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Federal Income Tax Instructions 1040ez

1040x AmendedIrs Tax Forms 20121040ez FreeFile An Extension For 2011 Taxes OnlineI Need To Find A Place On Line To File Back TaxesHow To File Amended Tax Return 2013State Income TaxesFreefile Taxes1040ez For 20112014 Federal Tax Form 1040ez2011 1040 Ez FormFree Fed And State EfileIrs State Tax Forms 2013Backtaxes1040ez 2011 PdfAmending A Tax ReturnEzformTurbotax Free File2012 1040 Ez FormI Need To Amend My Taxes1040ezTax AmendmentWhere To File Tax Return 20122011 Tax Forms 1040 Ez2011 Form 1040x1040 Ez Tax ReturnForm 1040x 2009Federal Form 1040ez2011 Tax FormI Need To File My 2010 Taxes FreeOnline Amended Tax ReturnFree File TaxesIrs Amended ReturnsFill Out 1040ezH&r Block BasicFile Amended Tax Return2012 Tax Preparation Software Free2011 Tax Form 1040Tax Filing 2010Free State Tax Software

Federal Income Tax Instructions 1040ez

Federal income tax instructions 1040ez Tax Changes for Individuals Table of Contents 2001 ChangesNew 5-Year Carryback Rule for Net Operating Losses (NOLs) Wash Sale Rules Do Not Apply to Section 1256 Contracts Other 2001 Changes 2002 ChangesDeduction for Educator Expenses Personal Credits Still Allowed Against Alternative Minimum Tax Later ChangeChild and Dependent Care Expenses 2001 Changes New 5-Year Carryback Rule for Net Operating Losses (NOLs) If you have an NOL from a tax year ending during 2001 or 2002, you must generally carry back the entire amount of the NOL to the 5 tax years before the NOL year (the carryback period). Federal income tax instructions 1040ez However, you can still choose to use the previous carryback period. Federal income tax instructions 1040ez You also can choose not to carry back an NOL and only carry it forward. Federal income tax instructions 1040ez Individuals, estates, and trusts can file Form 1045, Application for Tentative Refund. Federal income tax instructions 1040ez The instructions for this form will be revised to reflect the new law. Federal income tax instructions 1040ez Wash Sale Rules Do Not Apply to Section 1256 Contracts The wash sale rules that generally apply to losses from the sale of stock or securities, do not apply to any loss arising from a section 1256 contract. Federal income tax instructions 1040ez A section 1256 contract is any: Regulated futures contract, Foreign currency contract, Nonequity option, Dealer equity option, or Dealer securities futures contract. Federal income tax instructions 1040ez Wash sales and section 1256 contracts are explained in detail in Publication 550, Investment Income and Expenses. Federal income tax instructions 1040ez Other 2001 Changes Other changes are discussed in the following chapters. Federal income tax instructions 1040ez Chapter 4 Car Expenses Chapter 5 Depreciation 2002 Changes Deduction for Educator Expenses If you are an eligible educator, you can deduct as an adjustment to income up to $250 in qualified expenses. Federal income tax instructions 1040ez You can deduct these expenses even if you do not itemize deductions on Schedule A (Form 1040). Federal income tax instructions 1040ez This adjustment to income is for expenses paid or incurred in tax years beginning during 2002 or 2003. Federal income tax instructions 1040ez Previously, these expenses were deductible only as a miscellaneous itemized deduction subject to the 2% of adjusted gross income limit. Federal income tax instructions 1040ez Eligible educator. Federal income tax instructions 1040ez   You are an eligible educator if, for the tax year, you meet the following requirements. Federal income tax instructions 1040ez You are a kindergarten through grade 12: Teacher, Instructor, Counselor, Principal, or Aide. Federal income tax instructions 1040ez You work at least 900 hours during a school year in a school that provides elementary or secondary education, as determined under state law. Federal income tax instructions 1040ez Qualified expenses. Federal income tax instructions 1040ez   These are unreimbursed expenses you paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use in the classroom. Federal income tax instructions 1040ez For courses in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics. Federal income tax instructions 1040ez   To be deductible as an adjustment to income, the qualified expenses must be more than the following amounts for the tax year. Federal income tax instructions 1040ez The interest on qualified U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez savings bonds that you excluded from income because you paid qualified higher education expenses, Any distribution from a qualified tuition program that you excluded from income, or Any tax-free withdrawals from your Coverdell education savings account. Federal income tax instructions 1040ez Personal Credits Still Allowed Against Alternative Minimum Tax The provision that allowed certain nonrefundable personal credits to reduce both your regular tax and any alternative minimum tax (AMT) has been extended and will be in effect for 2002 and 2003. Federal income tax instructions 1040ez This provision, as it applies to the AMT, was originally scheduled to expire after 2001. Federal income tax instructions 1040ez Without the extension, these credits could not have been used to reduce any AMT in 2002 or 2003. Federal income tax instructions 1040ez Later Change Child and Dependent Care Expenses For the purpose of figuring the child and dependent care credit, your spouse is treated as having at least a minimum amount of earned income for any month that he or she is a full-time student or not able to care for himself or herself. Federal income tax instructions 1040ez Beginning in 2003, this amount is increased to $250 a month if there is one qualifying person and to $500 a month if there are two or more qualifying persons. Federal income tax instructions 1040ez Before 2003, the amounts were $200 and $400. Federal income tax instructions 1040ez The same rule applies for the exclusion of employer-provided dependent care benefits. Federal income tax instructions 1040ez For more information about the credit and exclusion, see Publication 503, Child and Dependent Care Expenses. Federal income tax instructions 1040ez Prev  Up  Next   Home   More Online Publications
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Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions

