain offsets some of the long-term loss, leaving a net capital loss of $6,000. 2012 tax return form 1040 The corporation treats this $6,000 as a short-term loss when carried back or forward. 2012 tax return form 1040 The corporation carries the $6,000 short-term loss back 3 years. 2012 tax return form 1040 In year 1, the corporation had a net short-term capital gain of $8,000 and a net long-term capital gain of $5,000. 2012 tax return form 1040 It subtracts the $6,000 short-term loss first from the net short-term gain. 2012 tax return form 1040 This results in a net capital gain for year 1 of $7,000. 2012 tax return form 1040 This consists of a net short-term capital gain of $2,000 ($8,000 − $6,000) and a net long-term capital gain of $5,000. 2012 tax return form 1040 S corporation status. 2012 tax return form 1040   A corporation may not carry a capital loss from, or to, a year for which it is an S corporation. 2012 tax return form 1040 Rules for carryover and carryback. 2012 tax return form 1040   When carrying a capital loss from one year to another, the following rules apply. 2012 tax return form 1040 When figuring the current year's net capital loss, you cannot combine it with a capital loss carried from another year. 2012 tax return form 1040 In other words, you can carry capital losses only to years that would otherwise have a total net capital gain. 2012 tax return form 1040 If you carry capital losses from 2 or more years to the same year, deduct the loss from the earliest year first. 2012 tax return form 1040 You cannot use a capital loss carried from another year to produce or increase a net operating loss in the year to which you carry it back. 2012 tax return form 1040 Refunds. 2012 tax return form 1040   When you carry back a capital loss to an earlier tax year, refigure your tax for that year. 2012 tax return form 1040 If your corrected tax is less than the tax you originally owed, use either Form 1139, Corporate Application for Tentative Refund, or Form 1120X, Amended U. 2012 tax return form 1040 S. 2012 tax return form 1040 Corporation Income Tax Return, to apply for a refund. 2012 tax return form 1040 Form 1139. 2012 tax return form 1040    A corporation can get a refund faster by using Form 1139. 2012 tax return form 1040 It cannot file Form 1139 before filing the return for the corporation's capital loss year, but it must file Form 1139 no later than 1 year after the year it sustains the capital loss. 2012 tax return form 1040 Form 1120X. 2012 tax return form 1040   If the corporation does not file Form 1139, it must file Form 1120X to apply for a refund. 2012 tax return form 1040 The corporation must file the Form 1120X within 3 years of the due date, includin
Español

Department of Labor (DOL)

The Department of Labor administers a variety of federal labor laws to guarantee workers' rights to fair, safe, and healthy working conditions, including minimum hourly wage and overtime pay, protection against employment discrimination, and unemployment insurance.

The 2012 Tax Return Form 1040

2012 tax return form 1040 Index A Abortion, Abortion Acupuncture, Acupuncture Adopted child's medical expenses, Adopted child. 2012 tax return form 1040 AGI limitation, Introduction, Community property states. 2012 tax return form 1040 Alcoholism, Alcoholism Ambulances, Ambulance Archer MSAs Health coverage tax credit, How To Take the Credit Medical expenses paid for decedent from, Decedent Artificial limbs, Artificial Limb Artificial teeth, Artificial Teeth Aspirin, Nonprescription Drugs and Medicines Assistance (see Tax help) Assisted living homes, Nursing Home Athletic club dues, Health Club Dues Automobiles (see Cars) B Baby sitting, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Bandages, Bandages Basis Medical equipment or property (Worksheet D), Worksheet D. 2012 tax return form 1040 Adjusted Basis of Medical Equipment or Property Sold Birth control pills, Birth Control Pills Body scan, Body Scan Braille books and magazines, Braille Books and Magazines Breast pumps and supplies, Breast Pumps and Supplies Breast reconstruction surgery, Breast Reconstruction Surgery C Calculation of deduction, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Capital expenses, Capital Expenses Improvements to rented property, Improvements to property rented by a person with a disability. 