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Filing Amended Tax Return 2013

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Filing Amended Tax Return 2013

Filing amended tax return 2013 13. Filing amended tax return 2013   Employment Taxes Table of Contents What's New for 2013 What's New for 2014 Reminders Important Dates for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Farm Employment Family Employees Crew Leaders Social Security and Medicare TaxesReligious exemption. Filing amended tax return 2013 Wage limit. Filing amended tax return 2013 Federal Income Tax WithholdingNew Form W-4 for 2014. Filing amended tax return 2013 Required Notice to Employees About Earned Income Credit (EIC) Reporting and Paying Social Security, Medicare, and Withheld Federal Income TaxesElectronic deposit requirement. Filing amended tax return 2013 Federal Unemployment (FUTA) TaxReporting and Paying FUTA Tax What's New for 2013 Social security and Medicare tax for 2013. Filing amended tax return 2013  The employee tax rate for social security is 6. Filing amended tax return 2013 2%. Filing amended tax return 2013 Previously, the employee tax rate for social security was 4. Filing amended tax return 2013 2%. Filing amended tax return 2013 The employer tax rate for social security remains unchanged at 6. Filing amended tax return 2013 2%. Filing amended tax return 2013 The social security wage base limit is $113,700. Filing amended tax return 2013 The Medicare tax rate is 1. Filing amended tax return 2013 45% each for the employee and employer, unchanged from 2012. Filing amended tax return 2013 There is no wage base limit for Medicare tax. Filing amended tax return 2013 Additional Medicare Tax. Filing amended tax return 2013  In addition to withholding Medicare tax at 1. Filing amended tax return 2013 45%, you must withhold a 0. Filing amended tax return 2013 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Filing amended tax return 2013 You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Filing amended tax return 2013 Additional Medicare Tax is only imposed on the employee. Filing amended tax return 2013 There is no employer share of Additional Medicare Tax. Filing amended tax return 2013 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Filing amended tax return 2013 For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Filing amended tax return 2013 For more information on Additional Medicare Tax, visit IRS. Filing amended tax return 2013 gov and enter “Additional Medicare Tax” in the search box. Filing amended tax return 2013 Leave-based donation programs to aid victims of Hurricane Sandy. Filing amended tax return 2013  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. Filing amended tax return 2013 The donated leave will not be included in the income or wages of the employee. Filing amended tax return 2013 The employer may deduct the cash payments as business expenses or charitable contributions. Filing amended tax return 2013 For more information, see Notice 2012-69, 2012-51 I. Filing amended tax return 2013 R. Filing amended tax return 2013 B. Filing amended tax return 2013 712, available at www. Filing amended tax return 2013 irs. Filing amended tax return 2013 gov/irb/2012-51_IRB/ar09. Filing amended tax return 2013 html. Filing amended tax return 2013 Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. Filing amended tax return 2013  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Filing amended tax return 2013 Previously, the credit was available for unemployed veterans who began work on or after November 22, 2011, and before January 1, 2013. Filing amended tax return 2013 Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Filing amended tax return 2013 For more information, visit IRS. Filing amended tax return 2013 gov and enter “work opportunity credit” in the search box. Filing amended tax return 2013 What's New for 2014 Social security and Medicare tax for 2014. Filing amended tax return 2013  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). Filing amended tax return 2013 The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). Filing amended tax return 2013 There is no limit on the amount of wages subject to Medicare tax. Filing amended tax return 2013 Reminders Additional employment tax information for farmers. Filing amended tax return 2013  See Publication 51 (Circular A) for more detailed guidance on employment taxes. Filing amended tax return 2013 For the latest information about employment tax developments impacting farmers, go to www. Filing amended tax return 2013 irs. Filing amended tax return 2013 gov/pub51. Filing amended tax return 2013 Correcting a previously filed Form 943. Filing amended tax return 2013  If you discover an error on a previously filed Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, make the correction using Form 943-X, Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund. Filing amended tax return 2013 Form 943-X is filed separately from Form 943. Filing amended tax return 2013 For more information on correcting Form 943, see the Instructions for Form 943-X. Filing amended tax return 2013 Federal tax deposits must be made by electronic funds transfer. Filing amended tax return 2013  You must use electronic funds transfer to make all federal tax deposits. Filing amended tax return 2013 Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). Filing amended tax return 2013 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Filing amended tax return 2013 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Filing amended tax return 2013 EFTPS is a free service provided by the Department of Treasury. Filing amended tax return 2013 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Filing amended tax return 2013 For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Filing amended tax return 2013 To get more information about EFTPS or to enroll in EFTPS, visit www. Filing amended tax return 2013 eftps. Filing amended tax return 2013 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Filing amended tax return 2013 Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Filing amended tax return 2013 Important Dates for 2014 You should take the action indicated by the dates listed. Filing amended tax return 2013 See By February 15 and On February 16 for Form W-4, Employee's Withholding Allowance Certificate, information. Filing amended tax return 2013 Due dates for deposits of withheld federal income taxes, social security taxes, and Medicare taxes are not listed here. Filing amended tax return 2013 For these dates, see Publication 509, Tax Calendars (For use in 2014). Filing amended tax return 2013 Note. Filing amended tax return 2013  If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Filing amended tax return 2013 A statewide legal holiday delays a filing or furnishing due date only if the IRS office where you are required to file a return or furnish a form is located in that state. Filing amended tax return 2013 For any due date, you will meet the “file” or “furnish” date requirement if the envelope containing the tax return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Filing amended tax return 2013 S. Filing amended tax return 2013 Postal Service by the due date, or sent by an IRS-designated delivery service by the due date. Filing amended tax return 2013 See Private delivery services in Publication 51 (Circular A). Filing amended tax return 2013 Federal tax deposits can only be made by electronic funds transfer and are governed by legal holidays in the District of Columbia. Filing amended tax return 2013 Statewide holidays no longer apply. Filing amended tax return 2013 For a list of legal holidays that delay the due date of a federal tax deposit, see section 7 of Publication 51 (Circular A). Filing amended tax return 2013 Fiscal year taxpayers. Filing amended tax return 2013  The due dates listed below apply whether you use a calendar or a fiscal year. Filing amended tax return 2013 By January 31. Filing amended tax return 2013   File Form 943 with the IRS. Filing amended tax return 2013 If you deposited all Form 943 taxes when due, you have 10 additional days to file. Filing amended tax return 2013 Furnish each employee with a completed Form W-2, Wage and Tax Statement. Filing amended tax return 2013 Furnish each recipient to whom you paid $600 or more in nonemployee compensation with a completed Form 1099 (for example, Form 1099-MISC). Filing amended tax return 2013 File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Filing amended tax return 2013 If you deposited all the FUTA tax when due, you have 10 additional days to file. Filing amended tax return 2013 File Form 945, Annual Return of Withheld Federal Income Tax, with the IRS to report any nonpayroll income tax withheld during 2013. Filing amended tax return 2013 If you deposited all Form 945 taxes when due, you have 10 additional days to file. Filing amended tax return 2013 By February 15. Filing amended tax return 2013  Ask for a new Form W-4 or Formulario W-4(SP), Certificado de Exención de Retenciones del Empleado, from each employee who claimed exemption from federal income tax withholding last year. Filing amended tax return 2013 On February 16. Filing amended tax return 2013  Any Form W-4 claiming exemption from withholding for the previous year has now expired. Filing amended tax return 2013 Begin withholding for any employee who previously claimed exemption from withholding but has not given you a new Form W-4 for the current year. Filing amended tax return 2013 If the employee does not give you a new Form W-4, withhold taxes based on the last valid Form W-4 you have for the employee that does not claim exemption from withholding or, if one does not exist, as if he or she is single with zero withholding allowances. Filing amended tax return 2013 If the employee furnishes a new Form W-4 claiming exemption from withholding after February 15, you may apply the exemption to future wages, but do not refund taxes withheld while the exempt status was not in place. Filing amended tax return 2013 By February 28. Filing amended tax return 2013   File paper Forms 1099 and 1096. Filing amended tax return 2013 File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U. Filing amended tax return 2013 S. Filing amended tax return 2013 Information Returns, with the IRS. Filing amended tax return 2013 For electronically filed returns, see By March 31 below. Filing amended tax return 2013 File paper Forms W-2 and W-3. Filing amended tax return 2013 File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). Filing amended tax return 2013 For electronically filed returns, see By March 31 below. Filing amended tax return 2013 By March 31. Filing amended tax return 2013   File electronic Forms W-2 and 1099. Filing amended tax return 2013 File electronic Forms W-2 with the SSA and Forms 1099 with the IRS. Filing amended tax return 2013 For more information on reporting Form W-2 information to the SSA electronically, visit the SSA's