The following questions and answers provide information to individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions or other similar formal relationships that are not marriages under state law. These individuals are not considered as married or spouses for federal tax purposes. For convenience, these individuals are referred to as “registered domestic partners” in these questions and answers. Questions and answers 9 through 27 concern registered domestic partners who reside in community property states and who are subject to their state’s community property laws. These questions and answers have been updated since the Supreme Court issued its decision in United States v. Windsor. As a result of the Court’s decision, the Service has ruled that same-sex couples who are married under state law are married for federal tax purposes. See Revenue Ruling 2013-17 in 2013‑38 IRB 201.

Q1. Can registered domestic partners file federal tax returns using a married filing jointly or married filing separately status?

A1. No. Registered domestic partners may not file a federal return using a married filing separately or jointly filing status. Registered domestic partners are not married under state law. Therefore, these taxpayers are not married for federal tax purposes.

Q2. Can a taxpayer use the head-of-household filing status if the taxpayer’s only dependent is his or her registered domestic partner?

A2. No. A taxpayer cannot file as head of household if the taxpayer’s only dependent is his or her registered domestic partner. A taxpayer’s registered domestic partner is not one of the specified related individuals in section 152(c) or (d) that qualifies the taxpayer to file as head of household, even if the registered domestic partner is the taxpayer’s dependent.

Q3. If registered domestic partners have a child, which parent may claim the child as a dependent?

A3. If a child is a qualifying child under section 152(c) of both parents who are registered domestic partners, either parent, but not both, may claim a dependency deduction for the qualifying child. If both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time during the taxable year. If the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.

Q4. Can a registered domestic partner itemize deductions if his or her partner claims a standard deduction? 

A4. Yes. A registered domestic partner may itemize or claim the standard deduction regardless of whether his or her partner itemizes or claims the standard deduction. Although the law prohibits a taxpayer from itemizing deductions if the taxpayer’s spouse claims the standard deduction (section 63(c)(6)(A)), this provision does not apply to registered domestic partners, because registered domestic partners are not spouses for federal tax purposes.

Q5. If registered domestic partners adopt a child together, can one or both of the registered domestic partners qualify for the adoption credit?

A5. Yes. Each registered domestic partner may qualify to claim the adoption credit for the amount of the qualified adoption expenses paid for the adoption. The partners may not both claim a credit for the same qualified adoption expenses, and the sum of the credit taken by each registered domestic partner may not exceed the total amount paid. The adoption credit is limited to $12,970 per child in 2013. Thus, if both registered domestic partners paid qualified adoption expenses to adopt the same child, and the total of those expenses exceeds $12,970, the maximum credit available for the adoption is $12,970. The registered domestic partners may allocate this maximum between them in any way they agree, and the amount of credit claimed by one registered domestic partner can exceed the adoption expenses paid by that person, as long as the total credit claimed by both registered domestic partners does not exceed the total amount paid by them. The same rules generally apply in the case of a special needs adoption. 

Q6. If a taxpayer adopts the child of his or her registered domestic partner as a second parent or co-parent, may the taxpayer (“adopting parent”) claim the adoption credit for the qualifying adoption expenses he or she pays to adopt the child?

A6. Yes. The adopting parent may be eligible to claim an adoption credit. A taxpayer may not claim an adoption credit for the expenses of adopting the child of the taxpayer’s spouse (section 23) .  However, this limitation does not apply to adoptions by registered domestic partners because registered domestic partners are not spouses for federal tax purposes.

Q7. Do provisions of the federal tax law such as section 66 (treatment of community income) and section 469(i)(5) ($25,000 offset for passive activity losses for rental real estate activities) that apply to married taxpayers apply to registered domestic partners?

A7. No. Like other provisions of the federal tax law that apply only to married taxpayers, section 66 and section 469(i)(5) do not apply to registered domestic partners because registered domestic partners are not married for federal tax purposes.

Q8. Is a registered domestic partner the stepparent of his or her partner’s child?

A8. If a registered domestic partner is the stepparent of his or her partner’s child under state law, the registered domestic partner is the stepparent of the child for federal income tax purposes.


Publication 555, Community Property, provides general information for taxpayers, including registered domestic partners, who reside in community property states. The following questions and answers provide additional information to registered domestic partners (including same-sex and opposite-sex registered domestic partners) who reside in community property states and are subject to community property laws.

Q9. How do registered domestic partners determine their gross income?

A9. Registered domestic partners must each report half the combined community income earned by the partners.  In addition to half of the community income, a partner who has income that is not community income must report that separate income. 

Q10.  Can a registered domestic partner qualify to file his or her tax return using head-of-household filing status?

A10. Generally, to qualify as a head-of-household, a taxpayer must provide more than half the cost of maintaining his or her household during the taxable year, and that household must be the principal place of abode of the taxpayer’s dependent for more than half of the taxable year (section 2(b)). If registered domestic partners pay all of the costs of maintaining the household from community funds, each partner is considered to have incurred half the cost and neither can qualify as head of household. Even if one of the partners pays more than half by contributing separate funds, that partner cannot file as head of household if the only dependent is his or her registered domestic partner. A taxpayer’s registered domestic partner is not one of the specified related individuals in section 152(c) or (d) that qualifies the taxpayer to file as head of household, even if the partner is the taxpayer’s dependent.    