2012 tax return form 1040 Operation and upkeep, Operation and upkeep. 2012 tax return form 1040 Worksheet A, Capital expense worksheet. 2012 tax return form 1040 Cars, Car Out-of-pocket expenses, Car expenses. 2012 tax return form 1040 Standard medical mileage rates, Car expenses. 2012 tax return form 1040 Child care, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Children's medical expenses Adopted child, Adopted child. 2012 tax return form 1040 Dependents, Dependent Chiropractor, Chiropractor Christian Scientist practitioner, Christian Science Practitioner Chronically ill persons, Chronically ill individual. 2012 tax return form 1040 COBRA assistance Recapture of COBRA premium assistance, Worksheet F. 2012 tax return form 1040 Recapture of COBRA Premium Assistance for Higher Income Taxpayers COBRA premium assistance, COBRA Premium Assistance Community property states, Community property states. 2012 tax return form 1040 Computer banks to track medical information, Medical Information Plan Contact lenses, Contact Lenses Controlled substances, Controlled Substances Cosmetic surgery, Cosmetic Surgery Credit (see Health coverage tax credit) Crutches, Crutches D Dancing lessons, Dancing Lessons Decedent's medical expenses, Decedent, What if you pay medical expenses of a deceased spouse or dependent? Deductible amount, How Much of the Expenses Can You Deduct? Deductible expenses, Whose Medical Expenses Can You Include?, X-ray Definition of medical expenses Doctor, What Are Medical Expenses? Physician, What Are Medical Expenses? Dental treatment, Dental Treatment Artificial teeth, Artificial Teeth Teeth whitening, Teeth Whitening Dentures, Artificial Teeth Dependent's medical expenses Adopted child, Adopted child. 2012 tax return form 1040 Multiple support agreement, Support claimed under a multiple support agreement. 2012 tax return form 1040 Qualifying child, Dependent Qualifying relative, Dependent Dependents Disabled dependent care, Disabled Dependent Care Expenses, Dependents with disabilities. 2012 tax return form 1040 Diagnostic devices, Diagnostic Devices Diaper services, Diaper Service Disabilities, persons with Dependent care expenses, Disabled Dependent Care Expenses, Dependents with disabilities. 2012 tax return form 1040 Improvements to rented property, Improvements to property rented by a person with a disability. 2012 tax return form 1040 Special education, Special Education Divorced taxpayers Medical expenses of child, Child of divorced or separated parents. 2012 tax return form 1040 Drug addiction, Drug Addiction Drugs (see Medicines) Dues Health club, Health Club Dues E Education, special, Special Education Electrolysis, Cosmetic Surgery Employer-sponsored health insurance plans, Employer-Sponsored Health Insurance Plan Employment taxes, Employment taxes. 2012 tax return form 1040 Excluded expenses Insurance premiums, Insurance Premiums You Cannot Include Eye surgery, Eye Surgery Eyeglasses, Eyeglasses F Fertility enhancement Eggs, temporary storage of, Fertility Enhancement Fertility, Fertility Enhancement In vitro fertilization, Fertility Enhancement Figuring the deduction, How Do You Figure and Report the Deduction on Your Tax Return? Final return for decedent Medical expenses paid, Decedent Flexible spending account, Flexible Spending Account Food (see Weight-loss programs) Form 1040 Health coverage tax credit, How To Take the Credit Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 1040, Schedule A Impairment-related work expenses, Where to report. 2012 tax return form 1040 Medical and dental expenses, Introduction, What Tax Form Do You Use? Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 1040, Schedule C Impairment-related work expenses, Where to report. 2012 tax return form 1040 Form 1040, Schedule C-EZ Impairment-related work expenses, Where to report. 2012 tax return form 1040 Form 1040, Schedule E Impairment-related work expenses, Where to report. 2012 tax return form 1040 Form 1040, Schedule F Impairment-related work expenses, Where to report. 