Employer W-2 Filing Instructions & Information webpage at www. Filing amended tax return 2013 socialsecurity. Filing amended tax return 2013 gov/employer. Filing amended tax return 2013 For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Filing amended tax return 2013 By April 30, July 31, October 31, and January 31. Filing amended tax return 2013   Deposit FUTA taxes. Filing amended tax return 2013 Deposit FUTA tax due if it is more than $500. Filing amended tax return 2013 Before December 1. Filing amended tax return 2013  Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year. Filing amended tax return 2013 Introduction You are generally required to withhold federal income tax from the wages of your employees. Filing amended tax return 2013 You may also be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). Filing amended tax return 2013 You must also withhold Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Filing amended tax return 2013 This chapter includes information about these taxes. Filing amended tax return 2013 You must also pay self-employment tax on your net earnings from farming. Filing amended tax return 2013 See chapter 12 for information on self-employment tax. Filing amended tax return 2013 Topics - This chapter discusses: Farm employment, Family employees, Crew leaders, Social security and Medicare taxes, Additional Medicare Tax withholding, Federal income tax withholding, Reporting and paying social security, Medicare, and withheld federal income taxes, and FUTA tax. Filing amended tax return 2013 Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 51 (Circular A), Agricultural Employer's Tax Guide 926 Household Employer's Tax Guide Form (and Instructions) W-2 Wage and Tax Statement W-4 Employee's Withholding Allowance Certificate W-9 Request for Taxpayer Identification Number and Certification 940 Employer's Annual Federal Unemployment (FUTA) Tax Return 943 Employer's Annual Federal Tax Return for Agricultural Employees 943-X Adjusted Employer's Annual Federal Tax Return for Agricultural Employees or Claim for Refund See chapter 16 for information about getting publications and forms. Filing amended tax return 2013 Farm Employment In general, you are an employer of farmworkers if your employees do any of the following types of work. Filing amended tax return 2013 Raising or harvesting agricultural or horticultural products on a farm, including raising and feeding of livestock. Filing amended tax return 2013 Operating, managing, conserving, improving, or maintaining your farm and its tools and equipment. Filing amended tax return 2013 Services performed in salvaging timber, or clearing land of brush and other debris, left by a hurricane (also known as hurricane labor). Filing amended tax return 2013 Handling, processing, or packaging any agricultural or horticultural commodity if you produced more than half of the commodity (for a group of up to 20 unincorporated operators, all of the commodity). Filing amended tax return 2013 Work related to cotton ginning, turpentine, gum resin products, or the operation and maintenance of irrigation facilities. Filing amended tax return 2013 For more information, see Publication 51 (Circular A). Filing amended tax return 2013 Generally, a worker who performs services for you is your employee if you have the right to control what will be done and how it will be done. Filing amended tax return 2013 This is so even when you give the employee freedom of action. Filing amended tax return 2013 What matters is that you have the right to control the details of how the services are performed. Filing amended tax return 2013 You are responsible for withholding and paying employment taxes for your employees. Filing amended tax return 2013 You are also required to file employment tax returns. Filing amended tax return 2013 These requirements do not apply to amounts that you pay to independent contractors. Filing amended tax return 2013 See Publication 15-A for more information on how to determine whether an individual providing services is an independent contractor or an employee. Filing amended tax return 2013 If you employ a family of workers, each worker subject to your control (not just the head of the family) is an employee. Filing amended tax return 2013 Special rules apply to crew leaders. Filing amended tax return 2013 See Crew Leaders , later. Filing amended tax return 2013 Employer identification number (EIN). Filing amended tax return 2013   If you have employees, you must have an EIN. Filing amended tax return 2013 If you do not have an EIN, you may apply for one online. Filing amended tax return 2013 Go to IRS. Filing amended tax return 2013 gov and click on the Apply for an EIN Online link under Tools. Filing amended tax return 2013 You may also apply for an EIN by calling 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability). Filing amended tax return 2013 The hours of operation for both numbers are Monday–Friday form 7:00 a. Filing amended tax return 2013 m. Filing amended tax return 2013 –7:00 p. Filing amended tax return 2013 m. Filing amended tax return 2013 local time (Alaska and Hawaii follow Pacific time). Filing amended tax return 2013 You can also fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Filing amended tax return 2013 Employee's social security number (SSN). Filing amended tax return 2013   An employee who does not have an SSN should submit Form SS-5, Application for a Social Security Card, to the Social Security Administration (SSA). Filing amended tax return 2013 Form SS-5 is available from any SSA office or by calling 1-800-772-1213 (operates 24 hours per day). Filing amended tax return 2013 It is also available from the SSA's website at www. Filing amended tax return 2013 socialsecurity. Filing amended tax return 2013 gov. Filing amended tax return 2013   The employee must furnish evidence of age, identity, and U. Filing amended tax return 2013 S. Filing amended tax return 2013 citizenship or lawful immigration status permitting employment with the Form SS-5. Filing amended tax return 2013 An employee who is age 18 or older must appear in person with this evidence at an SSA office. Filing amended tax return 2013 Form I-9. Filing amended tax return 2013    You must verify that each new employee is legally eligible to work in the United States. Filing amended tax return 2013 This includes completing the Form I-9, Employment Eligibility Verification. Filing amended tax return 2013 Form I-9 is available from the U. Filing amended tax return 2013 S. Filing amended tax return 2013 Citizenship and Immigration Services (USCIS) offices or by calling the Bureau of Citizenship and Immigration Services Forms Request Line at 1-800-870-3676. Filing amended tax return 2013 Form I-9 is also available from the USCIS website at www. Filing amended tax return 2013 uscis. Filing amended tax return 2013 gov. Filing amended tax return 2013 You can also contact the USCIS at 1-800-375-5283 for more information. Filing amended tax return 2013 New hire reporting. Filing amended tax return 2013   You are required to report any new employee to a designated state new hire registry. Filing amended tax return 2013 Many states accept a copy of Form W-4 with employer information added. Filing amended tax return 2013 Visit the Office of Child Support Enforcement website at www. Filing amended tax return 2013 acf. Filing amended tax return 2013 hhs. Filing amended tax return 2013 gov/programs/cse/newhire for more information. Filing amended tax return 2013 Family Employees Generally, the wages you pay to family members who are your employees are subject to employment taxes. Filing amended tax return 2013 However, certain exemptions may apply to wages paid to your child, spouse, or parent. Filing amended tax return 2013 Exemptions for your child. Filing amended tax return 2013   Payments for the services of your child under age 18 who works for you in your trade or business (including a farm) are not subject to social security and Medicare taxes. Filing amended tax return 2013 However, see Nonexempt services of a child or spouse , later. Filing amended tax return 2013 Payments for the services of your child under age 21 employed by you in other than a trade or business, such as payments for household services in your home, are also not subject to social security or Medicare taxes. Filing amended tax return 2013 Payments for the services of your child under age 21 employed by you, whether or not in your trade or business, are not subject to FUTA tax. Filing amended tax return 2013 Although not subject to social security, Medicare, or FUTA tax, the child's wages still may be subject to federal income tax withholding. Filing amended tax return 2013 Exemptions for your spouse. Filing amended tax return 2013   Payments for the services of your spouse who works for you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes, but not FUTA tax. Filing amended tax return 2013   Payments for the services of your spouse employed by you in other than a trade or business, such as payments for household services in your home, are not subject to social security, Medicare, or FUTA taxes. Filing amended tax return 2013 Nonexempt services of a child or spouse. Filing amended tax return 2013   Payments for the services of your child or spouse are subject to federal income tax withholding as well as social security, Medicare, and FUTA taxes if he or she works for any of the following entities. Filing amended tax return 2013 A corporation, even if it is controlled by you. Filing amended tax return 2013 A partnership, even if you are a partner. Filing amended tax return 2013 This does not apply to wages paid to your child if each partner is a parent of the child. Filing amended tax return 2013 An estate or trust, even if it is the estate of a deceased parent. Filing amended tax return 2013 In these situations, the child or spouse is considered to work for the corporation, partnership, or estate, not you. Filing amended tax return 2013 Exemptions for your parent. Filing amended tax return 2013   Payments for the services of your parent employed by you in your trade or business are subject to federal income tax withholding and social security and Medicare taxes. Filing amended tax return 2013 Social security and Medicare taxes do not apply to wages paid to your parent for services not in your trade or business, but they do apply to payments for household services in your home if both the following conditions are satisfied. Filing amended tax return 2013 You have a child living in your home who is under age 18 or has a physical or mental condition that requires care by an adult for at least 4 continuous weeks in a calendar quarter. Filing amended tax return 2013 You are a widow or widower; or divorced and not remarried; or have a spouse in the home who, because of a physical or mental condition, cannot care for your child for at least 4 continuous weeks in the quarter. Filing amended tax return 2013   Wages you pay to your parent are not