Q11. Can a registered domestic partner be a dependent of his or her partner for purposes of the dependency deduction under section 151?

A11. A registered domestic partner can be a dependent of his or her partner if the requirements of sections 151 and 152 are met. However, it is unlikely that registered domestic partners will satisfy the gross income requirement of section 152(d)(1)(B) and the support requirement of section 152(d)(1)(C). To satisfy the gross income requirement, the gross income of the individual claimed as a dependent must be less than the exemption amount ($3,900 for 2013). Because registered domestic partners each report half the combined community income earned by both partners, it is unlikely that a registered domestic partner will have gross income that is less than the exemption amount.   

To satisfy the support requirement, more than half of an individual’s support for the year must be provided by the person seeking the dependency deduction. If a registered domestic partner’s (Partner A’s) support comes entirely from community funds, that partner is considered to have provided half of his or her own support and cannot be claimed as a dependent by another. However, if the other registered domestic partner (Partner B) pays more than half of the support of Partner A by contributing separate funds, Partner A may be a dependent of Partner B for purposes of section 151, provided the other requirements of sections 151 and 152 are satisfied. 

Q12. Can a registered domestic partner be a dependent of his or her partner for purposes of the exclusion in section 105(b) for reimbursements of expenses for medical care?

A12. A registered domestic partner (Partner A) may be a dependent of his or her partner (Partner B) for purposes of the exclusion in section 105(b) only if the support requirement (discussed in Question 11, above) is satisfied. Unlike the requirements for section 152(d) (dependency deduction for a qualifying relative), section 105(b) does not require that Partner A's gross income be less than the exemption amount in order for Partner A to qualify as a dependent.                   

Q13. How should registered domestic partners report wages, other income items, and deductions on their federal income tax returns?

A13. Registered domestic partners should report wages, other income items, and deductions according to the instructions to Form 1040, U.S. Individual Income Tax Return, and related schedules, and Form 8958, Allocation of Tax Amounts Between Certain Individuals in Community Property States. Form 8958 is used to determine the allocation of tax amounts between registered domestic partners. Each partner must complete and attach Form 8958 to his or her Form 1040.

Q14. Should registered domestic partners report social security benefits as community income for federal tax purposes? 

A14. Generally, state law determines whether an item of income constitutes community income. Accordingly, if Social Security benefits are community income under state law, then they are also community income for federal income tax purposes. If Social Security benefits are not community income under state law, then they are not community income for federal income tax purposes. 

Q15. How should registered domestic partners report community income from a business on Schedule C, Profit or Loss From Business?

A15. Half of the income, deductions, and net earnings of a business operated by a registered domestic partner must be reported by each registered domestic partner on a Schedule C (or Schedule C-EZ). In addition, each registered domestic partner owes self-employment tax on half of the net earnings of the business. The self-employment tax rule under section 1402(a)(5) that overrides community income treatment and attributes the income, deductions, and net earnings to the spouse who carries on the trade or business does not apply to registered domestic partners.

Q16.  Are registered domestic partners each entitled to half of the credits for income tax withholding from the combined wages of the registered domestic partners?

A16. Yes. Because each registered domestic partner is taxed on half the combined community income earned by the partners, each is entitled to a credit for half of the income tax withheld on the combined wages.

Q17.  Are registered domestic partners each entitled to take credit for half of the total estimated tax payments paid by the partners?

A17. No. Unlike withholding credits, which are allowed to the person who is taxed on the income from which the tax is withheld, a registered domestic partner can take credit only for the estimated tax payments that he or she made.       

Q18. Are community property laws taken into account in determining earned income for purposes of the dependent care credit, the refundable portion of the child tax credit, the earned income credit, and the making work pay credit?   

A18. No. The federal tax laws governing these credits specifically provide that earned income is computed without regard to community property laws in determining the earned income amounts described in section 21(d) (dependent care credit), section 24(d) (the refundable portion of the child tax credit), section 32(a) (earned income credit), and section 36A(d) (making work pay credit).

Q19. Are community property laws taken into account in determining adjusted gross income (or modified adjusted gross income) for purposes of the dependent care credit, the child tax credit, the earned income credit, and the making work pay credit?

A19. Yes. Community property laws must be taken into account in determining the adjusted gross income (or modified adjusted gross income) amounts in section 21(a) (dependent care credit), section 24(b) (child tax credit), section 32(a) (earned income credit), and section 36A(b) (making work pay credit).

Q20. Are amounts a registered domestic partner receives for education expenses that cannot be excluded from the partner’s gross income (includible education benefits) considered to be community income? 

A20. Generally, state law determines whether an item of income constitutes community income. Accordingly, whether includible education benefits are community income for federal income tax purposes depends on whether they are community income under state law. If the includible education benefits are community income under state law, then they are community income for federal income tax purposes. If not community income under state law, they are not community income for federal income tax purposes. 

Q21. If only one registered domestic partner is a teacher and pays qualified out-of-pocket educator expenses from community funds, do the registered domestic partners split the educator expense deduction?