2012 tax return form 1040 Form 1040NR Health coverage tax credit, How To Take the Credit Form 1040X Amended return, What Expenses Can You Include This Year? Deceased taxpayer, What if the decedent's return had been filed and the medical expenses were not included? Form 1099-H Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 2106 Impairment-related work expenses, Where to report. 2012 tax return form 1040 Form 2106-EZ Impairment-related work expenses, Where to report. 2012 tax return form 1040 Form 2555 Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 2555-EZ Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Form 8453 Health coverage tax credit, How To Take the Credit Form 8885 Health coverage tax credit, How To Take the Credit Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons Founder's fee (see Lifetime care, advance payments) Free tax services, Free help with your tax return. 2012 tax return form 1040 Funeral expenses, Funeral Expenses Future medical care, Payments for future medical care. 2012 tax return form 1040 , Future Medical Care G Glasses, Eyeglasses Guide dog or other animal, Guide Dog or Other Service Animal H Hair Removal, Cosmetic Surgery Transplants, Cosmetic Surgery Wigs, Wig Health club dues, Health Club Dues Health coverage tax credit, Health Coverage Tax Credit Advanced payments, Monthly HCTC Alternative TAA recipient, Health Coverage Tax Credit Archer MSAs, How To Take the Credit Both spouses eligible, Qualifying Family Member Children of divorced parents, Health Coverage Tax Credit, Qualifying Family Member Eligible coverage month, Eligible Coverage Month Insurance that covers other individuals, Insurance that covers other individuals. 2012 tax return form 1040 Legally separated, Legally separated. 2012 tax return form 1040 Married persons filing separate returns, Qualifying Family Member Monthly HCTC, Monthly HCTC Nonqualified health insurance, Nonqualified Health Insurance Other specified coverage Benefits from the Veterans Administration, Other Specified Coverage Pension Benefit Guaranty Corporation (PBGC) recipient, Health Coverage Tax Credit Qualified health insurance, Qualified Health Insurance Qualifying family member, Qualifying Family Member Reimbursement credit, Monthly HCTC Reporting, How To Take the Credit State-qualified health insurance, State-qualified health insurance. 2012 tax return form 1040 TAA recipient, Health Coverage Tax Credit Yearly HCTC, Yearly HCTC Health Coverage Tax Credit Alternative TAA recipient, Who Can Take This Credit? PBGC pension payee, Who Can Take This Credit? TAA recipient, Who Can Take This Credit? Health institutes, Health Institute Health insurance Credit (see Health coverage tax credit) Employer-sponsored plan, Employer-Sponsored Health Insurance Plan Premiums Deductible, Insurance Premiums Nondeductible, Insurance Premiums You Cannot Include Paid by employer, Premiums paid by your employer. 2012 tax return form 1040 Paid by employer and you, Premiums paid by you and your employer. 2012 tax return form 1040 Paid by you, Premiums paid by you. 2012 tax return form 1040 Prepaid, Prepaid Insurance Premiums Unused sick leave used to pay, Unused Sick Leave Used To Pay Premiums Reimbursements (see Reimbursements) Self-employed persons, Health Insurance Costs for Self-Employed Persons Health maintenance organizations (HMOs), Health Maintenance Organization (HMO) Health reimbursement arrangements (HRAs), Health reimbursement arrangement (HRA). 2012 tax return form 1040 Health savings accounts (HSAs) Payments from, Health Savings Accounts Hearing aids, Hearing Aids Hearing-impaired persons Guide dog or other animal for, Guide Dog or Other Service Animal Help (see Tax help) HMOs (Health maintenance organizations), Health Maintenance Organization (HMO) Home care (see Nursing services) Home improvements (see Capital expenses:) Hospital services, Hospital Services Hotels, Lodging Household help, Household Help HRAs (Health reimbursement arrangements), Health reimbursement arrangement (HRA). 2012 tax return form 1040 I Illegal operations and treatments, Illegal Operations and Treatments Illegal substances, Controlled Substances Impairment-related work expenses, Workers' compensation. 2012 tax return form 1040 , Impairment-related expenses defined. 2012 tax return form 1040 Reporting of, Where to report. 