subject to FUTA tax, regardless of the type of services provided. Filing amended tax return 2013 Qualified joint venture. Filing amended tax return 2013   If spouses elect to be treated as a qualified joint venture instead of a partnership, either spouse may report and pay the employment taxes due on the wages paid to employees using the EIN of that spouse's sole proprietorship. Filing amended tax return 2013 For more information about qualified joint ventures, see chapter 12. Filing amended tax return 2013 Crew Leaders If farmworkers are provided by a crew leader, the crew leader may be the employer of the workers. Filing amended tax return 2013 Social security and Medicare taxes. Filing amended tax return 2013   For social security and Medicare tax purposes, the crew leader is the employer of the workers if both of the following requirements are met. Filing amended tax return 2013 The crew leader pays (either on his or her own behalf or on behalf of the farmer) the workers for their farm labor. Filing amended tax return 2013 The crew leader has not entered into a written agreement with the farmer under which the crew leader is designated as an employee of the farmer. Filing amended tax return 2013 Federal income tax withholding. Filing amended tax return 2013   If the crew leader is the employer for social security and Medicare tax purposes, the crew leader is the employer for federal income tax withholding purposes. Filing amended tax return 2013 Federal unemployment (FUTA) tax. Filing amended tax return 2013   For FUTA tax purposes, the crew leader is the employer of the workers if, in addition to the earlier requirements, either of the following requirements are met. Filing amended tax return 2013 The crew leader is registered under the Migrant and Seasonal Agricultural Worker Protection Act. Filing amended tax return 2013 Substantially all crew members operate or maintain mechanized equipment provided by the crew leader as part of the service to the farmer. Filing amended tax return 2013   The farmer is the employer of workers furnished by a crew leader in all other situations. Filing amended tax return 2013 In addition, the farmer is the employer of workers furnished by a registered crew leader if the workers are the employees of the farmer under the common-law test. Filing amended tax return 2013 For example, some farmers employ individuals to recruit farmworkers exclusively for them. Filing amended tax return 2013 Although these individuals may be required to register under the Migrant and Seasonal Agricultural Worker Protection Act, the workers are employed directly by the farmer. Filing amended tax return 2013 The farmer is the employer in these cases. Filing amended tax return 2013 For information about common-law employees, see section 1 of Publication 15-A. Filing amended tax return 2013 For information about crew leaders, see the Department of Labor website at www. Filing amended tax return 2013 dol. Filing amended tax return 2013 gov/whd/regs/compliance/whdfs49. Filing amended tax return 2013 htm. Filing amended tax return 2013 Social Security and Medicare Taxes All cash wages you pay to an employee during the year for farmwork are subject to social security and Medicare taxes if you meet either of the following tests. Filing amended tax return 2013 You pay the employee $150 or more in cash wages (count all wages paid on a time, piecework, or other basis) during the year for farmwork (the $150 test). Filing amended tax return 2013 The $150 test applies separately to each farmworker that you employ. Filing amended tax return 2013 If you employ a family of workers, each member is treated separately. Filing amended tax return 2013 Do not count wages paid by other employers. Filing amended tax return 2013 You pay cash and noncash wages of $2,500 or more during the year to all your employees for farmwork (the $2,500 test). Filing amended tax return 2013 If the $2,500 test for the group is not met, the $150 test for an employee still applies. Filing amended tax return 2013 Exceptions. Filing amended tax return 2013   Annual cash wages of less than $150 you pay to a seasonal farmworker are not subject to social security and Medicare taxes, even if you pay $2,500 or more to all your farmworkers. Filing amended tax return 2013 However, these wages count toward the $2,500 test for determining whether other farmworkers' wages are subject to social security and Medicare taxes. Filing amended tax return 2013   A seasonal farmworker is a worker who: Works as a hand-harvest laborer, Is paid piece rates in an operation usually paid on this basis in the region of employment, Commutes daily from his or her permanent home to the farm, and Worked in agriculture less than 13 weeks in the preceding calendar year. Filing amended tax return 2013   See Family Employees , earlier, for certain exemptions from social security and Medicare taxes that apply to your child, spouse, and parent. Filing amended tax return 2013 Religious exemption. Filing amended tax return 2013   An exemption from social security and Medicare taxes is available to members of a recognized religious group or division opposed to public insurance. Filing amended tax return 2013 This exemption is available only if both the employee and the employer are members of the group or division. Filing amended tax return 2013   For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Filing amended tax return 2013 Cash wages. Filing amended tax return 2013   Only cash wages paid to farmworkers are subject to social security and Medicare taxes. Filing amended tax return 2013 Cash wages include checks, money orders, and any kind of money or cash. Filing amended tax return 2013   Only cash wages subject to social security and Medicare taxes are credited to your employees for social security benefit purposes. Filing amended tax return 2013 Payments not subject to these taxes, such as commodity wages, do not contribute to your employees' social security coverage. Filing amended tax return 2013 For information about social security benefits, contact the SSA at 1-800-772-1213 or online at www. Filing amended tax return 2013 socialsecurity. Filing amended tax return 2013 gov. Filing amended tax return 2013 Noncash wages. Filing amended tax return 2013    Noncash wages include food, lodging, clothing, transportation passes, and other goods and services. Filing amended tax return 2013 Noncash wages paid to farmworkers, including commodity wages, are not subject to social security and Medicare taxes. Filing amended tax return 2013 However, they are subject to these taxes if the substance of the transaction is a cash payment. Filing amended tax return 2013 For information on lodging provided as a condition of employment, see Publication 15-B. Filing amended tax return 2013   Report the value of noncash wages in box 1 of Form W-2 together with cash wages. Filing amended tax return 2013 Do not show noncash wages in box 3 or in box 5, (unless the substance of the transaction is a cash payment). Filing amended tax return 2013 Tax rates and social security wage limit. Filing amended tax return 2013   For 2013, the employer and the employee will pay the following taxes. Filing amended tax return 2013 The employer and employee each pay 6. Filing amended tax return 2013 2% of cash wages for social security tax (old-age, survivors, and disability insurance). Filing amended tax return 2013 The employer and employee each pay 1. Filing amended tax return 2013 45% of cash wages for Medicare tax (hospital insurance). Filing amended tax return 2013 The employee pays 0. Filing amended tax return 2013 9% of cash wages in excess of $200,000 for Additional Medicare Tax. Filing amended tax return 2013 Wage limit. Filing amended tax return 2013   The limit on wages subject to the social security tax for 2013 is $113,700. Filing amended tax return 2013 There is no limit on wages subject to the Medicare tax. Filing amended tax return 2013 All covered wages are subject to the Medicare tax. Filing amended tax return 2013 Additionally, all wages in excess of $200,000 are subject to Additional Medicare Tax withholding. Filing amended tax return 2013 Paying employee's share. Filing amended tax return 2013   If you would rather pay the employee's share of social security and Medicare taxes without deducting it from his or her wages, you may do so. Filing amended tax return 2013 It is additional income to the employee. Filing amended tax return 2013 You must include it in box 1 of the employee's Form W-2, but do not count it as social security and Medicare wages (boxes 3 and 5 on Form W-2) or as wages for federal unemployment (FUTA) tax purposes. Filing amended tax return 2013 Example. Filing amended tax return 2013 Jane operates a small family fruit farm. Filing amended tax return 2013 She employs day laborers in the picking season to enable her to timely get her crop to market. Filing amended tax return 2013 She does not deduct the employees' share of social security and Medicare taxes from their pay; instead, she pays it on their behalf. Filing amended tax return 2013 When her accountant, Susan, prepares the employees' Forms W-2, she adds each employee's share of social security and Medicare taxes paid by Jane to the employee's wage income (box 1 of Form W-2), but does not include it in box 3 (social security wages) or box 5 (Medicare wages and tips). Filing amended tax return 2013 For 2013, Jane paid Mary $1,000 during the year. Filing amended tax return 2013 Susan enters $1,076. Filing amended tax return 2013 50 in box 1 of Mary's Form W-2 ($1,000 wages plus $76. Filing amended tax return 2013 50 social security and Medicare taxes paid for Mary). Filing amended tax return 2013 She enters $1,000 in boxes 3 and 5 of Mary's Form W-2. Filing amended tax return 2013 Additional Medicare Tax. Filing amended tax return 2013   In addition to withholding Medicare tax at 1. Filing amended tax return 2013 45%, you must withhold a 0. Filing amended tax return 2013 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Filing amended tax return 2013 You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Filing amended tax return 2013 Additional Medicare Tax is only imposed on the employee. Filing amended tax return 2013 There is no employer share of Additional Medicare Tax. Filing amended tax return 2013 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 threshold. Filing amended tax return 2013   For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E). Filing amended tax return 2013 For more information on Additional Medicare Tax, visit IRS. Filing amended tax return 2013 gov and enter “Additional Medicare Tax” in the search box. Filing amended tax return 2013 Federal Income Tax Withholding If the cash wages you pay to farmworkers are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. Filing amended tax return 2013 Although noncash wages are subject to federal income tax, withhold income tax only if you and the employee agree to do so. Filing amended tax return 2013 The amount to