A21. No. Section 62(a)(2)(D) allows only eligible educators to take a deduction for qualified out-of-pocket educator expenses. If only one registered domestic partner is an eligible educator (the eligible partner), then only the eligible partner may claim a section 62(a)(2)(D) deduction. If the eligible partner uses community funds to pay educator expenses, the eligible partner may determine the deduction as if he or she made the entire expenditure. In that case, the eligible partner has received a gift from his or her partner equal to one-half of the expenditure.  

Q22. If a registered domestic partner incurs indebtedness for his or her qualified education expenses or the expenses of a dependent and pays interest on the indebtedness out of community funds, do the registered domestic partners split the interest deduction?

A22. No. To be a qualified education loan, the indebtedness must be incurred by a taxpayer to pay the qualified education expenses of the taxpayer, the taxpayer’s spouse, or a dependent of the taxpayer (section 221(d)(1)). Thus, only the partner who incurs debt to pay his or her own education expenses or the expenses of a dependent may deduct interest on a qualified education loan (the student partner). If the student partner uses community funds to pay the interest on the qualified education loan, the student partner may determine the deduction as if he or she made the entire expenditure. In that case, the student partner has received a gift from his or her partner equal to one-half of the expenditure. 

Q23.  If registered domestic partners pay the qualified educational expenses of one of the partners or a dependent of one of the partners with community funds, do the registered domestic partners split the section 25A credits (education credits)?

A23. No. Only the partner who pays his or her own education expenses or the expenses of his or her dependent is eligible for an education credit (the student partner). If the student partner uses community funds to pay the education expenses, the student partner may determine the credit as if he or she made the entire expenditure. In that case, the student partner has received a gift from his or her partner equal to one-half of the expenditure. Similarly, if the student partner is allowed a deduction under section 222 (deduction for qualified tuition and related expenses), and uses community funds to pay the education expenses, the student partner may determine the qualified tuition expense deduction as if he or she made the entire expenditure. In that case, the student partner has received a gift from his or her partner equal to one-half of the expenditure.     

Q24. Are community property laws taken into account in determining compensation for purposes of the IRA deduction?

A24. No. The federal tax laws governing the IRA deduction (section 219(f)(2)) specifically provide that the maximum IRA deduction (under section 219(b)) is computed separately for each individual, and that these IRA deduction rules are applied without regard to any community property laws. Thus, each individual determines whether he or she is eligible for an IRA deduction by computing his or her individual compensation (determined without application of community property laws). 

Q25. If a registered domestic partner is self-employed and pays health insurance premiums for both partners out of community property funds, are both partners allowed a deduction under section 162(l) (deduction for self-employed health insurance)?

A25. If one of the registered domestic partners is a self-employed individual treated as an employee within the meaning of section 401(c)(1)(the employee partner) and the other partner is not (the non-employee partner), the employee partner may be allowed a deduction under section 162(l) for the cost of the employee partner’s health insurance paid out of community funds. If the non-employee partner is also covered by the health insurance, the portion of the cost attributable to the non-employee partner’s coverage is not deductible by either the employee partner or the non-employee partner under section 162(l).  

Q26. If a registered domestic partner has a dependent and incurs employment-related expenses that are paid out of community funds, how does the registered domestic partner calculate the dependent care credit?  How about the child tax credit?

A26. If a registered domestic partner has a qualifying individual as defined in section 21(b)(1) and incurs employment-related expenses as defined in section 21(b)(2) for the care of the qualifying individual that are paid with community funds, the partner (employee partner) may determine the dependent care credit as if he or she made the entire expenditure. In that case, the employee partner has received a gift from his or her partner equal to one-half of the expenditure. In computing the dependent care credit, the following rules apply:

  • The employee partner must reduce the employment-related expenses by any amounts he or she excludes from income under section 129 (exclusion for employees for dependent care assistance furnished pursuant to a program described in section 129(d));
  • The earned income limitation described in section 21(d) is determined without regard to community property laws; and
  • The adjusted gross income of the employee partner is determined by taking into account community property laws.

A child tax credit is allowed for each qualifying child of a taxpayer for whom the taxpayer is allowed a personal exemption deduction. Thus, if a registered domestic partner has one or more dependents who is a qualifying child, the registered domestic partner may be allowed a child tax credit for each qualifying child. In determining the amount of the allowable credit, the modified adjusted gross income of the registered domestic partner with the qualifying child is determined by taking into account community property laws. Community property laws are ignored, however, in determining the refundable portion of the child tax credit.

Q27. Does Rev. Proc. 2002-69, 2002-2 C.B. 831, apply to registered domestic partners?

A27. No. Rev. Proc. 2002-69 allows spouses to classify certain entities solely owned by the spouses as community property, as either a disregarded entity or a partnership for federal tax purposes. Rev. Proc. 2002-69 applies only to spouses. Because registered domestic partners are not spouses for federal tax purposes, Rev. Proc. 2002-69 does not apply to registered domestic partners.