2012 tax return form 1040 Insulin, Nonprescription Drugs and Medicines Insurance (see Health insurance) Intellectually and developmentally disabled persons Mentally retarded, Intellectually and Developmentally Disabled, Special Home for Special homes for, Intellectually and Developmentally Disabled, Special Home for L Laboratory fees, Laboratory Fees Lactation expenses (see Breast pumps and supplies) Laser eye surgery, Eye Surgery Lead-based paint removal, Lead-Based Paint Removal Learning disabilities, Special Education Legal fees, Legal Fees Lessons, dancing and swimming, Dancing Lessons Lifetime care Advance payments for, Lifetime Care—Advance Payments Lodging, Lodging, Trips (see also Trips) Long-term care, Long-Term Care Chronically ill individuals, Chronically ill individual. 2012 tax return form 1040 Maintenance and personal care services, Maintenance and personal care services. 2012 tax return form 1040 Qualified insurance contracts, Qualified Long-Term Care Insurance Contracts Qualified services, Qualified Long-Term Care Services M Maintenance and personal care services, Maintenance and personal care services. 2012 tax return form 1040 Maternity clothes, Maternity Clothes Meals, Meals, Weight-Loss Program (see also Weight-loss programs) Medical conferences, Medical Conferences Medical equipment or property Adjusted basis (Worksheet D), Worksheet D. 2012 tax return form 1040 Adjusted Basis of Medical Equipment or Property Sold Medical expense records, What Tax Form Do You Use? Medical information plans, Medical Information Plan Medical savings accounts (MSAs), Medical Savings Account (MSA) Medicare Medicare A, deductible expense, Medicare A Medicare B, deductible expense, Medicare B Medicare D, deductible expense, Medicare D Medicines, Medicines Imported, Imported medicines and drugs. 2012 tax return form 1040 , Medicines and Drugs From Other Countries Nonprescription drugs and medicines, Nonprescription Drugs and Medicines Missing children, photographs of in IRS publications, Reminders Multiple support agreement, Support claimed under a multiple support agreement. 2012 tax return form 1040 N Nondeductible expenses, What Expenses Are Not Includible?, Weight-Loss Program Nonprescription drugs and medicines, Nonprescription Drugs and Medicines Nursing homes, Nursing Home Nursing services, Nursing Services, Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Chronically ill individuals, Chronically ill individual. 2012 tax return form 1040 Nutritional supplements Natural medicines, Nutritional Supplements O Operations, Operations Cosmetic surgery, Cosmetic Surgery Eye surgery, Eye Surgery Illegal operations and treatments, Illegal Operations and Treatments Optometrist, Optometrist Optometrist services, Eyeglasses Organ donors, Transplants Osteopath, Osteopath Oxygen, Oxygen P Paint removal, for lead-based, Lead-Based Paint Removal Parking fees and tolls, Car expenses. 2012 tax return form 1040 Personal injury damages, Damages for Personal Injuries Personal use items, Personal Use Items Photographs of missing children in IRS publications, Reminders Physical examination, Physical Examination Physical therapy, Therapy Plastic surgery, Cosmetic Surgery Pregnancy test kit, Pregnancy Test Kit Premiums (see Health insurance) Prepaid insurance premiums, Prepaid Insurance Premiums Prosthesis, Artificial Limb Psychiatric care, Psychiatric Care Psychoanalysis, Psychoanalysis Psychologists, Psychologist Publications (see Tax help) R Radial keratotomy, Eye Surgery Recordkeeping, What Tax Form Do You Use? Rehabilitation facilities, Nursing Home Reimbursements, How Do You Treat Reimbursements?, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Excess includible in income More than one policy (Worksheet C), More than one policy. 2012 tax return form 1040 One policy (Worksheet B), Worksheet B. 2012 tax return form 1040 Excess Reimbursement Includible in Income When You Have Only One Policy Excess may be taxable (Figure 1), What If Your Insurance Reimbursement Is More Than Your Medical Expenses? Health Reimbursement Arrangement (HRA), Health reimbursement arrangement (HRA). 2012 tax return form 1040 Insurance, Insurance Reimbursement, What If Your Insurance Reimbursement Is More Than Your Medical Expenses? Medical expenses not deducted, What If You Receive Insurance Reimbursement in a Later Year? More than one policy, More than one policy. 