withhold is figured on gross wages without taking out social security and Medicare taxes, union dues, insurance, etc. Filing amended tax return 2013 Form W-4. Filing amended tax return 2013   Generally, the amount of federal income tax you withhold is based on the employee's marital status and withholding allowances claimed on the employee's Form W-4. Filing amended tax return 2013 In general, an employee can claim withholding allowances on Form W-4 equal to the number of exemptions the employee will be entitled to claim on his or her tax return. Filing amended tax return 2013 An employee may also be able to claim a special withholding allowance and allowances for estimated deductions and credits. Filing amended tax return 2013   Do not withhold federal income tax from the wages of an employee who, by filing Form W-4, certifies that he or she had no federal income tax liability last year and anticipates no liability for the current year. Filing amended tax return 2013   You should give each new employee a Form W-4 as soon as you hire the employee. Filing amended tax return 2013 For Spanish-speaking employees, you may use Formulario W-4(SP) which is the Spanish translation of Form W-4. Filing amended tax return 2013 Have the employee complete and return the form to you before the first payday. Filing amended tax return 2013 If the employee does not return the completed form, you must withhold federal income tax as if the employee is single and claims no withholding allowances. Filing amended tax return 2013 New Form W-4 for 2014. Filing amended tax return 2013   You should make the 2014 Form W-4 available to your employees and encourage them to check their income tax withholding for 2014. Filing amended tax return 2013 Those employees who owed a large amount of tax or received a large refund for 2013 may want to submit a new Form W-4. Filing amended tax return 2013 You cannot accept substitute Forms W-4 developed by employees. Filing amended tax return 2013 How to figure withholding. Filing amended tax return 2013   You can use one of several methods to determine the amount to withhold. Filing amended tax return 2013 The methods are described in Publication 51 (Circular A), which contains tables showing the correct amount of federal income tax you should withhold. Filing amended tax return 2013 Publication 51 (Circular A) also contains additional information about federal income tax withholding. Filing amended tax return 2013 Nonemployee compensation. Filing amended tax return 2013   Generally, you do not have to withhold federal income tax on payments for services to individuals who are not your employees. Filing amended tax return 2013 However, you may be required to report these payments on Form 1099-MISC, Miscellaneous Income, and to withhold under the backup withholding rules. Filing amended tax return 2013 For more information, see the Instructions for Form 1099-MISC. Filing amended tax return 2013 Required Notice to Employees About Earned Income Credit (EIC) You must provide notification about EIC to each employee who worked for you at any time during the year and from whom you did not withhold any federal income tax. Filing amended tax return 2013 However, you do not have to notify employees who claim exemption from federal income tax withholding on Form W-4. Filing amended tax return 2013 You meet the notification requirement by giving each employee any of the following. Filing amended tax return 2013 Form W-2, which contains EIC notification on the back of Copy B. Filing amended tax return 2013 A substitute Form W-2 with the exact EIC wording shown on the back of copy B of Form W-2. Filing amended tax return 2013 Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC). Filing amended tax return 2013 Your own written statement with the exact wording of Notice 797. Filing amended tax return 2013 For more information, see Publication 51 (Circular A). Filing amended tax return 2013 Reporting and Paying Social Security, Medicare, and Withheld Federal Income Taxes You must withhold federal income, social security, and Medicare taxes required to be withheld from the salaries and wages of your employees. Filing amended tax return 2013 You are liable for the payment of these taxes to the federal government whether or not you collect them from your employees. Filing amended tax return 2013 If, for example, you withhold less than the correct tax from an employee's wages, you are still liable for the full amount. Filing amended tax return 2013 You must also pay the employer's share of social security and Medicare taxes. Filing amended tax return 2013 There is no employer share of Additional Medicare Tax. Filing amended tax return 2013 Form 943. Filing amended tax return 2013   Report withheld federal income tax, social security tax, and Medicare tax on Form 943. Filing amended tax return 2013 Your 2013 Form 943 is due by January 31, 2014 (or February 10, 2014, if you made deposits on time in full payment of the taxes due for the year). Filing amended tax return 2013 Deposits. Filing amended tax return 2013   Generally, you must deposit both the employer and employee shares of social security and Medicare taxes and federal income tax withheld during the year. Filing amended tax return 2013 However, you may make payments with Form 943 instead of depositing them if you accumulate less than a $2,500 tax liability (“Total taxes after adjustments” line on Form 943) during the year and you pay in full with a timely filed return. Filing amended tax return 2013   For more information on deposit rules, see Publication 51 (Circular A). Filing amended tax return 2013 Electronic deposit requirement. Filing amended tax return 2013   You must use electronic funds transfer to make all federal tax deposits. Filing amended tax return 2013 Generally, electronic funds transfers are made using EFTPS. Filing amended tax return 2013 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Filing amended tax return 2013 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Filing amended tax return 2013 EFTPS is a free service provided by the Department of Treasury. Filing amended tax return 2013 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Filing amended tax return 2013   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Filing amended tax return 2013 To get more information about EFTPS or to enroll in EFTPS, visit www. Filing amended tax return 2013 eftps. Filing amended tax return 2013 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Filing amended tax return 2013 Additional information about EFTPS is also available in Publication 966. Filing amended tax return 2013 Form W-2. Filing amended tax return 2013   By January 31, you must furnish each employee a Form W-2 showing total wages for the previous year and total federal income tax, social security tax, and Medicare tax withheld. Filing amended tax return 2013 However, if an employee stops working for you and requests the form earlier, you must give it to the employee within 30 days of the later of the following dates. Filing amended tax return 2013 The date the employee requests the form. Filing amended tax return 2013 The date you make your final payment of wages to the employee. Filing amended tax return 2013 Compensation paid to H-2A visa holders. Filing amended tax return 2013   Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2. Filing amended tax return 2013 Compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes, and therefore should not be reported as wages subject to social security tax (line 2), Medicare tax (line 4), or Additional Medicare Tax (line 6) on Form 943, and should not be reported as social security wages (box 3) or Medicare wages (box 5) on Form W-2. Filing amended tax return 2013   An employer is not required to withhold federal income tax from compensation it pays to an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. Filing amended tax return 2013 In this case, the worker must give the employer a completed Form W-4. Filing amended tax return 2013 Federal income tax withheld should be reported on Form 943, line 8, and in box 2 of Form W-2. Filing amended tax return 2013   These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer. Filing amended tax return 2013 For the rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945. Filing amended tax return 2013 Trust fund recovery penalty. Filing amended tax return 2013   If you are responsible for withholding, accounting for, depositing, or paying federal withholding taxes and willfully fail to do so, you can be held liable for a penalty equal to the withheld tax not paid. Filing amended tax return 2013 A responsible person can be an officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. Filing amended tax return 2013 A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. Filing amended tax return 2013   Willfully means voluntarily, consciously, and intentionally. Filing amended tax return 2013 Paying other expenses of the business instead of the taxes due is acting willfully. Filing amended tax return 2013 Consequences of treating an employee as an independent contractor. Filing amended tax return 2013   If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. Filing amended tax return 2013 See Publication 15-A for more information. Filing amended tax return 2013 Federal Unemployment (FUTA) Tax You must pay FUTA tax if you meet either of the following tests. Filing amended tax return 2013 You paid cash wages of $20,000 or more to farmworkers in any calendar quarter during the current or preceding calendar year. Filing amended tax return 2013 You employed 10 or more farmworkers for some part of at least 1 day during any 20 or more different calendar weeks during the current or preceding calendar year. Filing amended tax return 2013 These rules do not apply to exempt services of your spouse, your parents, or your children under age 21. Filing amended tax return 2013 See Family Employees , earlier. Filing amended tax return 2013 Alien farmworkers. Filing amended tax return 2013   Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as “H-2A visa workers”) are exempt from FUTA tax. Filing amended tax return 2013 However, include your employment of these workers and the wages you paid them to determine whether you meet either of the above tests. Filing amended tax return 2013 Commodity wages. Filing amended tax return 2013   Payments in kind for farm labor are not cash wages. Filing amended tax return 2013 Do not count them to figure whether you are subject to FUTA tax or to figure how much tax you owe. Filing amended tax return 2013 Tax rate and credit. Filing amended tax return 2013   The gross FUTA tax rate is 6. Filing amended tax return 2013 0% of the first $7,000 cash wages you pay to each employee during the year. Filing amended tax return 2013 However, you are given a credit of up to 5. Filing amended tax return 2013 4% of the first $7,000 cash wages you pay to each employee for the state unemployment tax you pay. Filing amended tax return 2013 If your