Related Item: Forms and Publications

Page Last Reviewed or Updated: 19-Sep-2013

The Federal Income Tax Instructions 1040ez

Federal income tax instructions 1040ez 14. Federal income tax instructions 1040ez   Excise Taxes Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Fuels Used in FarmingBuyer of fuel, including undyed diesel fuel or undyed kerosene. Federal income tax instructions 1040ez Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Federal income tax instructions 1040ez Custom application of fertilizer and pesticide. Federal income tax instructions 1040ez Fuel not used for farming. Federal income tax instructions 1040ez Dyed Diesel Fuel and Dyed Kerosene Fuels Used in Off-Highway Business Use Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines How To Claim a Credit or RefundCredit only. Federal income tax instructions 1040ez Claiming a Credit Claiming a Refund Including the Credit or Refund in Income Introduction You may be eligible to claim a credit on your income tax return for the federal excise tax on certain fuels. Federal income tax instructions 1040ez You may also be eligible to claim a quarterly refund of the fuel taxes during the year, instead of waiting to claim a credit on your income tax return. Federal income tax instructions 1040ez Whether you can claim a credit or refund depends on whether the fuel was taxed and the purpose (nontaxable use) for which you used the fuel. Federal income tax instructions 1040ez The nontaxable uses of fuel for which a farmer may claim a credit or refund are generally the following. Federal income tax instructions 1040ez Use on a farm for farming purposes. Federal income tax instructions 1040ez Off-highway business use. Federal income tax instructions 1040ez Uses other than as a fuel in a propulsion engine, such as home use. Federal income tax instructions 1040ez Table 14-1 presents an overview of credits and refunds that may be claimed for fuels used for the nontaxable uses listed above. Federal income tax instructions 1040ez See Publication 510, Excise Taxes, for more information. Federal income tax instructions 1040ez Topics - This chapter discusses: Fuels used in farming Dyed diesel fuel and dyed kerosene Fuels used in off-highway business use Fuels used for household purposes How to claim a credit or refund Including the credit or refund in income Useful Items - You may want to see: Publication 510 Excise Taxes Form (and Instructions) 720 Quarterly Federal Excise Tax Return 4136 Credit for Federal Tax Paid on Fuels 8849 Claim for Refund of Excise Taxes See chapter 16 for information about getting publications and forms. Federal income tax instructions 1040ez Fuels Used in Farming Owners, operators, and tenants of farms and certain other persons may be eligible to claim a credit or refund of excise taxes on fuel used in the trade or business of farming, when used on a farm in the United States for farming purposes. Federal income tax instructions 1040ez See Table 14-1 for a list of available fuel tax credits and refunds. Federal income tax instructions 1040ez Fuel is used on a farm for farming purposes only if used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Federal income tax instructions 1040ez Farm. Federal income tax instructions 1040ez   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms, orchards, plantations, ranches, nurseries, ranges, and feed yards for finishing cattle. Federal income tax instructions 1040ez It also includes structures such as greenhouses used primarily for raising agricultural or horticultural commodities. Federal income tax instructions 1040ez A fish farm is an area where fish are grown or raised and not merely caught or harvested. Federal income tax instructions 1040ez Table 14-1. Federal income tax instructions 1040ez Fuel Tax Credits and Refunds at a Glance Use this table to see if you can take a credit or refund for a nontaxable use of the fuel listed. Federal income tax instructions 1040ez Fuel Used On a Farm for Farming Purposes Off-Highway Business Use Household Use or Use Other Than as a Fuel1 Gasoline Credit only Credit or refund None Aviation gasoline Credit only None None Undyed diesel fuel and undyed kerosene Credit or refund Credit or refund2 Credit or refund2 Kerosene for use in aviation Credit or refund None None Dyed diesel fuel and dyed kerosene None None None Other Fuels (including alternative fuels)3 Credit or refund Credit or refund None 1For a use other than as fuel in a propulsion engine. Federal income tax instructions 1040ez 2Applies to undyed kerosene not sold from a blocked pump or, under certain circumstances, for blending with undyed diesel fuel to be used for heating purposes. Federal income tax instructions 1040ez See Reg. Federal income tax instructions 1040ez 48. Federal income tax instructions 1040ez 6427-10 (b)(1) for the definition of a blocked pump. Federal income tax instructions 1040ez 3Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under Internal Revenue Code section 4081. Federal income tax instructions 1040ez It includes the alternative fuels: liquefied petroleum gas (LPG),“P” Series fuels, compressed natural gas (CNG), liquefied hydrogen, any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, liquid fuel derived from biomass, liquid natural gas (LNG), liquefied gas derived from biomass, and compressed gas derived from biomass. Federal income tax instructions 1040ez Farming purposes. Federal income tax instructions 1040ez   As the owner, tenant, or operator and the ultimate purchaser of fuel that you purchased, you use the fuel on a farm for farming purposes if you use it in any of the following ways. Federal income tax instructions 1040ez To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Federal income tax instructions 1040ez To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Federal income tax instructions 1040ez To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Federal income tax instructions 1040ez To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Federal income tax instructions 1040ez For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Federal income tax instructions 1040ez The more-than-one-half test applies separately to each commodity. Federal income tax instructions 1040ez Commodity means a single raw product. Federal income tax instructions 1040ez For example, apples and peaches are two separate commodities. Federal income tax instructions 1040ez To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if these activities are incidental to your farming operations. Federal income tax instructions 1040ez Your tree operations are incidental only if they are minor in nature when compared to the total farming operations. Federal