2012 tax return form 1040 Received in later year, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Rental property Improvements to, Improvements to property rented by a person with a disability. 2012 tax return form 1040 Reporting Health coverage tax credit, How To Take the Credit Impairment-related work expenses, Where to report. 2012 tax return form 1040 Medical and dental expenses, What If You Are Reimbursed for Medical Expenses You Did Not Deduct? Medical deduction (see Form 1040, Schedule A) Self-employed persons, health insurance costs, Health Insurance Costs for Self-Employed Persons S Sale of medical equipment or property, Sale of Medical Equipment or Property Adjusted basis (Worksheet D), Worksheet D. 2012 tax return form 1040 Adjusted Basis of Medical Equipment or Property Sold Schedules (see Form 1040) Seeing-eye dogs, Guide Dog or Other Service Animal Self-employed persons Health coverage tax credit, How To Take the Credit Health insurance costs, Health Insurance Costs for Self-Employed Persons Senior housing, Nursing Home Separate returns Community property states, Community property states. 2012 tax return form 1040 Medical and dental expenses, Separate returns. 2012 tax return form 1040 Separated taxpayers Health coverage tax credit, Legally separated. 2012 tax return form 1040 Medical expenses of child, Child of divorced or separated parents. 2012 tax return form 1040 Service animals, Guide Dog or Other Service Animal Sick leave Used to pay health insurance premiums, Unused Sick Leave Used To Pay Premiums Special education, Special Education Spouse's medical expenses, Spouse Deceased spouse, What if you pay medical expenses of a deceased spouse or dependent? Sterilization, Sterilization Stop-smoking programs, Stop-Smoking Programs Surgery (see Operations) Swimming lessons, Dancing Lessons T Tables and figures Medical equipment or property Adjusted basis (Worksheet D), Worksheet D. 2012 tax return form 1040 Adjusted Basis of Medical Equipment or Property Sold Reimbursements, excess includible in income More than one policy (Worksheet C), More than one policy. 2012 tax return form 1040 One policy (Worksheet B), Worksheet B. 2012 tax return form 1040 Excess Reimbursement Includible in Income When You Have Only One Policy Reimbursements, excess may be taxable (Figure 1), What If Your Insurance Reimbursement Is More Than Your Medical Expenses? Tax help, How To Get Tax Help Teeth Artificial, Artificial Teeth Dental treatment, Dental Treatment Whitening, Teeth Whitening Telephone, Telephone Television, Television Therapy, Therapy Transplants, Transplants Travel and transportation expenses, Transportation Car expenses, Car expenses. 2012 tax return form 1040 Includible expenses, You can include:, Transportation expenses you cannot include. 2012 tax return form 1040 Parking fees and tolls, Car expenses. 2012 tax return form 1040 Trips, Trips TTY/TDD information, How To Get Tax Help Tuition, Tuition V Vasectomy, Vasectomy Veterinary fees, Veterinary Fees Vision correction surgery, Eye Surgery Visually impaired persons Guide dog or other animal for, Guide Dog or Other Service Animal Vitamins or minerals, Nutritional Supplements Voluntary Employee's Beneficiary Association (VEBA) Qualified health insurance, Voluntary Employee's Beneficiary Association (VEBA) W Weight-loss programs, Weight-Loss Program, Weight-Loss Program What's new COBRA continuous coverage, What's New Health coverage tax credit, What's New Standard medical mileage rate, What's New Wheelchairs, Wheelchair Wigs, Wig Work expenses Disabled dependent care, Disabled Dependent Care Expenses Impairment-related, Impairment-Related Work Expenses Workers' compensation, Workers' compensation. 2012 tax return form 1040 Worksheets Capital expenses (Worksheet A), Capital expense worksheet. 2012 tax return form 1040 Medical equipment or property Adjusted basis (Worksheet D), Worksheet D. 2012 tax return form 1040 Adjusted Basis of Medical Equipment or Property Sold Reimbursements, excess includible in income More than one policy (Worksheet C), More than one policy. 2012 tax return form 1040 One policy (Worksheet B), Worksheet B. 2012 tax return form 1040 Excess Reimbursement Includible in Income When You Have Only One Policy X X-rays, X-ray Prev  Up     Home   More Online Publications