state tax rate (experience rate) is less than 5. Filing amended tax return 2013 4%, you may still be allowed the full 5. Filing amended tax return 2013 4% credit. Filing amended tax return 2013   If you do not pay the state tax, you cannot take the credit. Filing amended tax return 2013 If you are exempt from state unemployment tax for any reason, the full 6. Filing amended tax return 2013 0% rate applies. Filing amended tax return 2013 See the Instructions for Form 940 for additional information. Filing amended tax return 2013 More information. Filing amended tax return 2013   For more information on FUTA tax, see Publication 51 (Circular A). Filing amended tax return 2013 Reporting and Paying FUTA Tax The FUTA tax is imposed on you as the employer. Filing amended tax return 2013 It must not be collected or deducted from the wages of your employees. Filing amended tax return 2013 Form 940. Filing amended tax return 2013   Report FUTA tax on Form 940. Filing amended tax return 2013 The 2013 Form 940 is due January 31, 2014 (or February 10, 2014, if you timely deposited the full amount of your 2013 FUTA tax). Filing amended tax return 2013 Deposits. Filing amended tax return 2013   If at the end of any calendar quarter you owe, but have not yet deposited, more than $500 in FUTA tax for the year, you must make a deposit by the end of the following month. Filing amended tax return 2013 If the undeposited tax is $500 or less at the end of a quarter, you do not have to deposit it. Filing amended tax return 2013 You can add it to the tax for the next quarter. Filing amended tax return 2013 If the total undeposited tax is more than $500 at the end of the next quarter, a deposit will be required. Filing amended tax return 2013 If the total undeposited tax at the end of the 4th quarter is $500 or less, you can either make a deposit or pay it with your return by the January 31, 2014, due date. Filing amended tax return 2013 Electronic deposit requirement. Filing amended tax return 2013   You must use electronic funds transfer to make all federal tax deposits. Filing amended tax return 2013 Generally, electronic funds transfers are made using EFTPS. Filing amended tax return 2013 If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Filing amended tax return 2013 Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Filing amended tax return 2013 EFTPS is a free service provided by the Department of Treasury. Filing amended tax return 2013 Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Filing amended tax return 2013   For more information on making federal tax deposits, see section 7 of Publication 51 (Circular A). Filing amended tax return 2013 To get more information about EFTPS or to enroll in EFTPS, visit www. Filing amended tax return 2013 eftps. Filing amended tax return 2013 gov or call 1-800-555-4477 or 1-800-733-4829 (TDD). Filing amended tax return 2013 Additional information about EFTPS is also available in Publication 966. Filing amended tax return 2013 Prev  Up  Next   Home   More Online Publications
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Understanding your CP08 Notice

You may qualify for the Additional Child Tax Credit and be entitled to some additional money.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Read your notice carefully.
  • Complete the Additional Child Tax Credit Worksheet. If the worksheet confirms that you have at least one qualifying child, sign and date the worksheet, and complete Form 1040 Schedule 8812.
  • Mail both the worksheet and Form 1040 Schedule 8812 in the envelope provided.

You may want to...


Answers to Common Questions

I lost the return envelope. Where do I mail my worksheet and Form 8812?
Mail the worksheet and form to the address listed on the top left corner of the worksheet. This is the IRS center that handles cases in your region, so it’s important you send it there to avoid potential delays in processing.

What’s the difference between the "Child Tax Credit" and the "Additional Child Tax Credit"? Can I qualify for both?
The Child Tax Credit is for people who have a qualifying child. The maximum amount you can claim is $1000 for each qualifying child. The Additional Child Tax Credit is for individuals who receive less than the full amount of Child Tax Credit. You may qualify for both the Child Tax Credit and the Additional Child Tax Credit.

I sent you my worksheet and form. When will I get the refund?
We’ll review your form and worksheet and make a determination for your credit. If we deny your credit, we’ll send you a letter explaining why, but if you owe no other amount, you should receive your refund in 8 to 10 weeks. If you don't hear from us after 8 to 10 weeks, call our "Where’s My Refund?" toll free line at 1-800-829-1954 to check on the status of your refund.

My son/daughter is turning 18 this year. Can I still get the Additional Child Tax Credit?
No. Your child must be under age 17 at the end of 2009 to qualify for both the Child Tax Credit and the Additional Child Tax Credit.


Tips for next year

If you have dependent children, remember to claim the Additional Child Tax Credit the next time your file your 1040 or 1040A tax return. To do this, complete and attach Form 1040 Schedule 8812 to your return.

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 28-Mar-2014

The Filing Amended Tax Return 2013

Filing amended tax return 2013 Depreciation Table of Contents Introduction Special Depreciation AllowanceQualified Property Election Not To Claim the Allowance Rules for Returns Filed Before June 1, 2002 Passenger Automobiles New York Liberty Zone BenefitsSpecial Liberty Zone Depreciation Allowance Increased Section 179 Deduction Liberty Zone Leasehold Improvement Property If you depreciate business property that you acquired and placed in service after September 10, 2001, new law contains provisions that may affect your depreciation deduction for that property. Filing amended tax return 2013 Publication 946, How To Depreciate Property, contains information on depreciation. Filing amended tax return 2013 However, Publication 946 does not contain the new provisions because it was printed before the law was enacted. Filing amended tax return 2013 The new provisions are in the Supplement to Publication 946, which is reprinted below. Filing amended tax return 2013 Supplement to Publication 946 How To Depreciate Property   Introduction After Publication 946 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. Filing amended tax return 2013 The new law made several changes in the tax rules explained in the publication. Filing amended tax return 2013 Some of the changes apply to property placed in service during 2001. Filing amended tax return 2013 This supplemental publication describes those changes and explains what you should do if you are affected by them. Filing amended tax return 2013 The situations and examples in Publication 946 do not reflect any of the changes made by the Job Creation and Worker Assistance Act of 2002. Filing amended tax return 2013 The new law contains the following provisions. Filing amended tax return 2013 30% depreciation deductions (special depreciation allowance and special New York Liberty Zone (Liberty Zone) depreciation allowance) for the year qualified property is placed in service after September 10, 2001. Filing amended tax return 2013 An increased dollar limit on the section 179 deduction for qualified Liberty Zone property purchased after September 10, 2001. Filing amended tax return 2013 A shorter recovery period for qualified Liberty Zone leasehold improvement property placed in service after September 10, 2001. Filing amended tax return 2013 An increase in the maximum depreciation deduction for 2001 for a qualified passenger automobile placed in service after September 10, 2001. Filing amended tax return 2013 If you believe you qualify for an increased deduction under any of these new rules, you must file the revised 2001 Form 4562 (dated March 2002) for 2001 calendar or fiscal years and 2000 fiscal years ending after September 10, 2001. Filing amended tax return 2013 If you have already filed a tax return, this supplemental publication explains how to claim these benefits and how to elect not to claim the special depreciation allowance or special Liberty Zone depreciation allowance. Filing amended tax return 2013 See Table 2 at the end of the supplement for an overview of the rules that apply if you filed your return before June 1, 2002. Filing amended tax return 2013 Special Depreciation Allowance You can take a special depreciation allowance for qualified property you place in service after September 10, 2001. Filing amended tax return 2013 The allowance is an additional deduction of 30% of the property's depreciable basis. Filing amended tax return 2013 To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. Filing amended tax return 2013 See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Filing amended tax return 2013 The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Filing amended tax return 2013 There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Filing amended tax return 2013 In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. Filing amended tax return 2013 Example 1. Filing amended tax return 2013 On November 1, 2001, you bought and placed in service in your business qualified property that cost $100,000. Filing amended tax return 2013 You did not elect to claim a section 179 deduction. Filing amended tax return 2013 You can deduct 30% of the cost ($30,000) as a special depreciation allowance for 2001. Filing amended tax return 2013 You use the remaining $70,000 of cost to figure your regular depreciation deduction for 2001 and later years. Filing amended tax return 2013 Example 2. Filing amended tax return 2013 The facts are the same as in Example 1, except that you choose to deduct $24,000 of the property's cost as a section 179 deduction. Filing amended tax return 2013 You use the remaining $76,000 of cost to figure your special depreciation allowance of $22,800 ($76,000 × 30%). Filing amended tax return 2013 You use the remaining $53,200 of cost to figure your regular depreciation deduction for 2001 and later years. Filing amended tax return 2013 Qualified Property To qualify for the special depreciation allowance, your property must meet the following requirements. Filing amended tax return 2013 It is new property of one of the following types. Filing amended tax return 2013 Property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Filing amended tax return 2013 See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Filing amended tax return 2013 Water utility property. Filing amended tax return 2013 See 25-year property on page 22 in Publication 946. Filing amended tax return 2013 Computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Filing amended tax return 2013 (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Filing amended tax return 2013 ) Qualified leasehold improvement property (defined later). Filing amended