income tax instructions 1040ez   If any other person, such as a neighbor or custom operator (independent contractor), performs a service for you on your farm for any of the purposes included in list items (1) or (2), above, you are considered to be the ultimate purchaser who used the fuel on a farm for farming purposes. Federal income tax instructions 1040ez Therefore, you can still claim the credit or refund for the fuel so used. Federal income tax instructions 1040ez However, see Custom application of fertilizer and pesticide, later. Federal income tax instructions 1040ez If the other person performs any other services for you on your farm for purposes not included in list items (1) or (2) above, no one can claim the credit or refund for fuel used on your farm for those other services. Federal income tax instructions 1040ez Buyer of fuel, including undyed diesel fuel or undyed kerosene. Federal income tax instructions 1040ez   If doubt exists whether the owner, tenant, or operator of the farm bought the fuel, determine who actually bore the cost of the fuel. Federal income tax instructions 1040ez For example, if the owner of a farm and his or her tenant equally share the cost of gasoline used on the farm, each can claim a credit for the tax on half the fuel used. Federal income tax instructions 1040ez Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Federal income tax instructions 1040ez   Usually, the farmer is the only person who can make a claim for credit or refund for the tax on undyed diesel fuel, undyed kerosene, or other fuels (including alternative fuel) used for farming purposes. Federal income tax instructions 1040ez However, see Custom application of fertilizer and pesticide, next. Federal income tax instructions 1040ez Also see Dyed Diesel Fuel and Dyed Kerosene, later. Federal income tax instructions 1040ez Example. Federal income tax instructions 1040ez Farm owner Haleigh Blue hired custom operator Tyler Steele to cultivate the soil on her farm. Federal income tax instructions 1040ez Tyler used 200 gallons of undyed diesel fuel that he purchased to perform the work on Haleigh's farm. Federal income tax instructions 1040ez In addition, Haleigh hired contractor Lee Brown to pack and store her apple crop. Federal income tax instructions 1040ez Lee bought 25 gallons of undyed diesel fuel to use in packing the apples. Federal income tax instructions 1040ez Haleigh can claim the credit for the 200 gallons of undyed diesel fuel used by Tyler on her farm because it qualifies as fuel used on the farm for farming purposes. Federal income tax instructions 1040ez No one can claim a credit for the 25 gallons used by Lee because that fuel was not used for a farming purpose included in list items (1) or (2), above. Federal income tax instructions 1040ez In the above example, both Tyler Steele and Lee Brown could have purchased dyed (untaxed) diesel fuel for their tasks. Federal income tax instructions 1040ez Custom application of fertilizer and pesticide. Federal income tax instructions 1040ez   Fuel used on a farm for farming purposes includes fuel used in the application (including aerial application) of fertilizer, pesticides, or other substances. Federal income tax instructions 1040ez Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Federal income tax instructions 1040ez For applicators using highway vehicles, only the fuel used on the farm is exempt. Federal income tax instructions 1040ez Fuel used traveling on the highway to and from the farm is taxable. Federal income tax instructions 1040ez Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as used for a farming purpose. Federal income tax instructions 1040ez For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Federal income tax instructions 1040ez For kerosene used in aviation, the ultimate purchaser may make the claim or waive the right to make the claim to the registered ultimate vendor. Federal income tax instructions 1040ez A sample waiver is included as Model Waiver L in the appendix of Publication 510. Federal income tax instructions 1040ez A registered ultimate vendor is the person who sells undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to the user (ultimate purchaser) of the fuel for use on a farm for farming purposes. Federal income tax instructions 1040ez To claim a credit or refund of tax, the ultimate vendor must be registered with the Internal Revenue Service at the time the claim is made. Federal income tax instructions 1040ez However, registered ultimate vendors cannot make claims for undyed diesel fuel and undyed kerosene sold for use on a farm for farming purposes. Federal income tax instructions 1040ez Fuel not used for farming. Federal income tax instructions 1040ez   You do not use fuel on a farm for farming purposes when you use it in any of the following ways. Federal income tax instructions 1040ez Off the farm, such as on the highway or in noncommercial aviation, even if the fuel is used in transporting livestock, feed, crops, or equipment. Federal income tax instructions 1040ez For personal use, such as lawn mowing. Federal income tax instructions 1040ez In processing, packaging, freezing, or canning operations. Federal income tax instructions 1040ez In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Federal income tax instructions 1040ez All-terrain vehicles (ATVs). Federal income tax instructions 1040ez   Fuel used in ATVs on a farm for farming purposes, discussed earlier, is eligible for a credit or refund of excise taxes on the fuel. Federal income tax instructions 1040ez Fuel used in ATVs for nonfarming purposes is not eligible for a credit or refund of the taxes. Federal income tax instructions 1040ez If ATVs are used both for farming and nonfarming purposes, only that portion of the fuel used for farming purposes is eligible for the credit or refund. Federal income tax instructions 1040ez Dyed Diesel Fuel and Dyed Kerosene If you purchase dyed diesel fuel or dyed kerosene for a nontaxable use, you must use it only on a farm for farming purposes or for other nontaxable purposes. Federal income tax instructions 1040ez For example, you should not use dyed diesel fuel in a truck that is used both on the farm for farming purposes and on the highway, even though the highway use is in connection with farm business. Federal income tax instructions 1040ez Excise tax applies to the fuel used by the truck on the highways. Federal income tax instructions 1040ez In this situation, undyed (taxed) fuel should be purchased for the truck. Federal income tax instructions 1040ez You should keep fuel records of the use of the truck on the farm for farming purposes, and for other uses. Federal income tax