tax return 2013 It meets the following tests (explained later under Tests To Be Met). Filing amended tax return 2013 Acquisition date test. Filing amended tax return 2013 Placed in service date test. Filing amended tax return 2013 Original use test. Filing amended tax return 2013 It is not excepted property (explained later under Excepted Property). Filing amended tax return 2013 Qualified leasehold improvement property. Filing amended tax return 2013    Generally, this is any improvement to an interior part of a building that is nonresidential real property, provided all of the following requirements are met. Filing amended tax return 2013 The improvement is made under or pursuant to a lease by the lessee (or any sublessee) or the lessor of that part of the building. Filing amended tax return 2013 That part of the building is to be occupied exclusively by the lessee (or any sublessee) of that part. Filing amended tax return 2013 The improvement is placed in service more than 3 years after the date the building was first placed in service. Filing amended tax return 2013   However, a qualified leasehold improvement does not include any improvement for which the expenditure is attributable to any of the following. Filing amended tax return 2013 The enlargement of the building. Filing amended tax return 2013 Any elevator or escalator. Filing amended tax return 2013 Any structural component benefiting a common area. Filing amended tax return 2013 The internal structural framework of the building. Filing amended tax return 2013   Generally, a binding commitment to enter into a lease is treated as a lease and the parties to the commitment are treated as the lessor and lessee. Filing amended tax return 2013 However, a binding commitment between related persons is not treated as a lease. Filing amended tax return 2013 Related persons. Filing amended tax return 2013   For this purpose, the following are related persons. Filing amended tax return 2013 Members of an affiliated group. Filing amended tax return 2013 The persons listed in items (1) through (9) under Related persons on page 8 of Publication 946 (except that “80% or more” should be substituted for “more than 10%” each place it appears). Filing amended tax return 2013 An executor and a beneficiary of the same estate. Filing amended tax return 2013 Tests To Be Met To qualify for the special depreciation allowance, the property must meet all of the following tests. Filing amended tax return 2013 Acquisition date test. Filing amended tax return 2013    Generally, you must have acquired the property either: After September 10, 2001, and before September 11, 2004, but only if no written binding contract for the acquisition was in effect before September 11, 2001, or Pursuant to a written binding contract entered into after September 10, 2001, and before September 11, 2004. Filing amended tax return 2013   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001, and before September 11, 2004. Filing amended tax return 2013 Placed in service date test. Filing amended tax return 2013   Generally, the property must be placed in service for use in your trade or business or for the production of income after September 10, 2001, and before January 1, 2005. Filing amended tax return 2013   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. Filing amended tax return 2013 Original use test. Filing amended tax return 2013   The original use of the property must have begun with you after September 10, 2001. Filing amended tax return 2013 “Original use” means the first use to which the property is put, whether or not by you. Filing amended tax return 2013 Additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test. Filing amended tax return 2013 Excepted Property The following property does not qualify for the special depreciation allowance. Filing amended tax return 2013 Property used by any person before September 11, 2001. Filing amended tax return 2013 Property required to be depreciated using ADS. Filing amended tax return 2013 This includes listed property used 50% or less in a qualified business use. Filing amended tax return 2013 Qualified New York Liberty Zone leasehold improvement property (defined next). Filing amended tax return 2013 Qualified New York Liberty Zone leasehold improvement property. Filing amended tax return 2013   This is any qualified leasehold improvement property (as defined earlier) if all of the following requirements are met. Filing amended tax return 2013 The improvement is to a building located in the New York Liberty Zone (defined later under New York Liberty Zone Benefits). Filing amended tax return 2013 The improvement is placed in service after September 10, 2001, and before January 1, 2007. Filing amended tax return 2013 No written binding contract for the improvement was in effect before September 11, 2001. Filing amended tax return 2013 Election Not To Claim the Allowance You can elect not to claim the special depreciation allowance for qualified property. Filing amended tax return 2013 If you make this election for any property, it applies to all property in the same property class placed in service during the year. Filing amended tax return 2013 To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. Filing amended tax return 2013 When to make election. Filing amended tax return 2013   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Filing amended tax return 2013   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Filing amended tax return 2013 Attach the election statement to the amended return. Filing amended tax return 2013 At the top of the election statement, write “Filed pursuant to section 301. Filing amended tax return 2013 9100–2. Filing amended tax return 2013 ” Revoking an election. Filing amended tax return 2013   Once you elect not to deduct the special depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Filing amended tax return 2013 A request to revoke the election is subject to a user fee. Filing amended tax return 2013 Rules for Returns Filed Before June 1, 2002 The following rules apply if you placed qualified property in service after September 10, 2001, and filed your return before June 1, 2002. Filing amended tax return 2013 The rules apply to returns for the following years. Filing amended tax return 2013 2000 fiscal years that end after September 10, 2001. Filing amended tax return 2013 2001 calendar and fiscal years. Filing amended tax return 2013 Claiming the allowance. Filing amended tax return 2013   If you did not claim the allowance on your return and did not make the election not to claim the allowance, you can do either of the following to claim the allowance. Filing amended tax return 2013 File an amended return by the due date (not including extensions) of your return for the year following the year the property was placed in service. Filing amended tax return 2013 Write “Filed Pursuant to Rev. Filing amended tax return 2013 Proc. Filing amended tax return 2013 2002–33” at the top of the amended return. Filing amended tax return 2013 File Form 3115, Application for Change in Accounting Method, with your return for the year following the year the property was placed in service. Filing amended tax return 2013 Your return must be filed by the due date (including extensions). Filing amended tax return 2013 Write “Automatic Change Filed Under Rev. Filing amended tax return 2013 Proc. Filing amended tax return 2013 2002–33” on the appropriate line of Form 3115. Filing amended tax return 2013 You must also file a copy (with signature) of the completed Form 3115 with the IRS National Office no later than when you file the original with your return. Filing amended tax return 2013 For more information about filing Form 3115, including the address to send it to, see Revenue Procedure 2002–9, Revenue Procedure 2002–19, and Revenue Procedure 2002–33. Filing amended tax return 2013 Example 1. Filing amended tax return 2013 You are an individual and you use the calendar year. Filing amended tax return 2013 You placed qualified property in service for your business in December 2001. Filing amended tax return 2013 You filed your 2001 income tax return before April 15, 2002. Filing amended tax return 2013 You did not claim the special depreciation allowance for the property and did not make the election not to claim the allowance. Filing amended tax return 2013 You can claim the special allowance by filing an amended 2001 return by April 15, 2003, with “Filed Pursuant to Rev. Filing amended tax return 2013 Proc. Filing amended tax return 2013 2002–33” at the top of the amended return. Filing amended tax return 2013 You must file an amended return by April 15, 2003, even if you get an extension of time to file your 2002 tax return. Filing amended tax return 2013 Example 2. Filing amended tax return 2013 The facts concerning your 2001 return are the same as in Example 1. Filing amended tax return 2013 In addition, you got an automatic 4-month extension of time (to August 15, 2003) to file your 2002 return. Filing amended tax return 2013 You can claim the special allowance by filing a Form 3115 (with “Filed Pursuant to Rev. Filing amended tax return 2013 Proc. Filing amended tax return 2013 2002–33” on the appropriate line) with your 2002 return by August 15, 2003. Filing amended tax return 2013 You must also file a copy of this Form 3115 with the IRS National Office no later than when you file your 2002 return. Filing amended tax return 2013 Electing not to claim the allowance. Filing amended tax return 2013   Generally, you have elected not to claim the special depreciation allowance for a class of property if you: Filed your return timely (including extensions) for the year you placed qualified property in service and indicated on a statement with the return that you are not claiming the allowance, or Filed your return timely and filed an amended return within 6 months of the due date of the original return (not including extensions) and indicated on a statement with the amended return that you are not claiming the allowance. Filing amended tax return 2013 The statement must indicate that you are not deducting the special depreciation allowance and the class of property to which the election applies. Filing amended tax return 2013 The statement can be either attached to or written on the return. Filing amended tax return 2013 You can, for example, write “not deducting 30%” on Form 4562. Filing amended tax return 2013 Deemed election. Filing amended tax return 2013   If you have not followed either of the procedures described above to elect not to claim the allowance, you may still be treated as making the election. Filing amended tax return 2013 You will be treated as making the election if you meet both of the following conditions. Filing amended tax return 2013 You filed your return for the year you placed the property in service and claimed depreciation, but not the special allowance, for any class of property. Filing amended tax return 2013 You do not file an amended return or a Form 3115 within the time prescribed for claiming the special allowance. Filing amended tax return 2013 See Claiming the allowance, earlier. Filing amended tax return 2013 Passenger Automobiles The limit on your depreciation deduction (including any section 179 deduction) for any passenger automobile that is qualified property (defined earlier) placed in service after September 10, 2001, and for which you claim the special depreciation allowance is increased. Filing amended tax return 2013 Generally, the limit is increased from $3,060 to $7,660. Filing amended tax return 2013 However, if the automobile is a qualified electric car, the limit is increased from $9,280 to $23,080 ($22,980 if placed in service in 2002). Filing amended tax return 2013 Table 1 shows the maximum deduction amounts for 2001. Filing amended tax return 2013 Table 1. Filing amended tax return 2013 Maximum Deduction for 2001 Qualified Vehicle Placed in Service Before Sept. Filing amended tax return 2013 11 Placed in Service After Sept. Filing amended tax return 2013 10 Passenger automobile $3,060 $7,660 Electric car 9,280 23,080 1 1$22,980 if you place an electric car in service in 2002. Filing amended tax return 2013 Election not to claim the allowance. Filing amended tax return 2013   The increased maximum depreciation deduction does not apply if you elected not to claim the special depreciation allowance as explained earlier under Election Not To Claim the Allowance and Rules for Returns Filed Before June 1, 2002. Filing amended tax return 2013 New York Liberty Zone Benefits Several benefits are available for property you place in service in the New York Liberty Zone (Liberty Zone). Filing amended tax return 2013 They include a special depreciation allowance for the year you place the property in service, an increased section 179 deduction, and the classification of certain leasehold improvement property as 5-year property. Filing amended tax return 2013 Area defined. Filing amended tax return 2013   The New York Liberty Zone is the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York. Filing amended tax return 2013 Special Liberty Zone Depreciation Allowance You can take a special depreciation allowance for qualified Liberty Zone property you place in service after September 10, 2001. Filing amended tax return 2013 The allowance is an additional deduction of 30% of the property's depreciable basis. Filing amended tax return 2013 To figure the depreciable basis, you must first multiply the property's cost or other basis by the percentage of business/investment use and then reduce that amount by any section 179 deduction and certain other deductions and credits for the property. Filing amended tax return 2013 See What Is the Basis for Depreciation? on page 23 in Publication 946 for more information on figuring depreciable basis. Filing amended tax return 2013 The allowance is deductible for both regular tax and alternative minimum tax (AMT) purposes. Filing amended tax return 2013 There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Filing amended tax return 2013 In the year you claim the allowance (generally the year you place the property in service), you must reduce the depreciable basis of the property by the allowance before figuring your regular depreciation deduction. Filing amended tax return 2013 You cannot claim the special Liberty Zone depreciation allowance for property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. Filing amended tax return 2013 Qualified property is eligible for only one special depreciation allowance. Filing amended tax return 2013 Example 1. Filing amended tax return 2013 On November 1, 2001, you bought and placed in service in your business, which is in the Liberty Zone, qualified Liberty Zone property that cost $200,000. Filing amended tax return 2013 You did not elect to claim a section 179 deduction. Filing amended tax return 2013 You can deduct 30% of the cost ($60,000) as a special Liberty Zone depreciation allowance for 2001. Filing amended tax return 2013 You use the remaining $140,000 of cost to figure your regular depreciation deduction for 2001 and later years. Filing amended tax return 2013 Example 2. Filing amended tax return 2013 The facts are the same as in Example 1, except that you choose to deduct $59,000 of the property's cost as a section 179 deduction. Filing amended tax return 2013 (See Increased Section 179 Deduction, later, for information concerning how this section 179 deduction amount is figured). Filing amended tax return 2013 You use the remaining $141,000 of cost to figure your special Liberty Zone depreciation allowance of $42,300 ($141,000 × 30%). Filing amended tax return 2013 You use the remaining $98,700 of cost to figure your regular depreciation deduction for 2001 and later years. Filing amended tax return 2013 Qualified Liberty Zone Property For a 2001 calendar or fiscal year and a 2000 fiscal year that ends after September 10, 2001, property qualifies for the special Liberty Zone depreciation allowance if it meets the following requirements. Filing amended tax return 2013 It is one of the following types of property. Filing amended tax return 2013 Used property depreciated under MACRS with a recovery period of 20 years or less. Filing amended tax return 2013 See Can You Use MACRS To Depreciate Your Property and Which Recovery Period Applies? on pages 7 and 23, respectively, in Publication 946. Filing amended tax return 2013 Used water utility property. Filing amended tax return 2013 See 25-year property on page 22 in Publication 946. Filing amended tax return 2013 Used computer software that is not a section 197 intangible as described in Computer software on page 5 in Publication 946. Filing amended tax return 2013 (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Filing amended tax return 2013 ) Certain nonresidential real property and residential rental property (defined later). Filing amended tax return 2013 It meets the following tests (explained later under Tests to be met). Filing amended tax return 2013 Acquisition date test. Filing amended tax return 2013 Placed in service date test. Filing amended tax return 2013 Substantial use test. Filing amended tax return 2013 Original use test. Filing amended tax return 2013 It is not excepted property (explained later under Excepted property). Filing amended tax return 2013 Nonresidential real property and residential rental property. Filing amended tax return 2013   This property is qualifying property only to the extent it rehabilitates real property damaged, or replaces real property destroyed or condemned, as a result of the terrorist attack of September 11, 2001. Filing amended tax return 2013 Property is treated as replacing destroyed or condemned property if, as part of an integrated plan, such property replaces real property included in a continuous area that includes real property destroyed or condemned. Filing amended tax return 2013   For these purposes, real property is considered destroyed (or condemned) only if an entire building or structure was destroyed (or condemned) as a result of the terrorist attack. Filing amended tax return 2013 Otherwise, the property is considered damaged real property. Filing amended tax return 2013 For example, if certain structural components of a building (such as walls, floors, or plumbing fixtures) are damaged or destroyed as a result of the terrorist attack, but the building is not destroyed (or condemned), then only costs related to replacing the damaged or destroyed structural components qualify for the special Liberty Zone depreciation allowance. Filing amended tax return 2013 Tests to be met. Filing amended tax return 2013   To qualify for the special Liberty Zone depreciation allowance, your property must meet all of the following tests. Filing amended tax return 2013 Acquisition date test. Filing amended tax return 2013   You must have acquired the property by purchase after September 10, 2001, and there must not have been a binding written contract for the acquisition in effect before September 11, 2001. Filing amended tax return 2013   For information on the acquisition of property by purchase, see Property Acquired by Purchase on page 15 of Publication 946. Filing amended tax return 2013   Property you manufacture, construct, or produce for your own use meets this test if you began the manufacture, construction, or production of the property after September 10, 2001. Filing amended tax return 2013 Placed in service date test. Filing amended tax return 2013   Generally, the property must be placed in service for use in your trade or business or for the production of income before January 1, 2007 (January 1, 2010, in the case of qualifying nonresidential real property and residential rental property). Filing amended tax return 2013   If you sold property you placed in service after September 10, 2001, and you leased it back within 3 months after the property was originally placed in service, the property is treated as placed in service no earlier than the date it is used under the leaseback. Filing amended tax return 2013 Substantial use test. Filing amended tax return 2013   Substantially all use of the property must be in the Liberty Zone and in the active conduct of your trade or business in the Liberty Zone. Filing amended tax return 2013 Original use test. Filing amended tax return 2013   The original use of the property in the Liberty Zone must have begun with you after September 10, 2001. Filing amended tax return 2013   Used property can be qualified Liberty Zone property if it has not previously been used within the Liberty Zone. Filing amended tax return 2013 Also, additional capital expenditures you incurred after September 10, 2001, to recondition or rebuild your property meet the original use test if the original use of the property in the Liberty Zone began with you. Filing amended tax return 2013 Excepted property. Filing amended tax return 2013   The following property does not qualify for the special Liberty Zone depreciation allowance. Filing amended tax return 2013 Property eligible for the special depreciation allowance explained earlier in Qualified Property under Special Depreciation Allowance. Filing amended tax return 2013 Property required to be depreciated using ADS. Filing amended tax return 2013 This includes listed property used 50% or less in a qualified business use. Filing amended tax return 2013 Qualified New York Liberty Zone leasehold improvement property (defined earlier in Excepted Property under Special Depreciation Allowance). Filing amended tax return 2013 Example. Filing amended tax return 2013 In December 2001, you bought and placed in service in your business in the Liberty Zone the following property. Filing amended tax return 2013 New office furniture with a MACRS recovery period of 7 years. Filing amended tax return 2013 A used computer with a MACRS recovery period of 5 years. Filing amended tax return 2013 The computer had not previously been used within the Liberty