instructions 1040ez You may be eligible for a credit or refund for the excise tax on fuel used on the farm for farming purposes. Federal income tax instructions 1040ez Penalty. Federal income tax instructions 1040ez   A penalty is imposed on any person who knowingly uses, sells, or alters dyed diesel fuel or dyed kerosene for any purpose other than a nontaxable use. Federal income tax instructions 1040ez The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Federal income tax instructions 1040ez After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Federal income tax instructions 1040ez For more information on this penalty, see Publication 510. Federal income tax instructions 1040ez Fuels Used in Off-Highway Business Use You may be eligible to claim a credit or refund for the excise tax on fuel used in an off-highway business use. Federal income tax instructions 1040ez Off-highway business use. Federal income tax instructions 1040ez   This is any use of fuel in a trade or business or in an income-producing activity. Federal income tax instructions 1040ez The use must not be in a highway vehicle registered or required to be registered for use on public highways. Federal income tax instructions 1040ez Off-highway business use generally does not include any use in a recreational motorboat. Federal income tax instructions 1040ez Examples. Federal income tax instructions 1040ez   Off-highway business use includes the use of fuels in a trade or business in any of the following ways. Federal income tax instructions 1040ez In stationary machines such as generators, compressors, power saws, and similar equipment; For cleaning ; and In forklift trucks, bulldozers, and earthmovers. Federal income tax instructions 1040ez   Off-highway nonbusiness (taxable) use of fuel includes: use in minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Federal income tax instructions 1040ez For more information, see Publication 510. Federal income tax instructions 1040ez Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines You may be eligible to claim a credit or refund for the excise tax on undyed diesel fuel or kerosene used for home heating, lighting, and cooking. Federal income tax instructions 1040ez This also applies to diesel fuel and kerosene used in a home generator to produce electricity for home use. Federal income tax instructions 1040ez Home use of a fuel does not include use in a propulsion engine and it is not considered an off-highway business use. Federal income tax instructions 1040ez How To Claim a Credit or Refund You may be able to claim a credit or refund of the excise tax on fuels you use for nontaxable uses. Federal income tax instructions 1040ez The basic rules for claiming credits and refunds are listed in Table 14-2 . Federal income tax instructions 1040ez Table 14-2. Federal income tax instructions 1040ez Claiming a Credit or Refund of Excise Taxes This table gives the basic rules for claiming a credit or refund of excise taxes on fuels used for a nontaxable use. Federal income tax instructions 1040ez   Credit Refund Which form to use Form 4136, Credit for Federal Tax Paid on Fuels Form 8849, Claim for Refund of Excise Taxes, and Schedule 1 (Form 8849), Nontaxable Use of Fuels Type of form Annual Quarterly When to file With your income tax return By the last day of the quarter following the last quarter included in the claim Amount of tax Any amount $750 or more1 1You may carry over an amount less than $750 to the next quarter. Federal income tax instructions 1040ez Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Federal income tax instructions 1040ez You do not have to use any special form, but the records should establish the following information. Federal income tax instructions 1040ez The total number of gallons bought and used during the period covered by your claim. Federal income tax instructions 1040ez The dates of the purchases. Federal income tax instructions 1040ez The names and addresses of suppliers and amounts bought from each during the period covered by your claim. Federal income tax instructions 1040ez The nontaxable use for which you used the fuel. Federal income tax instructions 1040ez The number of gallons used for each nontaxable use. Federal income tax instructions 1040ez It is important that your records separately show the number of gallons used for each nontaxable use that qualifies as a claim. Federal income tax instructions 1040ez For more information about recordkeeping, see Publication 583, Starting a Business and Keeping Records. Federal income tax instructions 1040ez Credit or refund. Federal income tax instructions 1040ez   A credit is an amount that reduces the tax on your income tax return when you file it at the end of the year. Federal income tax instructions 1040ez If you meet certain requirements, you may claim a refund during the year instead of waiting until you file your income tax return. Federal income tax instructions 1040ez Credit only. Federal income tax instructions 1040ez   You can claim the following taxes only as a credit on your income tax return. Federal income tax instructions 1040ez Tax on gasoline and aviation gasoline you used on a farm for farming purposes. Federal income tax instructions 1040ez Tax on fuels (including undyed diesel fuel or undyed kerosene) you used for nontaxable uses if the total for the tax year is less than $750. Federal income tax instructions 1040ez Tax on fuel you did not include in any claim for refund previously filed for any quarter of the tax year. Federal income tax instructions 1040ez Claiming a Credit You make a claim for a fuel tax credit on Form 4136 and attach it to your income tax return. Federal income tax instructions 1040ez Do not claim a credit for any excise tax for which you have filed a refund claim. Federal income tax instructions 1040ez How to claim a credit. Federal income tax instructions 1040ez   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, trust, or farmers' cooperative association. Federal income tax instructions 1040ez Individuals. Federal income tax instructions 1040ez   You claim the credit on the “Credit for federal tax on fuels” line of your Form 1040. Federal income tax instructions 1040ez If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Federal income tax instructions 1040ez Partnership. Federal income tax instructions 1040ez   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Federal income tax instructions 1040ez , showing each partner's share of the number of gallons of each fuel sold or used for a nontaxable use, the type of use, and the applicable credit per gallon. Federal income tax instructions 1040ez Each partner claims the credit on his or her income tax return for the partner's share of the fuel used by the partnership. Federal income tax instructions 1040ez An electing large partnership can claim the credit on the “Other payments” line of Form 1065-B, U. Federal income tax instructions 1040ez S. Federal income tax instructions 1040ez Return of Income for Electing Large Partnerships. Federal income tax instructions 1040ez Other entities. Federal income tax instructions 1040ez   Corporations, S corporations, farmers' cooperative associations, and trusts make the claim on the appropriate line of their income tax return. Federal income tax instructions 1040ez When to claim a credit. Federal income tax instructions 1040ez   You can claim a fuel tax credit on your income tax return for the year you used the fuel. Federal income tax instructions 1040ez You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Federal income tax instructions 1040ez A claim for credit or refund of an overpayment must generally be filed within the later of: Three years from the date the original return was filed, or Two years from the date the tax was paid. Federal income tax instructions 1040ez Claiming a Refund Generally, you may claim a refund of excise taxes on Form 8849. Federal income tax instructions 1040ez Complete and attach to Form 8849 the appropriate Form 8849 schedule(s). Federal income tax instructions 1040ez The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Federal income tax instructions 1040ez If you file Form 720, you can use its Schedule C for your refund claims for the quarter. Federal income tax instructions 1040ez See the Instructions for Form 720. Federal income tax instructions 1040ez Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Form 720 or Form 4136. Federal income tax instructions 1040ez You may file a claim for refund for any quarter of your tax year for which you can claim $750 or more. Federal income tax instructions 1040ez This amount is the excise tax on all fuels used for a nontaxable use during that quarter or any prior quarter (for which no other claim has been filed) during the tax year. Federal income tax instructions 1040ez If you cannot claim at least $750 at the end of a quarter, you carry the amount over to the next quarter of your tax year to determine if you can claim at least $750 for that quarter. Federal income tax instructions 1040ez If you cannot claim at least $750 at the end of the fourth quarter of your tax year, you must claim a credit on your income tax return using Form 4136. Federal income tax instructions 1040ez Only one claim can be filed for a quarter. Federal income tax instructions 1040ez You cannot claim a refund for excise tax on gasoline and aviation gasoline used on a farm for farming purposes. Federal income tax instructions 1040ez You must claim a credit on your income tax return for the tax. Federal income tax instructions 1040ez How to file a quarterly claim. Federal income tax instructions 1040ez   File the claim for refund by filling out Schedule 1 (Form 8849) and attaching it to Form 8849. Federal income tax instructions 1040ez Send it to the address shown in the instructions. Federal income tax instructions 1040ez If you file Form 720, you can use its Schedule C for your refund claims. Federal income tax instructions 1040ez See the Instructions for Form 720. Federal income tax instructions 1040ez When to file a quarterly claim. Federal income tax instructions 1040ez   You must file a quarterly claim by the last day of the first quarter following the last quarter included in the claim. Federal income tax instructions 1040ez If you do not file a timely refund claim for the fourth quarter of your tax year, you will have to claim a credit for that amount on your income tax return, as discussed earlier. Federal income tax instructions 1040ez    In most situations, the amount claimed as a credit or refund will be less than the amount deducted as fuel tax expense because the Leaking Underground Storage Tank (LUST) tax of $0. Federal income tax instructions 1040ez 001 per gallon is generally not subject to credit or refund. Federal income tax instructions 1040ez Including the Credit or Refund in Income Include any credit or refund of excise taxes on fuels in your gross income if you claimed the total cost of the fuel (including the excise taxes) as an expense deduction that reduced your income tax liability. Federal income tax instructions 1040ez Which year you include a credit or refund in gross income depends on whether you use the cash or an accrual method of accounting. Federal income tax instructions 1040ez Cash method. Federal income tax instructions 1040ez   If you use the cash method and file a claim for refund, include the refund amount in gross income for the tax year in which you receive the refund. Federal income tax instructions 1040ez If you claim a credit on your income tax return, include the credit amount in gross income for the tax year in which you file Form 4136. Federal income tax instructions 1040ez If you file an amended return and claim a credit, include the credit amount in gross income for the tax year in which you receive the credit. Federal income tax instructions 1040ez Example. Federal income tax instructions 1040ez Sharon Brown, a farmer who uses the cash method, filed her 2012 Form 1040 on March 3, 2013. Federal income tax instructions 1040ez On her Schedule F, she deducted the total cost of gasoline (including $110 of excise taxes) used on the farm for farming purposes. Federal income tax instructions 1040ez Then, on Form 4136, she claimed the $110 as a credit. Federal income tax instructions 1040ez Sharon reports the $110 as other income on line 8b of her 2013 Schedule F. Federal income tax instructions 1040ez Accrual method. Federal income tax instructions 1040ez   If you use an accrual method, include the amount of credit or refund in gross income for the tax year in which you used the fuels. Federal income tax instructions 1040ez It does not matter whether you filed for a quarterly refund or claimed the entire amount as a credit. Federal income tax instructions 1040ez Example. Federal income tax instructions 1040ez Patty Green, a farmer who uses the accrual method, files her 2012 Form 1040 on April 15, 2013. Federal income tax instructions 1040ez On Schedule F, she deducts the total cost of gasoline (including $155 of excise taxes) she used on the farm for farming purposes during 2012. Federal income tax instructions 1040ez On Form 4136, Patty claims the $155 as a credit. Federal income tax instructions 1040ez She reports the $155 as other income on line 8b of her 2012 Schedule F. Federal income tax instructions 1040ez Prev  Up  Next   Home   More Online Publications