Zone. Filing amended tax return 2013 Because the office furniture is new property, it qualifies for the special depreciation allowance, but not the special Liberty Zone depreciation allowance. Filing amended tax return 2013 Because the computer is used property that had not previously been used in the Liberty Zone, it qualifies for the special Liberty Zone depreciation allowance, but not the special depreciation allowance. Filing amended tax return 2013 Election Not To Claim the Liberty Zone Allowance You can elect not to claim the special Liberty Zone depreciation allowance for qualified property. Filing amended tax return 2013 If you make this election for any property, it applies to all property in the same property class placed in service during the year. Filing amended tax return 2013 To make this election, attach a statement to your return indicating you elect not to claim the allowance and the class of property for which you are making the election. Filing amended tax return 2013 When to make the election. Filing amended tax return 2013   Generally, you must make the election on a timely filed tax return (including extensions) for the year in which you place the property in service. Filing amended tax return 2013   However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the original return (not including extensions). Filing amended tax return 2013 Attach the election statement to the amended return. Filing amended tax return 2013 At the top of the election statement, write “Filed pursuant to section 301. Filing amended tax return 2013 9100–2. Filing amended tax return 2013 ” Revoking an election. Filing amended tax return 2013   Once you elect not to deduct the special Liberty Zone depreciation allowance for a class of property, you cannot revoke the election without IRS consent. Filing amended tax return 2013 A request to revoke the election is subject to a user fee. Filing amended tax return 2013 Returns filed before June 1, 2002. Filing amended tax return 2013   The rules that apply to the special depreciation allowance discussed earlier in Rules for Returns Filed Before June 1, 2002 under Special Depreciation Allowance also apply to the special Liberty Zone depreciation allowance. Filing amended tax return 2013 Increased Section 179 Deduction Under section 179 of the Internal Revenue Code, you can choose to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. Filing amended tax return 2013 For tax years beginning in 2000, that limit was $20,000. Filing amended tax return 2013 For tax years beginning in 2001 and 2002, that limit is generally $24,000. Filing amended tax return 2013 If the cost of qualifying section 179 property placed in service in a year is over $200,000, you must reduce the dollar limit (but not below zero) by the amount of the cost over $200,000. Filing amended tax return 2013 Increased Dollar Limit The dollar limit on the section 179 deduction is increased for certain property placed in service in the Liberty Zone. Filing amended tax return 2013 The increase is the smaller of the following amounts. Filing amended tax return 2013 $35,000. Filing amended tax return 2013 The cost of section 179 property that is qualified Liberty Zone property placed in service during the year. Filing amended tax return 2013 If you use the revised 2001 Form 4562 (dated March 2002) for a tax year beginning in 2000, you must reduce the section 179 dollar limit to $20,000 before adding the additional amount for qualified property. Filing amended tax return 2013 Qualified property. Filing amended tax return 2013   To qualify for the increased section 179 deduction, your property must be section 179 property that is either: Qualified Liberty Zone property, or Property that would be qualified Liberty Zone property except that it is eligible for the special depreciation allowance. Filing amended tax return 2013 Qualified Liberty Zone property is explained earlier in Qualified Liberty Zone Property under Special Liberty Zone Depreciation Allowance. Filing amended tax return 2013 Property eligible for the special depreciation allowance is explained earlier in Qualified Property under Special Depreciation Allowance. Filing amended tax return 2013 For information on the requirements that must be met for property to qualify for the section 179 deduction, see What Property Qualifies? on page 14 of Publication 946. Filing amended tax return 2013 Example 1. Filing amended tax return 2013 In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $25,000. Filing amended tax return 2013 Because this cost is less than $35,000, the dollar limit on the section 179 deduction is increased by $25,000 to $49,000 ($24,000 + $25,000). Filing amended tax return 2013 Example 2. Filing amended tax return 2013 In 2002, you place in service in your business, which is in the Liberty Zone, qualified property (defined earlier) costing $75,000. Filing amended tax return 2013 Because $35,000 is less than the cost of the property you place in service, the dollar limit on the section 179 deduction you can claim is increased by $35,000 to $59,000 ($24,000 + $35,000). Filing amended tax return 2013 Reduced Dollar Limit Generally, you must reduce the dollar limit for a year by the cost of qualifying section 179 property placed in service in the year that is more than $200,000. Filing amended tax return 2013 However, if the cost of your Liberty Zone property exceeds $200,000, you take into account only 50% (instead of 100%) of the cost of qualified property placed in service in a year. Filing amended tax return 2013 Example. Filing amended tax return 2013 In 2002, you place in service in your business, which is in the Liberty Zone, qualified property costing $460,000. Filing amended tax return 2013 Your increased dollar limit is $59,000 ($35,000 + $24,000). Filing amended tax return 2013 Because 50% of the cost of the property you place in service ($230,000) is $30,000 more than $200,000, you must reduce your $59,000 dollar limit to $29,000 ($59,000 - $30,000). Filing amended tax return 2013 Recapture Rules Rules similar to those explained on page 20 of Publication 946 under When Must You Recapture the Deduction? apply with respect to any qualified property you stop using in the Liberty Zone. Filing amended tax return 2013 Returns Filed Before June 1, 2002 If you filed a return before June 1, 2002, and did not deduct the increased section 179 amount for qualified property placed in service after September 10, 2001, you can deduct the increased amount by filing an amended return by the due date (not including extensions) of the return for the year after the year the property was placed in service. Filing amended tax return 2013 This rule applies to returns for the following years. Filing amended tax return 2013 2000 fiscal years that end after September 10, 2001. Filing amended tax return 2013 2001 calendar and fiscal years. Filing amended tax return 2013 On the amended return, write “Filed Pursuant to Rev. Filing amended tax return 2013 Proc. Filing amended tax return 2013 2002–33. Filing amended tax return 2013 ” Liberty Zone Leasehold Improvement Property Qualified Liberty Zone leasehold improvement property (described earlier in Qualified Property under Special Depreciation Allowance) is 5-year property. Filing amended tax return 2013 This means that it is depreciated over a recovery period of 5 years. Filing amended tax return 2013 For information about recovery periods, see Which Recovery Period Applies? on page 23 of Publication 946. Filing amended tax return 2013 The straight-line method must be used with respect to qualified Liberty Zone leasehold improvement property. Filing amended tax return 2013 Under ADS, the recovery period for qualified Liberty Zone leasehold improvement property is 9 years. Filing amended tax return 2013 Returns Filed Before June 1, 2002 If you filed either of the following returns before June 1, 2002, and did not depreciate qualified Liberty Zone leasehold improvement property placed in service during the tax year as 5-year property using the straight line method, you should file an amended return before you file your return for the year after the year the property was placed in service. Filing amended tax return 2013 Your 2000 fiscal year return (for a 2000 fiscal year that ends after September 10, 2001). Filing amended tax return 2013 Your 2001 calendar or fiscal year return. Filing amended tax return 2013 On the amended return, write “Filed Pursuant to Rev. Filing amended tax return 2013 Proc. Filing amended tax return 2013 2002–33. Filing amended tax return 2013 ” Table 2. Filing amended tax return 2013 Rules for Returns Filed Before June 1, 2002 Note:This chart highlights the rules for returns affected by the Job Creation and Worker Assistance Act of 2002 that were filed before June 1, 2002, without accounting for any of the new benefits under the law. Filing amended tax return 2013 See the text for definitions and examples. Filing amended tax return 2013 Do not rely on this chart alone. Filing amended tax return 2013 IF you want to. Filing amended tax return 2013 . Filing amended tax return 2013 . Filing amended tax return 2013 THEN you. Filing amended tax return 2013 . Filing amended tax return 2013 . Filing amended tax return 2013 BY. Filing amended tax return 2013 . Filing amended tax return 2013 . Filing amended tax return 2013 claim the special depreciation allowance or special Liberty Zone depreciation allowance • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service, or • must file Form 3115, Application for Change in Accounting Method, with your return for the year after the year the property was placed in service • the due date (including extensions) of your return for the year after the year the property was placed in service, and • must file a copy of your completed Form 3115 with the IRS National Office • the date you file the original Form 3115 with your return for the year after the year the property was placed in service. Filing amended tax return 2013 elect not to claim the special depreciation allowance or the special Liberty Zone depreciation allowance 1 • must have filed your return timely for the year the property was placed in service, and   • must file an amended return stating you are not claiming the allowance • the date that is 6 months after the due date of the original return (not including extensions). Filing amended tax return 2013 deduct the increased section 179 amount • must file an amended return • the due date (not including extensions) of your return for the year after the year the property was placed in service. Filing amended tax return 2013 use a 5-year recovery period for depreciating qualified Liberty Zone leasehold improvement property • should file an amended return • the date you file your return for the year after the year the property was placed in service. Filing amended tax return 2013 1See also Deemed election under Rules for Returns Filed Before June 1, 2002, earlier. 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